Hi John,
There are few options which you can use instead of system copy steps:
1. Export existing system and import that while installing NWD system.
2. if you have already installed NWD system in that case, you can use system copy steps to build NWD system from NWP database.
After that you can configure post installation/post system copy steps to make this system ready for use. You can keep the data in production client as you can use it for testing purpose or you can delete that if in case you dont want to keep your production data in development system.
Thanks,
Sharib