diff --git a/py-client/with-docker/docker-compose.yml b/py-client/with-docker/docker-compose.yml
index 3cafef8..79c2c3a 100644
--- a/py-client/with-docker/docker-compose.yml
+++ b/py-client/with-docker/docker-compose.yml
@@ -6,6 +6,7 @@ services:
       context: .
       dockerfile_inline: |
         FROM python:3.10-slim
+        ARG NIL_SDK_VERSION
         ARG DEBIAN_FRONTEND="noninteractive"
         ENV PUID=1000
         ENV PGID=1000
@@ -21,14 +22,20 @@ services:
         USER nillion
         RUN { curl -L https://foundry.paradigm.xyz | bash ; } && \
           /home/nillion/.foundry/bin/foundryup
+        RUN curl -L https://nilup.nilogy.xyz/install.sh | bash; \
+          /home/nillion/.nilup/bin/nilup init; \
+          /home/nillion/.nilup/bin/nilup install $${NIL_SDK_VERSION}; \
+          /home/nillion/.nilup/bin/nilup use $${NIL_SDK_VERSION};
+        RUN  pip install nada-dsl==$${NIL_SDK_VERSION}; \
+             pip install py-nillion-client==$${NIL_SDK_VERSION};
+      args:
+        - NIL_SDK_VERSION=0.2.1
     network_mode: 'bridge'
     environment:
       - TZ=Europe/London
-      - NILLION_SDK_ROOT=/sdk
-      - PATH=/home/nillion/.local/bin:/home/nillion/.foundry/bin:${PATH}
+      - PATH=/home/nillion/.local/bin:/home/nillion/.foundry/bin:/home/nillion/.nilup/bin:/home/nillion/.nillion/bin:${PATH}
     volumes:
       - '$PWD/../../:/host'
-      - $NILLION_SDK_ROOT:/sdk
     working_dir: /host
     command:
       - /bin/bash
@@ -36,6 +43,4 @@ services:
       - |
         /host/tools/bootstrap-local-environment.sh py-client/compute-basic && \
           pushd py-client/compute-basic && \
-          source activate_virtualenv.sh && \
-          python3 install_nillion_pip.py && \
           python3 client.py