It will simplify your life if you dissect your internal architecture a bit. Instead of allowing the client code to rely on an external SOAP service in an inflexible manner, it would be useful to define an interface for internal use. You can call it IServiceProxy or some such name.
Let the client code talk to this interface and use Injection Dependency (DI) to insert an instance of it into the client. This means that for a lot of development use, you can simply replace this interface with a test one (for example, Mock).
If you also need to have a SOAP service to make sure your SOAP stack is working as intended, pay attention to the so-called Shared Fixture test smell. The joint βtestβ service on the same server will be Shared Fixture, and this is likely to give you more problems than it costs, because the developers will step over each other and this will be a bottleneck.
The best alternative is to configure the SOAP service on each developer machine or, if this is not possible, a dedicated service for each developer.
You can learn more about Shared Fixtures and many other test patterns and anti patterns in the excellent xUnit Test Patterns .
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