diff --git a/internal/npm_install/node_module_library.bzl b/internal/npm_install/node_module_library.bzl
index 45272af66a..137d706f17 100644
--- a/internal/npm_install/node_module_library.bzl
+++ b/internal/npm_install/node_module_library.bzl
@@ -29,14 +29,20 @@ def _node_module_library_impl(ctx):
     # use in rules such as ts_devserver
     scripts = depset(ctx.files.scripts)
 
-    # declarations are a subset of sources that are decleration files
-    declarations = depset([f for f in ctx.files.srcs if f.path.endswith(".d.ts")])
+    # declarations are a subset of sources that are declaration files
+
+    declarations = depset([
+        f
+        for f in ctx.files.srcs
+        if f.path.endswith(".d.ts") and
+           # exclude eg. external/npm/node_modules/protobufjs/node_modules/@types/node/index.d.ts
+           # these would be duplicates of the typings provided directly in another dependency
+           len(f.path.split("/node_modules/")) < 3
+    ])
+
+    # transitive_declarations are all .d.ts files in srcs plus those in direct & transitive dependencies
+    transitive_declarations = depset(transitive = [declarations])
 
-    # transitive_declarations are all direct & transitive decleration files
-    transitive_declarations = depset()
-    for src in ctx.attr.srcs:
-        if hasattr(src, "typescript"):
-            transitive_declarations = depset(transitive = [transitive_declarations, src.typescript.transitive_declarations])
     for dep in ctx.attr.deps:
         if hasattr(dep, "typescript"):
             transitive_declarations = depset(transitive = [transitive_declarations, dep.typescript.transitive_declarations])
diff --git a/packages/typescript/WORKSPACE b/packages/typescript/WORKSPACE
index 4037c59a11..ba4ef69eb5 100644
--- a/packages/typescript/WORKSPACE
+++ b/packages/typescript/WORKSPACE
@@ -38,10 +38,12 @@ rules_nodejs_dev_dependencies()
 
 # We use git_repository since Renovate knows how to update it.
 # With http_archive it only sees releases/download/*.tar.gz urls
+# TODO(alexeagle): switch to upstream after landing tsconfig.json change
+#                  in the tsc_wrapped compilation
 git_repository(
     name = "build_bazel_rules_typescript",
-    commit = "66505d1e39bc1be973ffbb1e3f83df4d7e1373ef",
-    remote = "http://github.com/bazelbuild/rules_typescript.git",
+    commit = "6038e5986e367be9b5fd7d7aa5cc48322956d488",
+    remote = "http://github.com/alexeagle/rules_typescript.git",
 )
 
 # We have a source dependency on build_bazel_rules_typescript