diff --git a/packages/docs/pages/operators/networks/local-network.mdx b/packages/docs/pages/operators/networks/local-network.mdx
index e0fc7ea6..333822c1 100644
--- a/packages/docs/pages/operators/networks/local-network.mdx
+++ b/packages/docs/pages/operators/networks/local-network.mdx
@@ -1,4 +1,5 @@
 import Expandable from "../../../components/Expandable";
+import { Callout } from "nextra-theme-docs";
 
 # Spinning up a local network
 
@@ -72,6 +73,18 @@ The ledger can be run through the familiar command:
 ./target/release/namada ledger # Assuming the binaries were built using `make build-release`
 ```
 
+<Callout>
+If you receive the error `Failed to construct Namada chain context...`, then you need to set the variable `NAMADA_BASE_DIR`. For example:
+
+```shell
+export NAMADA_BASE_DIR=/$(pwd)/.namada/validator-0
+
+# or pass it as the parameter --base-dir
+./target/release/namada ledger --base-dir="/$(pwd)/.namada/validator-0"
+```
+
+</Callout>
+
 ## Cleaning up
 
 After the local network has fulfilled its purpose, it can be cleaned up by running the following commands found in the cleanup function of the script: