diff --git a/docker/datahaven-dev.Dockerfile b/docker/datahaven-dev.Dockerfile
index 06753777..8142fb1f 100644
--- a/docker/datahaven-dev.Dockerfile
+++ b/docker/datahaven-dev.Dockerfile
@@ -5,8 +5,6 @@
 #
 # DO NOT USE for CI or production builds - use operator/Dockerfile instead.
 #
-# Build Args:
-#   DEBUG_MODE - Set to "true" to include debugging tools (default: false)
 #
 # Expected Binary Location:
 #   ./operator/target/x86_64-unknown-linux-gnu/release/datahaven-node
@@ -16,16 +14,13 @@
 #   - librocksdb-dev for local development
 #   - Optional gdb, strace, vim for debugging
 #   - RUST_BACKTRACE enabled by default
-#   - Additional directories (/specs, /storage) for testing
 
 FROM ubuntu:noble
 
-LABEL version="0.3.0"
-LABEL description="DataHaven Node - Development/CI/E2E Testing Build"
+LABEL version="0.4.0"
+LABEL description="DataHaven Node - Development Testing Build"
 LABEL maintainer="steve@moonsonglabs.com"
 
-ARG DEBUG_MODE=false
-
 # Install runtime dependencies
 RUN apt-get update && \
     DEBIAN_FRONTEND=noninteractive apt-get install -y --no-install-recommends \
@@ -47,15 +42,8 @@ RUN apt-get update && \
 
 # Create datahaven user and directories
 RUN useradd -m -u 1001 -U -s /bin/sh -d /datahaven datahaven && \
-    mkdir -p /data /datahaven/.local/share /specs /storage && \
-    chown -R datahaven:datahaven /data /storage && \
-    ln -s /data /datahaven/.local/share/datahaven-node
-
-# Grant sudo access if debug mode is enabled
-RUN if [ "$DEBUG_MODE" = "true" ]; then \
-        echo "datahaven ALL=(ALL) NOPASSWD:ALL" >> /etc/sudoers && \
-        chmod -R 777 /storage /data; \
-    fi
+    mkdir -p /datahaven/.local/share && \
+    chown -R datahaven:datahaven /datahaven/.local/share
 
 USER datahaven
 
@@ -72,7 +60,7 @@ ENV RUST_BACKTRACE=1
 # 9615: Prometheus metrics
 EXPOSE 30333 9944 9615
 
-VOLUME ["/data"]
+VOLUME ["/datahaven/.local/share/datahaven-node"]
 
 ENTRYPOINT ["datahaven-node"]
 CMD ["--tmp"]
diff --git a/operator/Dockerfile b/operator/Dockerfile
index 2a60cfc5..5278e52c 100644
--- a/operator/Dockerfile
+++ b/operator/Dockerfile
@@ -28,7 +28,7 @@ RUN apt-get update && \
 
 FROM debian:stable-slim
 
-LABEL version="0.3.0"
+LABEL version="0.4.0"
 LABEL description="DataHaven Node - Release Build"
 LABEL maintainer="steve@moonsonglabs.com"
 
@@ -53,9 +53,8 @@ COPY --from=builder \
 
 # Create datahaven user and directories
 RUN useradd -m -u 1001 -U -s /bin/sh -d /datahaven datahaven && \
-    mkdir -p /data /datahaven/.local/share /specs /storage && \
-    chown -R datahaven:datahaven /data /storage && \
-    ln -s /data /datahaven/.local/share/datahaven-node
+    mkdir -p /datahaven/.local/share && \
+    chown -R datahaven:datahaven /datahaven/.local/share
 
 USER datahaven
 
@@ -70,6 +69,6 @@ RUN chmod uog+x /usr/local/bin/datahaven*
 # 9615: Prometheus metrics
 EXPOSE 30333 9944 9615
 
-VOLUME ["/data"]
+VOLUME ["/datahaven/.local/share/datahaven-node"]
 
 ENTRYPOINT ["/usr/local/bin/datahaven-node"]
diff --git a/test/launcher/storagehub-docker.ts b/test/launcher/storagehub-docker.ts
index c1de22a9..3300768e 100644
--- a/test/launcher/storagehub-docker.ts
+++ b/test/launcher/storagehub-docker.ts
@@ -124,7 +124,7 @@ export const injectStorageHubKey = async (
   // Use Bun's $ directly with docker exec (no sh -c wrapper needed)
   // This properly handles the spaces in the seed phrase
   try {
-    await $`docker exec ${containerName} datahaven-node key insert --base-path /data --chain dev --key-type bcsv --scheme ecdsa --suri ${suri}`.nothrow();
+    await $`docker exec ${containerName} datahaven-node key insert --chain dev --key-type bcsv --scheme ecdsa --suri ${suri}`.nothrow();
     logger.success(`Key ${derivation} injected successfully`);
   } catch (error) {
     logger.error(`Failed to inject key ${derivation}: ${error}`);