diff --git a/chainntnfs/bitcoindnotify/bitcoind.go b/chainntnfs/bitcoindnotify/bitcoind.go
index b39f78a43..496589463 100644
--- a/chainntnfs/bitcoindnotify/bitcoind.go
+++ b/chainntnfs/bitcoindnotify/bitcoind.go
@@ -174,6 +174,8 @@ func (b *BitcoindNotifier) startNotifier() error {
 // notificationDispatcher is the primary goroutine which handles client
 // notification registrations, as well as notification dispatches.
 func (b *BitcoindNotifier) notificationDispatcher() {
+	defer b.wg.Done()
+
 out:
 	for {
 		select {
@@ -436,7 +438,6 @@ out:
 			break out
 		}
 	}
-	b.wg.Done()
 }
 
 // historicalConfDetails looks up whether a confirmation request (txid/output
diff --git a/chainntnfs/btcdnotify/btcd.go b/chainntnfs/btcdnotify/btcd.go
index d23a30599..dc36503e1 100644
--- a/chainntnfs/btcdnotify/btcd.go
+++ b/chainntnfs/btcdnotify/btcd.go
@@ -288,6 +288,8 @@ func (b *BtcdNotifier) onRedeemingTx(tx *btcutil.Tx, details *btcjson.BlockDetai
 // notificationDispatcher is the primary goroutine which handles client
 // notification registrations, as well as notification dispatches.
 func (b *BtcdNotifier) notificationDispatcher() {
+	defer b.wg.Done()
+
 out:
 	for {
 		select {
@@ -487,7 +489,6 @@ out:
 			break out
 		}
 	}
-	b.wg.Done()
 }
 
 // historicalConfDetails looks up whether a confirmation request (txid/output
diff --git a/docker/lnd/Dockerfile b/dev.Dockerfile
similarity index 100%
rename from docker/lnd/Dockerfile
rename to dev.Dockerfile
diff --git a/docker/README.md b/docker/README.md
index b2b736d89..a6343622e 100644
--- a/docker/README.md
+++ b/docker/README.md
@@ -322,6 +322,12 @@ and send some amount of bitcoins to `Alice`.
 - Connect `Bob` node to the `Faucet` and make multihop payment (`Alice->Faucet->Bob`)
 - Close channel with `Faucet` and check the onchain balance.
 
+### Building standalone docker images
+
+Instructions on how to build standalone docker images (for development or
+production), outside of `docker-compose`, see the
+[docker docs](../docs/DOCKER.md).
+
 ### Questions
 [![Irc](https://img.shields.io/badge/chat-on%20freenode-brightgreen.svg)](https://webchat.freenode.net/?channels=lnd)
 
diff --git a/docker/docker-compose.ltc.yml b/docker/docker-compose.ltc.yml
index c3bbd3dca..5bf9c323d 100644
--- a/docker/docker-compose.ltc.yml
+++ b/docker/docker-compose.ltc.yml
@@ -24,7 +24,7 @@ services:
       container_name: lnd_ltc
       build:
         context: ../
-        dockerfile: docker/lnd/Dockerfile
+        dockerfile: dev.Dockerfile
       environment:
         - RPCUSER
         - RPCPASS
diff --git a/docker/docker-compose.yml b/docker/docker-compose.yml
index f13a400f0..61cd58a5a 100644
--- a/docker/docker-compose.yml
+++ b/docker/docker-compose.yml
@@ -24,7 +24,7 @@ services:
       container_name: lnd
       build:
         context: ../
-        dockerfile: docker/lnd/Dockerfile
+        dockerfile: dev.Dockerfile
       environment:
         - RPCUSER
         - RPCPASS
diff --git a/docker/lnd/start-lnd.sh b/docker/lnd/start-lnd.sh
index 1fb8502ff..c7bfe3058 100755
--- a/docker/lnd/start-lnd.sh
+++ b/docker/lnd/start-lnd.sh
@@ -17,7 +17,7 @@ return() {
 
 # set_default function gives the ability to move the setting of default
 # env variable from docker file to the script thereby giving the ability to the
-# user override it durin container start.
+# user override it during container start.
 set_default() {
     # docker initialized env variables with blank string and we can't just
     # use -z flag as usually.
@@ -45,10 +45,16 @@ DEBUG=$(set_default "$DEBUG" "debug")
 NETWORK=$(set_default "$NETWORK" "simnet")
 CHAIN=$(set_default "$CHAIN" "bitcoin")
 BACKEND="btcd"
+HOSTNAME=$(hostname)
 if [[ "$CHAIN" == "litecoin" ]]; then
     BACKEND="ltcd"
 fi
 
+# CAUTION: DO NOT use the --noseedback for production/mainnet setups, ever!
+# Also, setting --rpclisten to $HOSTNAME will cause it to listen on an IP
+# address that is reachable on the internal network. If you do this outside of
+# docker, this might be a security concern!
+
 exec lnd \
     --noseedbackup \
     "--$CHAIN.active" \
@@ -58,5 +64,6 @@ exec lnd \
     "--$BACKEND.rpchost"="blockchain" \
     "--$BACKEND.rpcuser"="$RPCUSER" \
     "--$BACKEND.rpcpass"="$RPCPASS" \
+    "--rpclisten=$HOSTNAME:10009" \
     --debuglevel="$DEBUG" \
     "$@"
diff --git a/docs/DOCKER.md b/docs/DOCKER.md
index 2916dde9c..700f5677d 100644
--- a/docs/DOCKER.md
+++ b/docs/DOCKER.md
@@ -1,25 +1,47 @@
 # Docker Instructions
 
+There are two flavors of Dockerfiles available:
+ - `Dockerfile`: Used for production builds. Checks out the source code from
+   GitHub during build. The build argument `--build-arg checkout=v0.x.x-beta`
+   can be used to specify what git tag or commit to check out before building.
+ - `dev.Dockerfile` Used for development or testing builds. Uses the local code
+   when building and allows local changes to be tested more easily.
+
 ## Development/testing
 
-For development or testing, or to spin up a `btcd` backend alongside `lnd`,
-check out the documentation at [docker/README.md](../docker/README.md).
+To build a standalone development image from the local source directory, use the
+following command:
+
+```
+$ docker build --tag=myrepository/lnd-dev -f dev.Dockerfile .
+```
+
+There is also a `docker-compose` setup available for development or testing that
+spins up a `btcd` backend alongside `lnd`. Check out the documentation at
+[docker/README.md](../docker/README.md) to learn more about how to use that
+setup to create a small local Lightning Network.
 
 ## Production
 
-To use Docker in a production environment, you can run `lnd` by first creating
-a Docker container, adding the appropriate command-line options as parameters.
+To use Docker in a production environment, you can run `lnd` by creating a
+Docker container, adding the appropriate command-line options as parameters.
+
+You first need to build the `lnd` docker image:
 
 ```
-$ docker create --name=lnd lightninglabs/lnd [command-line options]
+$ docker build --tag=myrepository/lnd --build-arg checkout=v0.11.1-beta .
 ```
 
-Then, just start the container:
+It is recommended that you checkout the latest released tag.
+
+You can continue by creating and running the container:
 
 ```
-$ docker start lnd
+$ docker run lnd [command-line options]
 ```
 
+Note: there currently are no automated docker image builds available.
+
 ## Volumes
 
 A Docker volume will be created with your `.lnd` directory automatically, and will
@@ -28,7 +50,7 @@ persist through container restarts.
 You can also optionally manually specify a local folder to be used as a volume:
 
 ```
-$ docker create --name=lnd -v /media/lnd-docker/:/root/.lnd lightninglabs/lnd [command-line options]
+$ docker create --name=mylndcontainer -v /media/lnd-docker/:/root/.lnd myrepository/lnd [command-line options]
 ```
 
 ## Example
@@ -36,13 +58,7 @@ $ docker create --name=lnd -v /media/lnd-docker/:/root/.lnd lightninglabs/lnd [c
 Here is an example testnet `lnd` that uses Neutrino:
 
 ```
-$ docker create --name lnd-testnet lightninglabs/lnd --bitcoin.active --bitcoin.testnet --bitcoin.node=neutrino --neutrino.connect=faucet.lightning.community
-```
-
-Start the container:
-
-```
-$ docker start lnd-testnet
+$ docker run --name lnd-testnet myrepository/lnd --bitcoin.active --bitcoin.testnet --bitcoin.node=neutrino --neutrino.connect=faucet.lightning.community
 ```
 
 Create a wallet (and write down the seed):
@@ -72,23 +88,23 @@ To test the Docker production image locally, run the following from
 the project root:
 
 ```
-$ docker build . -t lnd:master
+$ docker build . -t myrepository/lnd:master
 ```
 
 To choose a specific branch or tag instead, use the "checkout" build-arg.  For example, to build the latest commits in master:
 
 ```
-$ docker build . --build-arg checkout=v0.8.0-beta -t lnd:v0.8.0-beta
+$ docker build . --build-arg checkout=v0.8.0-beta -t myrepository/lnd:v0.8.0-beta
 ```
 
 To build the image using the most current tag:
 
 ```
-$ docker build . --build-arg checkout=$(git describe --tags `git rev-list --tags --max-count=1`) -t lnd:latest-tag
+$ docker build . --build-arg checkout=$(git describe --tags `git rev-list --tags --max-count=1`) -t myrepository/lnd:latest-tag
 ```
 
 Once the image has been built and tagged locally, start the container:
 
 ```
-docker run --name=lnd-testnet -it lnd:1.0 --bitcoin.active --bitcoin.testnet --bitcoin.node=neutrino --neutrino.connect=faucet.lightning.community
+docker run --name=lnd-testnet -it myrepository/lnd:latest-tag --bitcoin.active --bitcoin.testnet --bitcoin.node=neutrino --neutrino.connect=faucet.lightning.community
 ```
diff --git a/lnwallet/btcwallet/btcwallet.go b/lnwallet/btcwallet/btcwallet.go
index 9c737fb2c..6adc7ebff 100644
--- a/lnwallet/btcwallet/btcwallet.go
+++ b/lnwallet/btcwallet/btcwallet.go
@@ -781,6 +781,8 @@ func (t *txSubscriptionClient) Cancel() {
 // wallet's notification client to a higher-level TransactionSubscription
 // client.
 func (t *txSubscriptionClient) notificationProxier() {
+	defer t.wg.Done()
+
 out:
 	for {
 		select {
@@ -830,8 +832,6 @@ out:
 			break out
 		}
 	}
-
-	t.wg.Done()
 }
 
 // SubscribeTransactions returns a TransactionSubscription client which
diff --git a/lnwallet/wallet.go b/lnwallet/wallet.go
index 7c9d243f2..66ee55828 100644
--- a/lnwallet/wallet.go
+++ b/lnwallet/wallet.go
@@ -425,6 +425,8 @@ func (l *LightningWallet) ActiveReservations() []*ChannelReservation {
 // requestHandler is the primary goroutine(s) responsible for handling, and
 // dispatching replies to all messages.
 func (l *LightningWallet) requestHandler() {
+	defer l.wg.Done()
+
 out:
 	for {
 		select {
@@ -450,8 +452,6 @@ out:
 			break out
 		}
 	}
-
-	l.wg.Done()
 }
 
 // InitChannelReservation kicks off the 3-step workflow required to successfully
diff --git a/peer/brontide.go b/peer/brontide.go
index 12780ee49..164bbdf41 100644
--- a/peer/brontide.go
+++ b/peer/brontide.go
@@ -1836,6 +1836,8 @@ out:
 		}
 	}
 
+	// Avoid an exit deadlock by ensuring WaitGroups are decremented before
+	// disconnect.
 	p.wg.Done()
 
 	p.Disconnect(exitErr)