update networks/local readme

Makefile

@@ -193,6 +193,10 @@ build-docker:
 build-linux:
 	GOOS=linux GOARCH=amd64 $(MAKE) build
 
+build-docker-localnode:
+	cd networks/local
+	make
+
 # Run a 4-node testnet locally
 localnet-start: localnet-stop
 	@if ! [ -f build/node0/config/genesis.json ]; then docker run --rm -v $(CURDIR)/build:/tendermint:Z tendermint/localnode testnet --v 4 --o . --populate-persistent-peers --starting-ip-address 192.167.10.2 ; fi

docs/using-tendermint.rst

@@ -28,8 +28,11 @@ genesis file (``genesis.json``) containing the associated public key,
 in ``$TMHOME/config``.
 This is all that's necessary to run a local testnet with one validator.
 
-For more elaborate initialization, see our `testnet deployment
-tool <https://github.com/tendermint/tools/tree/master/mintnet-kubernetes>`__.
+For more elaborate initialization, see the `tesnet` command:
+
+::
+
+    tendermint testnet --help
 
 Run
 ---

networks/local/README.rst

@@ -1,29 +1,79 @@
 localnode
 =========
 
-It is assumed that you have already `setup docker <https://docs.docker.com/engine/installation/>`__.
+Requirements
+------------
 
-Description
------------
-Image for local testnets.
+- `Install docker <https://docs.docker.com/engine/installation/>`__.
+- `Install docker-compose <https://docs.docker.com/compose/install/>`__.
 
-Add the tendermint binary to the image by attaching it in a folder to the `/tendermint` mount point.
+Build
+-----
 
-It assumes that the configuration was created by the `tendermint testnet` command and it is also attached to the `/tendermint` mount point.
+Build the `tendermint` binary and the `tendermint/localnode` docker image:
 
-Example:
-This example builds a linux tendermint binary under the `build/` folder, creates tendermint configuration for a single-node validator and runs the node:
 ```
 cd $GOPATH/src/github.com/tendermint/tendermint
 
-#Build binary
+# Install dependencies (skip if already done)
+make get_tools
+make get_vendor_deps
+
+# Build binary in ./build
 make build-linux
 
-#Create configuration
+# Build tendermint/localnode image
+make build-docker-localnode
+
+```
+
+Run a testnet
+-------------
+
+To start a 4 node testnet run:
+
+```
+make localnet-start
+
+``
+
+The nodes bind their RPC servers to ports 46657, 46660, 46662, and 46664 on the host.
+This file creates a 4-node network using the localnode image.
+The nodes of the network expose their P2P and RPC endpoints to the host machine on ports 46656-46657, 46659-46660, 46661-46662, and 46663-46664 respectively.
+
+To update the binary, just rebuild it and restart the nodes:
+
+```
+make build-linux
+make localnet-stop
+make localnet-start
+
+```
+
+Configuration
+-----------
+
+The `make localnet-start` creates files for a 4-node testnet in `./build` by calling the `tendermint testnet` command.
+
+The `./build` directory is mounted to the `/tendermint` mount point to attach the binary and config files to the container.
+
+For instance, to create a single node testnet:
+
+```
+cd $GOPATH/src/github.com/tendermint/tendermint
+
+# Clear the build folder
+rm -rf ./build
+
+# Build binary
+make build-linux
+
+# Create configuration
 docker run -e LOG="stdout" -v `pwd`/build:/tendermint tendermint/localnode testnet --o . --v 1
 
 #Run the node
 docker run -v `pwd`/build:/tendermint tendermint/localnode
+
 ```
 
 Logging
@@ -34,7 +84,3 @@ Special binaries
 ----------------
 If you have multiple binaries with different names, you can specify which one to run with the BINARY environment variable. The path of the binary is relative to the attached volume.
 
-docker-compose.yml
-==================
-This file creates a 4-node network using the localnode image. The nodes of the network are exposed to the host machine on ports 46656-46657, 46659-46660, 46661-46662, 46663-46664 respectively.
-