diff --git a/chain/chain-service.go b/chain/chain-service.go
index 1dba5b55..6daac3b2 100644
--- a/chain/chain-service.go
+++ b/chain/chain-service.go
@@ -2,41 +2,80 @@ package chain
 
 import (
 	"context"
+	"encoding/hex"
 	"io"
 	"log"
 	"math/big"
 
 	"github.com/ethereum/go-ethereum/accounts/abi/bind"
 	"github.com/ethereum/go-ethereum/common"
+	"github.com/ethereum/go-ethereum/crypto"
 	"github.com/ethereum/go-ethereum/ethclient"
 	"github.com/statechannels/go-nitro/client/engine/chainservice"
 	NitroAdjudicator "github.com/statechannels/go-nitro/client/engine/chainservice/adjudicator"
+	Create2Deployer "github.com/statechannels/go-nitro/client/engine/chainservice/create2deployer"
+	"github.com/testground/sdk-go/runtime"
+	"github.com/testground/sdk-go/sync"
 )
 
-func NewChainService(seq int64, logDestination io.Writer) chainservice.ChainService {
+func NewChainService(ctx context.Context, syncClient sync.Client, runEnv *runtime.RunEnv, seq int64, logDestination io.Writer) chainservice.ChainService {
 	client, err := ethclient.Dial("ws://hardhat:8545/")
 	if err != nil {
 		log.Fatal(err)
 	}
 
-	// TODO: do not hardcode the NitroAdjudicator address. Instead, find address on chain
-	naAddress := common.HexToAddress("0x5fbdb2315678afecb367f032d93f642f64180aa3")
-	na, err := NitroAdjudicator.NewNitroAdjudicator(naAddress, client)
+	txSubmitter, err := bind.NewKeyedTransactorWithChainID(getFundedPrivateKey(uint(seq)), big.NewInt(1337))
 	if err != nil {
 		log.Fatal(err)
 	}
+	txSubmitter.GasLimit = uint64(30_000_000) // in units
 
-	txSubmitter, err := bind.NewKeyedTransactorWithChainID(getFundedPrivateKey(uint(seq)), big.NewInt(1337))
+	gasPrice, err := client.SuggestGasPrice(context.Background())
 	if err != nil {
 		log.Fatal(err)
 	}
-	txSubmitter.GasLimit = uint64(300000) // in units
+	txSubmitter.GasPrice = gasPrice
 
-	gasPrice, err := client.SuggestGasPrice(context.Background())
+	deployer, err := Create2Deployer.NewCreate2Deployer(common.HexToAddress("0x5fbdb2315678afecb367f032d93f642f64180aa3"), client)
+	if err != nil {
+		log.Fatal(err)
+	}
+
+	hexBytecode, err := hex.DecodeString(NitroAdjudicator.NitroAdjudicatorMetaData.Bin[2:])
+	if err != nil {
+		log.Fatal(err)
+	}
+
+	naAddress, err := deployer.ComputeAddress(&bind.CallOpts{}, [32]byte{}, crypto.Keccak256Hash(hexBytecode))
+	if err != nil {
+		log.Fatal(err)
+	}
+
+	// One testground instance attempts to deploy NitroAdjudicator
+	if seq == 1 {
+		bytecode, err := client.CodeAt(ctx, naAddress, nil) // nil is latest block
+		if err != nil {
+			log.Fatal(err)
+		}
+
+		// Has NitroAdjudicator been deployed? If not, deploy it.
+		if len(bytecode) == 0 {
+			_, err = deployer.Deploy(txSubmitter, big.NewInt(0), [32]byte{}, hexBytecode)
+			if err != nil {
+				log.Fatal(err)
+			}
+		}
+	}
+
+	// All instances wait for until the NitroAdjudicator has been deployed.
+	contractSetup := sync.State("contractSetup")
+	syncClient.MustSignalEntry(ctx, contractSetup)
+	syncClient.MustBarrier(ctx, contractSetup, runEnv.TestInstanceCount)
+
+	na, err := NitroAdjudicator.NewNitroAdjudicator(naAddress, client)
 	if err != nil {
 		log.Fatal(err)
 	}
-	txSubmitter.GasPrice = gasPrice
 
 	cs, err := chainservice.NewEthChainService(client, na, naAddress, common.Address{}, common.Address{}, txSubmitter, logDestination)
 	if err != nil {
diff --git a/go.mod b/go.mod
index 0cc5ce3d..aaef0653 100644
--- a/go.mod
+++ b/go.mod
@@ -5,7 +5,7 @@ go 1.19
 require (
 	github.com/miguelmota/go-ethereum-hdwallet v0.1.1
 	github.com/multiformats/go-multiaddr v0.6.0
-	github.com/statechannels/go-nitro v0.0.0-20220922174011-3e33cafaa1f3
+	github.com/statechannels/go-nitro v0.0.0-20221004165356-5d2a8306f2b4
 )
 
 require (
diff --git a/go.sum b/go.sum
index a39f705b..e8518ea0 100644
--- a/go.sum
+++ b/go.sum
@@ -827,8 +827,8 @@ github.com/spf13/pflag v0.0.0-20170130214245-9ff6c6923cff/go.mod h1:DYY7MBk1bdzu
 github.com/spf13/pflag v1.0.1-0.20171106142849-4c012f6dcd95/go.mod h1:DYY7MBk1bdzusC3SYhjObp+wFpr4gzcvqqNjLnInEg4=
 github.com/spf13/pflag v1.0.3/go.mod h1:DYY7MBk1bdzusC3SYhjObp+wFpr4gzcvqqNjLnInEg4=
 github.com/spf13/pflag v1.0.5/go.mod h1:McXfInJRrz4CZXVZOBLb0bTZqETkiAhM9Iw0y3An2Bg=
-github.com/statechannels/go-nitro v0.0.0-20220922174011-3e33cafaa1f3 h1:YJtZyilH56jp592m3am56ASaJ46Uge/YhaGghD/It0k=
-github.com/statechannels/go-nitro v0.0.0-20220922174011-3e33cafaa1f3/go.mod h1:QFdUCZT0Du/1kCBTUUhcgvGxyvgHcGs71AVdpZseNfA=
+github.com/statechannels/go-nitro v0.0.0-20221004165356-5d2a8306f2b4 h1:+fKrz+oFnh4vgD2lCYH7Ev/zf6+2HeiUzyJu66MDD8w=
+github.com/statechannels/go-nitro v0.0.0-20221004165356-5d2a8306f2b4/go.mod h1:QFdUCZT0Du/1kCBTUUhcgvGxyvgHcGs71AVdpZseNfA=
 github.com/status-im/keycard-go v0.0.0-20190316090335-8537d3370df4 h1:Gb2Tyox57NRNuZ2d3rmvB3pcmbu7O1RS3m8WRx7ilrg=
 github.com/status-im/keycard-go v0.0.0-20190316090335-8537d3370df4/go.mod h1:RZLeN1LMWmRsyYjvAu+I6Dm9QmlDaIIt+Y+4Kd7Tp+Q=
 github.com/stretchr/objx v0.1.0/go.mod h1:HFkY916IF+rwdDfMAkV7OtwuqBVzrE8GR6GFx+wExME=
diff --git a/tests/virtual-payment.go b/tests/virtual-payment.go
index 6bc28ccc..349db9e1 100644
--- a/tests/virtual-payment.go
+++ b/tests/virtual-payment.go
@@ -68,7 +68,7 @@ func CreateVirtualPaymentTest(runEnv *runtime.RunEnv, init *run.InitContext) err
 	// The outputs folder will be copied when results are collected.
 	logDestination, _ := os.OpenFile(logPath, os.O_CREATE|os.O_WRONLY, 0666)
 
-	nClient := nitro.New(ms, chain.NewChainService(seq, logDestination), store, logDestination, &engine.PermissivePolicy{}, runEnv.R())
+	nClient := nitro.New(ms, chain.NewChainService(ctx, client, runEnv, seq, logDestination), store, logDestination, &engine.PermissivePolicy{}, runEnv.R())
 
 	cm := utils.NewCompletionMonitor(&nClient, runEnv.RecordMessage)
 	defer cm.Close()