diff --git a/bouncer/shared/upgrade_network.ts b/bouncer/shared/upgrade_network.ts
index c7d1ab67ca..9fa4b69c76 100755
--- a/bouncer/shared/upgrade_network.ts
+++ b/bouncer/shared/upgrade_network.ts
@@ -10,7 +10,6 @@ import { compileBinaries } from './utils/compile_binaries';
 import { submitRuntimeUpgradeWithRestrictions } from './submit_runtime_upgrade';
 import { execWithLog } from './utils/exec_with_log';
 import { submitGovernanceExtrinsic } from './cf_governance';
-import { setupLpAccount } from './setup_lp_account';
 
 async function readPackageTomlVersion(projectRoot: string): Promise<string> {
   const data = await fs.readFile(path.join(projectRoot, '/state-chain/runtime/Cargo.toml'), 'utf8');
@@ -339,17 +338,23 @@ export async function upgradeNetworkPrebuilt(
     );
   }
 
-  // Temp: until localnet/bouncer initialises to a version where the LP_API is funded already.
-  if (cleanOldVersion.startsWith('1.6')) {
-    console.log('Setting up LP account and adding liquidity for the LP-API.');
-    // Liquidity is provided as part of the LP-API test setup.
-    await setupLpAccount('//LP_API');
-    // Write LP_API key to keys/ so that the LP-API can use it - when upgrading the old version, which the upgrade-test is
-    // started from doesn't yet have this key.
-    await fs.writeFile(
-      `${localnetInitPath}/keys/LP_API`,
-      '8e1866e65039304e4142f09452a8305acd28d0ae0b833cd268b21a57d68782c1',
-    );
+  // Temp: until localnet/bouncer initialises to a version where the deposit-monitor is started already.
+  if (cleanOldVersion.startsWith('1.7')) {
+    console.log('Starting up deposit-monitor.');
+
+    execWithLog(`${localnetInitPath}/scripts/start-broker-api.sh`, 'start-broker-api', {
+      DEPOSIT_MONITOR_CONTAINER: 'deposit-monitor',
+      DOCKER_COMPOSE_CMD: 'docker-compose',
+      additional_docker_compose_up_args: '--quiet-pull',
+    });
+
+    try {
+      const pid = execSync(`lsof -t -i:6060`);
+      console.log(`New deposit-monitor PID: ${pid.toString()}`);
+    } catch (e) {
+      console.error(`Error starting deposit-monitor: ${e}`);
+      throw e;
+    }
   }
 
   if (cleanOldVersion === nodeVersion) {
diff --git a/localnet/common.sh b/localnet/common.sh
index f385822a28..087447803f 100644
--- a/localnet/common.sh
+++ b/localnet/common.sh
@@ -4,7 +4,7 @@ export GENESIS_NODES=("bashful" "doc" "dopey")
 export REQUIRED_BINARIES="engine-runner chainflip-node chainflip-broker-api chainflip-lp-api"
 export INIT_CONTAINERS="eth-init solana-init"
 export CORE_CONTAINERS="bitcoin geth polkadot redis"
-export CF_CONTAINERS="deposit-monitor"
+export DEPOSIT_MONITOR_CONTAINER="deposit-monitor"
 export ARB_CONTAINERS="sequencer staker-unsafe poster"
 export SOLANA_BASE_PATH="/tmp/solana"
 export CHAINFLIP_BASE_PATH="/tmp/chainflip"
@@ -173,26 +173,11 @@ build-localnet() {
   echo "🤑 Starting LP API ..."
   KEYS_DIR=$KEYS_DIR ./$LOCALNET_INIT_DIR/scripts/start-lp-api.sh $BINARY_ROOT_PATH
 
-  echo "🔬 Starting Deposit Monitor API ..."
-  # On some machines (e.g. MacOS), 172.17.0.1 is not accessible from inside the container, so we need to use host.docker.internal
-  if [[ $CI == true ]]; then
-    export CFDM_BROKER_API_URL='ws://172.17.0.1:10997'
-  else
-    export CFDM_BROKER_API_URL='ws://host.docker.internal:10997'
-  fi
-  $DOCKER_COMPOSE_CMD -f localnet/docker-compose.yml -p "chainflip-localnet" up $CF_CONTAINERS $additional_docker_compose_up_args -d >>$DEBUG_OUTPUT_DESTINATION 2>&1
-  while true; do
-    echo "🩺 Checking deposit-monitor's health ..."
-    REPLY=$(check_endpoint_health 'http://localhost:6060/health')
-    starting=$(echo $REPLY | jq .starting)
-    all_healthy=$(echo $REPLY | jq .all_processors)
-    if test "$starting" == "false" && test "$all_healthy" == "true" ; then
-      echo "💚 deposit-monitor is running!"
-      break
-    fi
-    sleep 1
-  done
-
+  echo "🔬 Starting Deposit Monitor ..."
+  DOCKER_COMPOSE_CMD=$DOCKER_COMPOSE_CMD \
+  DEPOSIT_MONITOR_CONTAINER=$DEPOSIT_MONITOR_CONTAINER \
+  additional_docker_compose_up_args=$additional_docker_compose_up_args \
+  ./$LOCALNET_INIT_DIR/scripts/start-deposit-monitor.sh
 
   if [[ $START_TRACKER == "y" ]]; then
     echo "👁 Starting Ingress-Egress-tracker ..."
diff --git a/localnet/init/scripts/start-deposit-monitor.sh b/localnet/init/scripts/start-deposit-monitor.sh
new file mode 100755
index 0000000000..0bdb023931
--- /dev/null
+++ b/localnet/init/scripts/start-deposit-monitor.sh
@@ -0,0 +1,23 @@
+#!/bin/bash
+set -e
+
+source ./localnet/helper.sh
+
+# On some machines (e.g. MacOS), 172.17.0.1 is not accessible from inside the container, so we need to use host.docker.internal
+if [[ $CI == true ]]; then
+  export CFDM_BROKER_API_URL='ws://172.17.0.1:10997'
+else
+  export CFDM_BROKER_API_URL='ws://host.docker.internal:10997'
+fi
+$DOCKER_COMPOSE_CMD -f localnet/docker-compose.yml -p "chainflip-localnet" up $DEPOSIT_MONITOR_CONTAINER $additional_docker_compose_up_args -d >>$DEBUG_OUTPUT_DESTINATION 2>&1
+while true; do
+  echo "🩺 Checking deposit-monitor's health ..."
+  REPLY=$(check_endpoint_health 'http://localhost:6060/health')
+  starting=$(echo $REPLY | jq .starting)
+  all_healthy=$(echo $REPLY | jq .all_processors)
+  if test "$starting" == "false" && test "$all_healthy" == "true" ; then
+    echo "💚 deposit-monitor is running!"
+    break
+  fi
+  sleep 1
+done
\ No newline at end of file