diff --git a/cypress.config.ts b/cypress.config.ts
index 4bd27e952..3b8523d2c 100644
--- a/cypress.config.ts
+++ b/cypress.config.ts
@@ -8,6 +8,13 @@ if (!process.env.RUN_AGAINST_LOCAL_SERVICES) {
   dotenv.config({ path: import.meta.dirname + '/integration-tests/.env' });
 }
 
+if (process.env.RUN_AGAINST_LOCAL_SERVICES === '1') {
+  const dotenv = await import('dotenv');
+  dotenv.config({ path: import.meta.dirname + '/packages/services/server/.env.template' });
+  // It seems that this has to be set in the environment that the cypress cli is executed from.
+  // process.env.CYPRESS_BASE_URL = process.env.CYPRESS_BASE_URL ?? 'http://localhost:3000';
+}
+
 const isCI = Boolean(process.env.CI);
 
 export const seed = initSeed();
diff --git a/docs/TESTING.md b/docs/TESTING.md
index fbcec6f70..7c2ee59fd 100644
--- a/docs/TESTING.md
+++ b/docs/TESTING.md
@@ -65,12 +65,14 @@ To run integration tests locally, from the pre-build Docker image, follow:
 
 ## E2E Tests
 
-e2e Tests are based on Cypress, and matches files that ends with `.cy.ts`. The tests flow runs from
-a pre-build Docker image.
+We use [Cypress](https://www.cypress.io). Any file that ends with `.cy.ts` is an E2E test.
 
-#### Running on built Docker images from source code
+#### Running Against Local Development Services
 
-To run e2e tests locally, from the local source code, follow:
+1. Run the [development setup](./DEVELOPMENT.md) as usual.
+2. Run `pnpm test:e2e:local`
+
+#### Running Against Locally Built Docker Images
 
 1. Make sure you have Docker installed. If you are having issues, try to run `docker system prune`
    to clean the Docker caches.
@@ -79,9 +81,7 @@ To run e2e tests locally, from the local source code, follow:
 4. Run `./local.sh` for building the project and starting the Docker containers
 5. Follow the output instruction from the script for starting the tests
 
-#### Running from pre-built Docker image
-
-To run integration tests locally, from the pre-build Docker image, follow:
+#### Running Against Pre-Built Docker Images
 
 1. Make sure you have Docker installed. If you are having issues, try to run `docker system prune`
    to clean the Docker caches.
diff --git a/package.json b/package.json
index af7377c12..3773cbd10 100644
--- a/package.json
+++ b/package.json
@@ -45,6 +45,7 @@
     "start": "pnpm run local:setup",
     "test": "vitest",
     "test:e2e": "CYPRESS_BASE_URL=$HIVE_APP_BASE_URL cypress run --browser chrome",
+    "test:e2e:local": "CYPRESS_BASE_URL=http://localhost:3000 RUN_AGAINST_LOCAL_SERVICES=1 cypress open --browser chrome",
     "test:e2e:open": "CYPRESS_BASE_URL=$HIVE_APP_BASE_URL cypress open",
     "test:integration": "cd integration-tests && pnpm test:integration",
     "typecheck": "pnpm run -r --filter '!hive' typecheck",