diff --git a/Makefile b/Makefile
index c3927b5f1..1d18a3e4d 100755
--- a/Makefile
+++ b/Makefile
@@ -20,7 +20,7 @@ install-serverless-latest-release:## Install serverless from latest release
 	make -C ${OPERATOR_ROOT} check-serverless-installation
 
 .PHONY: install-serverless-local-sources
-install-serverless-local-sources: ## Install serverless from local sources. Tip: On some OSes it won't work without preconfiguration. See Readme.md rroubleshooting section.
+install-serverless-local-sources: ## Install serverless from local sources.
 	$(eval IMG_VERSION=local-$(shell date +'%Y%m%d-%H%M%S'))
 	IMG_VERSION=${IMG_VERSION} ./hack/build_all.sh
 
diff --git a/README.md b/README.md
index 21ea297f1..476440e0c 100644
--- a/README.md
+++ b/README.md
@@ -105,18 +105,3 @@ kubectl apply -f https://github.com/kyma-project/serverless/releases/latest/down
             secretName: my-secret
     EOF
     ```
-## Troubleshooting
-
-### Target install-serverless-local-sources - lookup k3d-kyma-registry.localhost: no such host
-
-On some OSes there is a problem with pushing to k3d registry.
-The error log may look similar:
-```
-+ docker push k3d-kyma-registry.localhost:5000/kyma-project/function-controller:local-20240426-111856
-The push refers to repository [k3d-kyma-registry.localhost:5000/kyma-project/function-controller]
-Get "https://k3d-kyma-registry.localhost:5000/v2/": dialing k3d-kyma-registry.localhost:5000 with direct connection: resolving host k3d-kyma-registry.localhost: lookup k3d-kyma-registry.localhost: no such host
-make: *** [install-serverless-local-sources] Error 1
-```
-
-You have to add `127.0.0.1 k3d-kyma-registry.locahost` to your `etc/hosts`. 
-More details: https://k3d.io/v5.3.0/usage/registries/#preface-referencing-local-registries
diff --git a/hack/docker-compose.yaml b/hack/docker-compose.yaml
index d4d1d15a1..7094ce6b6 100755
--- a/hack/docker-compose.yaml
+++ b/hack/docker-compose.yaml
@@ -1,38 +1,38 @@
 services:
   # serverless
   function_controller:
-    image: k3d-kyma-registry.localhost:5000/kyma-project/function-controller:local
+    image: localhost:5000/kyma-project/function-controller:local
     platform: "linux/amd64"
     build:
       context: ../
       dockerfile: components/serverless/deploy/manager/Dockerfile
   function_build_init:
-    image: k3d-kyma-registry.localhost:5000/kyma-project/function-build-init:local
+    image: localhost:5000/kyma-project/function-build-init:local
     platform: "linux/amd64"
     build:
       context: ../
       dockerfile: components/serverless/deploy/jobinit/Dockerfile
   # runtimes
   function_runtime_nodejs18:
-    image: k3d-kyma-registry.localhost:5000/kyma-project/function-runtime-nodejs18:local
+    image: localhost:5000/kyma-project/function-runtime-nodejs18:local
     platform: "linux/amd64"
     build:
       context: ../components/runtimes/nodejs
       dockerfile: nodejs18/Dockerfile
   function_runtime_nodejs20:
-    image: k3d-kyma-registry.localhost:5000/kyma-project/function-runtime-nodejs20:local
+    image: localhost:5000/kyma-project/function-runtime-nodejs20:local
     platform: "linux/amd64"
     build:
       context: ../components/runtimes/nodejs
       dockerfile: nodejs20/Dockerfile
   function_runtime_python39:
-    image: k3d-kyma-registry.localhost:5000/kyma-project/function-runtime-python39:local
+    image: localhost:5000/kyma-project/function-runtime-python39:local
     platform: "linux/amd64"
     build:
       context: ../components/runtimes/python
       dockerfile: python39/Dockerfile
   function_runtime_python312:
-    image: k3d-kyma-registry.localhost:5000/kyma-project/function-runtime-python312:local
+    image: localhost:5000/kyma-project/function-runtime-python312:local
     platform: "linux/amd64"
     build:
       context: ../components/runtimes/python