Is it possible to use a local plugin directory with a docker install?

If it’s just a js file, you can deploy that in a theme component.

Theme Components can be copied to a site, so long as it is accessible via https using the discourse_theme gem.

You can even use an existing remote production site for that purpose, no need to set up a local one.

See Discourse Theme CLI (console app to help you build themes) - howto / developers - Discourse Meta

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