diff --git a/README.md b/README.md
index 0dc7466..f234b4e 100644
--- a/README.md
+++ b/README.md
@@ -7,7 +7,7 @@ This is a template for building a webapp using the following tech stack:
     - [Vue Router](https://router.vuejs.org/guide/) - frontend router for Vue
     - [TailwindCSS](https://tailwindcss.com/docs/configuration) - CSS framework
     - [Axios](https://axios-http.com/docs/intro) - library for making API requests from the frontend
-    - [Parcel](/https://parceljs.org/docs/) - bundler used for frontend module resolution and asset optimization
+    - [Parcel](https://parceljs.org/docs/) - bundler used for frontend module resolution and asset optimization
     - [npm](https://docs.npmjs.com/cli/v7/configuring-npm/package-json) - node package manager for JavaScript packages
 - **Backend**:
     - [FastAPI](https://fastapi.tiangolo.com/) - Python-framework for backend APIs
@@ -35,6 +35,11 @@ docker-compose -f production.docker-compose.yml up -d --force-recreate --build -
 This starts two containers, called `backend` and `frontend`, and exposes the deployed web application on port `8000`.
 You can open a browser and navigate to [http:localhost:8000/](http:localhost:8000/) to try it out.
 
+To stop the containers, run the following as root:
+```sh
+docker-compose -f production.docker-compose.yml down
+```
+
 ### Production Frontend Container
 
 The `frontend` production Docker image is built according to `production.frontend.Dockerfile`.
@@ -74,7 +79,25 @@ This prevents repetition when writing your endpoint code and allows you to acces
 
 ## Development Configuration
 
-> **TODO:** implement
+The development configuration can be deployed using the `development.docker-compose.yml` file, by running (as root):
+
+```sh
+docker-compose -f development.docker-compose.yml up -d --build --force-recreate --remove-orphans
+```
+
+This starts three containers, called `backend`, `parcel` and `frontend`, and exposes the deployed web application on port `8000`.
+You can open a browser and navigate to [http:localhost:8000/](http:localhost:8000/) to try it out.
+
+To stop the containers, run the following as root:
+```sh
+docker-compose -f development.docker-compose.yml down
+```
+
+The development containers work very similarly to the production containers, with the exception that hot reloading of configuration
+and sourcecode files is enabled.
+
+This means that when you modify the frontend or backend sourcecode while the development container is running, the changes are detected
+and applied automatically, restarting the containers is usually not required.
 
 # Customization
 
@@ -132,5 +155,6 @@ Depending on the configuration you wish to customize, please refer to each compo
 
 # TODOs / Roadmap
 
-1. Add a development Docker configuration
+1. Add sqlite/postgres containers
 2. Minify CSS in prod
+3. Add testing tools
diff --git a/development.Caddyfile b/development.Caddyfile
new file mode 100644
index 0000000..7baee06
--- /dev/null
+++ b/development.Caddyfile
@@ -0,0 +1,38 @@
+:3000 {
+
+    encode zstd gzip
+
+    @staticfiles {
+        method GET
+        path /static/*
+    }
+    handle @staticfiles {
+        file_server {
+            root /app/public/
+        }
+    }
+
+    handle_path /api/* {
+        reverse_proxy * backend:3001
+    }
+
+    @robots {
+        method GET
+        path /robots.txt
+        path /sitemap.xml
+    }
+    handle @robots {
+        file_server {
+            root /app/robots/
+        }
+    }
+
+    handle * {
+        reverse_proxy * parcel:1234
+    }
+
+    log {
+        output stderr
+        format console
+    }
+}
diff --git a/development.backend.Dockerfile b/development.backend.Dockerfile
new file mode 100644
index 0000000..802c5c4
--- /dev/null
+++ b/development.backend.Dockerfile
@@ -0,0 +1,25 @@
+# syntax=docker/dockerfile:1
+
+FROM python:3
+
+# Create non-root user
+ARG CUSTOM_UID
+ARG CUSTOM_GID
+ENV CUSTOM_USERNAME=backend
+ENV CUSTOM_GROUPNAME=backend
+RUN groupadd --gid ${CUSTOM_GID:-1000} ${CUSTOM_GROUPNAME} && \
+    useradd --uid ${CUSTOM_UID:-1000} --gid ${CUSTOM_GID:-1000} --create-home --shell /bin/bash ${CUSTOM_USERNAME} && \
+    mkdir /app && chown ${CUSTOM_UID:-1000}:${CUSTOM_GID:-1000} /app
+
+# Copy source files
+WORKDIR /app
+COPY --chown=${CUSTOM_USERNAME}:${CUSTOM_GROUPNAME} requirements.txt /app/
+COPY --chown=${CUSTOM_USERNAME}:${CUSTOM_GROUPNAME} backend /app/backend/
+
+# Install dependencies
+RUN pip install -r requirements.txt
+
+# Run ASGI server
+EXPOSE 3001/tcp
+USER ${CUSTOM_UID:-1000}:${CUSTOM_GID:-1000}
+ENTRYPOINT ["uvicorn", "backend.main:app", "--root-path", "/api", "--host", "0.0.0.0", "--port", "3001", "--access-log", "--use-colors", "--log-level", "debug", "--reload"]
diff --git a/development.docker-compose.yml b/development.docker-compose.yml
new file mode 100644
index 0000000..5757627
--- /dev/null
+++ b/development.docker-compose.yml
@@ -0,0 +1,54 @@
+---
+
+version: "3"
+
+services:
+  frontend:
+    container_name: frontend
+    restart: unless-stopped
+    build:
+      context: .
+      dockerfile: ./development.frontend.Dockerfile
+      args:
+        CUSTOM_UID: 1000
+        CUSTOM_GID: 1000
+    environment:
+      TZ: Europe/Berlin
+    ports:
+      - "8000:3000"
+    volumes:
+      - ./public/:/app/public/:ro
+      - ./robots/:/app/robots/:ro
+      - ./Caddyfile:/app/Caddyfile:ro
+  parcel:
+    container_name: parcel
+    restart: unless-stopped
+    build:
+      context: .
+      dockerfile: ./development.parcel.Dockerfile
+      args:
+        CUSTOM_UID: 1000
+        CUSTOM_GID: 1000
+    volumes:
+      - ./frontend/:/app/frontend/:ro
+      - ./postcss.config.js:/app/postcss.config.js:ro
+      - ./.postcssrc:/app/.postcssrc:ro
+      - ./tailwind.config.js:/app/tailwind.config.js:ro
+    expose:
+      - "1234"
+  backend:
+    container_name: backend
+    restart: unless-stopped
+    build:
+      context: .
+      dockerfile: ./development.backend.Dockerfile
+      args:
+        CUSTOM_UID: 1000
+        CUSTOM_GID: 1000
+    expose:
+      - "3001"
+    volumes:
+      - ./backend/:/app/backend/:ro
+      - ./requirements.txt:/app/requirements.txt:ro
+
+...
diff --git a/development.frontend.Dockerfile b/development.frontend.Dockerfile
new file mode 100644
index 0000000..05e2ccd
--- /dev/null
+++ b/development.frontend.Dockerfile
@@ -0,0 +1,33 @@
+# syntax=docker/dockerfile:1
+
+FROM debian:latest
+
+# Install Caddy
+ENV DEBIAN_FRONTEND=noninteractive
+RUN apt update && apt install -y curl && \
+    apt install -y debian-keyring debian-archive-keyring apt-transport-https && \
+    curl -1sLf 'https://dl.cloudsmith.io/public/caddy/stable/gpg.key' | gpg --dearmor -o /usr/share/keyrings/caddy-stable-archive-keyring.gpg && \
+    curl -1sLf 'https://dl.cloudsmith.io/public/caddy/stable/debian.deb.txt' > /etc/apt/sources.list.d/caddy-stable.list && \
+    apt update && apt install -y caddy && \
+    rm -rf /var/lib/apt/lists/*
+
+# Create non-root user
+ARG CUSTOM_UID
+ARG CUSTOM_GID
+ENV CUSTOM_USERNAME=webserver
+ENV CUSTOM_GROUPNAME=webserver
+RUN groupadd --gid ${CUSTOM_GID:-1000} ${CUSTOM_GROUPNAME} && \
+    useradd --uid ${CUSTOM_UID:-1000} --gid ${CUSTOM_GID:-1000} --create-home --shell /bin/bash ${CUSTOM_USERNAME} && \
+    mkdir /app && chown ${CUSTOM_UID:-1000}:${CUSTOM_GID:-1000} /app
+
+# Copy source files
+WORKDIR /app
+COPY --chown=${CUSTOM_USERNAME}:${CUSTOM_GROUPNAME} development.Caddyfile /app/
+COPY --chown=${CUSTOM_USERNAME}:${CUSTOM_GROUPNAME} public /app/public/
+COPY --chown=${CUSTOM_USERNAME}:${CUSTOM_GROUPNAME} robots /app/robots/
+
+# Install dependencies
+USER ${CUSTOM_UID:-1000}:${CUSTOM_GID:-1000}
+
+# Run Caddy in development mode
+ENTRYPOINT ["caddy", "run", "--config", "/app/development.Caddyfile", "--adapter", "caddyfile", "--watch"]
diff --git a/development.parcel.Dockerfile b/development.parcel.Dockerfile
new file mode 100644
index 0000000..f5ddba1
--- /dev/null
+++ b/development.parcel.Dockerfile
@@ -0,0 +1,34 @@
+# syntax=docker/dockerfile:1
+
+FROM debian:latest
+
+# Install packages
+ENV DEBIAN_FRONTEND=noninteractive
+RUN apt update && apt install -y curl && \
+    curl -fsSL https://deb.nodesource.com/setup_19.x | bash - && apt-get install -y nodejs && \
+    apt install -y debian-keyring debian-archive-keyring apt-transport-https && \
+    curl -1sLf 'https://dl.cloudsmith.io/public/caddy/stable/gpg.key' | gpg --dearmor -o /usr/share/keyrings/caddy-stable-archive-keyring.gpg && \
+    curl -1sLf 'https://dl.cloudsmith.io/public/caddy/stable/debian.deb.txt' > /etc/apt/sources.list.d/caddy-stable.list && \
+    apt update && apt install -y caddy && \
+    rm -rf /var/lib/apt/lists/*
+
+# Create non-root user
+ARG CUSTOM_UID
+ARG CUSTOM_GID
+ENV CUSTOM_USERNAME=webserver
+ENV CUSTOM_GROUPNAME=webserver
+RUN groupadd --gid ${CUSTOM_GID:-1000} ${CUSTOM_GROUPNAME} && \
+    useradd --uid ${CUSTOM_UID:-1000} --gid ${CUSTOM_GID:-1000} --create-home --shell /bin/bash ${CUSTOM_USERNAME} && \
+    mkdir /app && chown ${CUSTOM_UID:-1000}:${CUSTOM_GID:-1000} /app
+
+# Copy source files
+WORKDIR /app
+COPY --chown=${CUSTOM_USERNAME}:${CUSTOM_GROUPNAME} package.json package-lock.json .postcssrc postcss.config.js tailwind.config.js /app/
+COPY --chown=${CUSTOM_USERNAME}:${CUSTOM_GROUPNAME} frontend /app/frontend/
+
+# Install dependencies
+USER ${CUSTOM_UID:-1000}:${CUSTOM_GID:-1000}
+RUN npm install
+
+# Run the parcel file watcher
+ENTRYPOINT ["npx", "parcel", "frontend/src/html/index.html"]
diff --git a/frontend/src/js/components/ExampleComponent.vue b/frontend/src/js/components/ExampleComponent.vue
index 93195b0..5e44d6c 100644
--- a/frontend/src/js/components/ExampleComponent.vue
+++ b/frontend/src/js/components/ExampleComponent.vue
@@ -1,6 +1,26 @@
+<script>
+import axios from 'axios';
+
+export default {
+  data () {
+    return {
+      hello: null
+    }
+  },
+  mounted () {
+    axios
+      .get('/api/hello/')
+      .then(response => (this.hello = response.data))
+      .catch(error => console.log(error));
+  }
+}
+
+</script>
+
 <template>
   <div class="p-8">
-    <h1 class="font-accent text-5xl">Hello World!</h1>
-    <p>If you're seeing this text, Vue.js is working correctly!</p>
+    <h1 class="font-accent text-5xl">Hello!</h1>
+    <p>If you're seeing this text, Vue.js is working correctly.</p>
+    <p>The backend API responded with: {{ hello }}</p>
   </div>
 </template>
diff --git a/Caddyfile b/production.Caddyfile
similarity index 100%
rename from Caddyfile
rename to production.Caddyfile
diff --git a/production.backend.Dockerfile b/production.backend.Dockerfile
index 99da56e..b5a6a21 100644
--- a/production.backend.Dockerfile
+++ b/production.backend.Dockerfile
@@ -22,4 +22,4 @@ RUN pip install -r requirements.txt
 # Run ASGI server
 EXPOSE 3001/tcp
 USER ${CUSTOM_UID:-1000}:${CUSTOM_GID:-1000}
-ENTRYPOINT ["uvicorn", "backend.main:app", "--root-path", "/api", "--host", "0.0.0.0", "--port", "3001"]
+ENTRYPOINT ["uvicorn", "backend.main:app", "--root-path", "/api", "--host", "0.0.0.0", "--port", "3001", "--access-log"]
diff --git a/production.frontend.Dockerfile b/production.frontend.Dockerfile
index 1ff2118..c97520b 100644
--- a/production.frontend.Dockerfile
+++ b/production.frontend.Dockerfile
@@ -23,7 +23,7 @@ RUN groupadd --gid ${CUSTOM_GID:-1000} ${CUSTOM_GROUPNAME} && \
 
 # Copy source files
 WORKDIR /app
-COPY --chown=${CUSTOM_USERNAME}:${CUSTOM_GROUPNAME} package.json package-lock.json .postcssrc postcss.config.js tailwind.config.js Caddyfile /app/
+COPY --chown=${CUSTOM_USERNAME}:${CUSTOM_GROUPNAME} package.json package-lock.json .postcssrc postcss.config.js tailwind.config.js production.Caddyfile /app/
 COPY --chown=${CUSTOM_USERNAME}:${CUSTOM_GROUPNAME} frontend /app/frontend/
 COPY --chown=${CUSTOM_USERNAME}:${CUSTOM_GROUPNAME} public /app/public/
 COPY --chown=${CUSTOM_USERNAME}:${CUSTOM_GROUPNAME} robots /app/robots/
@@ -33,4 +33,4 @@ USER ${CUSTOM_UID:-1000}:${CUSTOM_GID:-1000}
 RUN npm install
 RUN npx parcel build frontend/src/html/index.html
 
-ENTRYPOINT ["caddy", "run", "--config", "/app/Caddyfile"]
+ENTRYPOINT ["caddy", "run", "--config", "/app/production.Caddyfile"]