diff --git a/compose/genesis/dummy.toml b/compose/genesis/dummy.toml
new file mode 100644
index 000000000..78165b928
--- /dev/null
+++ b/compose/genesis/dummy.toml
@@ -0,0 +1,4 @@
+# Placeholder bind-mount target used when MIDEN_GENESIS_CONFIG_FILE is not set.
+#
+# This file is not passed to `miden-validator bootstrap`; omitting the
+# --genesis-config-file flag preserves the validator's built-in default genesis config.
diff --git a/docker-compose.yml b/docker-compose.yml
index 4cde0e11d..7c27db28f 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,6 +1,10 @@
 # Environment variables:
 # - MIDEN_REMOTE_PROVER_URL: remote transaction prover URL. Defaults to the
 #   bundled miden-remote-prover service at http://tx-prover:50051.
+# - MIDEN_GENESIS_CONFIG_FILE: path to the genesis configuration file.
+#   By default, the local network bootstraps from the validator's built-in
+#   genesis configuration. Use this environment variable to override the
+#   built-in configuration.
 
 services:
   bootstrap-validator:
@@ -8,6 +12,12 @@ services:
     pull_policy: if_not_present
     volumes:
       - node-data:/data
+      - type: bind
+        source: ${MIDEN_GENESIS_CONFIG_FILE:-./compose/genesis/dummy.toml}
+        target: /genesis.toml
+        read_only: true
+    environment:
+      MIDEN_NODE_VALIDATOR_USE_GENESIS_CONFIG: ${MIDEN_GENESIS_CONFIG_FILE:-}
     entrypoint: ["/bin/sh", "-c"]
     command:
       - |
@@ -21,11 +31,22 @@ services:
         rm -rf /data/genesis /data/validator /data/accounts
         mkdir -p /data/genesis /data/validator /data/accounts
 
+        GENESIS_CONFIG_ARGS=""
+        if [ -n "$${MIDEN_NODE_VALIDATOR_USE_GENESIS_CONFIG:-}" ]; then
+          if [ ! -f /genesis.toml ]; then
+            echo "Genesis config requested but /genesis.toml is not mounted."
+            exit 1
+          fi
+
+          GENESIS_CONFIG_ARGS="--genesis-config-file /genesis.toml"
+        fi
+
         echo "Bootstrapping validator..."
         miden-validator bootstrap \
           --data-directory /data/validator \
           --genesis-block-directory /data/genesis \
-          --accounts-directory /data/accounts
+          --accounts-directory /data/accounts \
+          $$GENESIS_CONFIG_ARGS
 
         touch /data/validator/.bootstrapped
 
diff --git a/docs/external/src/local-network-development.md b/docs/external/src/local-network-development.md
index ddca71b45..29ef2a24f 100644
--- a/docs/external/src/local-network-development.md
+++ b/docs/external/src/local-network-development.md
@@ -86,6 +86,25 @@ The network monitor at `http://localhost:3001` provides a compact health view fo
 The default stack spins up an internal prover instance which means proving will happen locally. This can be overridden
 to use an external prover by setting `MIDEN_REMOTE_PROVER_URL` when starting the stack.
 
+## Genesis Config Override
+
+By default, the local network bootstraps from the validator's built-in genesis configuration. To bootstrap from a custom
+genesis configuration file, set `MIDEN_GENESIS_CONFIG_FILE` to the host path of the TOML file:
+
+```bash
+MIDEN_GENESIS_CONFIG_FILE=/absolute/path/to/genesis.toml make local-network-up
+```
+
+The override bind mounts the host file into the bootstrap validator container as `/genesis.toml` and passes that
+in-container path to `miden-validator bootstrap --genesis-config-file`.
+
+This only affects validator bootstrap. If the local network has already been bootstrapped, delete the existing local
+chain data before starting with a different genesis configuration:
+
+```bash
+make local-network-delete
+```
+
 ## Check the RPC API
 
 The RPC server exposes gRPC reflection. With `grpcurl` installed, a basic status check looks like: