diff --git a/applications/modelling_e2e/local_handler/.env.local.example b/applications/modelling_e2e/local_handler/.env.local.example
new file mode 100644
index 000000000..8054ecd8b
--- /dev/null
+++ b/applications/modelling_e2e/local_handler/.env.local.example
@@ -0,0 +1,36 @@
+# Local-test environment for the modelling_e2e Lambda.
+#
+#   cp .env.local.example .env.local   then fill in the values below.
+#
+# .env.local is gitignored. The container hits REAL AWS and a REAL Postgres,
+# so every value here points at infrastructure that exists.
+#
+# Set dry_run=true in invoke_local_lambda.py to run the full pipeline without
+# writing anything to the DB — safe for local testing.
+#
+# Keep comments on their own lines — docker-compose's env_file parser folds a
+# trailing "# ..." into the value.
+
+# --- Postgres (infrastructure/postgres/config.py -> PostgresConfig.from_env) ---
+# POSTGRES_HOST <- DB_HOST, PORT <- DB_PORT, USERNAME <- DB_USERNAME,
+# PASSWORD <- DB_PASSWORD, DATABASE <- DB_NAME.
+POSTGRES_HOST=
+POSTGRES_PORT=5432
+POSTGRES_USERNAME=
+POSTGRES_PASSWORD=
+POSTGRES_DATABASE=
+# POSTGRES_DRIVER=psycopg2   (optional; defaults to psycopg2)
+
+# --- Handler config (applications/modelling_e2e/handler.py) ---
+# OPEN_EPC_API_TOKEN: gov.uk EPC API token (root .env: OPEN_EPC_API_TOKEN).
+# GOOGLE_SOLAR_API_KEY: Google Solar API key (root .env: GOOGLE_SOLAR_API_KEY).
+# DATA_BUCKET: S3 bucket holding geospatial parquet files (root .env: DATA_BUCKET).
+OPEN_EPC_API_TOKEN=
+GOOGLE_SOLAR_API_KEY=
+DATA_BUCKET=
+
+# --- AWS credentials for boto3 (S3 + EPC client) ---
+AWS_ACCESS_KEY_ID=
+AWS_SECRET_ACCESS_KEY=
+AWS_DEFAULT_REGION=eu-west-2
+# AWS_SESSION_TOKEN=   (only if using temporary/SSO credentials)
diff --git a/applications/modelling_e2e/local_handler/docker-compose.yml b/applications/modelling_e2e/local_handler/docker-compose.yml
new file mode 100644
index 000000000..09e41d654
--- /dev/null
+++ b/applications/modelling_e2e/local_handler/docker-compose.yml
@@ -0,0 +1,9 @@
+services:
+  modelling-e2e:
+    build:
+      context: ../../../
+      dockerfile: applications/modelling_e2e/Dockerfile
+    ports:
+      - "9004:8080"
+    env_file:
+      - ../../../.env
diff --git a/applications/modelling_e2e/local_handler/invoke_local_lambda.py b/applications/modelling_e2e/local_handler/invoke_local_lambda.py
new file mode 100644
index 000000000..3d2379735
--- /dev/null
+++ b/applications/modelling_e2e/local_handler/invoke_local_lambda.py
@@ -0,0 +1,30 @@
+#!/usr/bin/env python3
+import json
+import requests
+
+HOST = "localhost"
+PORT = "9004"
+
+LAMBDA_URL = f"http://{HOST}:{PORT}/2015-03-31/functions/function/invocations"
+
+payload = {
+    "Records": [
+        {
+            "body": json.dumps(
+                {
+                    "property_id": 0,
+                    "portfolio_id": 0,
+                    "scenario_id": 0,
+                    "no_solar": False,
+                    "dry_run": True,
+                }
+            )
+        }
+    ]
+}
+
+response = requests.post(LAMBDA_URL, json=payload)
+
+print("Status code:", response.status_code)
+print("Response:")
+print(response.text)