diff --git a/docker/Dockerfile b/docker/Dockerfile
index 0a0746f27be6a151eee23fc53f181a365191b1ba..80ff3a413b3e3401ac5eaa5583412d3b4c41e78d 100644
--- a/docker/Dockerfile
+++ b/docker/Dockerfile
@@ -1,19 +1,81 @@
-FROM phusion/baseimage:0.11 as builder
+FROM rust:buster as builder
 LABEL maintainer "chevdor@gmail.com"
 LABEL description="This is the build stage for Polkadot. Here we create the binary."
 
+RUN apt update && \
+    apt upgrade -y && \
+    apt install -y cmake pkg-config libssl-dev git clang
+
 ARG PROFILE=release
 WORKDIR /polkadot
 
-COPY . /polkadot
+# initialize required build targets
+# this is a separate build step for caching purposes
+COPY scripts/init.sh scripts/init.sh
+RUN scripts/init.sh
+
+# fetch and build dependencies
+# this is a separate build step for caching purposes
+COPY Cargo.* build.rs ./
+COPY availability-store/Cargo.toml ./availability-store/
+COPY cli/Cargo.toml cli/
+COPY collator/Cargo.toml collator/
+COPY erasure-coding/Cargo.toml ./erasure-coding/
+COPY network/Cargo.toml network/
+COPY parachain/Cargo.toml parachain/
+COPY primitives/Cargo.toml ./primitives/
+COPY rpc/Cargo.toml rpc/
+COPY runtime/common/Cargo.toml runtime/common/
+COPY runtime/kusama/Cargo.toml runtime/kusama/build.rs runtime/kusama/
+COPY runtime/polkadot/Cargo.toml runtime/polkadot/build.rs runtime/polkadot/
+COPY service/Cargo.toml service/
+COPY statement-table/Cargo.toml statement-table/
+COPY test-parachains/adder/Cargo.toml test-parachains/adder/build.rs test-parachains/adder/
+COPY test-parachains/adder/collator/Cargo.toml test-parachains/adder/collator/
+COPY test-parachains/halt/Cargo.toml test-parachains/halt/build.rs test-parachains/halt/
+COPY validation/Cargo.toml validation/
+RUN mkdir src && touch src/lib.rs && \
+    mkdir availability-store/src && touch availability-store/src/lib.rs && \
+    mkdir cli/src && touch cli/src/lib.rs && \
+    mkdir collator/src && touch collator/src/lib.rs && \
+    mkdir erasure-coding/src && touch erasure-coding/src/lib.rs && \
+    mkdir network/src && touch network/src/lib.rs && \
+    mkdir parachain/src && touch parachain/src/lib.rs && \
+    mkdir primitives/src && touch primitives/src/lib.rs && \
+    mkdir rpc/src && touch rpc/src/lib.rs && \
+    mkdir runtime/common/src && touch runtime/common/src/lib.rs && \
+    mkdir runtime/kusama/src && touch runtime/kusama/src/lib.rs && \
+    mkdir runtime/polkadot/src && touch runtime/polkadot/src/lib.rs && \
+    mkdir service/src && touch service/src/lib.rs && \
+    mkdir statement-table/src && touch statement-table/src/lib.rs && \
+    mkdir test-parachains/adder/src && touch test-parachains/adder/src/lib.rs && \
+    mkdir test-parachains/adder/collator/src && touch test-parachains/adder/collator/src/lib.rs && \
+    mkdir test-parachains/halt/src && touch test-parachains/halt/src/lib.rs && \
+    mkdir validation/src && touch validation/src/lib.rs && \
+    echo 'fn main(){}' > src/main.rs && \
+    echo 'fn main(){}' > test-parachains/adder/collator/src/main.rs && \
+    SKIP_WASM_BUILD=1 cargo build --${PROFILE} && \
+    find . -name lib.rs -o -name main.rs -delete
 
-RUN apt-get update && \
-	apt-get upgrade -y && \
-	apt-get install -y cmake pkg-config libssl-dev git clang
-RUN curl https://sh.rustup.rs -sSf | sh -s -- -y && \
-        export PATH=$PATH:$HOME/.cargo/bin && \
-        scripts/init.sh && \
-        cargo build --$PROFILE
+# now build the actual project
+COPY . .
+# we build each module independently, in reverse topographic order, for maximum caching
+RUN cargo build --$PROFILE -p polkadot-parachain
+RUN cargo build --$PROFILE -p halt
+RUN cargo build --$PROFILE -p adder
+RUN cargo build --$PROFILE -p polkadot-primitives
+RUN cargo build --$PROFILE -p polkadot-statement-table
+RUN cargo build --$PROFILE -p polkadot-erasure-coding
+RUN cargo build --$PROFILE -p polkadot-availability-store
+RUN cargo build --$PROFILE -p polkadot-validation
+RUN cargo build --$PROFILE -p polkadot-runtime-common
+RUN cargo build --$PROFILE -p polkadot-runtime
+RUN cargo build --$PROFILE -p polkadot-rpc
+RUN cargo build --$PROFILE -p polkadot-network
+RUN cargo build --$PROFILE -p kusama-runtime
+RUN cargo build --$PROFILE -p polkadot-service
+RUN cargo build --$PROFILE -p polkadot-cli
+RUN cargo build --$PROFILE -p polkadot
 
 # ===== SECOND STAGE ======
 
@@ -24,14 +86,14 @@ ARG PROFILE=release
 COPY --from=builder /polkadot/target/$PROFILE/polkadot /usr/local/bin
 
 RUN mv /usr/share/ca* /tmp && \
-	rm -rf /usr/share/*  && \
-	mv /tmp/ca-certificates /usr/share/ && \
-	rm -rf /usr/lib/python* && \
-	useradd -m -u 1000 -U -s /bin/sh -d /polkadot polkadot && \
-	mkdir -p /polkadot/.local/share/polkadot && \
-	chown -R polkadot:polkadot /polkadot/.local && \
-	ln -s /polkadot/.local/share/polkadot /data && \
-	rm -rf /usr/bin /usr/sbin
+    rm -rf /usr/share/*  && \
+    mv /tmp/ca-certificates /usr/share/ && \
+    rm -rf /usr/lib/python* && \
+    useradd -m -u 1000 -U -s /bin/sh -d /polkadot polkadot && \
+    mkdir -p /polkadot/.local/share/polkadot && \
+    chown -R polkadot:polkadot /polkadot/.local && \
+    ln -s /polkadot/.local/share/polkadot /data && \
+    rm -rf /usr/bin /usr/sbin
 
 USER polkadot
 EXPOSE 30333 9933 9944