diff --git a/docker-compose.yaml b/docker-compose.yaml
index 6880d1ef..ee84781a 100644
--- a/docker-compose.yaml
+++ b/docker-compose.yaml
@@ -51,7 +51,7 @@ services:
       - ARNS_ROOT_HOST=${ARNS_ROOT_HOST:-}
       - SANDBOX_PROTOCOL=${SANDBOX_PROTOCOL:-}
       - START_WRITERS=${START_WRITERS:-}
-      - CONTRACT_ID=${CONTRACT_ID:-bLAgYxAdX2Ry-nt6aH2ixgvJXbpsEYm28NgJgyqfs-U}
+      - CONTRACT_ID=${CONTRACT_ID:-}
 
   observer:
     image: ghcr.io/ar-io/ar-io-observer:${OBSERVER_IMAGE_TAG:-42c909257f9907f2aef9957b70474207f0cfc78d}
@@ -64,5 +64,5 @@ services:
     environment:
       - PORT=5000
       - OBSERVER_WALLET=${OBSERVER_WALLET:-<example>}
-      - CONTRACT_ID=${CONTRACT_ID:-bLAgYxAdX2Ry-nt6aH2ixgvJXbpsEYm28NgJgyqfs-U}
+      - CONTRACT_ID=${CONTRACT_ID:-}
       - RUN_OBSERVER=${RUN_OBSERVER:-true}
diff --git a/src/config.ts b/src/config.ts
index eac8eda2..0af59ce4 100644
--- a/src/config.ts
+++ b/src/config.ts
@@ -75,4 +75,7 @@ export const ROOT_HOST_SUBDOMAIN_LENGTH =
 export const SANDBOX_PROTOCOL = env.varOrUndefined('SANDBOX_PROTOCOL');
 export const START_WRITERS =
   env.varOrDefault('START_WRITERS', 'true') === 'true';
-export const CONTRACT_ID = env.varOrUndefined('CONTRACT_ID');
+export const CONTRACT_ID = env.varOrDefault(
+  'CONTRACT_ID',
+  'bLAgYxAdX2Ry-nt6aH2ixgvJXbpsEYm28NgJgyqfs-U',
+);