diff --git a/docs/nix_services_setup.md b/docs/nix_services_setup.md
--- a/docs/nix_services_setup.md
+++ b/docs/nix_services_setup.md
@@ -6,17 +6,11 @@
 
 ## LocalStack
 
-We use LocalStack to emulate AWS services, allowing us to develop and test our services locally. To start LocalStack, run:
+We use LocalStack to emulate AWS services, allowing us to develop and test our services locally. To start LocalStack, run the following commands:
 
 ```
-comm-dev services start
-```
-
-Make sure your LocalStack resources are up to date:
-
-```
-cd services/terraform/dev
-./run.sh
+cd services
+./docker_localstack_up.sh
 ```
 
 ## Configuring the AWS CLI
diff --git a/services/scripts/docker_localstack_up.sh b/services/scripts/docker_localstack_up.sh
new file mode 100755
--- /dev/null
+++ b/services/scripts/docker_localstack_up.sh
@@ -0,0 +1,12 @@
+#!/usr/bin/env bash
+
+set -e
+
+# Start services
+comm-dev services start
+
+# Disable Nix-based localstack
+bash ../scripts/localstack_down.sh
+
+# Start Docker Compose-based localstack
+yarn init-local-cloud
diff --git a/services/terraform/modules/shared/dynamodb.tf b/services/terraform/modules/shared/dynamodb.tf
--- a/services/terraform/modules/shared/dynamodb.tf
+++ b/services/terraform/modules/shared/dynamodb.tf
@@ -243,9 +243,11 @@
 }
 
 resource "aws_dynamodb_table" "identity-reserved-usernames" {
-  name         = "identity-reserved-usernames"
-  hash_key     = "username"
-  billing_mode = "PAY_PER_REQUEST"
+  name             = "identity-reserved-usernames"
+  hash_key         = "username"
+  billing_mode     = "PAY_PER_REQUEST"
+  stream_enabled   = true
+  stream_view_type = "NEW_AND_OLD_IMAGES"
 
   attribute {
     name = "username"
diff --git a/services/terraform/modules/shared/outputs.tf b/services/terraform/modules/shared/outputs.tf
--- a/services/terraform/modules/shared/outputs.tf
+++ b/services/terraform/modules/shared/outputs.tf
@@ -5,6 +5,7 @@
     aws_dynamodb_table.reports-service-reports,
     aws_dynamodb_table.tunnelbroker-undelivered-messages,
     aws_dynamodb_table.identity-users,
+    aws_dynamodb_table.identity-reserved-usernames,
   ]
 }
 
diff --git a/services/terraform/modules/shared/search_index_lambda.tf b/services/terraform/modules/shared/search_index_lambda.tf
--- a/services/terraform/modules/shared/search_index_lambda.tf
+++ b/services/terraform/modules/shared/search_index_lambda.tf
@@ -41,6 +41,12 @@
   starting_position = "LATEST"
 }
 
+resource "aws_lambda_event_source_mapping" "identity_reserved_usernames_trigger" {
+  event_source_arn  = aws_dynamodb_table.identity-reserved-usernames.stream_arn
+  function_name     = aws_lambda_function.search_index_lambda.arn
+  starting_position = "LATEST"
+}
+
 resource "aws_security_group" "search_index_lambda" {
   name   = "search_index_lambda_sg"
   vpc_id = var.vpc_id
diff --git a/services/terraform/remote/aws_iam.tf b/services/terraform/remote/aws_iam.tf
--- a/services/terraform/remote/aws_iam.tf
+++ b/services/terraform/remote/aws_iam.tf
@@ -217,6 +217,7 @@
     aws_iam_policy.manage_cloudwatch_logs.arn,
     aws_iam_policy.manage_network_interface.arn,
     aws_iam_policy.read_identity_users_stream.arn,
+    aws_iam_policy.read_identity_reserved_usernames_stream.arn,
   ]
 }
 
@@ -245,6 +246,30 @@
   policy      = data.aws_iam_policy_document.read_identity_users_stream.json
 }
 
+data "aws_iam_policy_document" "read_identity_reserved_usernames_stream" {
+  statement {
+    effect = "Allow"
+
+    actions = [
+      "dynamodb:GetRecords",
+      "dynamodb:GetShardIterator",
+      "dynamodb:DescribeStream",
+      "dynamodb:ListStreams",
+    ]
+    resources = [
+      module.shared.dynamodb_tables["identity-reserved-usernames"].stream_arn,
+      "${module.shared.dynamodb_tables["identity-reserved-usernames"].arn}/stream/*",
+    ]
+  }
+}
+
+resource "aws_iam_policy" "read_identity_reserved_usernames_stream" {
+  name        = "read-identity-reserved-usernames-stream"
+  path        = "/"
+  description = "IAM policy for managing identity-reserved-usernames stream"
+  policy      = data.aws_iam_policy_document.read_identity_reserved_usernames_stream.json
+}
+
 data "aws_iam_policy_document" "manage_cloudwatch_logs" {
   statement {
     effect = "Allow"