diff --git a/solutions/setup-dev-environment/README.md b/solutions/setup-dev-environment/README.md
index 6efa7c6f5..f6d756bdf 100644
--- a/solutions/setup-dev-environment/README.md
+++ b/solutions/setup-dev-environment/README.md
@@ -1,6 +1,6 @@
 # Setup dev environment by kind
 
-This scripts is to setup an OCM developer environment in your local machine with 3 kind clusters. The script will bootstrap 3 kind clusters on your local machine: hub, cluster1, and cluster2. The hub is used as the control plane of the OCM, and the other two clusters are registered on the hub as the managed clusters.
+This script sets up an OCM developer environment on your local machine with three kind clusters: hub, cluster1, and cluster2. The hub is used as the control plane of the OCM and is also registered as a managed cluster named local-cluster. The other two clusters are registered on the hub as managed clusters.
 
 ## Prerequisite
 
@@ -16,12 +16,13 @@ sudo chmod +x /usr/local/bin/clusteradm
 
 ## Setup the clusters
 
-Run `./local-up.sh`, you will see two clusters registered on the hub cluster.
+Run `./local-up.sh`, you will see three clusters registered on the hub cluster.
 
-```
-NAME       HUB ACCEPTED   MANAGED CLUSTER URLS      JOINED   AVAILABLE   AGE
-cluster1   true           https://127.0.0.1:45325   True     True        116s
-cluster2   true           https://127.0.0.1:45325   True     True        98s
+```text
+NAME            HUB ACCEPTED   MANAGED CLUSTER URLS      JOINED   AVAILABLE   AGE
+cluster1        true           https://127.0.0.1:45325   True     True        116s
+cluster2        true           https://127.0.0.1:45325   True     True        98s
+local-cluster   true           https://127.0.0.1:45325   True     True        78s
 ```
 
 <details>
@@ -61,4 +62,4 @@ $ ./local-up.sh
 ```
 
 
-</details> 
\ No newline at end of file
+</details>
diff --git a/solutions/setup-dev-environment/local-up.sh b/solutions/setup-dev-environment/local-up.sh
index dbb18cba3..c14418e97 100755
--- a/solutions/setup-dev-environment/local-up.sh
+++ b/solutions/setup-dev-environment/local-up.sh
@@ -4,9 +4,10 @@ cd $(dirname ${BASH_SOURCE})
 
 set -e
 
-hub=${CLUSTER1:-hub}
+hub=${HUB:-hub}
 c1=${CLUSTER1:-cluster1}
 c2=${CLUSTER2:-cluster2}
+local_cluster=local-cluster
 
 hubctx="kind-${hub}"
 c1ctx="kind-${c1}"
@@ -26,7 +27,13 @@ $(echo ${joincmd} --force-internal-endpoint-lookup --wait --context ${c1ctx} | s
 echo -e "Join cluster2 to hub\n"
 $(echo ${joincmd} --force-internal-endpoint-lookup --wait --context ${c2ctx} | sed "s/<cluster_name>/$c2/g")
 
-echo -e "Accept join of cluster1 and cluster2\n"
-clusteradm accept --context ${hubctx} --clusters ${c1},${c2} --wait
+echo -e "Join hub to itself as ${local_cluster}\n"
+$(echo ${joincmd} --force-internal-endpoint-lookup --wait --context ${hubctx} | sed "s/<cluster_name>/${local_cluster}/g")
+
+managed_clusters="${c1},${c2},${local_cluster}"
+echo -e "Accept join of ${managed_clusters}\n"
+clusteradm accept --context ${hubctx} --clusters ${managed_clusters} --wait
+
+kubectl label managedcluster "${local_cluster}" local-cluster=true --overwrite --context ${hubctx}
 
 kubectl get managedclusters --all-namespaces --context ${hubctx}