diff --git a/.gitpod.Dockerfile b/.gitpod.Dockerfile
index 3cbe7a34d0717..c417f1e5b1962 100644
--- a/.gitpod.Dockerfile
+++ b/.gitpod.Dockerfile
@@ -1,11 +1,5 @@
 FROM gitpod/workspace-full:latest
 
-USER root
-
-# leeway
-ENV LEEWAY_NESTED_WORKSPACE=true
-RUN cd /usr/bin && curl -fsSL https://github.com/gitpod-io/leeway/releases/download/v0.2.5/leeway_0.2.5_Linux_x86_64.tar.gz | tar xz
-
 USER gitpod
 
 # We use latest major version of Node.js distributed VS Code. (see about dialog in your local VS Code)
@@ -25,33 +19,3 @@ RUN sudo apt-get update \
         libasound2 libgbm1 xfonts-base xfonts-terminus fonts-noto fonts-wqy-microhei \
         fonts-droid-fallback vim-tiny nano libgconf2-dev libgtk-3-dev twm \
     && sudo apt-get clean && sudo rm -rf /var/cache/apt/* && sudo rm -rf /var/lib/apt/lists/* && sudo rm -rf /tmp/*
-
-## Register leeway autocompletion in bashrc
-RUN bash -c "echo . \<\(leeway bash-completion\) >> ~/.bashrc"
-
-### Google Cloud ###
-# not installed via repository as then 'docker-credential-gcr' is not available
-ARG GCS_DIR=/opt/google-cloud-sdk
-ENV PATH=$GCS_DIR/bin:$PATH
-RUN sudo chown gitpod: /opt \
-    && mkdir $GCS_DIR \
-    && curl -fsSL https://dl.google.com/dl/cloudsdk/channels/rapid/downloads/google-cloud-sdk-344.0.0-linux-x86_64.tar.gz \
-    | tar -xzvC /opt \
-    && /opt/google-cloud-sdk/install.sh --quiet --usage-reporting=false --bash-completion=true \
-    --additional-components docker-credential-gcr alpha beta \
-    # needed for access to our private registries
-    && docker-credential-gcr configure-docker
-
-# Install tools for gsutil
-RUN sudo install-packages \
-    gcc \
-    python-dev \
-    python-setuptools
-
-RUN bash -c "pip uninstall crcmod; pip install --no-cache-dir -U crcmod"
-
-# Set Application Default Credentials (ADC) based on user-provided env var
-RUN echo ". /workspace/vscode/scripts/setup-google-adc.sh" >> ~/.bashrc
-
-ENV LEEWAY_WORKSPACE_ROOT=/workspace/vscode
-ENV LEEWAY_REMOTE_CACHE_BUCKET=gitpod-core-leeway-cache-branch
diff --git a/.gitpod.yml b/.gitpod.yml
index 917dfcc8702c8..eb0d4be8952f0 100644
--- a/.gitpod.yml
+++ b/.gitpod.yml
@@ -5,9 +5,8 @@ ports:
     onOpen: open-browser
 tasks:
   - init: |
-      export VSCODE_INIT_BUILD_DIR=$(leeway describe "//:init" -t "/tmp/build/{{ .Metadata.Name }}.{{ .Metadata.Version }}")
-      leeway build
-      sudo cp -rup "$VSCODE_INIT_BUILD_DIR/install/." . | true
+      yarn
+      yarn gitpod:init
     command: |
       gp sync-done init
       export NODE_ENV=development
diff --git a/BUILD.yaml b/BUILD.yaml
deleted file mode 100644
index e1e418e348c0a..0000000000000
--- a/BUILD.yaml
+++ /dev/null
@@ -1,17 +0,0 @@
-packages:
-  - name: install
-    type: generic
-    srcs:
-    - "**"
-    config:
-      commands:
-        - ["yarn"]
-  - name: init
-    type: generic
-    deps:
-    - ":install"
-    config:
-      commands:
-        - ["yarn", "--cwd", "./install/build", "compile"]
-        - ["yarn", "--cwd", "./install", "compile"]
-        - ["yarn", "--cwd", "./install", "download-builtin-extensions"]
diff --git a/README.md b/README.md
index 2c15dfddb720c..e173c146c7439 100644
--- a/README.md
+++ b/README.md
@@ -18,7 +18,24 @@ At Gitpod we've been asked a lot about how we do it. So we thought we might just
 
 ## Getting started
 
-The easiest way to get started is ...
+### Docker
+
+- Start the server:
+```bash
+docker run -it --init -p 3000:3000 -v "$(pwd):/home/workspace:cached" gitpod/vscode
+```
+- after this, visit [localhost:3000](http://localhost:3000).
+
+### Linux
+
+- [Download the latest release](https://github.com/gitpod-io/vscode-releases/releases/latest)
+- untar and run the server:
+```bash
+tar -xzf code-web-server-v*.tar.gz
+cd code-web-server-v*
+./server.sh
+```
+- after this, visit [localhost:3000](http://localhost:3000).
 
 ## The scope of this project
 
@@ -27,3 +44,29 @@ This project really only adds the minimal bits required to run VS Code in a web
 > **For any feature requests, bug reports, or contributions that are not specific to running VS Code in a web server context,**
 >
 > **please go to [Visual Studio Code - Open Source "OSS"](https://github.com/microsoft/vscode)**
+
+## Contributing
+
+### Starting from sources
+
+- [Start a Gitpod workspace](https://gitpod.io/#https://github.com/gitpod-io/vscode/tree/web-server)
+- Dev version of the server should be already up and running. Notice that the dev version is slower to load since it is not bundled (around 2000 files).
+
+### Updating VS Code
+
+- Update your local VS Code, open the About dialog and remember the release commit and Node.js version.
+- Fetch latest upstream changes and rebase the branch based on the local VS Code's commit. Drop all commits before `code web server initial commit`.
+- Check that [.gitpod.Dockerfile](./.gitpod.Dockerfile) and [remote/.yarnrc](./remote/.yarnrc) has latest major Node.js version of local VS Code's Node.js version.
+- Recompile everything: `git clean -dfx && yarn && yarn gitpod:init`
+- Run smoke tests: `yarn gitpod:smoketest`.
+- Start the dev server and play:
+  - filesystem (open some project)
+  - extension host process: check language smartness
+  - extension management (installing/uninstalling)
+  - install VIM extension to test web extensions
+  - terminals
+  - code cli should open files and manage extensions: `alias code='export VSCODE_DEV=1 && node out/server-cli.js'`
+- Check server/browser logs for any warnings/errors about missing capabilities and fix them.
+- Build the production server with all changes: `yarn gulp server-min`.
+- Run it and play as with the dev server: `/workspace/server-pkg/server.sh`
+- Open a PR with your changes and ask for help if needed. It should be agaist `gitpod-io/vscode` repo and `web-server` branch!
diff --git a/WORKSPACE.yaml b/WORKSPACE.yaml
deleted file mode 100644
index 3054d1bcff669..0000000000000
--- a/WORKSPACE.yaml
+++ /dev/null
@@ -1 +0,0 @@
-defaultTarget: "//:init"
diff --git a/package.json b/package.json
index 2ed7b5277aa64..6142a96fedc99 100644
--- a/package.json
+++ b/package.json
@@ -55,7 +55,9 @@
     "minify-vscode-reh-web": "node --max_old_space_size=4095 ./node_modules/gulp/bin/gulp.js minify-vscode-reh-web",
     "hygiene": "node --max_old_space_size=4095 ./node_modules/gulp/bin/gulp.js hygiene",
     "core-ci": "node --max_old_space_size=4095 ./node_modules/gulp/bin/gulp.js core-ci",
-    "extensions-ci": "node --max_old_space_size=4095 ./node_modules/gulp/bin/gulp.js extensions-ci"
+    "extensions-ci": "node --max_old_space_size=4095 ./node_modules/gulp/bin/gulp.js extensions-ci",
+    "gitpod:init": "yarn --cwd ./build compile && yarn compile && yarn download-builtin-extensions",
+    "gitpod:smoketest": "yarn --cwd ./test/smoke compile && yarn smoketest-no-compile --web --verbose --headless --electronArgs=\"--disable-dev-shm-usage --use-gl=swiftshader\""
   },
   "dependencies": {
     "@vscode/vscode-languagedetection": "1.0.15",
diff --git a/product.json b/product.json
index 93414d45bf251..70094d17c555b 100644
--- a/product.json
+++ b/product.json
@@ -27,6 +27,7 @@
 		"GitHub.vscode-pull-request-github",
 		"GitHub.vscode-pull-request-github-insiders",
 		"ms-python.python",
+		"ms-toolsai.jupyter",
 		"ms-vscode.js-debug-nightly",
 		"ms-vscode.js-debug",
 		"ms-vscode.lsif-browser",
diff --git a/test/smoke/src/areas/extensions/extensions.test.ts b/test/smoke/src/areas/extensions/extensions.test.ts
index 81598e106179d..fd6c5ea948bfa 100644
--- a/test/smoke/src/areas/extensions/extensions.test.ts
+++ b/test/smoke/src/areas/extensions/extensions.test.ts
@@ -4,7 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import minimist = require('minimist');
-import { Application, Quality } from '../../../../automation';
+import { Application } from '../../../../automation';
 import { afterSuite, beforeSuite } from '../../utils';
 
 export function setup(opts: minimist.ParsedArgs) {