diff --git a/install/kots/manifests/gitpod-installer-job.yaml b/install/kots/manifests/gitpod-installer-job.yaml
index 53d6693a454df9..0bf0dcf1c96cb7 100644
--- a/install/kots/manifests/gitpod-installer-job.yaml
+++ b/install/kots/manifests/gitpod-installer-job.yaml
@@ -70,7 +70,6 @@ spec:
               yq e -i '.domain = "{{repl ConfigOption "domain" }}"' "${CONFIG_FILE}"
               yq e -i '.license.kind = "secret"' "${CONFIG_FILE}"
               yq e -i '.license.name = "gitpod-license"' "${CONFIG_FILE}"
-              yq e -i '.dropImageRepo = true' "${CONFIG_FILE}"
 
               if [ '{{repl and (ConfigOptionEquals "db_incluster" "0") (ConfigOptionEquals "db_cloudsql_enabled" "1") }}' = "true" ];
               then
@@ -102,6 +101,7 @@ spec:
                 yq e -i ".repository = \"{{repl LocalRegistryAddress }}\"" "${CONFIG_FILE}"
                 yq e -i ".imagePullSecrets[0].kind = \"secret\"" "${CONFIG_FILE}"
                 yq e -i ".imagePullSecrets[0].name = \"{{repl ImagePullSecretName }}\"" "${CONFIG_FILE}"
+                yq e -i '.dropImageRepo = true' "${CONFIG_FILE}"
               elif [ '{{repl ConfigOptionEquals "reg_incluster" "0" }}' = "true" ];
               then
                 echo "Gitpod: configuring external container registry"