diff --git a/.env.example b/.env.example
index 64dd9ba97..464d2983f 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 000000000..67d48d392
--- /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 000000000..fe63e05ee
--- /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 31d7e1678..6ba3d0b23 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/nx.json b/nx.json
index 7e7265dfe..65f0c76fd 100644
--- a/nx.json
+++ b/nx.json
@@ -41,7 +41,12 @@
       { "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/tools/zod2md-jsdocs/src/lib/constants.ts b/tools/zod2md-jsdocs/src/lib/constants.ts
new file mode 100644
index 000000000..28992a132
--- /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 36cefc983..ae8ff14cc 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;