diff --git a/cmd/proxy/main.go b/cmd/proxy/main.go
index 955c7842..154f7e5c 100644
--- a/cmd/proxy/main.go
+++ b/cmd/proxy/main.go
@@ -328,7 +328,7 @@ func createVersionsRegistryTestOrProduction(
 				ValStatsCacheValidityDurationSec:         60,
 				EconomicsMetricsCacheValidityDurationSec: 6,
 				FaucetValue:                              "10000000000",
-				NumberOfShards:                           2,
+				NumberOfShards:                           3,
 			},
 			ApiLogging: config.ApiLoggingConfig{
 				LoggingEnabled:          true,
diff --git a/observer/baseNodeProvider.go b/observer/baseNodeProvider.go
index 00210b6a..82ebe82c 100644
--- a/observer/baseNodeProvider.go
+++ b/observer/baseNodeProvider.go
@@ -34,7 +34,7 @@ func (bnp *baseNodeProvider) initNodes(nodes []*data.NodeData) error {
 			continue
 		}
 
-		if shardId > bnp.numOfShards {
+		if shardId >= bnp.numOfShards {
 			return fmt.Errorf("%w for observer %s, provided shard %d, number of shards configured %d",
 				ErrInvalidShard,
 				observer.Address,
diff --git a/observer/baseNodeProvider_test.go b/observer/baseNodeProvider_test.go
index 9ac5cfef..34db5660 100644
--- a/observer/baseNodeProvider_test.go
+++ b/observer/baseNodeProvider_test.go
@@ -43,7 +43,7 @@ func TestBaseNodeProvider_InvalidNodesConfiguration(t *testing.T) {
 	}
 
 	bnp := baseNodeProvider{
-		numOfShards: 1,
+		numOfShards: 2,
 	}
 	err := bnp.initNodes(nodes)
 	require.Contains(t, err.Error(), "observers for shard 1 must include at least one historical (non-snapshotless) observer")
@@ -60,7 +60,7 @@ func TestBaseNodeProvider_InvalidShardForObserver(t *testing.T) {
 		},
 		{
 			Address:        "addr1",
-			ShardId:        2,
+			ShardId:        1,
 			IsSnapshotless: true,
 		},
 	}
diff --git a/observer/testdata/config.toml b/observer/testdata/config.toml
index c82a7ee4..ec117fd6 100644
--- a/observer/testdata/config.toml
+++ b/observer/testdata/config.toml
@@ -30,5 +30,5 @@
     Address = "full-history-observer-shard-1"
 
 [[FullHistoryNodes]]
-    ShardId = 1
+    ShardId = 4294967295
     Address = "full-history-observer-shard-4294967295"