The process whose specific outcome is the progression of an interneuron residing in the olfactory bulb, from its initial commitment, to the fully functional differentiated cell. [ GOC:jid GOC:dph GOC:cls http://www.ncbi.nlm.nih.gov/pubmed/12626695 http://purl.obolibrary.org/obo/go/references/0000021 GOC:dgh ]