diff --git a/.env_example b/.env_example
deleted file mode 100644
index 24ebff01f..000000000
--- a/.env_example
+++ /dev/null
@@ -1,2 +0,0 @@
-MYSTERIUM_API_URL=http://127.0.0.1:8001/v1
-NATS_SERVER_IP=127.0.0.1
diff --git a/.travis.yml b/.travis.yml
index 837662acd..a6427f1aa 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -18,11 +18,6 @@ cache:
   directories:
     - "$CACHE_ROOT_DIR"
 
-before_install:
-  - rm -f .env
-  - echo "MYSTERIUM_API_URL=$MYSTERIUM_API_URL" >> .env
-  - echo "NATS_SERVER_IP=$NATS_SERVER_IP" >> .env
-
 install:
   - source bin/travis_scripts/setup_tools_dir.sh $BUILD_TOOLS_PATH
   - source bin/travis_scripts/ensure_glide.sh $BUILD_TOOLS_PATH "v0.13.1"
diff --git a/bin/client_build b/bin/client_build
index 23ee79a12..5ddcbad85 100755
--- a/bin/client_build
+++ b/bin/client_build
@@ -17,7 +17,6 @@
 #> readelf -d build/client/mysterium_client
 
 source bin/helpers/functions.sh
-source bin/helpers/load_environment.sh
 
 export GOOS=${GOOS:=`go env GOHOSTOS`}
 export GOARCH=${GOARCH:=`go env GOHOSTARCH`}
diff --git a/bin/client_run b/bin/client_run
index 1a3e0c57b..ac1d139dc 100755
--- a/bin/client_run
+++ b/bin/client_run
@@ -1,9 +1,7 @@
 #!/bin/bash
 
-source bin/helpers/load_run_environment.sh
-
 sudo ./build/client/mysterium_client \
    --config-dir=bin/client_package/config \
    --runtime-dir=build/client \
-   $DISCOVERY_OPTION\
+   --localnet \
    $@
diff --git a/bin/helpers/functions.sh b/bin/helpers/functions.sh
index 2eb6867f5..20fa4461b 100644
--- a/bin/helpers/functions.sh
+++ b/bin/helpers/functions.sh
@@ -2,8 +2,6 @@
 
 # Map environment variables to flags for Golang linker's -ldflags usage
 function get_linker_ldflags {
-    echo -n "-X 'github.com/mysterium/node/cmd.MysteriumAPIURL=${MYSTERIUM_API_URL}' "
-    echo -n "-X 'github.com/mysterium/node/cmd/commands/server.natsServerIP=${NATS_SERVER_IP}' "
     [ -n "$BRANCH" ] && echo -n "-X 'github.com/mysterium/node/version.BuildBranch=${BRANCH}' "
     [ -n "$COMMIT" ] && echo -n "-X 'github.com/mysterium/node/version.BuildCommit=${COMMIT}' "
     [ -n "$BUILD_NUMBER" ] && echo -n "-X 'github.com/mysterium/node/version.BuildNumber=${BUILD_NUMBER}' "
diff --git a/bin/helpers/load_environment.sh b/bin/helpers/load_environment.sh
deleted file mode 100644
index 8963c236c..000000000
--- a/bin/helpers/load_environment.sh
+++ /dev/null
@@ -1,7 +0,0 @@
-#!/bin/bash
-
-if [ ! -f .env ]; then
-    printf "\e[0;31m%s\e[0m\n" "Environment file must be set!"
-    exit 1
-fi
-source .env
diff --git a/bin/helpers/load_run_environment.sh b/bin/helpers/load_run_environment.sh
deleted file mode 100644
index 2f47e20fc..000000000
--- a/bin/helpers/load_run_environment.sh
+++ /dev/null
@@ -1,8 +0,0 @@
-#!/bin/bash
-
-if [ -f .env ]; then
-   source .env
-
-   [ -n "$MYSTERIUM_API_URL" ] && DISCOVERY_OPTION="--discovery-address=$MYSTERIUM_API_URL"
-   [ -n "$NATS_SERVER_IP" ] && BROKER_OPTION="--broker-address=$NATS_SERVER_IP"
-fi
diff --git a/bin/localnet/docker-compose.yml b/bin/localnet/docker-compose.yml
new file mode 100644
index 000000000..703baa97b
--- /dev/null
+++ b/bin/localnet/docker-compose.yml
@@ -0,0 +1,33 @@
+version: '3'
+services:
+
+  broker:
+    image: nats
+    expose:
+      - 4222
+      - 8222
+
+  #infrastructure - centralized api and db
+  db:
+    image: percona:5.7
+    restart: always
+    expose:
+      - 3306
+    environment:
+      MYSQL_ROOT_PASSWORD: root
+      MYSQL_DATABASE: myst_api
+      MYSQL_USER: myst_api
+      MYSQL_PASSWORD: myst_api
+
+  discovery:
+    image: mysteriumnetwork/mysterium-api:0.1.12
+    expose:
+    - 80
+    environment:
+      APP_PORT: 80
+      DB_HOST: db
+      DB_NAME: myst_api
+      DB_USER: myst_api
+      DB_PASSWORD: myst_api
+    depends_on:
+    - db
diff --git a/bin/localnet/functions.sh b/bin/localnet/functions.sh
new file mode 100644
index 000000000..d2ca3cec6
--- /dev/null
+++ b/bin/localnet/functions.sh
@@ -0,0 +1,60 @@
+#!/usr/bin/env bash
+
+source bin/helpers/output.sh
+
+
+PROJECT_FILE="bin/localnet/docker-compose.yml"
+
+setupDockerComposeCmd() {
+    projectName=$1; shift;
+
+    projectFiles=("-f ${PROJECT_FILE}")
+
+    for extensionFile in "$@"; do
+        projectFiles=("${projectFiles[@]}" "-f ${extensionFile}")
+    done
+
+    dockerComposeCmd="docker-compose ${projectFiles[@]} -p $projectName"
+}
+
+setup () {
+
+    setupDockerComposeCmd "$@"
+    echo "Setting up: $projectName"
+
+    ${dockerComposeCmd} up -d db # start database first - it takes about 10 sec untils db startsup, and otherwise db migration fails
+    if [ ! $? -eq 0 ]; then
+        print_error "Db startup failed"
+        cleanup "$@"
+        exit 1
+    fi
+
+    echo "Waiting for db to become up"
+    while ! ${dockerComposeCmd} exec db mysqladmin ping --protocol=TCP --silent; do
+        echo -n "."
+        sleep 1
+    done
+    sleep 2 #even after successful TCP connection we still hit db not ready yet sometimes
+    echo "Database is up"
+
+    ${dockerComposeCmd} run --entrypoint bin/db-upgrade discovery
+    if [ ! $? -eq 0 ]; then
+        print_error "Db migration failed"
+        cleanup "$@"
+        exit 1
+    fi
+
+    ${dockerComposeCmd} up -d broker discovery
+    if [ ! $? -eq 0 ]; then
+        print_error "Starting built docker images failed"
+        cleanup "$@"
+        exit 1
+    fi
+}
+
+cleanup () {
+    setupDockerComposeCmd "$@"
+
+    echo "Cleaning up: $projectName"
+    ${dockerComposeCmd} down --remove-orphans
+}
\ No newline at end of file
diff --git a/bin/localnet/publish-ports.yml b/bin/localnet/publish-ports.yml
new file mode 100644
index 000000000..45269468e
--- /dev/null
+++ b/bin/localnet/publish-ports.yml
@@ -0,0 +1,11 @@
+version: '3'
+services:
+
+  broker:
+    ports:
+      - 4222:4222
+      - 8222:4222
+
+  discovery:
+    ports:
+    - 80:80
diff --git a/bin/localnet/setup.sh b/bin/localnet/setup.sh
new file mode 100755
index 000000000..2034e5ee6
--- /dev/null
+++ b/bin/localnet/setup.sh
@@ -0,0 +1,7 @@
+#!/usr/bin/env bash
+
+set -e
+
+source bin/localnet/functions.sh
+
+setup "localnet" "bin/localnet/publish-ports.yml"
\ No newline at end of file
diff --git a/bin/localnet/teardown.sh b/bin/localnet/teardown.sh
new file mode 100755
index 000000000..c7d0d88be
--- /dev/null
+++ b/bin/localnet/teardown.sh
@@ -0,0 +1,7 @@
+#!/usr/bin/env bash
+
+set -e
+
+source bin/localnet/functions.sh
+
+cleanup "localnet"
\ No newline at end of file
diff --git a/bin/server_build b/bin/server_build
index 3c0381ad8..f8f1ecbc9 100755
--- a/bin/server_build
+++ b/bin/server_build
@@ -17,7 +17,6 @@
 #> readelf -d build/server/mysterium_server
 
 source bin/helpers/functions.sh
-source bin/helpers/load_environment.sh
 
 export GOOS=${GOOS:=`go env GOHOSTOS`}
 export GOARCH=${GOARCH:=`go env GOHOSTARCH`}
diff --git a/bin/server_run b/bin/server_run
index bc0a23f24..edaaa79c4 100755
--- a/bin/server_run
+++ b/bin/server_run
@@ -1,10 +1,7 @@
 #!/bin/bash
 
-source bin/helpers/load_run_environment.sh
-
 sudo ./build/server/mysterium_server \
    --config-dir=bin/server_package/config \
    --runtime-dir=build/server \
-   $DISCOVERY_OPTION \
-   $BROKER_OPTION \
+   --localnet \
    $@
diff --git a/bin/test_e2e b/bin/test_e2e
index f6b2e7a51..4fed94be4 100755
--- a/bin/test_e2e
+++ b/bin/test_e2e
@@ -1,66 +1,30 @@
 #!/usr/bin/env bash
 
-source bin/helpers/output.sh
+source bin/localnet/functions.sh
 
-PROJECT_NAME="node_e2e_test"
-PROJECT_FILE="e2e/docker-compose.yml"
+projectName="node_e2e_test"
 
-dockerComposeCmd="docker-compose -f $PROJECT_FILE -p $PROJECT_NAME"
+setup $projectName "e2e/docker-compose.yml"
 
-setup () {
-    ${dockerComposeCmd} up -d db # start database first - it takes about 10 sec untils db startsup, and otherwise db migration fails
-    if [ ! $? -eq 0 ]; then
-        print_error "Db startup failed"
-        cleanup
-        exit 1
-    fi
-
-    ${dockerComposeCmd} build
-    if [ ! $? -eq 0 ]; then
-        print_error "Building docker images failed"
-        cleanup
-        exit 1
-    fi
-
-    echo "Waiting for db to become up"
-    while ! ${dockerComposeCmd} exec db mysqladmin ping --protocol=TCP --silent; do
-        echo -n "."
-        sleep 1
-    done
-    echo "Database is up"
-
-    ${dockerComposeCmd} run --entrypoint bin/db-upgrade discovery
-    if [ ! $? -eq 0 ]; then
-        print_error "Db migration failed"
-        cleanup
-        exit 1
-    fi
-
-    ${dockerComposeCmd} up -d
-    if [ ! $? -eq 0 ]; then
-        print_error "Starting built docker images failed"
-        cleanup
-        exit 1
-    fi
-    ${dockerComposeCmd} logs -f > e2e_tests.log &
-}
-
-cleanup () {
-    echo "Cleaning up"
-    ${dockerComposeCmd} down
-}
+$dockerComposeCmd build && $dockerComposeCmd up -d
+if [ ! $? -eq 0 ]
+then
+    print_error "Image building failed"
+    cleanup $projectName
+    exit 1
+fi
 
 
-setup
+$dockerComposeCmd logs -f > e2e_tests.log &
 
 go test -v ./e2e/... -args --tequila.host=localhost --tequila.port=4052
 if [ ! $? -eq 0 ]
 then
     print_error "Tests failed"
-    cleanup
+    cleanup $projectName
     exit 1
 fi
 
 print_success "Tests passed"
-cleanup
+cleanup $projectName
 exit 0
diff --git a/cmd/commands/client/command_client.go b/cmd/commands/client/command_client.go
index a8ef953f5..bfb1d3ad9 100644
--- a/cmd/commands/client/command_client.go
+++ b/cmd/commands/client/command_client.go
@@ -41,9 +41,10 @@ import (
 
 // NewCommand function creates new client command by given options
 func NewCommand(options CommandOptions) *Command {
+	networkDefinition := getNetworkDefinition(options)
 	return NewCommandWith(
 		options,
-		server.NewClient(options.DiscoveryAPIAddress),
+		server.NewClient(networkDefinition.DiscoveryAPIAddress),
 	)
 }
 
@@ -176,3 +177,20 @@ func (cmd *Command) Kill() error {
 
 	return nil
 }
+
+// TODO this function can be aligned with server function when client and server options will merge into
+func getNetworkDefinition(options CommandOptions) metadata.NetworkDefinition {
+	network := metadata.DefaultNetwork
+
+	switch {
+	case options.Localnet:
+		network = metadata.LocalnetDefinition
+	}
+
+	//override defined values one by one from options
+	if options.DiscoveryAPIAddress != metadata.DefaultNetwork.DiscoveryAPIAddress {
+		network.DiscoveryAPIAddress = options.DiscoveryAPIAddress
+	}
+
+	return network
+}
diff --git a/cmd/commands/client/options.go b/cmd/commands/client/options.go
index 045cfb5f9..5dce98e41 100644
--- a/cmd/commands/client/options.go
+++ b/cmd/commands/client/options.go
@@ -20,6 +20,7 @@ package client
 import (
 	"flag"
 	"github.com/mysterium/node/cmd"
+	"github.com/mysterium/node/metadata"
 	"path/filepath"
 )
 
@@ -39,10 +40,10 @@ type CommandOptions struct {
 	LicenseConditions bool
 
 	DiscoveryAPIAddress string
-	BrokerAddress       string
 	IpifyUrl            string
 
 	LocationDatabase string
+	Localnet         bool
 }
 
 // ParseArguments parses CLI flags and adds to CommandOptions structure
@@ -114,7 +115,7 @@ func ParseArguments(args []string) (options CommandOptions, err error) {
 	flags.StringVar(
 		&options.DiscoveryAPIAddress,
 		"discovery-address",
-		cmd.MysteriumAPIURL,
+		metadata.DefaultNetwork.DiscoveryAPIAddress,
 		"Address (URL form) of discovery service",
 	)
 
@@ -132,6 +133,13 @@ func ParseArguments(args []string) (options CommandOptions, err error) {
 		"Service location autodetect database of GeoLite2 format e.g. http://dev.maxmind.com/geoip/geoip2/geolite2/",
 	)
 
+	flags.BoolVar(
+		&options.Localnet,
+		"localnet",
+		false,
+		"Defines network configuration which expects localy deployed broker and discovery services",
+	)
+
 	err = flags.Parse(args[1:])
 	if err != nil {
 		return
diff --git a/cmd/commands/server/factory.go b/cmd/commands/server/factory.go
index de4ed124e..b68313501 100644
--- a/cmd/commands/server/factory.go
+++ b/cmd/commands/server/factory.go
@@ -26,6 +26,7 @@ import (
 	"github.com/mysterium/node/identity"
 	"github.com/mysterium/node/ip"
 	"github.com/mysterium/node/location"
+	"github.com/mysterium/node/metadata"
 	"github.com/mysterium/node/nat"
 	"github.com/mysterium/node/openvpn"
 	"github.com/mysterium/node/openvpn/middlewares/server/auth"
@@ -40,9 +41,11 @@ import (
 
 // NewCommand function creates new server command by given options
 func NewCommand(options CommandOptions) *Command {
+	networkDefinition := getNetworkDefinition(options)
 	return NewCommandWith(
 		options,
-		server.NewClient(options.DiscoveryAPIAddress),
+		networkDefinition,
+		server.NewClient(networkDefinition.DiscoveryAPIAddress),
 		ip.NewResolver(options.IpifyUrl),
 		nat.NewService(),
 	)
@@ -51,6 +54,7 @@ func NewCommand(options CommandOptions) *Command {
 // NewCommandWith function creates new client command by given options + injects given dependencies
 func NewCommandWith(
 	options CommandOptions,
+	networkDefinition metadata.NetworkDefinition,
 	mysteriumClient server.Client,
 	ipResolver ip.Resolver,
 	natService nat.NATService,
@@ -91,7 +95,7 @@ func NewCommandWith(
 		natService:       natService,
 		dialogWaiterFactory: func(myID identity.Identity) communication.DialogWaiter {
 			return nats_dialog.NewDialogWaiter(
-				nats_discovery.NewAddressGenerate(options.BrokerAddress, myID),
+				nats_discovery.NewAddressGenerate(networkDefinition.BrokerAddress, myID),
 				identity.NewSigner(keystoreInstance, myID),
 			)
 		},
@@ -136,3 +140,23 @@ func NewCommandWith(
 		WaitUnregister: &sync.WaitGroup{},
 	}
 }
+
+// TODO this function can be aligned with client function when client and server options will merge into
+func getNetworkDefinition(options CommandOptions) metadata.NetworkDefinition {
+	network := metadata.DefaultNetwork
+
+	switch {
+	case options.Localnet:
+		network = metadata.LocalnetDefinition
+	}
+
+	//override defined values one by one from options
+	if options.DiscoveryAPIAddress != metadata.DefaultNetwork.DiscoveryAPIAddress {
+		network.DiscoveryAPIAddress = options.DiscoveryAPIAddress
+	}
+
+	if options.BrokerAddress != metadata.DefaultNetwork.BrokerAddress {
+		network.BrokerAddress = options.BrokerAddress
+	}
+	return network
+}
diff --git a/cmd/commands/server/options.go b/cmd/commands/server/options.go
index dd27d2d0b..b91c347f7 100644
--- a/cmd/commands/server/options.go
+++ b/cmd/commands/server/options.go
@@ -20,6 +20,7 @@ package server
 import (
 	"flag"
 	"github.com/mysterium/node/cmd"
+	"github.com/mysterium/node/metadata"
 	"path/filepath"
 )
 
@@ -47,13 +48,11 @@ type CommandOptions struct {
 
 	Protocol    string
 	OpenvpnPort int
+	Localnet    bool
 }
 
 const defaultLocationDatabase = "GeoLite2-Country.mmdb"
 
-// TODO: rename to brokerAddress
-var natsServerIP string
-
 // ParseArguments parses CLI flags and adds to CommandOptions structure
 func ParseArguments(args []string) (options CommandOptions, err error) {
 	flags := flag.NewFlagSet(args[0], flag.ContinueOnError)
@@ -125,13 +124,14 @@ func ParseArguments(args []string) (options CommandOptions, err error) {
 	flags.StringVar(
 		&options.DiscoveryAPIAddress,
 		"discovery-address",
-		cmd.MysteriumAPIURL,
+		metadata.DefaultNetwork.DiscoveryAPIAddress,
 		"Address (URL form) of discovery service",
 	)
+
 	flags.StringVar(
 		&options.BrokerAddress,
 		"broker-address",
-		natsServerIP,
+		metadata.DefaultNetwork.BrokerAddress,
 		"Address (IP or domain name) of message broker",
 	)
 
@@ -161,6 +161,13 @@ func ParseArguments(args []string) (options CommandOptions, err error) {
 		"Address (URL form) of ipify service",
 	)
 
+	flags.BoolVar(
+		&options.Localnet,
+		"localnet",
+		false,
+		"Defines network configuration which expects localy deployed broker and discovery services",
+	)
+
 	err = flags.Parse(args[1:])
 	if err != nil {
 		return
diff --git a/cmd/config.go b/cmd/config.go
deleted file mode 100644
index be15adaa4..000000000
--- a/cmd/config.go
+++ /dev/null
@@ -1,21 +0,0 @@
-/*
- * Copyright (C) 2017 The "MysteriumNetwork/node" Authors.
- *
- * This program is free software: you can redistribute it and/or modify
- * it under the terms of the GNU General Public License as published by
- * the Free Software Foundation, either version 3 of the License, or
- * (at your option) any later version.
- *
- * This program is distributed in the hope that it will be useful,
- * but WITHOUT ANY WARRANTY; without even the implied warranty of
- * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
- * GNU General Public License for more details.
- *
- * You should have received a copy of the GNU General Public License
- * along with this program.  If not, see <http://www.gnu.org/licenses/>.
- */
-
-package cmd
-
-// MysteriumAPIURL stores MYSTERIUM_API_URL env variable that is complied in
-var MysteriumAPIURL string
diff --git a/e2e/docker-compose.yml b/e2e/docker-compose.yml
index c55abcf52..f5315e4b5 100644
--- a/e2e/docker-compose.yml
+++ b/e2e/docker-compose.yml
@@ -1,15 +1,9 @@
 version: '3'
 services:
 
-  broker:
-    image: nats
-    expose:
-      - 4222
-      - 8222
-
   node:
     build:
-      context: ..
+      context: ../..
       dockerfile: bin/server_docker/alpine/Dockerfile
     depends_on:
       - broker
@@ -28,7 +22,7 @@ services:
 
   client:
     build:
-      context: ..
+      context: ../..
       dockerfile: bin/client_docker/alpine/Dockerfile
     depends_on:
       - broker
@@ -41,30 +35,6 @@ services:
       - 4052:4050
     command: "--ipify-url=http://ipify:3000 --discovery-address=http://discovery/v1"
 
-  #infrastructure - centralized api and db
-  db:
-    image: percona:5.7
-    restart: always
-    expose:
-      - 3306
-    environment:
-      MYSQL_ROOT_PASSWORD: root
-      MYSQL_DATABASE: myst_api
-      MYSQL_USER: myst_api
-      MYSQL_PASSWORD: myst_api
-
-  discovery:
-    image: mysteriumnetwork/mysterium-api:0.1.12
-    expose:
-    - 80
-    environment:
-      APP_PORT: 80
-      DB_HOST: db
-      DB_NAME: myst_api
-      DB_USER: myst_api
-      DB_PASSWORD: myst_api
-    depends_on:
-    - db
   #'external' IP detection
   ipify:
     image: owlab/ipify
diff --git a/metadata/network.go b/metadata/network.go
new file mode 100644
index 000000000..f474d436e
--- /dev/null
+++ b/metadata/network.go
@@ -0,0 +1,39 @@
+/*
+ * Copyright (C) 2017 The "MysteriumNetwork/node" Authors.
+ *
+ * This program is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU General Public License as published by
+ * the Free Software Foundation, either version 3 of the License, or
+ * (at your option) any later version.
+ *
+ * This program is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ * GNU General Public License for more details.
+ *
+ * You should have received a copy of the GNU General Public License
+ * along with this program.  If not, see <http://www.gnu.org/licenses/>.
+ */
+
+package metadata
+
+// NetworkDefinition structure holds all parameters which describe particular network
+type NetworkDefinition struct {
+	DiscoveryAPIAddress string
+	BrokerAddress       string
+}
+
+// TestnetDefinition defines parameters for test network (currently default network)
+var TestnetDefinition = NetworkDefinition{
+	"https://testnet-api.mysterium.network/v1",
+	"testnet-broker.mysterium.network",
+}
+
+// LocalnetDefinition defines parameters for local network (expects discovery and broker services on localhost)
+var LocalnetDefinition = NetworkDefinition{
+	"http://localhost/v1",
+	"localhost",
+}
+
+// DefaultNetwork defines default network values when no runtime parameters are given
+var DefaultNetwork = TestnetDefinition