diff --git a/.gitignore b/.gitignore
index 5b304658..e0a6776f 100644
--- a/.gitignore
+++ b/.gitignore
@@ -44,3 +44,6 @@ test/e2e/data/infrastructure-oci/v1beta1/cluster-template-bare-metal.yaml
 test/e2e/data/infrastructure-oci/v1beta1/cluster-template-custom-networking-seclist.yaml
 test/e2e/data/infrastructure-oci/v1beta1/cluster-template-custom-networking-nsg.yaml
 test/e2e/data/infrastructure-oci/v1beta1/cluster-template-multiple-node-nsg.yaml
+
+# local development files
+auth-config.yaml
diff --git a/docs/src/SUMMARY.md b/docs/src/SUMMARY.md
index 03f621db..e1525753 100644
--- a/docs/src/SUMMARY.md
+++ b/docs/src/SUMMARY.md
@@ -29,5 +29,6 @@
     - [Using Calico](./networking/calico.md)
     - [Using Antrea](./networking/antrea.md)
   - [Custom Networking](./networking/custom-networking.md)
+- [Developer Guide](./development/development.md)
 - [Reference](./reference/reference.md)
   - [Glossary](./reference/glossary.md)
diff --git a/docs/src/development/development.md b/docs/src/development/development.md
new file mode 100644
index 00000000..8b0f0f3c
--- /dev/null
+++ b/docs/src/development/development.md
@@ -0,0 +1,92 @@
+# Developer Guide
+
+## Install prerequisites
+
+1. Install make.
+   - `$ xcode-select --install` on macOS.
+   - `$ sudo apt-get install build-essential` on Ubuntu Linux
+   - `$ sudo dnf install make gcc` on Oracle Linux
+1. Install [Go][go]
+1. Install [KIND][kind]
+    - `$ GO111MODULE="on" go get sigs.k8s.io/kind@v0.12.0`.
+1. Install [Kustomize][kustomize]
+    - [install instructions][kustomizelinux]
+1. Install [envsubst][envsubst]
+   - `$ go get github.com/a8m/envsubst/cmd/envsubst`
+
+## Fork and get the source
+
+Fork the [`cluster-api-provider-oci repo`](https://github.com/oracle/cluster-api-provider-oci).
+See the [forking](https://docs.github.com/en/get-started/quickstart/fork-a-repo) and
+[cloning](https://docs.github.com/en/repositories/creating-and-managing-repositories/cloning-a-repository)
+documentation for more details.
+
+Example:
+```bash
+cd "$(go env GOPATH)"/src
+mkdir sigs.k8s.io
+cd sigs.k8s.io/
+git clone git@github.com:<GITHUB USERNAME>/cluster-api-provider-oci.git
+cd cluster-api-provider-oci
+git remote add upstream git@github.com:orale/cluster-api-provider-oci.git
+git fetch upstream
+```
+
+## Running a local management cluster for development
+
+The simplest way to test the code is to run it on your local development workstation.
+If you have `capoci-controller-manager` running in your management cluster,
+please scale down the deployment, otherwise running your development build will conflict with the 
+currently running `capoci-controller-manager`:
+
+```bash
+kubectl scale deployment/capoci-controller-manager  --replicas=0 -n cluster-api-provider-oci-system
+```
+
+To build, run and test all your code changes locally, copy the
+`hack/auth-config-template.yaml` file to `<path-to-your-repo>/auth-config.yml` in your
+cloned copy of the repository and modify it to match your local configuration.
+
+Then run the following commands:
+
+```bash
+export AUTH_CONFIG_DIR="<path-to-your-repo>/auth-config.yaml"
+make run
+```
+
+If you want to test your changes using an image built locally using `docker build`, execute the
+following steps:
+
+```bash
+export TAG=<tag>
+export REGISTRY="<region>.ocir.io/<namespace>"
+make docker-build
+```
+
+`region` for example, `phx` or `us-phoenix-1`. See the
+[Available Endpoints](https://docs.oracle.com/en-us/iaas/Content/Registry/Concepts/registryprerequisites.htm#Availab)
+topic in the Oracle Cloud Infrastructure Registry (OCIR) documentation.
+
+`namespace` is the auto-generated [object storage namespace](https://docs.oracle.com/en-us/iaas/Content/Object/Tasks/understandingnamespaces.htm)
+string of the tenancy (as shown on the tenancy information page) that owns the
+repository to which you want to push the image.
+
+![tenancy_namespace](../images/tenancy_namespace.png)
+
+Push the resulting container image to the repository. For more info on how to push
+to OCIR see
+<https://www.oracle.com/webfolder/technetwork/tutorials/obe/oci/registry/index.html>
+
+Execute the following steps to install the image
+
+```bash
+make release-manifests
+kubectl apply -f out/infrastructure-oci/v0.1.1-development/infrastructure-components.yaml
+```
+
+[go]: https://golang.org/doc/install
+[go.mod]: https://github.com/kubernetes-sigs/cluster-api-provider-aws/blob/master/go.mod
+[kind]: https://sigs.k8s.io/kind
+[kustomize]: https://github.com/kubernetes-sigs/kustomize
+[kustomizelinux]: https://github.com/kubernetes-sigs/kustomize/blob/master/docs/INSTALL.md
+[envsubst]: https://github.com/a8m/envsubst
diff --git a/docs/src/images/tenancy_namespace.png b/docs/src/images/tenancy_namespace.png
new file mode 100644
index 00000000..80306450
Binary files /dev/null and b/docs/src/images/tenancy_namespace.png differ
diff --git a/hack/auth-config-template.yaml b/hack/auth-config-template.yaml
new file mode 100644
index 00000000..f3c805af
--- /dev/null
+++ b/hack/auth-config-template.yaml
@@ -0,0 +1,12 @@
+# see region identifier in https://docs.oracle.com/en-us/iaas/Content/General/Concepts/regions.htm
+# for a list of regions
+region: <region>
+tenancy: ocid1.tenancy.oc1..<unique_ID>
+user: ocid1.user.oc1..<unique_ID>
+key: |
+  -----BEGIN RSA PRIVATE KEY-----
+  <your_private_key>
+  -----END RSA PRIVATE KEY-----
+fingerprint: <your_private_key_fingerprint>
+
+useInstancePrincipals: false
\ No newline at end of file