I’ll add to this that it would be good to throw in how to set up the test instance with a local version of the NNS and Identity Canisters so that you can test any ICP or governance functions. Maybe there are other system canisters that would be good to have as well? Maybe the test instance should have the whole github.com/dfinity/ic codebase deployed in it?
That project has some info on how to set up a docker to build the code, but very little instruction on how to run the thing. I would imagine you’d want to set up some stuff like faking the governing key of the system so that you can call system functions easily to set up your environment and load in your test states and any test canisters that you’d want to test.
Basically, we need a Ganache for dfn that bootstraps this in a local environment or in a test machine.