diff --git a/local-setup-testing/hardhat.config.ts b/local-setup-testing/hardhat.config.ts
index b5ef207..0d28a18 100644
--- a/local-setup-testing/hardhat.config.ts
+++ b/local-setup-testing/hardhat.config.ts
@@ -1,32 +1,44 @@
-require("@matterlabs/hardhat-zksync-deploy");
-require("@matterlabs/hardhat-zksync-solc");
+import { HardhatUserConfig } from 'hardhat/config';
 
-const zkSyncDeploy = process.env.NODE_ENV == 'test' ? {
-  zkSyncNetwork: "http://localhost:3050",
-  ethNetwork: "http://localhost:8545",
-} : {
-  zkSyncNetwork: "https://zksync2-testnet.zksync.dev",
-  ethNetwork: "goerli",
-};
+require('@matterlabs/hardhat-zksync-deploy');
+require('@matterlabs/hardhat-zksync-solc');
+
+// dynamically changes endpoints for local tests
+const zkSyncTestnet =
+  process.env.NODE_ENV == 'test'
+    ? {
+        url: 'http://localhost:3050',
+        ethNetwork: 'http://localhost:8545',
+        zksync: true,
+      }
+    : {
+        url: 'https://zksync2-testnet.zksync.dev',
+        ethNetwork: 'goerli',
+        zksync: true,
+      };
 
-module.exports = {
+const config: HardhatUserConfig = {
   zksolc: {
-    version: "1.2.0",
-    compilerSource: "docker",
+    version: '1.2.1',
+    compilerSource: 'binary',
     settings: {
       experimental: {
-        dockerImage: "matterlabs/zksolc",
-        tag: 'v1.2.0'
+        dockerImage: 'matterlabs/zksolc',
+        tag: 'v1.2.0',
       },
     },
   },
-  zkSyncDeploy,
-  solidity: {
-    version: "0.8.11",
-  },
+  defaultNetwork: 'zkSyncTestnet',
   networks: {
     hardhat: {
-      zksync: true
+      // @ts-ignore
+      zksync: true,
     },
+    zkSyncTestnet,
+  },
+  solidity: {
+    version: '0.8.16',
   },
 };
+
+export default config;
diff --git a/local-setup-testing/package.json b/local-setup-testing/package.json
index 826b327..b4520b9 100644
--- a/local-setup-testing/package.json
+++ b/local-setup-testing/package.json
@@ -4,8 +4,8 @@
   "main": "index.js",
   "license": "MIT",
   "devDependencies": {
-    "@matterlabs/hardhat-zksync-deploy": "^0.4.0",
-    "@matterlabs/hardhat-zksync-solc": "^0.3.7",
+    "@matterlabs/hardhat-zksync-deploy": "^0.6.0",
+    "@matterlabs/hardhat-zksync-solc": "^0.3.12",
     "@types/chai": "^4.3.0",
     "@types/mocha": "^9.1.0",
     "chai": "^4.3.6",
diff --git a/local-setup-testing/test/main.test.ts b/local-setup-testing/test/main.test.ts
index 87316bc..097319b 100644
--- a/local-setup-testing/test/main.test.ts
+++ b/local-setup-testing/test/main.test.ts
@@ -2,39 +2,48 @@ import { expect } from 'chai';
 import { Wallet, Contract, utils } from 'zksync-web3';
 import * as hre from 'hardhat';
 import { ethers } from 'ethers';
-import { Deployer } from "@matterlabs/hardhat-zksync-deploy";
+import { Deployer } from '@matterlabs/hardhat-zksync-deploy';
 
-const RICH_WALLET_PK = '0x7726827caac94a7f9e1b160f7ea819f172f7b6f9d2a97f992c38edeab82d4110';
+const RICH_WALLET_PK =
+  '0x7726827caac94a7f9e1b160f7ea819f172f7b6f9d2a97f992c38edeab82d4110';
 
 async function deployGreeter(deployer: Deployer): Promise<Contract> {
-    const artifact = await deployer.loadArtifact("Greeter");
-    return await deployer.deploy(artifact, ["Hi"]);
+  try {
+    console.log('Deploying contract');
+    const artifact = await deployer.loadArtifact('Greeter');
+
+    return await deployer.deploy(artifact, ['Hi']);
+  } catch (error) {
+    console.error('Error deploying contract');
+    console.error(error);
+    throw new Error('Error deploying contract');
+  }
 }
 
-describe("Greeter", function () {
-    let deployer: Deployer;
+describe('Greeter', function () {
+  let deployer: Deployer;
 
-    before("Fund the wallet", async () => {
-        deployer = new Deployer(hre, new Wallet(RICH_WALLET_PK));
+  before('Fund the wallet', async () => {
+    deployer = new Deployer(hre, new Wallet(RICH_WALLET_PK));
 
-        const depositHandle = await deployer.zkWallet.deposit({
-            to: deployer.zkWallet.address,
-            token: utils.ETH_ADDRESS,
-            amount: ethers.utils.parseEther('0.001'),
-        });
-
-        await depositHandle.wait();
+    const depositHandle = await deployer.zkWallet.deposit({
+      to: deployer.zkWallet.address,
+      token: utils.ETH_ADDRESS,
+      amount: ethers.utils.parseEther('0.001'),
     });
 
-    it("Should return the new greeting once it's changed", async () => {
-        const greeter = await deployGreeter(deployer);
+    await depositHandle.wait();
+  });
 
-        expect(await greeter.greet()).to.eq("Hi");;
+  it("Should return the new greeting once it's changed", async () => {
+    const greeter = await deployGreeter(deployer);
+    console.log('Deployeeeeddd');
+    expect(await greeter.greet()).to.eq('Hi');
+    console.log('Hi is hi');
 
-        const setGreetingTx = await greeter.setGreeting("Hola, mundo!");
-        await setGreetingTx.wait();
+    const setGreetingTx = await greeter.setGreeting('Hola, mundo!');
+    await setGreetingTx.wait();
 
-        expect(await greeter.greet()).to.equal("Hola, mundo!");
-    });
+    expect(await greeter.greet()).to.equal('Hola, mundo!');
+  });
 });
-
diff --git a/local-setup-testing/yarn.lock b/local-setup-testing/yarn.lock
index 1ee6548..1fed52e 100644
--- a/local-setup-testing/yarn.lock
+++ b/local-setup-testing/yarn.lock
@@ -428,17 +428,15 @@
     "@ethersproject/properties" "^5.6.0"
     "@ethersproject/strings" "^5.6.0"
 
-"@matterlabs/hardhat-zksync-deploy@^0.4.0":
-  version "0.4.0"
-  resolved "https://registry.yarnpkg.com/@matterlabs/hardhat-zksync-deploy/-/hardhat-zksync-deploy-0.4.0.tgz#8a6ef1faf7d91cf2b32072eeaa7c7332fb4c27b1"
-  integrity sha512-r/xp+CL1+qVLNGoSehUe4u80QZRG8e4WEnhJ1JuJSxzOaoivqUDFblf8Q/TQkdFPrilBqpgTJzcPazDsWeH0SQ==
-  dependencies:
-    glob "^8.0.1"
+"@matterlabs/hardhat-zksync-deploy@^0.6.0":
+  version "0.6.0"
+  resolved "https://registry.yarnpkg.com/@matterlabs/hardhat-zksync-deploy/-/hardhat-zksync-deploy-0.6.0.tgz#c24a79e325344511adb023062205dbc312efdf01"
+  integrity sha512-Gu7Zuzyx+YipyyKVtGjQ+EYWGtDmPLhH4oStyVLjIGWfdawT+AWUYxe6nwrIYGOxqI5RcGdGIDd5NANAOJKgjA==
 
-"@matterlabs/hardhat-zksync-solc@^0.3.7":
-  version "0.3.7"
-  resolved "https://registry.yarnpkg.com/@matterlabs/hardhat-zksync-solc/-/hardhat-zksync-solc-0.3.7.tgz#1215e8558d7de35cecb875a28e02df697bd63cdb"
-  integrity sha512-fhqCC+31G4ccW//ENyKzSpCfTTh3D5jeO1jPeDhgvw+0DMC3W1iOvAc+7FXpz1kMJmcQYNLQyMDV71xXTREAMw==
+"@matterlabs/hardhat-zksync-solc@^0.3.12":
+  version "0.3.12"
+  resolved "https://registry.yarnpkg.com/@matterlabs/hardhat-zksync-solc/-/hardhat-zksync-solc-0.3.12.tgz#0caeb0a2aac1d66057988b981a4d1c72ff614a1e"
+  integrity sha512-0py4bsqphPYJV1Ub7jlCkMP2lEENIB16jv700rNnikJJn251ofQgzowcspJw+/WchP+Tu4tJSRL0a1MVngtCoQ==
   dependencies:
     "@nomiclabs/hardhat-docker" "^2.0.0"
     dockerode "^3.3.4"
@@ -1559,17 +1557,6 @@ glob@7.2.0, glob@^7.1.3:
     once "^1.3.0"
     path-is-absolute "^1.0.0"
 
-glob@^8.0.1:
-  version "8.0.3"
-  resolved "https://registry.yarnpkg.com/glob/-/glob-8.0.3.tgz#415c6eb2deed9e502c68fa44a272e6da6eeca42e"
-  integrity sha512-ull455NHSHI/Y1FqGaaYFaLGkNMMJbavMrEGFXG/PGrg6y7sutWHUHrz6gy6WEBH6akM1M414dWKCNs+IhKdiQ==
-  dependencies:
-    fs.realpath "^1.0.0"
-    inflight "^1.0.4"
-    inherits "2"
-    minimatch "^5.0.1"
-    once "^1.3.0"
-
 graceful-fs@^4.1.2, graceful-fs@^4.1.6, graceful-fs@^4.1.9:
   version "4.2.10"
   resolved "https://registry.yarnpkg.com/graceful-fs/-/graceful-fs-4.2.10.tgz#147d3a006da4ca3ce14728c7aefc287c367d7a6c"
@@ -2074,13 +2061,6 @@ minimatch@^3.0.4:
   dependencies:
     brace-expansion "^1.1.7"
 
-minimatch@^5.0.1:
-  version "5.1.0"
-  resolved "https://registry.yarnpkg.com/minimatch/-/minimatch-5.1.0.tgz#1717b464f4971b144f6aabe8f2d0b8e4511e09c7"
-  integrity sha512-9TPBGGak4nHfGZsPBohm9AWg6NoT7QTCehS3BIJABslyZbzxfV78QM2Y6+i741OPZIafFAaiiEMh5OyIrJPgtg==
-  dependencies:
-    brace-expansion "^2.0.1"
-
 minimist@^1.2.6:
   version "1.2.6"
   resolved "https://registry.yarnpkg.com/minimist/-/minimist-1.2.6.tgz#8637a5b759ea0d6e98702cfb3a9283323c93af44"