diff --git a/.env.example b/.env.example
index 64dd9ba976..464d2983fc 100644
--- a/.env.example
+++ b/.env.example
@@ -1,2 +1,8 @@
-# for uploading to portal
+# Example environment variables
+# These are for reference only - use .env.local for local development
+
+# For uploading to Code PushUp portal
 CP_API_KEY=
+
+# Note: For local development with tsx/TypeScript execution,
+# copy .env.local.example to .env.local and configure NODE_OPTIONS there
diff --git a/.env.local b/.env.local
new file mode 100644
index 0000000000..67d48d3925
--- /dev/null
+++ b/.env.local
@@ -0,0 +1,9 @@
+# Local development environment variables
+# Copy this to .env.local (gitignored) and customize for your setup
+
+# Enable tsx for TypeScript execution in Nx
+# This allows running local generator/executor directly as .ts files without pre-compilation
+# This allowes the local plugins to import files with .js extensions (same as the packages in the repository)
+NODE_OPTIONS=--import tsx
+# This is used to resolve the paths in the local generator/executor so local packages can be imported as path aliases
+TSX_TSCONFIG_PATH=tsconfig.base.json
diff --git a/.env.local.example b/.env.local.example
new file mode 100644
index 0000000000..fe63e05eee
--- /dev/null
+++ b/.env.local.example
@@ -0,0 +1,12 @@
+# Local development environment variables
+# Copy this to .env.local (gitignored) and customize for your setup
+
+# Enable tsx for TypeScript execution in Nx
+# This allows running local generator/executor directly as .ts files without pre-compilation
+# This allowes the local plugins to import files with .js extensions (same as the packages in the repository)
+NODE_OPTIONS=--import tsx
+# This is used to resolve the paths in the local generator/executor so local packages can be imported as path aliases
+TSX_TSCONFIG_PATH=tsconfig.base.json
+
+# Local API keys (optional - only if testing upload features)
+# CP_API_KEY=your_api_key_here
diff --git a/.gitignore b/.gitignore
index 31d7e1678c..6ba3d0b23a 100644
--- a/.gitignore
+++ b/.gitignore
@@ -57,4 +57,4 @@ vitest.config.*.timestamp*
 .cursor/rules/nx-rules.mdc
 .github/instructions/nx.instructions.md
 
-code-pushup.config.bundled_*.mjs
\ No newline at end of file
+code-pushup.config.bundled_*.mjs
diff --git a/e2e/ci-e2e/mocks/fixtures/basic/.env.local b/e2e/ci-e2e/mocks/fixtures/basic/.env.local
new file mode 100644
index 0000000000..7b643f70cf
--- /dev/null
+++ b/e2e/ci-e2e/mocks/fixtures/basic/.env.local
@@ -0,0 +1,8 @@
+# Local development environment variables
+# Copy this to .env.local (gitignored) and customize for your setup
+
+# Enable tsx for TypeScript execution in Nx
+# This allows running local generator/executor directly as .ts files without pre-compilation
+# This allows the local plugins to import files with .js extensions (same as the packages in the repository)
+NODE_OPTIONS=--import tsx
+# This is used to resolve the paths in the local generator/executor so local packages can be imported as path aliases
diff --git a/e2e/ci-e2e/mocks/fixtures/basic/tsconfig.base.json b/e2e/ci-e2e/mocks/fixtures/basic/tsconfig.base.json
new file mode 100644
index 0000000000..63c63149b8
--- /dev/null
+++ b/e2e/ci-e2e/mocks/fixtures/basic/tsconfig.base.json
@@ -0,0 +1,24 @@
+{
+  "compileOnSave": false,
+  "compilerOptions": {
+    "rootDir": ".",
+    "sourceMap": true,
+    "strict": true,
+    "noUncheckedIndexedAccess": true,
+    "declaration": false,
+    "moduleResolution": "node",
+    "emitDecoratorMetadata": true,
+    "experimentalDecorators": true,
+    "importHelpers": false,
+    "target": "es2022",
+    "module": "esnext",
+    "lib": ["es2023", "dom"],
+    "skipLibCheck": true,
+    "skipDefaultLibCheck": true,
+    "baseUrl": ".",
+    "resolveJsonModule": true,
+    "allowSyntheticDefaultImports": true,
+    "verbatimModuleSyntax": true
+  },
+  "exclude": ["node_modules", "tmp"]
+}
diff --git a/e2e/ci-e2e/mocks/fixtures/npm-workspaces/.env.local b/e2e/ci-e2e/mocks/fixtures/npm-workspaces/.env.local
new file mode 100644
index 0000000000..568496dd57
--- /dev/null
+++ b/e2e/ci-e2e/mocks/fixtures/npm-workspaces/.env.local
@@ -0,0 +1,8 @@
+# Local development environment variables
+# Copy this to .env.local (gitignored) and customize for your setup
+
+# Enable tsx for TypeScript execution in Nx
+# This allows running local generator/executor directly as .ts files without pre-compilation
+# This allowes the local plugins to import files with .js extensions (same as the packages in the repository)
+NODE_OPTIONS=--import tsx
+# This is used to resolve the paths in the local generator/executor so local packages can be imported as path aliases
diff --git a/e2e/ci-e2e/mocks/fixtures/npm-workspaces/tsconfig.base.json b/e2e/ci-e2e/mocks/fixtures/npm-workspaces/tsconfig.base.json
new file mode 100644
index 0000000000..63c63149b8
--- /dev/null
+++ b/e2e/ci-e2e/mocks/fixtures/npm-workspaces/tsconfig.base.json
@@ -0,0 +1,24 @@
+{
+  "compileOnSave": false,
+  "compilerOptions": {
+    "rootDir": ".",
+    "sourceMap": true,
+    "strict": true,
+    "noUncheckedIndexedAccess": true,
+    "declaration": false,
+    "moduleResolution": "node",
+    "emitDecoratorMetadata": true,
+    "experimentalDecorators": true,
+    "importHelpers": false,
+    "target": "es2022",
+    "module": "esnext",
+    "lib": ["es2023", "dom"],
+    "skipLibCheck": true,
+    "skipDefaultLibCheck": true,
+    "baseUrl": ".",
+    "resolveJsonModule": true,
+    "allowSyntheticDefaultImports": true,
+    "verbatimModuleSyntax": true
+  },
+  "exclude": ["node_modules", "tmp"]
+}
diff --git a/e2e/ci-e2e/mocks/fixtures/nx-monorepo/.env.local b/e2e/ci-e2e/mocks/fixtures/nx-monorepo/.env.local
new file mode 100644
index 0000000000..568496dd57
--- /dev/null
+++ b/e2e/ci-e2e/mocks/fixtures/nx-monorepo/.env.local
@@ -0,0 +1,8 @@
+# Local development environment variables
+# Copy this to .env.local (gitignored) and customize for your setup
+
+# Enable tsx for TypeScript execution in Nx
+# This allows running local generator/executor directly as .ts files without pre-compilation
+# This allowes the local plugins to import files with .js extensions (same as the packages in the repository)
+NODE_OPTIONS=--import tsx
+# This is used to resolve the paths in the local generator/executor so local packages can be imported as path aliases
diff --git a/e2e/ci-e2e/mocks/fixtures/nx-monorepo/tsconfig.base.json b/e2e/ci-e2e/mocks/fixtures/nx-monorepo/tsconfig.base.json
new file mode 100644
index 0000000000..63c63149b8
--- /dev/null
+++ b/e2e/ci-e2e/mocks/fixtures/nx-monorepo/tsconfig.base.json
@@ -0,0 +1,24 @@
+{
+  "compileOnSave": false,
+  "compilerOptions": {
+    "rootDir": ".",
+    "sourceMap": true,
+    "strict": true,
+    "noUncheckedIndexedAccess": true,
+    "declaration": false,
+    "moduleResolution": "node",
+    "emitDecoratorMetadata": true,
+    "experimentalDecorators": true,
+    "importHelpers": false,
+    "target": "es2022",
+    "module": "esnext",
+    "lib": ["es2023", "dom"],
+    "skipLibCheck": true,
+    "skipDefaultLibCheck": true,
+    "baseUrl": ".",
+    "resolveJsonModule": true,
+    "allowSyntheticDefaultImports": true,
+    "verbatimModuleSyntax": true
+  },
+  "exclude": ["node_modules", "tmp"]
+}
diff --git a/nx.json b/nx.json
index c77d9dff8c..53fdff630b 100644
--- a/nx.json
+++ b/nx.json
@@ -40,7 +40,12 @@
       { "env": "NODE_OPTIONS" },
       { "env": "TSX_TSCONFIG_PATH" }
     ],
-    "sharedGlobals": [{ "runtime": "node -v" }, { "runtime": "npm -v" }]
+    "sharedGlobals": [
+      { "runtime": "node -v" },
+      { "runtime": "npm -v" },
+      { "env": "NODE_OPTIONS" },
+      { "env": "TSX_TSCONFIG_PATH" }
+    ]
   },
   "targetDefaults": {
     "lint": {
diff --git a/package.json b/package.json
index 52a48a7d47..bc8f121639 100644
--- a/package.json
+++ b/package.json
@@ -15,7 +15,8 @@
   "scripts": {
     "prepare": "husky install",
     "commit": "git-cz",
-    "knip": "knip"
+    "knip": "knip",
+    "nx": "NODE_OPTIONS='--import tsx' tsx --tsconfig=tsconfig.base.json ./node_modules/.bin/nx"
   },
   "private": true,
   "dependencies": {
diff --git a/tools/zod2md-jsdocs/src/lib/constants.ts b/tools/zod2md-jsdocs/src/lib/constants.ts
new file mode 100644
index 0000000000..28992a1320
--- /dev/null
+++ b/tools/zod2md-jsdocs/src/lib/constants.ts
@@ -0,0 +1,2 @@
+export const ZOD2MD_CONFIG_FILE = 'zod2md.config.ts';
+export const GENERATE_DOCS_TARGET_NAME = 'generate-docs';
diff --git a/tools/zod2md-jsdocs/src/nx-plugin.ts b/tools/zod2md-jsdocs/src/nx-plugin.ts
index 36cefc9836..ae8ff14ccc 100644
--- a/tools/zod2md-jsdocs/src/nx-plugin.ts
+++ b/tools/zod2md-jsdocs/src/nx-plugin.ts
@@ -1,8 +1,9 @@
 import type { CreateNodesV2, NxPlugin, TargetConfiguration } from '@nx/devkit';
 import * as path from 'node:path';
-
-const ZOD2MD_CONFIG_FILE = 'zod2md.config.ts';
-const GENERATE_DOCS_TARGET_NAME = 'generate-docs';
+import {
+  GENERATE_DOCS_TARGET_NAME,
+  ZOD2MD_CONFIG_FILE,
+} from './lib/constants.js';
 
 type DocsTargetConfigParams = {
   config: string;