diff --git a/devenv.sh b/devenv.sh
index fe81be10..6524b9ca 100755
--- a/devenv.sh
+++ b/devenv.sh
@@ -1,57 +1,3 @@
 #!/bin/bash
-set -eo pipefail
-__dirname=$(cd $(dirname "$0"); pwd -P)
 
-${__dirname}/webodm.sh checkenv
-
-export WO_DEBUG=YES
-
-usage(){
-  echo "Usage: $0 <command> [options]"
-  echo
-  echo "This program helps to setup a development environment for WebODM using docker."
-  echo 
-  echo "Command list:"
-  echo "	start			Start the development environment"
-  echo "	stop			Stop the development environment"
-  echo "	down			Tear down the development environment"
-  echo "	runtests		Run unit tests"
-  exit
-}
-
-run(){
-	echo $1
-	eval $1
-}
-
-start(){
-	run "docker-compose -f docker-compose.yml -f docker-compose.nodeodm.yml -f docker-compose.dev.yml up"
-}
-
-stop(){
-	run "${__dirname}/webodm.sh stop"
-}
-
-down(){
-	run "${__dirname}/webodm.sh down"
-}
-
-runtests(){
-	run "docker-compose exec webapp /bin/bash -c \"/webodm/webodm.sh test\""
-}
-
-if [[ $1 = "start" ]]; then
-	echo "Starting development environment..."
-	start
-elif [[ $1 = "stop" ]]; then
-	echo "Stopping development environment..."
-	stop
-elif [[ $1 = "down" ]]; then
-	echo "Tearing down development environment..."
-	down
-elif [[ $1 = "runtests" ]]; then
-	echo "Starting tests..."
-	runtests "$2"
-else
-	usage
-fi
+echo "devenv.sh is deprecated! Use \"./webodm.sh start --dev\" instead."
diff --git a/package.json b/package.json
index 7fd87c19..66547619 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "WebODM",
-  "version": "0.8.0",
+  "version": "0.8.1",
   "description": "Open Source Drone Image Processing",
   "main": "index.js",
   "scripts": {
diff --git a/webodm.sh b/webodm.sh
index 943e2d11..b4bcb111 100755
--- a/webodm.sh
+++ b/webodm.sh
@@ -29,6 +29,7 @@ elif [[ $platform = "MacOS / OSX" ]] && [[ $(pwd) == /Users* ]]; then
 fi
 
 load_default_node=true
+dev_mode=false
 
 # Load default values
 source .env
@@ -83,6 +84,11 @@ case $key in
     --debug)
     export WO_DEBUG=YES
     shift # past argument
+    ;;
+    --dev)
+    export WO_DEBUG=YES
+    dev_mode=true
+    shift # past argument
     ;;
 	--broker)
     export WO_BROKER="$2"
@@ -137,6 +143,7 @@ usage(){
   echo "	--ssl-cert	<path>	Manually specify a path to the certificate file (.pem) to use with nginx to enable SSL (default: None)"
   echo "	--ssl-insecure-port-redirect	<port>	Insecure port number to redirect from when SSL is enabled (default: $DEFAULT_SSL_INSECURE_PORT_REDIRECT)"
   echo "	--debug	Enable debug for development environments (default: disabled)"
+  echo "	--dev	Enable development mode. In development mode you can make modifications to WebODM source files and changes will be reflected live. (default: disabled)"
   echo "	--broker	Set the URL used to connect to the celery broker (default: $DEFAULT_BROKER)"
   if [[ $plugins_volume = false ]]; then
     echo "	--mount-plugins-volume	Always mount the ./plugins volume, even on unsupported platforms (developers only) (default: disabled)"
@@ -184,7 +191,12 @@ run(){
 }
 
 start(){
-	echo "Starting WebODM..."
+    if [[ $dev_mode = true ]]; then
+	    echo "Starting WebODM in development mode..."
+        down
+    else
+        echo "Starting WebODM..."
+    fi
 	echo ""
 	echo "Using the following environment:"
 	echo "================================"
@@ -205,6 +217,10 @@ start(){
     if [[ $load_default_node = true ]]; then
         command+=" -f docker-compose.nodeodm.yml"
     fi
+
+    if [[ $dev_mode = true ]]; then
+        command+=" -f docker-compose.dev.yml"
+    fi
 	
 	if [ "$WO_SSL" = "YES" ]; then
 		if [ ! -z "$WO_SSL_KEY" ] && [ ! -e "$WO_SSL_KEY" ]; then
@@ -328,14 +344,23 @@ plugin_disable(){
 }
 
 run_tests(){
-	echo -e "\033[1mRunning frontend tests\033[0m"
-	run "npm run test"
+    # If in a container, we run the actual test commands
+    # otherwise we launch this command from the container
 
-	echo "\033[1mRunning backend tests\033[0m"
-	run "python manage.py test"
+    in_container=$(grep 'docker\|lxc' /proc/1/cgroup)
+    if [[ "$in_container" != "" ]]; then
+        echo -e "\033[1mRunning frontend tests\033[0m"
+        run "npm run test"
 
-	echo ""
-	echo -e "\033[1mDone!\033[0m Everything looks in order."
+        echo "\033[1mRunning backend tests\033[0m"
+        run "python manage.py test"
+
+        echo ""
+        echo -e "\033[1mDone!\033[0m Everything looks in order."
+    else
+        echo "Running tests in webapp container"
+        run "docker-compose exec webapp /bin/bash -c \"/webodm/webodm.sh test\""
+    fi
 }
 
 resetpassword(){