diff --git a/.gitignore b/.gitignore
index f35e8bca..43a00567 100644
--- a/.gitignore
+++ b/.gitignore
@@ -24,3 +24,4 @@ demos/network_copilot/ollama/models/
 arch_log/
 arch/tools/*.egg-info
 arch/tools/config
+model_server/venv_model_server
diff --git a/arch/docker-compose.yaml b/arch/docker-compose.yaml
index 31d6db56..db0e50aa 100644
--- a/arch/docker-compose.yaml
+++ b/arch/docker-compose.yaml
@@ -7,10 +7,11 @@ services:
     volumes:
       - ${ARCH_CONFIG_FILE:-./demos/function_calling/arch_confg.yaml}:/config/arch_config.yaml
       - /etc/ssl/cert.pem:/etc/ssl/cert.pem
-      - ./arch_log:/var/log/
     depends_on:
       model_server:
         condition: service_healthy
+    env_file:
+      - stage.env
 
   model_server:
     image: model_server:latest
diff --git a/arch/stage.env b/arch/stage.env
new file mode 100644
index 00000000..e69de29b
diff --git a/arch/tools/MANIFEST.in b/arch/tools/MANIFEST.in
index f2af40b7..0aa3efe1 100644
--- a/arch/tools/MANIFEST.in
+++ b/arch/tools/MANIFEST.in
@@ -1,2 +1,3 @@
 include config/docker-compose.yaml
 include config/arch_config_schema.yaml
+include config/stage.env
diff --git a/arch/tools/build-cli.sh b/arch/tools/build-cli.sh
index 4463ccf2..02fc5e07 100644
--- a/arch/tools/build-cli.sh
+++ b/arch/tools/build-cli.sh
@@ -3,6 +3,7 @@
 # Define paths
 source_schema="../arch_config_schema.yaml"
 source_compose="../docker-compose.yaml"
+source_stage_env="../stage.env"
 destination_dir="config"
 
 # Ensure the destination directory exists only if it doesn't already
@@ -14,6 +15,7 @@ fi
 # Copy the files
 cp "$source_schema" "$destination_dir/arch_config_schema.yaml"
 cp "$source_compose" "$destination_dir/docker-compose.yaml"
+cp "$source_stage_env" "$destination_dir/stage.env"
 
 # Print success message
 echo "Files copied successfully!"
diff --git a/arch/tools/cli.py b/arch/tools/cli.py
index ec3afeff..140a7070 100644
--- a/arch/tools/cli.py
+++ b/arch/tools/cli.py
@@ -1,11 +1,12 @@
 import click
-from core import start_arch, stop_arch
 import targets
 import os
 import config_generator
 import pkg_resources
 import sys
 import subprocess
+from core import start_arch, stop_arch
+from utils import get_llm_provider_access_keys, load_env_file_to_dict
 
 logo = r"""
      _                _
@@ -75,10 +76,8 @@ def up(file, path):
         print(f"Error: {arch_config_file} does not exist.")
         return
 
-    print(f"Processing config file: {arch_config_file}")
-    arch_schema_config = pkg_resources.resource_filename(__name__, "config/arch_config_schema.yaml")
-
     print(f"Validating {arch_config_file}")
+    arch_schema_config = pkg_resources.resource_filename(__name__, "config/arch_config_schema.yaml")
 
     try:
         config_generator.validate_prompt_config(arch_config_file=arch_config_file, arch_config_schema_file=arch_schema_config)
@@ -87,7 +86,41 @@ def up(file, path):
         sys.exit(1)
 
     print("Starting Arch gateway and Arch model server services via docker ")
-    start_arch(arch_config_file)
+
+    # Set the ARCH_CONFIG_FILE environment variable
+    env_stage = {}
+    #check if access_keys are preesnt in the config file
+    access_keys = get_llm_provider_access_keys(arch_config_file=arch_config_file)
+    if access_keys:
+        if file:
+            app_env_file = os.path.join(os.path.dirname(os.path.abspath(file)), ".env") #check the .env file in the path
+        else:
+            app_env_file = os.path.abspath(os.path.join(path, ".env"))
+
+        if not os.path.exists(app_env_file): #check to see if the environment variables in the current environment or not
+            for access_key in access_keys:
+                if env.get(access_key) is None:
+                    print (f"Access Key: {access_key} not found. Exiting Start")
+                    sys.exit(1)
+                else:
+                    env_stage[access_key] = env.get(access_key)
+        else: #.env file exists, use that to send parameters to Arch
+            env_file_dict = load_env_file_to_dict(app_env_file)
+            for access_key in access_keys:
+                if env_file_dict.get(access_key) is None:
+                    print (f"Access Key: {access_key} not found. Exiting Start")
+                    sys.exit(1)
+                else:
+                    env_stage[access_key] = env_file_dict[access_key]
+
+    with open(pkg_resources.resource_filename(__name__, "config/stage.env"), 'w') as file:
+        for key, value in env_stage.items():
+            file.write(f"{key}={value}\n")
+
+    env = os.environ.copy()
+    env.update(env_stage)
+    env['ARCH_CONFIG_FILE'] = arch_config_file
+    start_arch(arch_config_file, env)
 
 @click.command()
 def down():
diff --git a/arch/tools/config_generator.py b/arch/tools/config_generator.py
index 9ac33a44..1c3538f9 100644
--- a/arch/tools/config_generator.py
+++ b/arch/tools/config_generator.py
@@ -69,8 +69,6 @@ def validate_and_render_schema():
     arch_llm_providers = config_yaml["llm_providers"]
     arch_config_string = yaml.dump(config_yaml)
 
-    print("llm_providers:", arch_llm_providers)
-
     data = {
         'arch_config': arch_config_string,
         'arch_clusters': inferred_clusters,
diff --git a/arch/tools/core.py b/arch/tools/core.py
index 9d970f30..8a0cc38b 100644
--- a/arch/tools/core.py
+++ b/arch/tools/core.py
@@ -5,7 +5,7 @@ import pkg_resources
 import select
 from utils import run_docker_compose_ps, print_service_status, check_services_state
 
-def start_arch(arch_config_file, log_timeout=120, check_interval=1):
+def start_arch(arch_config_file, env, log_timeout=120, check_interval=1):
     """
     Start Docker Compose in detached mode and stream logs until services are healthy.
 
@@ -14,16 +14,13 @@ def start_arch(arch_config_file, log_timeout=120, check_interval=1):
         log_timeout (int): Time in seconds to show logs before checking for healthy state.
         check_interval (int): Time in seconds between health status checks.
     """
-    # Set the ARCH_CONFIG_FILE environment variable
-    env = os.environ.copy()
-    env['ARCH_CONFIG_FILE'] = arch_config_file
 
-    compose_file = pkg_resources.resource_filename(__name__, 'docker-compose.yaml')
+    compose_file = pkg_resources.resource_filename(__name__, 'config/docker-compose.yaml')
 
     try:
         # Run the Docker Compose command in detached mode (-d)
         subprocess.run(
-            ["docker-compose", "up", "-d"],
+            ["docker", "compose", "-p", "arch", "up", "-d",],
             cwd=os.path.dirname(compose_file),  # Ensure the Docker command runs in the correct path
             env=env,                   # Pass the modified environment
             check=True                 # Raise an exception if the command fails
@@ -67,8 +64,8 @@ def start_arch(arch_config_file, log_timeout=120, check_interval=1):
                 break
 
             #check to see if the status of one of the services has changed from prior. Print and loop over until finish, or error
-            for service_name in services_status.item():
-                if services_status[service_name]['status'] != current_services_status[service_name]['status']:
+            for service_name in services_status.keys():
+                if services_status[service_name]['State'] != current_services_status[service_name]['State']:
                     print("One or more Arch services have changed state. Printing current state")
                     print_service_status(current_services_status)
                     break
@@ -86,12 +83,12 @@ def stop_arch():
     Args:
         path (str): The path where the docker-compose.yml file is located.
     """
-    compose_file = pkg_resources.resource_filename(__name__, 'docker-compose.yaml')
+    compose_file = pkg_resources.resource_filename(__name__, 'config/docker-compose.yaml')
 
     try:
         # Run `docker-compose down` to shut down all services
         subprocess.run(
-            ["docker-compose", "down"],
+            ["docker", "compose", "-p", "arch", "down"],
             cwd=os.path.dirname(compose_file),
             check=True,
         )
diff --git a/arch/tools/setup.py b/arch/tools/setup.py
index 5704203b..f1e30416 100644
--- a/arch/tools/setup.py
+++ b/arch/tools/setup.py
@@ -10,7 +10,7 @@ setup(
     include_package_data=True,
     # Specify to include the docker-compose.yml file
     package_data={
-        '': ['config/docker-compose.yaml', 'config/arch_config_schema.yaml']
+        '': ['config/docker-compose.yaml', 'config/arch_config_schema.yaml', 'config/stage.env'] #Specify to include the docker-compose.yml file
     },
     # Add dependencies here, e.g., 'PyYAML' for YAML processing
     install_requires=['pyyaml', 'pydantic', 'click', 'jinja2','pyyaml','jsonschema', 'setuptools'],
diff --git a/arch/tools/utils.py b/arch/tools/utils.py
index 627279be..910b12da 100644
--- a/arch/tools/utils.py
+++ b/arch/tools/utils.py
@@ -3,6 +3,8 @@ import os
 import time
 import select
 import shlex
+import yaml
+import json
 
 def run_docker_compose_ps(compose_file, env):
     """
@@ -14,7 +16,7 @@ def run_docker_compose_ps(compose_file, env):
     try:
         # Run `docker-compose ps` to get the health status of each service
         ps_process = subprocess.Popen(
-            ["docker-compose", "ps"],
+            ["docker", "compose", "-p", "arch", "ps", "--format", "table{{.Service}}\t{{.State}}\t{{.Ports}}"],
             cwd=os.path.dirname(compose_file),
             stdout=subprocess.PIPE,
             stderr=subprocess.PIPE,
@@ -29,31 +31,7 @@ def run_docker_compose_ps(compose_file, env):
             print(f"Error while checking service status:\n{error_output}", file=os.sys.stderr)
             return {}
 
-        lines = services_status.strip().splitlines()
-        services = {}
-
-        # Skip the header row and parse each service
-        for line in lines[1:]:
-            parts = shlex.split(line)
-            if len(parts) >= 5:
-                service_name = parts[0]  # Service name
-                status_index = 3  # Status is typically at index 3, but may have multiple words
-
-                # Check if the status has multiple words (e.g., "running (healthy)")
-                if '(' in parts[status_index+1] :
-                    # Combine the status field if it's split over two parts
-                    status = f"{parts[status_index]} {parts[status_index + 1]}"
-                    ports = parts[status_index + 2]
-                else:
-                    status = parts[status_index]
-                    ports = parts[status_index + 1]
-
-                # Store both status and ports in a dictionary for each service
-                services[service_name] = {
-                    'status': status,
-                    'ports': ports
-                }
-
+        services = parse_docker_compose_ps_output(services_status)
         return services
 
     except subprocess.CalledProcessError as e:
@@ -62,18 +40,82 @@ def run_docker_compose_ps(compose_file, env):
 
 #Helper method to print service status
 def print_service_status(services):
-    print(f"{'Service Name':<25} {'Status':<20} {'Ports'}")
+    print(f"{'Service Name':<25} {'State':<20} {'Ports'}")
     print("="*72)
     for service_name, info in services.items():
-        status = info['status']
-        ports = info['ports']
+        status = info['STATE']
+        ports = info['PORTS']
         print(f"{service_name:<25} {status:<20} {ports}")
 
 #check for states based on the states passed in
 def check_services_state(services, states):
     for service_name, service_info in services.items():
-        status = service_info['status'].lower()  # Convert status to lowercase for easier comparison
+        status = service_info['STATE'].lower()  # Convert status to lowercase for easier comparison
         if any(state in status for state in states):
             return True
 
     return False
+
+def get_llm_provider_access_keys(arch_config_file):
+    with open(arch_config_file, 'r') as file:
+        arch_config = file.read()
+        arch_config_yaml = yaml.safe_load(arch_config)
+
+    access_key_list = []
+    for llm_provider in arch_config_yaml.get("llm_providers", []):
+        acess_key = llm_provider.get("access_key")
+        if acess_key is not None:
+            access_key_list.append(acess_key)
+
+    return access_key_list
+
+def load_env_file_to_dict(file_path):
+    env_dict = {}
+
+    # Open and read the .env file
+    with open(file_path, 'r') as file:
+        for line in file:
+            # Strip any leading/trailing whitespaces
+            line = line.strip()
+
+            # Skip empty lines and comments
+            if not line or line.startswith('#'):
+                continue
+
+            # Split the line into key and value at the first '=' sign
+            if '=' in line:
+                key, value = line.split('=', 1)
+                key = key.strip()
+                value = value.strip()
+
+                # Add key-value pair to the dictionary
+                env_dict[key] = value
+
+    return env_dict
+
+def parse_docker_compose_ps_output(output):
+    # Split the output into lines
+    lines = output.strip().splitlines()
+
+    # Extract the headers (first row) and the rest of the data
+    headers = lines[0].split()
+    service_data = lines[1:]
+
+    # Initialize the result dictionary
+    services = {}
+
+    # Iterate over each line of data after the headers
+    for line in service_data:
+        # Split the line by tabs or multiple spaces
+        parts = line.split()
+
+        # Create a dictionary entry using the header names
+        service_info = {
+            headers[1]: parts[1],  # State
+            headers[2]: parts[2]   # Ports
+        }
+
+        # Add to the result dictionary using the service name as the key
+        services[parts[0]] = service_info
+
+    return services
diff --git a/demos/function_calling/arch_config.yaml b/demos/function_calling/arch_config.yaml
index ca550fbf..c84d6b08 100644
--- a/demos/function_calling/arch_config.yaml
+++ b/demos/function_calling/arch_config.yaml
@@ -17,14 +17,14 @@ overrides:
 
 llm_providers:
   - name: open-ai-gpt-4
-    access_key: $OPENAI_API_KEY
+    access_key: OPENAI_API_KEY
     provider: openai
     model: gpt-4
     default: true
   - name: mistral-large-latest
-    access_key: $MISTRAL_API_KEY
+    access_key: MISTRAL_API_KEY
     provider: mistral
-    model: large-latest
+    model: mistral-large-latest
 
 system_prompt: |
   You are a helpful assistant.