diff --git a/docker-compose.yml b/docker-compose.yml
index 98c2aa9c7e..e9abd84006 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -17,6 +17,7 @@ services:
       - POSTGRES_URL=postgresql://postgres:postgres@db:5432/simstudio
       - BETTER_AUTH_URL=http://localhost:3000
       - NEXT_PUBLIC_APP_URL=http://localhost:3000
+      - NEXT_PUBLIC_DISABLE_AUTH=true
     depends_on:
       - db
     command: npm run dev
diff --git a/sim/.env.example b/sim/.env.example
index 3a340f1e55..b24e11651a 100644
--- a/sim/.env.example
+++ b/sim/.env.example
@@ -4,6 +4,7 @@ DATABASE_URL="postgresql://postgres:password@localhost:5432/postgres"
 # Authentication (Required)
 BETTER_AUTH_SECRET=your_secret_key  # Use `openssl rand -hex 32` to generate, or visit https://www.better-auth.com/docs/installation
 BETTER_AUTH_URL=http://localhost:3000
+# NEXT_PUBLIC_DISABLE_AUTH=true  # Uncomment to disable authentication for local development
 
 # Email Provider (Optional)
 # RESEND_API_KEY=  # Uncomment and add your key from https://resend.com to send actual emails