diff --git a/.changeset/odd-dancers-burn.md b/.changeset/odd-dancers-burn.md
new file mode 100644
index 00000000..c4acbe85
--- /dev/null
+++ b/.changeset/odd-dancers-burn.md
@@ -0,0 +1,5 @@
+---
+"counterfact": patch
+---
+
+fixed #721: .proxy on / .proxy off commands in REPL have no effect
diff --git a/bin/counterfact.js b/bin/counterfact.js
index c88895a4..acfcbb75 100755
--- a/bin/counterfact.js
+++ b/bin/counterfact.js
@@ -137,6 +137,7 @@ program
   .option(
     "--prefix <string>",
     "base path from which routes will be served (e.g. /api/v1)",
+    "",
   )
   .action(main)
   // eslint-disable-next-line sonar/process-argv
diff --git a/src/server/koa-middleware.ts b/src/server/koa-middleware.ts
index 7341b82f..238218d6 100644
--- a/src/server/koa-middleware.ts
+++ b/src/server/koa-middleware.ts
@@ -1,11 +1,15 @@
 import type { IncomingHttpHeaders } from "node:http";
 
+import createDebug from "debug";
 import type Koa from "koa";
 import koaProxy from "koa-proxy";
 
+import type { Config } from "./config.js";
 import type { Dispatcher } from "./dispatcher.js";
 import type { HttpMethods } from "./registry.js";
 
+const debug = createDebug("counterfact:server:create-koa-app");
+
 const HTTP_STATUS_CODE_OK = 200;
 
 function addCors(ctx: Koa.ExtendableContext, headers?: IncomingHttpHeaders) {
@@ -50,11 +54,16 @@ function getAuthObject(
 
 export function koaMiddleware(
   dispatcher: Dispatcher,
-  { proxyEnabled = false, proxyUrl = "", routePrefix = "" } = {},
+  config: Config,
   proxy = koaProxy,
 ): Koa.Middleware {
   // eslint-disable-next-line max-statements
   return async function middleware(ctx, next) {
+    const { proxyEnabled, proxyUrl, routePrefix } = config;
+
+    debug("middleware running for path: %s", ctx.request.path);
+    debug("routePrefix: %s", routePrefix);
+
     if (!ctx.request.path.startsWith(routePrefix)) {
       // eslint-disable-next-line @typescript-eslint/no-unsafe-return
       return await next();
diff --git a/src/server/page-middleware.ts b/src/server/page-middleware.ts
index 769f3a44..2c2e3c10 100644
--- a/src/server/page-middleware.ts
+++ b/src/server/page-middleware.ts
@@ -26,11 +26,12 @@ export function pageMiddleware(
       .join(__dirname, `../client/${templateName}.html.hbs`)
       .replaceAll("\\", "/");
 
-    debug("pathToHandlebarsTemplate: %s", pathToHandlebarsTemplate);
-
     const render = Handlebars.compile(await readFile(pathToHandlebarsTemplate));
 
     if (ctx.URL.pathname === pathname) {
+      debug("rendering page: %s", pathname);
+      debug("locals: %o", locals);
+
       ctx.body = render(locals);
 
       return;
diff --git a/test/server/koa-middleware.test.ts b/test/server/koa-middleware.test.ts
index 259b079c..88b34c64 100644
--- a/test/server/koa-middleware.test.ts
+++ b/test/server/koa-middleware.test.ts
@@ -9,6 +9,15 @@ import { Dispatcher } from "../../src/server/dispatcher.js";
 import { koaMiddleware } from "../../src/server/koa-middleware.js";
 import { Registry } from "../../src/server/registry.js";
 
+const CONFIG = {
+  basePath: "",
+  openApiPath: "",
+  port: 9999,
+  proxyEnabled: false,
+  proxyUrl: "",
+  routePrefix: "",
+};
+
 const mockKoaProxy = (options: KoaProxy.Options | undefined) =>
   function proxy(ctx: KoaContext) {
     ctx.mockProxyHost = options?.host;
@@ -28,7 +37,7 @@ describe("koa middleware", () => {
     });
 
     const dispatcher = new Dispatcher(registry, new ContextRegistry());
-    const middleware = koaMiddleware(dispatcher);
+    const middleware = koaMiddleware(dispatcher, CONFIG);
     // eslint-disable-next-line @typescript-eslint/consistent-type-assertions
     const ctx = {
       req: {
@@ -65,7 +74,7 @@ describe("koa middleware", () => {
     });
 
     const dispatcher = new Dispatcher(registry, new ContextRegistry());
-    const middleware = koaMiddleware(dispatcher);
+    const middleware = koaMiddleware(dispatcher, CONFIG);
     const ctx = {
       request: { headers: {}, method: "GET", path: "/not-modified" },
 
@@ -93,7 +102,7 @@ describe("koa middleware", () => {
     const dispatcher = new Dispatcher(registry, new ContextRegistry());
     const middleware = koaMiddleware(
       dispatcher,
-      { proxyEnabled: true, proxyUrl: "https://example.com" },
+      { ...CONFIG, proxyEnabled: true, proxyUrl: "https://example.com" },
       mockKoaProxy,
     );
     const ctx = {
@@ -122,7 +131,7 @@ describe("koa middleware", () => {
     });
 
     const dispatcher = new Dispatcher(registry, new ContextRegistry());
-    const middleware = koaMiddleware(dispatcher);
+    const middleware = koaMiddleware(dispatcher, CONFIG);
     const ctx = {
       body: undefined,
 
@@ -172,7 +181,7 @@ describe("koa middleware", () => {
     });
 
     const dispatcher = new Dispatcher(registry, new ContextRegistry());
-    const middleware = koaMiddleware(dispatcher);
+    const middleware = koaMiddleware(dispatcher, CONFIG);
     const ctx = {
       body: undefined,
 
@@ -237,7 +246,7 @@ describe("koa middleware", () => {
     });
 
     const dispatcher = new Dispatcher(registry, new ContextRegistry());
-    const middleware = koaMiddleware(dispatcher);
+    const middleware = koaMiddleware(dispatcher, CONFIG);
     const ctx = {
       body: undefined,
 
@@ -318,7 +327,7 @@ describe("koa middleware", () => {
     });
 
     const dispatcher = new Dispatcher(registry, new ContextRegistry());
-    const middleware = koaMiddleware(dispatcher);
+    const middleware = koaMiddleware(dispatcher, CONFIG);
     // eslint-disable-next-line @typescript-eslint/consistent-type-assertions
     const ctx = {
       req: {