diff --git a/Makefile b/Makefile
index 0c3e17b293..0bd157a3bc 100644
--- a/Makefile
+++ b/Makefile
@@ -236,7 +236,7 @@ start-stress-test: zetanode
 #TODO: replace OLD_VERSION with v16 tag once its available
 zetanode-upgrade: zetanode
 	@echo "Building zetanode-upgrade"
-	$(DOCKER) build -t zetanode:old -f Dockerfile-localnet --target old-runtime --build-arg OLD_VERSION='release/v16' .
+	$(DOCKER) build -t zetanode:old -f Dockerfile-localnet --target old-runtime --build-arg OLD_VERSION='release/v17' .
 	$(DOCKER) build -t orchestrator -f contrib/localnet/orchestrator/Dockerfile.fastbuild .
 .PHONY: zetanode-upgrade
 
@@ -256,6 +256,10 @@ start-e2e-import-mainnet-test: zetanode
 	@echo "--> Starting e2e import-data test"
 	cd contrib/localnet/ && ./scripts/import-data.sh mainnet && $(DOCKER) compose -f docker-compose.yml -f docker-compose-import-data.yml up -d
 
+start-e2e-import-mainnet-upgrade: zetanode-upgrade
+	@echo "--> Starting upgrade test"
+	cd contrib/localnet/ && $(DOCKER) compose -f docker-compose.yml -f docker-compose-import-upgrade.yml up -d
+
 stop-test:
 	cd contrib/localnet/ && $(DOCKER) compose down --remove-orphans
 
diff --git a/contrib/localnet/docker-compose-import-upgrade.yml b/contrib/localnet/docker-compose-import-upgrade.yml
new file mode 100644
index 0000000000..5595ec261a
--- /dev/null
+++ b/contrib/localnet/docker-compose-import-upgrade.yml
@@ -0,0 +1,55 @@
+version: "3"
+
+# This docker-compose redefine the services:
+# - ZetaChain with 2 nodes (zetacore0, zetacore1) using the upgrade option for cosmovisor
+# - ZetaChain observer set with 2 clients (zetaclient0, zetaclient1) using the background option
+# - Orchestrator with upgrade option
+
+services:
+  zetacore0:
+    image: zetanode:old
+    entrypoint: ["/root/start-zetacored.sh", "2","import-data"]
+    volumes:
+      - ~/genesis_export/:/root/genesis_data
+
+  zetacore1:
+    image: zetanode:old
+    entrypoint: ["/root/start-zetacored.sh", "2","import-data"]
+
+  zetaclient0:
+    entrypoint: ["/root/start-zetaclientd.sh"]
+    image: zetanode:old
+
+  zetaclient1:
+    entrypoint: ["/root/start-zetaclientd.sh"]
+    image: zetanode:old
+
+  orchestrator:
+    entrypoint: ["/work/start-zetae2e.sh", "local", "upgrade"]
+    image: orchestrator
+
+  upgrade-host:
+    image: zetanode:latest
+    container_name: upgrade-host
+    hostname: upgrade-host
+    entrypoint: ["/root/start-upgrade-host.sh"]
+    networks:
+      mynetwork:
+        ipv4_address: 172.20.0.250
+    volumes:
+      - ssh:/root/.ssh
+
+  upgrade-orchestrator:
+    # must run from old node for api compatibility
+    image: zetanode:old
+    container_name: upgrade-orchestrator
+    hostname: upgrade-orchestrator
+    entrypoint: ["/root/start-upgrade-orchestrator.sh", "225"]
+    networks:
+      mynetwork:
+        ipv4_address: 172.20.0.251
+    depends_on:
+      - zetacore0
+      - upgrade-host
+    volumes:
+      - ssh:/root/.ssh
\ No newline at end of file
diff --git a/contrib/localnet/scripts/start-upgrade-orchestrator.sh b/contrib/localnet/scripts/start-upgrade-orchestrator.sh
index a2e8ec68fd..81c6f8b367 100755
--- a/contrib/localnet/scripts/start-upgrade-orchestrator.sh
+++ b/contrib/localnet/scripts/start-upgrade-orchestrator.sh
@@ -65,7 +65,7 @@ cat > upgrade.json <<EOF
     }
   ],
   "metadata": "",
-  "deposit": "100000000azeta",
+  "deposit": "1000000000000000000000azeta",
   "title": "${UPGRADE_NAME}",
   "summary": "${UPGRADE_NAME}"
 }
diff --git a/contrib/localnet/scripts/start-zetacored.sh b/contrib/localnet/scripts/start-zetacored.sh
index 9852fff434..4d290c1341 100755
--- a/contrib/localnet/scripts/start-zetacored.sh
+++ b/contrib/localnet/scripts/start-zetacored.sh
@@ -209,7 +209,6 @@ then
   cat $HOME/.zetacored/config/genesis.json | jq '.app_state["mint"]["params"]["mint_denom"]="azeta"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
   cat $HOME/.zetacored/config/genesis.json | jq '.app_state["evm"]["params"]["evm_denom"]="azeta"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
   cat $HOME/.zetacored/config/genesis.json | jq '.consensus_params["block"]["max_gas"]="500000000"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
-  cat $HOME/.zetacored/config/genesis.json | jq '.app_state["gov"]["voting_params"]["voting_period"]="100s"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
   cat $HOME/.zetacored/config/genesis.json | jq '.app_state["feemarket"]["params"]["min_gas_price"]="10000000000.0000"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
 
   # set governance parameters in new params module for sdk v0.47+
@@ -262,6 +261,8 @@ then
     zetacored parse-genesis-file /root/genesis_data/exported-genesis.json
   fi
 
+  cat $HOME/.zetacored/config/genesis.json | jq '.app_state["gov"]["voting_params"]["voting_period"]="100s"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
+
 # 4. Collect all the gentx files in zetacore0 and create the final genesis.json
   zetacored collect-gentxs
   zetacored validate-genesis