diff --git a/README.md b/README.md
index 1c2131e..59eb943 100644
--- a/README.md
+++ b/README.md
@@ -41,6 +41,23 @@ $ make tf.apply
 $ make tf.destroy
 ```
 
+### Testing locally
+
+**Note**: This project uses a mock server, via [Prism](https://stoplight.io/open-source/prism), in place of circleci.com.
+Refer to the [Docker Compose file](docker-compose.yml) for details.
+
+```console
+
+# start mock server
+$ docker-compose up -d
+
+# wait for Nginx and Prism to be ready
+
+# Run acceptance tests
+$ make testacc
+```
+
+
 ## Docs
 
 ```console
diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 0000000..4443a6c
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,25 @@
+version: "3"
+
+services:
+  # fake CircleCI server
+  prism:
+    image: stoplight/prism:4
+    command: 'mock -h 0.0.0.0 https://raw.githubusercontent.com/kelvintaywl/circleci-webhook-go-sdk/main/openapi.yaml'
+    networks:
+      - prism
+    expose:
+      - "4010"
+  nginx:
+    image: nginx
+    networks:
+      - prism
+    ports:
+      - "8080:80"
+    depends_on:
+      - prism
+    volumes:
+      # Override default config to act as TLS proxy
+      - ./nginx/testacc.conf:/etc/nginx/conf.d/default.conf:ro
+
+networks:
+  prism:
diff --git a/internal/provider/provider_test.go b/internal/provider/provider_test.go
index e7a01cb..a8f3ac7 100644
--- a/internal/provider/provider_test.go
+++ b/internal/provider/provider_test.go
@@ -13,7 +13,9 @@ const (
 	providerConfig = `
 provider "circleci" {
   api_token    = "fooBar"
-  hostname     = "circleci.example.com"
+  // see docker-compose.yml
+  hostname     = "localhost:8080"
+  https        = false
 }
 `
 )
diff --git a/internal/provider/webhooks_data_source_test.go b/internal/provider/webhooks_data_source_test.go
new file mode 100644
index 0000000..5c5cff0
--- /dev/null
+++ b/internal/provider/webhooks_data_source_test.go
@@ -0,0 +1,36 @@
+package provider
+
+import (
+	"testing"
+
+	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/resource"
+)
+
+func TestAccWebhooksDataSource(t *testing.T) {
+	resource.Test(t, resource.TestCase{
+		ProtoV6ProviderFactories: testAccProtoV6ProviderFactories,
+		Steps: []resource.TestStep{
+			// Read testing
+			{
+				// github/kelvintaywl-cci/tf-provider-acceptance-test-dummy
+				Config: providerConfig + `
+data "circleci_webhooks" "test" {
+  project_id = "c124cca6-d03e-4733-b84d-32b02347b78c"
+}`,
+				Check: resource.ComposeAggregateTestCheckFunc(
+					// top level
+					resource.TestCheckResourceAttr("data.circleci_webhooks.test", "id", "c124cca6-d03e-4733-b84d-32b02347b78c"),
+					resource.TestCheckResourceAttr("data.circleci_webhooks.test", "webhooks.#", "1"),
+					// webhook
+					resource.TestCheckResourceAttr("data.circleci_webhooks.test", "webhooks.0.id", "string"),
+					resource.TestCheckResourceAttr("data.circleci_webhooks.test", "webhooks.0.name", "string"),
+					resource.TestCheckResourceAttr("data.circleci_webhooks.test", "webhooks.0.verify_tls", "true"),
+					resource.TestCheckResourceAttr("data.circleci_webhooks.test", "webhooks.0.signing_secret", "string"),
+					resource.TestCheckResourceAttr("data.circleci_webhooks.test", "webhooks.0.scope.id", "string"),
+					resource.TestCheckResourceAttr("data.circleci_webhooks.test", "webhooks.0.scope.type", "project"),
+					resource.TestCheckResourceAttr("data.circleci_webhooks.test", "webhooks.0.events.0", "workflow-completed"),
+				),
+			},
+		},
+	})
+}
diff --git a/nginx/testacc.conf b/nginx/testacc.conf
new file mode 100644
index 0000000..7eac97c
--- /dev/null
+++ b/nginx/testacc.conf
@@ -0,0 +1,7 @@
+server {
+  listen  80;
+
+  location /api/v2/ {
+    proxy_pass http://prism:4010/;
+  }
+}