diff --git a/LICENSE b/LICENSE
new file mode 100644
index 0000000..195fb6c
--- /dev/null
+++ b/LICENSE
@@ -0,0 +1,21 @@
+MIT License
+
+Copyright (c) 2024 Matter Labs
+
+Permission is hereby granted, free of charge, to any person obtaining a copy
+of this software and associated documentation files (the "Software"), to deal
+in the Software without restriction, including without limitation the rights
+to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+copies of the Software, and to permit persons to whom the Software is
+furnished to do so, subject to the following conditions:
+
+The above copyright notice and this permission notice shall be included in all
+copies or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
+SOFTWARE.
diff --git a/README.md b/README.md
index cd2776d..83e5403 100644
--- a/README.md
+++ b/README.md
@@ -1,19 +1,53 @@
 # Era Observability
 
-This repository contains json sources for Grafana dashboards that are used to observe `zkSync Era` as well as can be 
-used for any other Hyperchain / External Node deployment. The dashboards are regularly updated.   
+This repository contains JSON sources for Grafana dashboards that are used to observe `zkSync Era` as well as can be 
+used for any other ZK Stack chains / External Node deployment. The dashboards are updated automatically.
 
 ## How to use
 
-The easiest way to try out the dashboards in a development environment is via `--run-observability` flag
-that can be specified for `zk init` and `zk stack init` commands 
-([docs](https://github.com/matter-labs/zksync-era/blob/main/docs/guides/launch.md#run-observability-stack)). 
+This repository contains a Docker compose setup that is prepared to work with a local ZKsync deployment.
+All the ports are pre-configured to match the default port layout of local ZKsync configuration.
+
+The configuration is capable of collecting Prometheus metrics, Opentelemetry traces, and Opentelemetry logs.
+
+The setup can be launched via:
+
+```
+docker compose up -d
+```
+
+The grafana will be available at [http://localhost:3000](http://localhost:3000).
 
 Alternatively the dashboards can be imported as-is via the Grafana JSON importer. 
 
-> Note: some panels might be empty, depending on whether you are running a full Hyperchain or External Node.   
+> Note: some panels might be empty, depending on whether you are running a full Hyperchain or External Node.
+
+## Infrastructure overview
+
+The docker compose configures the following services:
+
+- Prometheus. Configured to scrape data from all the main ZKsync components. [Configuration](./etc/prometheus/prometheus.yml).
+- Pushgateway. Not used by default, and not recommended to use, but still configured. May be useful when working with one-shot jobs
+  locally.
+- Quickwit. Collects logs and traces. Works with default configuration.
+- Opentelemetry-collector. A "proxy" for collecting OTLP logs from ZKsync components before sending them to Quickwit.
+  See [configuration](./etc/opentelemetry-collector/config.yaml) for more details on why is it needed.
+- Jaeger-query. Acts as a Grafana datasource for traces, but also has the UI on [http://localhost:16686/](http://localhost:16686/).
+- Grafana. Configured with Prometheus (metrics), Jaeger (traces), and Quickwit (logs) datasources, and automatically loads
+  dashboards located in the [dashboards](./dashboards/) folder. [Configuration](./etc/grafana/).
+- Caddy. Acts as a reverse proxy for all the components. [Configuration](./etc/caddy/Caddyfile).
+
+## Acknowledgments
+
+The `docker-compose` setup and configuration in this repository are based on the awesome [dockprom](https://github.com/stefanprodan/dockprom),
+which is licensed under [MIT License](https://github.com/stefanprodan/dockprom/blob/master/LICENSE).
 
 ## Dashboards
 
 * **General** - one pager high level overview of L1/L2 blockchains and L2 APIs;
-* **Sequencer** - detailed sequencer-related metrics.
\ No newline at end of file
+* **Sequencer** - detailed sequencer-related metrics.
+* **Prover** - metrics for prover infrastructure
+
+## License
+
+This repository is licensed under MIT license. See [LICENSE](./LICENSE) for more details.
diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 0000000..c040fd6
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,125 @@
+networks:
+  era-monitor-net:
+    driver: bridge
+
+volumes:
+    prometheus_data: {}
+    grafana_data: {}
+    qw_data: {}
+
+services:
+
+  prometheus:
+    image: prom/prometheus:v2.52.0
+    container_name: prometheus
+    volumes:
+      - ./etc/prometheus:/etc/prometheus
+      - prometheus_data:/prometheus
+    command:
+      - '--config.file=/etc/prometheus/prometheus.yml'
+      - '--storage.tsdb.path=/prometheus'
+      - '--web.console.libraries=/etc/prometheus/console_libraries'
+      - '--web.console.templates=/etc/prometheus/consoles'
+      - '--storage.tsdb.retention.time=200h'
+      - '--web.enable-lifecycle'
+    restart: unless-stopped
+    expose:
+      - 9090
+    networks:
+      - era-monitor-net
+    labels:
+      org.label-schema.group: "monitoring"
+    extra_hosts:
+      - "host.docker.internal:host-gateway"
+
+  grafana:
+    image: grafana/grafana:11.0.0
+    container_name: grafana
+    volumes:
+      - grafana_data:/var/lib/grafana
+      - ./etc/grafana/provisioning/dashboards:/etc/grafana/provisioning/dashboards
+      - ./etc/grafana/provisioning/datasources:/etc/grafana/provisioning/datasources
+      - ./dashboards:/etc/era_dashboards
+    environment:
+      GF_INSTALL_PLUGINS: https://github.com/quickwit-oss/quickwit-datasource/releases/download/v0.4.6/quickwit-quickwit-datasource-0.4.6.zip;quickwit-quickwit-datasource
+      GF_AUTH_DISABLE_LOGIN_FORM: "true"
+      GF_AUTH_ANONYMOUS_ENABLED: "true"
+      GF_AUTH_ANONYMOUS_ORG_ROLE: Admin
+    restart: unless-stopped
+    expose:
+      - 3000
+    networks:
+      - era-monitor-net
+    labels:
+      org.label-schema.group: "monitoring"
+
+  pushgateway:
+    image: prom/pushgateway:v1.9.0
+    container_name: pushgateway
+    restart: unless-stopped
+    expose:
+      - 9091
+    networks:
+      - era-monitor-net
+    labels:
+      org.label-schema.group: "monitoring"
+
+  caddy:
+    image: caddy:2.7.6
+    container_name: caddy
+    ports:
+      - "3000:3000"
+      - "8080:8080"
+      - "9090:9090"
+      - "9093:9093"
+      - "9091:9091"
+    volumes:
+      - ./etc/caddy:/etc/caddy
+    environment:
+      - ADMIN_USER=${ADMIN_USER:-admin}
+      - ADMIN_PASSWORD=${ADMIN_PASSWORD:-admin}
+      - ADMIN_PASSWORD_HASH=${ADMIN_PASSWORD_HASH:-$2a$14$1l.IozJx7xQRVmlkEQ32OeEEfP5mRxTpbDTCTcXRqn19gXD8YK1pO}
+    restart: unless-stopped
+    networks:
+      - era-monitor-net
+    labels:
+      org.label-schema.group: "monitoring"
+
+  quickwit:
+    image: quickwit/quickwit:${QW_VERSION:-0.8.1}
+    volumes:
+      - qw_data:/quickwit/qwdata
+    ports:
+      - 7280:7280
+      - 7281:7281
+    environment:
+      - QW_ENABLE_OPENTELEMETRY_OTLP_EXPORTER=true
+      - OTEL_EXPORTER_OTLP_ENDPOINT=http://localhost:7281
+    command: ["run"]
+    networks:
+      - era-monitor-net
+
+  jaeger-query:
+    image: jaegertracing/jaeger-query:1.52
+    ports:
+      - 16686:16686
+    environment:
+      - SPAN_STORAGE_TYPE=grpc-plugin
+      - GRPC_STORAGE_SERVER=quickwit:7281
+      - GRPC_STORAGE_TLS=false
+    networks:
+      - era-monitor-net
+
+  opentelemetry-collector:
+    image: otel/opentelemetry-collector-contrib:0.106.0
+    volumes:
+      - ./etc/opentelemetry-collector:/etc/otelcol-contrib
+    ports:
+      - 4317:4317
+      - 4318:4318
+      - 55679:55679
+    networks:
+      - era-monitor-net
+    extra_hosts:
+      - "host.docker.internal:host-gateway"
+    
diff --git a/etc/caddy/Caddyfile b/etc/caddy/Caddyfile
new file mode 100644
index 0000000..8d35ad6
--- /dev/null
+++ b/etc/caddy/Caddyfile
@@ -0,0 +1,47 @@
+:3000 {
+    reverse_proxy grafana:3000  
+}
+
+:7280 {
+    reverse_proxy quickwit:7280
+}
+
+:4317 {
+    reverse_proxy opentelemetry-collector:4317
+}
+
+:4318 {
+    reverse_proxy opentelemetry-collector:4318
+}
+
+:16686 {
+    reverse_proxy jaeger-query:16686
+}
+
+:8080 {
+    basicauth /* {
+        {$ADMIN_USER} {$ADMIN_PASSWORD_HASH}
+    }    
+    reverse_proxy cadvisor:8080
+}
+
+:9090 {
+    basicauth /* {
+        {$ADMIN_USER} {$ADMIN_PASSWORD_HASH}
+    }
+    reverse_proxy prometheus:9090
+}
+
+:9093 {
+    basicauth /* {
+        {$ADMIN_USER} {$ADMIN_PASSWORD_HASH}
+    }
+    reverse_proxy alertmanager:9093
+}
+
+:9091 {
+    basicauth /* {
+        {$ADMIN_USER} {$ADMIN_PASSWORD_HASH}
+    }    
+    reverse_proxy pushgateway:9091
+}
diff --git a/etc/grafana/provisioning/dashboards/dashboard.yml b/etc/grafana/provisioning/dashboards/dashboard.yml
new file mode 100644
index 0000000..bf0e91e
--- /dev/null
+++ b/etc/grafana/provisioning/dashboards/dashboard.yml
@@ -0,0 +1,12 @@
+apiVersion: 1
+
+providers:
+  - name: 'Prometheus'
+    orgId: 1
+    folder: ''
+    type: file
+    disableDeletion: false
+    editable: true
+    allowUiUpdates: true
+    options:
+      path: /etc/era_dashboards
diff --git a/etc/grafana/provisioning/datasources/datasource.yml b/etc/grafana/provisioning/datasources/datasource.yml
new file mode 100644
index 0000000..2c31260
--- /dev/null
+++ b/etc/grafana/provisioning/datasources/datasource.yml
@@ -0,0 +1,32 @@
+apiVersion: 1
+
+datasources:
+  - name: Prometheus
+    type: prometheus
+    access: proxy
+    orgId: 1
+    url: http://prometheus:9090
+    basicAuth: false
+    isDefault: true
+    editable: true
+  - name: Quickwit
+    type: quickwit-quickwit-datasource
+    access: proxy
+    orgId: 1
+    url: http://quickwit:7280/api/v1
+    basicAuth: false
+    isDefault: false
+    editable: true
+    jsonData:
+      index: otel-logs-v0_7
+      logMessageField: body.message
+      logLevelField: severity_text
+
+  - name: Jaeger
+    type: jaeger
+    access: proxy
+    orgId: 1
+    url: http://jaeger-query:16686
+    basicAuth: false
+    isDefault: false
+    editable: true
diff --git a/etc/opentelemetry-collector/config.yaml b/etc/opentelemetry-collector/config.yaml
new file mode 100644
index 0000000..a038c47
--- /dev/null
+++ b/etc/opentelemetry-collector/config.yaml
@@ -0,0 +1,56 @@
+# To limit exposure to denial of service attacks, change the host in endpoints below from 0.0.0.0 to a specific network interface.
+# See https://github.com/open-telemetry/opentelemetry-collector/blob/main/docs/security-best-practices.md#safeguards-against-denial-of-service-attacks
+
+extensions:
+  health_check:
+  pprof:
+    endpoint: 0.0.0.0:1777
+  zpages:
+    endpoint: 0.0.0.0:55679
+
+receivers:
+  otlp:
+    protocols:
+      grpc:
+        endpoint: 0.0.0.0:4317
+      http:
+        endpoint: 0.0.0.0:4318
+
+processors:
+  # ZKsync uses `tracing` to generate logs, which doesn't populate timestamps.
+  # However, Quickwit ignores logs that have no timestamp, so we force set it.
+  transform/set_time_unix_nano:
+    log_statements:
+      - context: log
+        statements:
+          - set(time_unix_nano, observed_time_unix_nano)
+  batch:
+
+exporters:
+  debug:
+    verbosity: detailed
+  otlp/quickwit:
+    endpoint: quickwit:7281
+    tls:
+      insecure: true  
+
+service:
+
+  pipelines:
+
+    traces:
+      receivers: [otlp]
+      processors: [batch]
+      exporters: [debug]
+
+    metrics:
+      receivers: [otlp]
+      processors: [batch]
+      exporters: [debug]
+
+    logs:
+      receivers: [otlp]
+      processors: [batch, transform/set_time_unix_nano]
+      exporters: [debug, otlp/quickwit]
+
+  extensions: [health_check, pprof, zpages]
diff --git a/etc/prometheus/prometheus.yml b/etc/prometheus/prometheus.yml
new file mode 100644
index 0000000..b32e3a2
--- /dev/null
+++ b/etc/prometheus/prometheus.yml
@@ -0,0 +1,67 @@
+global:
+  scrape_interval:     15s
+  evaluation_interval: 15s
+
+  # Attach these labels to any time series or alerts when communicating with
+  # external systems (federation, remote storage, Alertmanager).
+  external_labels:
+      monitor: 'docker-host-alpha'
+
+# Load and evaluate rules in this file every 'evaluation_interval' seconds.
+rule_files:
+  - "alert.rules"
+
+# A scrape configuration containing exactly one endpoint to scrape.
+scrape_configs:
+  - job_name: 'prometheus'
+    scrape_interval: 10s
+    static_configs:
+      - targets: ['localhost:9090']
+
+  - job_name: 'pushgateway'
+    scrape_interval: 10s
+    honor_labels: true
+    static_configs:
+      - targets: ['pushgateway:9091']
+  
+  - job_name: 'zksync'
+    scrape_interval: 5s
+    honor_labels: true
+    static_configs:
+      - targets: ['host.docker.internal:3312']
+
+  - job_name: 'zksync_contract_verifier'
+    scrape_interval: 5s
+    honor_labels: true
+    static_configs:
+      - targets: ['host.docker.internal:3314']
+
+  - job_name: 'zksync_prover'
+    scrape_interval: 5s
+    honor_labels: true
+    static_configs:
+      - targets: ['host.docker.internal:3315']
+
+  - job_name: 'zksync_witness_generator'
+    scrape_interval: 5s
+    honor_labels: true
+    static_configs:
+      - targets: ['host.docker.internal:3116']
+
+  - job_name: 'zksync_witness_vector_generator'
+    scrape_interval: 5s
+    honor_labels: true
+    static_configs:
+      - targets: ['host.docker.internal:3420']
+
+  - job_name: 'zksync_prover_gateway'
+    scrape_interval: 5s
+    honor_labels: true
+    static_configs:
+      - targets: ['host.docker.internal:3310']
+
+  - job_name: 'zksync_proof_compressor'
+    scrape_interval: 5s
+    honor_labels: true
+    static_configs:
+      - targets: ['host.docker.internal:3321']