Our development server is part of a clustered pair, will CIAO work?

CIAO will not work within a load balancing cluster, but can work within a failover cluster if care is taken to ensure that the log does not get fragmented when the main server is not available.

Development servers rarely require clustering. If you have a cluster for testing purposes and use the same cluster for both testing and development then you should consider setting up a dedicated development server as per Best Practice recommendations http://ibm.co/1hTEzdc