diff --git a/.github/workflows/python-ci.yaml b/.github/workflows/python-ci.yaml
index a3d3d5f..c7f58ef 100644
--- a/.github/workflows/python-ci.yaml
+++ b/.github/workflows/python-ci.yaml
@@ -29,9 +29,8 @@ jobs:
       run: |
         cd python_cli
         python -m pip install --upgrade pip
-        pip install .[test]
-        pip install black flake8
-        
+        pip install .[test,dev]
+
     - name: Run black
       run: |
         cd python_cli
diff --git a/python_cli/README.md b/python_cli/README.md
index 22917b7..2ae30c5 100644
--- a/python_cli/README.md
+++ b/python_cli/README.md
@@ -9,13 +9,6 @@ pip install liquidai-cli
 
 A `docker-compose.yaml` file is also shipped together with the package. Any changes to this file may cause some unexpected behaviors.
 
-### Run with `uv`
-`uv` allows to run this tool without installing the package into the system.
-
-```bash
-uv run --directory [PATH_TO_THIS_DIRECTORY] liquidai [command] [args]
-```
-
 ## Configuration
 
 The CLI uses a YAML configuration file (`liquid.yaml`) in your working directory. A default configuration will be created on first use, but you can customize it:
@@ -34,6 +27,70 @@ database:
   schema: "labs"
 ```
 
+## Local Development
+
+### Setting Up the Development Environment
+
+To set up a local development environment for the Liquid Labs CLI:
+
+```bash
+git clone https://github.com/Liquid4All/on-prem-stack.git
+cd on-prem-stack/python_cli
+
+# Install the package in development mode with test and development dependencies
+pip install -e ".[test,dev]"
+```
+
+### Running the CLI Locally
+
+There are several ways to run the CLI locally:
+
+- Using Python module (recommended for development):
+```bash
+python -m liquidai_cli.cli [command] [args]
+```
+
+- Using `uv` without installing the package:
+```bash
+uv run --directory . -m liquidai_cli.cli [command] [args]
+```
+
+- Install the package in development mode with test dependencies
+```bash
+pip install -e ".[test,dev]"
+liquid-cli [command] [args]
+```
+
+### Running Tests
+
+To run tests for the Liquid Labs CLI:
+
+```bash
+# Run all tests with verbose output
+pytest -v
+
+# Run tests with coverage reporting
+pytest --cov=liquidai_cli
+
+# Run tests with coverage reporting and generate XML report (used in CI)
+pytest --cov=liquidai_cli --cov-report=xml
+```
+
+### Code Quality Checks
+
+Before submitting changes, make sure to run the following code quality checks:
+
+```bash
+# Check code formatting with black
+black . --check
+
+# Run linting with flake8
+flake8 .
+
+# You can also format your code automatically with black
+black .
+```
+
 ## Usage
 
 ### Stack Management
diff --git a/python_cli/pyproject.toml b/python_cli/pyproject.toml
index 47fa0eb..5e8d9e2 100644
--- a/python_cli/pyproject.toml
+++ b/python_cli/pyproject.toml
@@ -44,3 +44,7 @@ test = [
     "pytest-cov>=4.0.0",
     "pytest-mock>=3.10.0",
 ]
+dev = [
+    "black>=23.0.0",
+    "flake8>=6.0.0",
+]