diff --git a/Makefile b/Makefile
index dca7b3d9f..fbbd06fda 100644
--- a/Makefile
+++ b/Makefile
@@ -117,12 +117,12 @@ test: manifests generate fmt vet envtest ## Run tests.
 e2etest:
 	make --no-print-directory _e2etest # Workaround to force the flag on Github Action
 
-_e2etest-infra: kind ctlptl tilt kuttl kustomize clusterctl envsubst
+_e2etest-infra: kind ctlptl tilt kuttl kustomize clusterctl
 	@echo -n "LINODE_TOKEN=$(LINODE_TOKEN)" > config/default/.env.linode
 	$(CTLPTL) apply -f .tilt/ctlptl-config.yaml
 	$(TILT) ci --timeout 240s -f Tiltfile
 
-_e2etest: manifests generate envsubst _e2etest-infra
+_e2etest: manifests generate _e2etest-infra
 	ROOT_DIR="$(PWD)" $(KUTTL) test --config e2e/kuttl-config.yaml
 
 ## --------------------------------------
@@ -255,7 +255,6 @@ KIND ?= $(LOCALBIN)/kind
 KUTTL ?= $(LOCALBIN)/kubectl-kuttl
 # setup-envtest does not have devbox support so always use CACHE_BIN
 ENVTEST ?= $(CACHE_BIN)/setup-envtest
-ENVSUBST ?= $(LOCALBIN)/envsubst
 HUSKY ?= $(LOCALBIN)/husky
 NILAWAY ?= $(LOCALBIN)/nilaway
 GOVULNC ?= $(LOCALBIN)/govulncheck
@@ -268,13 +267,12 @@ CONTROLLER_TOOLS_VERSION ?= v0.14.0
 TILT_VERSION ?= 0.33.6
 KIND_VERSION ?= 0.20.0
 KUTTL_VERSION ?= 0.15.0
-ENVSUBST_VERSION ?= v1.4.2
 HUSKY_VERSION ?= v0.2.16
 NILAWAY_VERSION ?= latest
 GOVULNC_VERSION ?= v1.0.1
 
 .PHONY: tools
-tools: $(KUSTOMIZE) $(CTLPTL) $(CLUSTERCTL) $(CONTROLLER_GEN) $(TILT) $(KIND) $(KUTTL) $(ENVTEST) $(ENVSUBST) $(HUSKY) $(NILAWAY) $(GOVULNC)
+tools: $(KUSTOMIZE) $(CTLPTL) $(CLUSTERCTL) $(CONTROLLER_GEN) $(TILT) $(KIND) $(KUTTL) $(ENVTEST) $(HUSKY) $(NILAWAY) $(GOVULNC)
 
 .PHONY: kustomize
 kustomize: $(KUSTOMIZE) ## Download kustomize locally if necessary.
@@ -324,12 +322,6 @@ envtest: $(ENVTEST) ## Download setup-envtest locally if necessary.
 $(ENVTEST): $(LOCALBIN)
 	GOBIN=$(CACHE_BIN) go install sigs.k8s.io/controller-runtime/tools/setup-envtest@latest
 
-.PHONY: envsubst
-envsubst: $(ENVSUBST) ## Download envsubst locally if necessary.
-$(ENVSUBST): $(LOCALBIN)
-	curl -Lso $(ENVSUBST) https://github.com/a8m/envsubst/releases/download/$(ENVSUBST_VERSION)/envsubst-$(shell uname -s)-$(ARCH)
-	chmod +x $(ENVSUBST)
-
 .PHONY: husky
 husky: $(HUSKY) ## Download husky locally if necessary.
 	@echo Execute install command to enable git hooks: ./bin/husky install
diff --git a/Tiltfile b/Tiltfile
index d300d4722..dd82106ed 100644
--- a/Tiltfile
+++ b/Tiltfile
@@ -12,13 +12,11 @@ local_resource(
     cmd='EXP_CLUSTER_RESOURCE_SET=true clusterctl init --addon helm',
 )
 
-templated_yaml = local(
-    'kustomize build config/default | envsubst',
-    env={'LINODE_TOKEN': os.getenv('LINODE_TOKEN')},
-    quiet=True,
-    echo_off=True
-)
-k8s_yaml(templated_yaml)
+manager_yaml = decode_yaml_stream(kustomize("config/default"))
+for resource in manager_yaml:
+    if resource["metadata"]["name"] == "capl-manager-credentials":
+        resource["stringData"]["apiToken"] = os.getenv('LINODE_TOKEN')
+k8s_yaml(encode_yaml_stream(manager_yaml))
 
 k8s_resource(
     workload="capl-controller-manager",
diff --git a/devbox.json b/devbox.json
index 846dffc1b..d983179b3 100644
--- a/devbox.json
+++ b/devbox.json
@@ -13,8 +13,7 @@
     "kustomize@latest",
     "kuttl@latest",
     "nilaway@latest",
-    "tilt@latest",
-    "envsubst@latest"
+    "tilt@latest"
   ],
   "shell": {
     "init_hook": [],
diff --git a/devbox.lock b/devbox.lock
index a821f601b..77faddac2 100644
--- a/devbox.lock
+++ b/devbox.lock
@@ -61,26 +61,6 @@
         }
       }
     },
-    "envsubst@latest": {
-      "last_modified": "2024-01-27T14:55:31Z",
-      "resolved": "github:NixOS/nixpkgs/160b762eda6d139ac10ae081f8f78d640dd523eb#envsubst",
-      "source": "devbox-search",
-      "version": "1.4.2",
-      "systems": {
-        "aarch64-darwin": {
-          "store_path": "/nix/store/0n0xrd9796b8lz0574v4cnl20d1hvhvb-envsubst-1.4.2"
-        },
-        "aarch64-linux": {
-          "store_path": "/nix/store/myjffrm8sfdncjg92n1kcx8p1h7ni2d1-envsubst-1.4.2"
-        },
-        "x86_64-darwin": {
-          "store_path": "/nix/store/gn9537z5k45frrclsvix22l5kf9y8xc2-envsubst-1.4.2"
-        },
-        "x86_64-linux": {
-          "store_path": "/nix/store/1gkyrqqjcsiirx2c7x79bibn9xjb2nla-envsubst-1.4.2"
-        }
-      }
-    },
     "go-tools@latest": {
       "last_modified": "2024-01-14T03:55:27Z",
       "resolved": "github:NixOS/nixpkgs/dd5621df6dcb90122b50da5ec31c411a0de3e538#go-tools",