diff --git a/bitcoin.conf b/bitcoin.conf
index 8c8a62065..3d3e5b882 100644
--- a/bitcoin.conf
+++ b/bitcoin.conf
@@ -1,9 +1,9 @@
 server=1
 rpcuser=username
 rpcpassword=password
-testnet4=1
+regtest=1
 
-[testnet4]
+[regtest]
 sv2=1
 sv2port=8442
 debug=sv2
\ No newline at end of file
diff --git a/devenv.nix b/devenv.nix
index d7fade714..94ae4ab78 100644
--- a/devenv.nix
+++ b/devenv.nix
@@ -57,6 +57,7 @@ in {
     redis = {exec = withLogging "mkdir -p ${config.devenv.root}/.devenv/state/redis && redis-server --dir ${config.devenv.root}/.devenv/state/redis --port ${toString poolConfig.redis.port}" "redis.log";};
     pool = {
       exec = withLogging ''
+        DEVENV_ROOT=${config.devenv.root} BITCOIND_DATADIR=${bitcoindDataDir} ${config.devenv.root}/scripts/bitcoind-setup.sh
         echo "Waiting for Mint..."
         while ! nc -z localhost ${toString poolConfig.mint.port}; do
           sleep 1
@@ -95,7 +96,7 @@ in {
       exec = withLogging ''
         mkdir -p ${bitcoindDataDir}
         bitcoind -datadir=${bitcoindDataDir} -conf=${config.devenv.root}/bitcoin.conf
-      '' "bitcoind-testnet.log";
+      '' "bitcoind-regtest.log";
     };
     miner = {
       exec = withLogging ''
diff --git a/justfile b/justfile
index f46cf9f47..69ec0d8c2 100644
--- a/justfile
+++ b/justfile
@@ -40,3 +40,8 @@ update-bitcoind:
     sed -i "s|rev = \".*\";|rev = \"$LATEST_COMMIT\";|" bitcoind.nix && \
     sed -i "s|hash = \".*\";|hash = \"$HASH\";|" bitcoind.nix && \
     echo "Done! bitcoind updated to commit $LATEST_COMMIT\nYou are now ready to test and commit"
+
+# generate blocks in regtest
+generate-blocks COUNT="1":
+    @echo "Generating {{COUNT}} blocks in regtest..."
+    @bitcoin-cli -datadir=.devenv/state/bitcoind -conf=$(pwd)/bitcoin.conf -rpcuser=username -rpcpassword=password -regtest -rpcwallet=regtest -generate {{COUNT}}
diff --git a/protocols/v2/roles-logic-sv2/src/job_creator.rs b/protocols/v2/roles-logic-sv2/src/job_creator.rs
index 1ed653762..9a4d3243e 100644
--- a/protocols/v2/roles-logic-sv2/src/job_creator.rs
+++ b/protocols/v2/roles-logic-sv2/src/job_creator.rs
@@ -524,7 +524,7 @@ pub mod tests {
     }
 
     const PRIVATE_KEY_BTC: [u8; 32] = [34; 32];
-    const NETWORK: Network = Network::Testnet;
+    const NETWORK: Network = Network::Regtest;
 
     #[cfg(feature = "prop_test")]
     const BLOCK_REWARD: u64 = 625_000_000_000;
diff --git a/roles/jd-server/config-examples/jds-config-local-example.toml b/roles/jd-server/config-examples/jds-config-local-example.toml
index dc8ce0555..d9c0b55f8 100644
--- a/roles/jd-server/config-examples/jds-config-local-example.toml
+++ b/roles/jd-server/config-examples/jds-config-local-example.toml
@@ -22,7 +22,7 @@ coinbase_outputs = [
 listen_jd_address = "127.0.0.1:34264"
 # RPC config for mempool (it can be also the same TP if correctly configured)
 core_rpc_url =  "http://127.0.0.1"
-core_rpc_port = 48332
+core_rpc_port = 18443
 core_rpc_user =  "username"
 core_rpc_pass =  "password"
 # Time interval used for JDS mempool update 
diff --git a/scripts/bitcoind-setup.sh b/scripts/bitcoind-setup.sh
new file mode 100755
index 000000000..523ed273b
--- /dev/null
+++ b/scripts/bitcoind-setup.sh
@@ -0,0 +1,64 @@
+#!/usr/bin/env bash
+
+# bitcoind-setup.sh - Initialize regtest environment
+# This script waits for bitcoind to be ready, then checks if we need to initialize
+# the regtest environment with a wallet and some initial blocks. This should only
+# need to be run once per dev environment setup or if you've reset your state. It's
+# idempotent, so you can safely run it multiple times.
+
+set -e
+
+BITCOIN_CONF="${DEVENV_ROOT:-$(pwd)}/bitcoin.conf"
+DATADIR="${BITCOIND_DATADIR:-$(pwd)/.devenv/state/bitcoind}"
+RPC_ARGS="-datadir=${DATADIR} -conf=${BITCOIN_CONF} -rpcuser=username -rpcpassword=password -regtest"
+
+create_and_load_wallet() {
+    echo "Creating/loading regtest wallet..."
+    if ! bitcoin-cli $RPC_ARGS createwallet "regtest" 2>/dev/null; then
+        echo "Wallet exists, attempting to load..."
+        bitcoin-cli $RPC_ARGS loadwallet "regtest" 2>/dev/null || echo "Wallet already loaded"
+    fi
+}
+
+echo "Waiting for bitcoind to be ready..."
+
+# Wait for bitcoind RPC to be available
+max_attempts=30
+attempt=0
+while [ $attempt -lt $max_attempts ]; do
+    if bitcoin-cli $RPC_ARGS getblockchaininfo >/dev/null 2>&1; then
+        echo "bitcoind is ready!"
+        break
+    fi
+    attempt=$((attempt + 1))
+    echo "Attempt $attempt/$max_attempts: bitcoind not ready yet, waiting..."
+    sleep 2
+done
+
+if [ $attempt -eq $max_attempts ]; then
+    echo "ERROR: bitcoind failed to become ready after $max_attempts attempts"
+    exit 1
+fi
+
+BLOCK_HEIGHT=$(bitcoin-cli $RPC_ARGS getblockcount 2>/dev/null || echo "0")
+echo "Current block height: $BLOCK_HEIGHT"
+
+# Ensure we have at least 16 blocks and a wallet
+if [ "$BLOCK_HEIGHT" -lt "16" ]; then
+    BLOCKS_NEEDED=$((16 - BLOCK_HEIGHT))
+    echo "Block height is $BLOCK_HEIGHT, need to generate $BLOCKS_NEEDED more blocks..."
+
+    create_and_load_wallet
+
+    echo "Generating $BLOCKS_NEEDED blocks to reach height 16..."
+    bitcoin-cli $RPC_ARGS -rpcwallet=regtest -generate $BLOCKS_NEEDED
+
+    NEW_HEIGHT=$(bitcoin-cli $RPC_ARGS getblockcount)
+    echo "✅ Regtest environment initialized! New block height: $NEW_HEIGHT"
+else
+    echo "✅ Regtest environment already has sufficient blocks (height: $BLOCK_HEIGHT)"
+
+    create_and_load_wallet
+fi
+
+echo "bitcoind setup complete!"