diff --git a/.github/workflows/cli-win.yml b/.github/workflows/cli-win.yml
index 00c7c26a6c..1355ed251e 100644
--- a/.github/workflows/cli-win.yml
+++ b/.github/workflows/cli-win.yml
@@ -43,23 +43,4 @@ jobs:
       - run: yarn tsc
       - run: yarn build
       - name: verify app and plugin creation
-        working-directory: ${{ runner.temp }}
         run: node ${{ github.workspace }}/packages/cli/e2e-test/cli-e2e-test.js
-        env:
-          BACKSTAGE_E2E_CLI_TEST: true
-      - name: lint newly created app and plugin
-        run: yarn lint:all
-        working-directory: ${{ runner.temp }}/test-app
-        env:
-          BACKSTAGE_E2E_CLI_TEST: true
-      - name: test newly created app and plugin
-        run: yarn test:all
-        working-directory: ${{ runner.temp }}/test-app
-        env:
-          BACKSTAGE_E2E_CLI_TEST: true
-      - name: e2e test newly created app
-        run: yarn test:e2e:ci
-        working-directory: ${{ runner.temp }}/test-app/packages/app
-        env:
-          APP_CONFIG_app_baseUrl: '"http://localhost:3001"'
-          BACKSTAGE_E2E_CLI_TEST: true
diff --git a/.github/workflows/cli.yml b/.github/workflows/cli.yml
index 71b207c0d3..7704aa36cd 100644
--- a/.github/workflows/cli.yml
+++ b/.github/workflows/cli.yml
@@ -44,25 +44,6 @@ jobs:
       - run: yarn tsc
       - run: yarn build
       - name: verify app and plugin creation
-        working-directory: ${{ runner.temp }}
         run: |
           sudo sysctl fs.inotify.max_user_watches=524288
           node ${{ github.workspace }}/packages/cli/e2e-test/cli-e2e-test.js
-        env:
-          BACKSTAGE_E2E_CLI_TEST: true
-      - name: lint newly created app and plugin
-        run: yarn lint:all
-        working-directory: ${{ runner.temp }}/test-app
-        env:
-          BACKSTAGE_E2E_CLI_TEST: true
-      - name: test newly created app and plugin
-        run: yarn test:all
-        working-directory: ${{ runner.temp }}/test-app
-        env:
-          BACKSTAGE_E2E_CLI_TEST: true
-      - name: e2e test newly created app
-        run: yarn test:e2e:ci
-        working-directory: ${{ runner.temp }}/test-app/packages/app
-        env:
-          APP_CONFIG_app_baseUrl: '"http://localhost:3001"'
-          BACKSTAGE_E2E_CLI_TEST: true
diff --git a/packages/cli/e2e-test/cli-e2e-test.js b/packages/cli/e2e-test/cli-e2e-test.js
index c8374af0eb..ef5d6ab243 100644
--- a/packages/cli/e2e-test/cli-e2e-test.js
+++ b/packages/cli/e2e-test/cli-e2e-test.js
@@ -16,65 +16,238 @@
 
 const os = require('os');
 const fs = require('fs-extra');
-const { resolve: resolvePath } = require('path');
+const killTree = require('tree-kill');
+const { resolve: resolvePath, join: joinPath } = require('path');
 const Browser = require('zombie');
-
 const {
   spawnPiped,
+  runPlain,
   handleError,
   waitForPageWithText,
+  waitFor,
   waitForExit,
   print,
 } = require('./helpers');
 
-const createTestApp = require('./createTestApp');
-const createTestPlugin = require('./createTestPlugin');
-
-Browser.localhost('localhost', 3000);
-
-async function createTempDir() {
-  return fs.mkdtemp(resolvePath(os.tmpdir(), 'backstage-e2e-'));
-}
-
 async function main() {
-  process.env.BACKSTAGE_E2E_CLI_TEST = 'true';
+  const rootDir = await fs.mkdtemp(resolvePath(os.tmpdir(), 'backstage-e2e-'));
+  print(`CLI E2E test root: ${rootDir}\n`);
 
-  const workDir = process.env.CI ? process.cwd() : await createTempDir();
+  print('Building dist workspace');
+  const workspaceDir = await buildDistWorkspace('workspace', rootDir);
 
-  process.stdout.write(`Initial directory: ${process.cwd()}\n`);
-  process.chdir(workDir);
-  process.stdout.write(`Working directory: ${process.cwd()}\n`);
+  print('Creating a Backstage App');
+  const appDir = await createApp('test-app', workspaceDir, rootDir);
 
-  await createTestApp();
-
-  const appDir = resolvePath(workDir, 'test-app');
-  process.chdir(appDir);
-  process.stdout.write(`App directory: ${appDir}\n`);
-
-  await createTestPlugin();
+  print('Creating a Backstage Plugin');
+  const pluginName = await createPlugin('test-plugin', appDir);
 
   print('Starting the app');
-  const startApp = spawnPiped(['yarn', 'start']);
+  await testAppServe(pluginName, appDir);
 
+  print('All tests successful, removing test dir');
+  await fs.remove(rootDir);
+}
+
+/**
+ * Builds a dist workspace that contains the cli and core packages
+ */
+async function buildDistWorkspace(workspaceName, rootDir) {
+  const workspaceDir = resolvePath(rootDir, workspaceName);
+  await fs.ensureDir(workspaceDir);
+
+  print(`Preparing workspace`);
+  await runPlain([
+    'yarn',
+    'backstage-cli',
+    'build-workspace',
+    workspaceDir,
+    '@backstage/cli',
+    '@backstage/core',
+    '@backstage/dev-utils',
+    '@backstage/test-utils',
+  ]);
+
+  print('Pinning yarn version in workspace');
+  await pinYarnVersion(workspaceDir);
+
+  print('Installing workspace dependencies');
+  await runPlain(['yarn', 'install', '--production', '--frozen-lockfile'], {
+    cwd: workspaceDir,
+  });
+
+  return workspaceDir;
+}
+
+/**
+ * Pin the yarn version in a directory to the one we're using in the Backstage repo
+ */
+async function pinYarnVersion(dir) {
+  const repoRoot = resolvePath(__dirname, '../../..');
+
+  const yarnRc = await fs.readFile(resolvePath(repoRoot, '.yarnrc'), 'utf8');
+  const yarnRcLines = yarnRc.split('\n');
+  const yarnPathLine = yarnRcLines.find(line => line.startsWith('yarn-path'));
+  const [, localYarnPath] = yarnPathLine.match(/"(.*)"/);
+  const yarnPath = resolvePath(repoRoot, localYarnPath);
+
+  await fs.writeFile(resolvePath(dir, '.yarnrc'), `yarn-path "${yarnPath}"\n`);
+}
+
+/**
+ * Creates a new app inside rootDir called test-app, using packages from the workspaceDir
+ */
+async function createApp(appName, workspaceDir, rootDir) {
+  const child = spawnPiped(
+    [
+      'node',
+      resolvePath(workspaceDir, 'packages/cli/bin/backstage-cli'),
+      'create-app',
+      '--skip-install',
+    ],
+    {
+      cwd: rootDir,
+    },
+  );
+
+  try {
+    let stdout = '';
+    child.stdout.on('data', data => {
+      stdout = stdout + data.toString('utf8');
+    });
+
+    await waitFor(() => stdout.includes('Enter a name for the app'));
+    child.stdin.write(`${appName}\n`);
+
+    print('Waiting for app create script to be done');
+    await waitForExit(child);
+
+    const appDir = resolvePath(rootDir, appName);
+
+    print('Rewriting module resolutions of app to use workspace packages');
+    await overrideModuleResolutions(appDir, workspaceDir);
+
+    print('Pinning yarn version and registry in app');
+    await pinYarnVersion(appDir);
+    await fs.writeFile(
+      resolvePath(appDir, '.npmrc'),
+      'registry=https://registry.npmjs.org/\n',
+    );
+
+    print('Test app created');
+
+    for (const cmd of ['install', 'tsc', 'build', 'lint:all', 'test:all']) {
+      print(`Running 'yarn ${cmd}' in newly created app`);
+      await runPlain(['yarn', cmd], { cwd: appDir });
+    }
+
+    print(`Running 'yarn test:e2e:ci' in newly created app`);
+    await runPlain(['yarn', 'test:e2e:ci'], {
+      cwd: resolvePath(appDir, 'packages', 'app'),
+      env: {
+        ...process.env,
+        APP_CONFIG_app_baseUrl: '"http://localhost:3001"',
+      },
+    });
+
+    return appDir;
+  } finally {
+    child.kill();
+  }
+}
+
+/**
+ * This points dependency resolutions into the workspace for each package that is present there
+ */
+async function overrideModuleResolutions(appDir, workspaceDir) {
+  const pkgJsonPath = resolvePath(appDir, 'package.json');
+  const pkgJson = await fs.readJson(pkgJsonPath);
+
+  pkgJson.resolutions = pkgJson.resolutions || {};
+  pkgJson.dependencies = pkgJson.dependencies || {};
+
+  const packageNames = await fs.readdir(resolvePath(workspaceDir, 'packages'));
+  for (const name of packageNames) {
+    const pkgPath = joinPath('..', 'workspace', 'packages', name);
+
+    pkgJson.dependencies[`@backstage/${name}`] = `file:${pkgPath}`;
+    pkgJson.resolutions[`@backstage/${name}`] = `file:${pkgPath}`;
+    delete pkgJson.devDependencies[`@backstage/${name}`];
+  }
+  fs.writeJson(pkgJsonPath, pkgJson, { spaces: 2 });
+}
+
+/**
+ * Uses create-plugin command to create a new plugin in the app
+ */
+async function createPlugin(pluginName, appDir) {
+  const child = spawnPiped(['yarn', 'create-plugin'], {
+    cwd: appDir,
+  });
+
+  try {
+    let stdout = '';
+    child.stdout.on('data', data => {
+      stdout = stdout + data.toString('utf8');
+    });
+
+    await waitFor(() => stdout.includes('Enter an ID for the plugin'));
+    child.stdin.write(`${pluginName}\n`);
+
+    // await waitFor(() => stdout.includes('Enter the owner(s) of the plugin'));
+    // child.stdin.write('@someuser\n');
+
+    print('Waiting for plugin create script to be done');
+    await waitForExit(child);
+
+    const pluginDir = resolvePath(appDir, 'plugins', pluginName);
+    for (const cmd of [['lint'], ['test', '--no-watch']]) {
+      print(`Running 'yarn ${cmd.join(' ')}' in newly created plugin`);
+      await runPlain(['yarn', ...cmd], { cwd: pluginDir });
+    }
+
+    return pluginName;
+  } finally {
+    child.kill();
+  }
+}
+
+/**
+ * Start serving the newly created app and make sure that the create plugin is rendering correctly
+ */
+async function testAppServe(pluginName, appDir) {
+  const startApp = spawnPiped(['yarn', 'start'], {
+    cwd: appDir,
+  });
+  Browser.localhost('localhost', 3000);
+
+  let successful = false;
   try {
     const browser = new Browser();
 
     await waitForPageWithText(browser, '/', 'Welcome to Backstage');
     await waitForPageWithText(
       browser,
-      '/test-plugin',
-      'Welcome to test-plugin!',
+      `/${pluginName}`,
+      `Welcome to ${pluginName}!`,
     );
 
     print('Both App and Plugin loaded correctly');
+    successful = true;
+  } catch (error) {
+    throw new Error(`App serve test failed, ${error}`);
   } finally {
-    startApp.kill();
+    // Kill entire process group, otherwise we'll end up with hanging serve processes
+    killTree(startApp.pid);
   }
 
-  await waitForExit(startApp);
-
-  print('All tests done');
-  process.exit(0);
+  try {
+    await waitForExit(startApp);
+  } catch (error) {
+    if (!successful) {
+      throw error;
+    }
+  }
 }
 
 process.on('unhandledRejection', handleError);
diff --git a/packages/cli/e2e-test/createTestApp.js b/packages/cli/e2e-test/createTestApp.js
deleted file mode 100644
index 5437804975..0000000000
--- a/packages/cli/e2e-test/createTestApp.js
+++ /dev/null
@@ -1,44 +0,0 @@
-/*
- * Copyright 2020 Spotify AB
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- *     http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
- */
-
-const { resolve: resolvePath } = require('path');
-const { spawnPiped, waitFor, waitForExit, print } = require('./helpers');
-
-async function createTestApp() {
-  const cliPath = resolvePath(__dirname, '../bin/backstage-cli');
-
-  print('Creating a Backstage App');
-  const createApp = spawnPiped(['node', cliPath, 'create-app']);
-
-  try {
-    let stdout = '';
-    createApp.stdout.on('data', data => {
-      stdout = stdout + data.toString('utf8');
-    });
-
-    await waitFor(() => stdout.includes('Enter a name for the app'));
-    createApp.stdin.write('test-app\n');
-
-    print('Waiting for app create script to be done');
-    await waitForExit(createApp);
-
-    print('Test app created');
-  } finally {
-    createApp.kill();
-  }
-}
-
-module.exports = createTestApp;
diff --git a/packages/cli/e2e-test/createTestPlugin.js b/packages/cli/e2e-test/createTestPlugin.js
deleted file mode 100644
index 59e8d6dd77..0000000000
--- a/packages/cli/e2e-test/createTestPlugin.js
+++ /dev/null
@@ -1,44 +0,0 @@
-/*
- * Copyright 2020 Spotify AB
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- *     http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
- */
-
-const { spawnPiped, waitFor, waitForExit, print } = require('./helpers');
-
-async function createTestPlugin() {
-  print('Creating a Backstage Plugin');
-  const createPlugin = spawnPiped(['yarn', 'create-plugin']);
-
-  try {
-    let stdout = '';
-    createPlugin.stdout.on('data', data => {
-      stdout = stdout + data.toString('utf8');
-    });
-
-    await waitFor(() => stdout.includes('Enter an ID for the plugin'));
-    createPlugin.stdin.write('test-plugin\n');
-
-    // await waitFor(() => stdout.includes('Enter the owner(s) of the plugin'));
-    // createPlugin.stdin.write('@someuser\n');
-
-    print('Waiting for plugin create script to be done');
-    await waitForExit(createPlugin);
-
-    print('Test plugin created');
-  } finally {
-    createPlugin.kill();
-  }
-}
-
-module.exports = createTestPlugin;
diff --git a/packages/cli/e2e-test/helpers.js b/packages/cli/e2e-test/helpers.js
index d7f3f28a7a..da2ec343ab 100644
--- a/packages/cli/e2e-test/helpers.js
+++ b/packages/cli/e2e-test/helpers.js
@@ -14,9 +14,10 @@
  * limitations under the License.
  */
 
-const childProcess = require('child_process');
+const { spawn, execFile: execFileCb } = require('child_process');
+const { promisify } = require('util');
 
-const { spawn } = childProcess;
+const execFile = promisify(execFileCb);
 
 const EXPECTED_LOAD_ERRORS = /ECONNREFUSED|ECONNRESET|did not get to load all resources/;
 
@@ -37,24 +38,35 @@ function spawnPiped(cmd, options) {
     ...options,
   });
   child.on('error', handleError);
-  child.on('exit', code => {
-    if (code) {
-      print(`Child '${cmd.join(' ')}' exited with code ${code}`);
-      process.exit(code);
-    }
-  });
+
+  const logPrefix = cmd.map(s => s.replace(/.+\//, '')).join(' ');
   child.stdout.on(
     'data',
-    pipeWithPrefix(process.stdout, `[${cmd.join(' ')}].out: `),
+    pipeWithPrefix(process.stdout, `[${logPrefix}].out: `),
   );
   child.stderr.on(
     'data',
-    pipeWithPrefix(process.stderr, `[${cmd.join(' ')}].err: `),
+    pipeWithPrefix(process.stderr, `[${logPrefix}].err: `),
   );
 
   return child;
 }
 
+async function runPlain(cmd, options) {
+  try {
+    const { stdout } = await execFile(cmd[0], cmd.slice(1), {
+      ...options,
+      shell: true,
+    });
+    return stdout.trim();
+  } catch (error) {
+    if (error.stderr) {
+      process.stderr.write(error.stderr);
+    }
+    throw error;
+  }
+}
+
 function handleError(err) {
   process.stdout.write(`${err.name}: ${err.stack || err.message}\n`);
   if (typeof err.code === 'number') {
@@ -148,6 +160,7 @@ function print(msg) {
 
 module.exports = {
   spawnPiped,
+  runPlain,
   handleError,
   waitFor,
   waitForExit,
diff --git a/packages/cli/package.json b/packages/cli/package.json
index f74c1b1fb0..1959e9cc07 100644
--- a/packages/cli/package.json
+++ b/packages/cli/package.json
@@ -112,6 +112,7 @@
     "@types/webpack-dev-server": "^3.10.0",
     "del": "^5.1.0",
     "nodemon": "^2.0.2",
+    "tree-kill": "^1.2.2",
     "ts-node": "^8.6.2",
     "zombie": "^6.1.4"
   },
diff --git a/packages/cli/src/commands/buildWorkspace.ts b/packages/cli/src/commands/buildWorkspace.ts
new file mode 100644
index 0000000000..624f104b3f
--- /dev/null
+++ b/packages/cli/src/commands/buildWorkspace.ts
@@ -0,0 +1,29 @@
+/*
+ * Copyright 2020 Spotify AB
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import fs from 'fs-extra';
+import { Command } from 'commander';
+import { createDistWorkspace } from '../lib/packager';
+
+export default async (dir: string, _cmd: Command, packages: string[]) => {
+  if (!(await fs.pathExists(dir))) {
+    throw new Error(`Target workspace directory doesn't exist, '${dir}'`);
+  }
+
+  await createDistWorkspace(packages, {
+    targetDir: dir,
+  });
+};
diff --git a/packages/cli/src/commands/create-app/createApp.ts b/packages/cli/src/commands/create-app/createApp.ts
index f3ac37667f..4f4134957d 100644
--- a/packages/cli/src/commands/create-app/createApp.ts
+++ b/packages/cli/src/commands/create-app/createApp.ts
@@ -17,11 +17,12 @@
 import fs from 'fs-extra';
 import { promisify } from 'util';
 import chalk from 'chalk';
+import { Command } from 'commander';
 import inquirer, { Answers, Question } from 'inquirer';
 import { exec as execCb } from 'child_process';
 import { resolve as resolvePath } from 'path';
 import os from 'os';
-import { Task, templatingTask, installWithLocalDeps } from '../../lib/tasks';
+import { Task, templatingTask } from '../../lib/tasks';
 import { paths } from '../../lib/paths';
 import { version } from '../../lib/version';
 
@@ -40,7 +41,7 @@ async function checkExists(rootDir: string, name: string) {
   });
 }
 
-export async function createTemporaryAppFolder(tempDir: string) {
+async function createTemporaryAppFolder(tempDir: string) {
   await Task.forItem('creating', 'temporary directory', async () => {
     try {
       await fs.mkdir(tempDir);
@@ -71,16 +72,12 @@ async function buildApp(appDir: string) {
     });
   };
 
-  await installWithLocalDeps(appDir);
+  await runCmd('yarn install');
   await runCmd('yarn tsc');
   await runCmd('yarn build');
 }
 
-export async function moveApp(
-  tempDir: string,
-  destination: string,
-  id: string,
-) {
+async function moveApp(tempDir: string, destination: string, id: string) {
   await Task.forItem('moving', id, async () => {
     await fs.move(tempDir, destination).catch(error => {
       throw new Error(
@@ -90,7 +87,7 @@ export async function moveApp(
   });
 }
 
-export default async () => {
+export default async (cmd: Command): Promise<void> => {
   const questions: Question[] = [
     {
       type: 'input',
@@ -130,8 +127,10 @@ export default async () => {
     Task.section('Moving to final location');
     await moveApp(tempDir, appDir, answers.name);
 
-    Task.section('Building the app');
-    await buildApp(appDir);
+    if (!cmd.skipInstall) {
+      Task.section('Building the app');
+      await buildApp(appDir);
+    }
 
     Task.log();
     Task.log(
diff --git a/packages/cli/src/commands/create-plugin/createPlugin.ts b/packages/cli/src/commands/create-plugin/createPlugin.ts
index 07f68165a5..1898285a22 100644
--- a/packages/cli/src/commands/create-plugin/createPlugin.ts
+++ b/packages/cli/src/commands/create-plugin/createPlugin.ts
@@ -28,7 +28,7 @@ import {
 } from '../../lib/codeowners';
 import { paths } from '../../lib/paths';
 import { version } from '../../lib/version';
-import { Task, templatingTask, installWithLocalDeps } from '../../lib/tasks';
+import { Task, templatingTask } from '../../lib/tasks';
 
 const exec = promisify(execCb);
 
@@ -142,9 +142,7 @@ async function cleanUp(tempDir: string) {
 }
 
 async function buildPlugin(pluginFolder: string) {
-  await installWithLocalDeps(paths.targetRoot);
-
-  const commands = ['yarn tsc', 'yarn build'];
+  const commands = ['yarn install', 'yarn tsc', 'yarn build'];
   for (const command of commands) {
     await Task.forItem('executing', command, async () => {
       process.chdir(pluginFolder);
diff --git a/packages/cli/src/index.ts b/packages/cli/src/index.ts
index bed32bcf8b..9a102ab7d3 100644
--- a/packages/cli/src/index.ts
+++ b/packages/cli/src/index.ts
@@ -25,6 +25,10 @@ const main = (argv: string[]) => {
   program
     .command('create-app')
     .description('Creates a new app in a new directory')
+    .option(
+      '--skip-install',
+      'Skip the install and builds steps after creating the app',
+    )
     .action(
       lazyAction(() => import('./commands/create-app/createApp'), 'default'),
     );
@@ -140,6 +144,11 @@ const main = (argv: string[]) => {
     .description('Delete cache directories')
     .action(lazyAction(() => import('./commands/clean/clean'), 'default'));
 
+  program
+    .command('build-workspace <workspace-dir> ...<packages>')
+    .description('Builds a temporary dist workspace from the provided packages')
+    .action(lazyAction(() => import('./commands/buildWorkspace'), 'default'));
+
   program.on('command:*', () => {
     console.log();
     console.log(
diff --git a/packages/cli/src/lib/packager/index.ts b/packages/cli/src/lib/packager/index.ts
index 5e309ab953..d3ba1f6b12 100644
--- a/packages/cli/src/lib/packager/index.ts
+++ b/packages/cli/src/lib/packager/index.ts
@@ -59,7 +59,7 @@ type Options = {
  */
 export async function createDistWorkspace(
   packageNames: string[],
-  options: Options,
+  options: Options = {},
 ) {
   const targetDir =
     options.targetDir ??
diff --git a/packages/cli/src/lib/tasks.ts b/packages/cli/src/lib/tasks.ts
index f4cb31fd69..0753301b78 100644
--- a/packages/cli/src/lib/tasks.ts
+++ b/packages/cli/src/lib/tasks.ts
@@ -18,13 +18,8 @@ import chalk from 'chalk';
 import fs from 'fs-extra';
 import handlebars from 'handlebars';
 import ora from 'ora';
-import { resolve as resolvePath, basename, dirname } from 'path';
+import { basename, dirname } from 'path';
 import recursive from 'recursive-readdir';
-import { promisify } from 'util';
-import { exec as execCb } from 'child_process';
-import { paths } from './paths';
-
-const exec = promisify(execCb);
 
 const TASK_NAME_MAX_LENGTH = 14;
 
@@ -108,104 +103,3 @@ export async function templatingTask(
     }
   }
 }
-
-// List of local packages that we need to modify as a part of an E2E test
-const PATCH_PACKAGES = [
-  'cli',
-  'config',
-  'config-loader',
-  'core',
-  'core-api',
-  'dev-utils',
-  'test-utils',
-  'test-utils-core',
-  'theme',
-];
-
-// This runs a `yarn install` task, but with special treatment for e2e tests
-export async function installWithLocalDeps(dir: string) {
-  // This makes us install any package inside this repo as a local file dependency.
-  // For example, instead of trying to fetch @backstage/core from npm, we point it
-  // to <repo-root>/packages/core. This makes yarn use a simple file copy to install it instead.
-  if (process.env.BACKSTAGE_E2E_CLI_TEST) {
-    Task.section('Linking packages locally for e2e tests');
-
-    const pkgJsonPath = resolvePath(dir, 'package.json');
-    const pkgJson = await fs.readJson(pkgJsonPath);
-
-    pkgJson.resolutions = pkgJson.resolutions || {};
-    pkgJson.dependencies = pkgJson.dependencies || {};
-
-    if (!pkgJson.resolutions[`@backstage/${PATCH_PACKAGES[0]}`]) {
-      for (const name of PATCH_PACKAGES) {
-        await Task.forItem(
-          'adding',
-          `@backstage/${name} link to package.json`,
-          async () => {
-            const pkgPath = paths.resolveOwnRoot('packages', name);
-            // Add to both resolutions and dependencies, or transitive dependencies will still be fetched from the registry.
-            pkgJson.dependencies[`@backstage/${name}`] = `file:${pkgPath}`;
-            pkgJson.resolutions[`@backstage/${name}`] = `file:${pkgPath}`;
-            delete pkgJson.devDependencies[`@backstage/${name}`];
-
-            await fs
-              .writeJSON(pkgJsonPath, pkgJson, { encoding: 'utf8', spaces: 2 })
-              .catch(error => {
-                throw new Error(
-                  `Failed to add resolutions to package.json: ${error.message}`,
-                );
-              });
-          },
-        );
-      }
-    }
-  }
-
-  await Task.forItem('executing', 'yarn install', async () => {
-    await exec('yarn install', { cwd: dir }).catch(error => {
-      process.stdout.write(error.stderr);
-      process.stdout.write(error.stdout);
-      throw new Error(
-        `Could not execute command ${chalk.cyan('yarn install')}`,
-      );
-    });
-  });
-
-  // This takes care of pointing all the installed packages from this repo to
-  // dist instead of the local src, using the field overrides in publishConfig.
-  // Without this we get type checking errors in the e2e test
-  if (process.env.BACKSTAGE_E2E_CLI_TEST) {
-    Task.section('Patching local dependencies for e2e tests');
-
-    for (const name of PATCH_PACKAGES) {
-      await Task.forItem(
-        'patching',
-        `node_modules/@backstage/${name} package.json`,
-        async () => {
-          const depJsonPath = resolvePath(
-            dir,
-            'node_modules/@backstage',
-            name,
-            'package.json',
-          );
-          const depJson = await fs.readJson(depJsonPath);
-
-          // We want dist to be used for e2e tests
-          for (const key of Object.keys(depJson.publishConfig)) {
-            if (key !== 'access') {
-              depJson[key] = depJson.publishConfig[key];
-            }
-          }
-
-          await fs
-            .writeJSON(depJsonPath, depJson, { encoding: 'utf8', spaces: 2 })
-            .catch(error => {
-              throw new Error(
-                `Failed to add resolutions to package.json: ${error.message}`,
-              );
-            });
-        },
-      );
-    }
-  }
-}
diff --git a/yarn.lock b/yarn.lock
index adc4a02cd4..7a9b6c0bd5 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -17999,6 +17999,11 @@ tr46@^2.0.2:
   dependencies:
     punycode "^2.1.1"
 
+tree-kill@^1.2.2:
+  version "1.2.2"
+  resolved "https://registry.npmjs.org/tree-kill/-/tree-kill-1.2.2.tgz#4ca09a9092c88b73a7cdc5e8a01b507b0790a0cc"
+  integrity sha512-L0Orpi8qGpRG//Nd+H90vFB+3iHnue1zSSGmNOOCh1GLJ7rUKVwV2HvijphGQS2UmhUZewS9VgvxYIdgr+fG1A==
+
 trim-newlines@^1.0.0:
   version "1.0.0"
   resolved "https://registry.npmjs.org/trim-newlines/-/trim-newlines-1.0.0.tgz#5887966bb582a4503a41eb524f7d35011815a613"