diff --git a/test/Microsoft.Build.Sql.Tests/DotnetTestBase.cs b/test/Microsoft.Build.Sql.Tests/DotnetTestBase.cs
index e077a72..d2d1e80 100644
--- a/test/Microsoft.Build.Sql.Tests/DotnetTestBase.cs
+++ b/test/Microsoft.Build.Sql.Tests/DotnetTestBase.cs
@@ -47,6 +47,13 @@ public void TestTearDown()
         {
             try
             {
+                // Remove local nuget source
+                RunGenericDotnetCommand($"nuget remove source TestSource_{TestContext.CurrentContext.Test.Name}", out _, out string stdError);
+                if (!string.IsNullOrEmpty(stdError))
+                {
+                    Assert.Warn("Failed to remove local nuget source: " + stdError);
+                }
+
                 // Delete working directory unless test failed
                 if (TestContext.CurrentContext.Result.Outcome == ResultState.Success && Directory.Exists(this.WorkingDirectory))
                 {
@@ -78,7 +85,8 @@ protected void EnvironmentSetup()
             }
 
             // Copy SDK nuget package to Workingdirectory/pkg/
-            TestUtils.CopyDirectoryRecursive("../../../pkg", Path.Combine(this.WorkingDirectory, "pkg"));
+            string localNugetSource = Path.Combine(this.WorkingDirectory, "pkg");
+            TestUtils.CopyDirectoryRecursive("../../../pkg", localNugetSource);
 
             // Copy common project files from Template to WorkingDirectory
             TestUtils.CopyDirectoryRecursive("../../../Template", this.WorkingDirectory);
@@ -88,6 +96,10 @@ protected void EnvironmentSetup()
             {
                 TestUtils.CopyDirectoryRecursive(this.CurrentTestDataDirectory, this.WorkingDirectory);
             }
+
+            // Add pkg folder as a nuget source
+            RunGenericDotnetCommand($"nuget add source \"{localNugetSource}\" --name TestSource_{TestContext.CurrentContext.Test.Name}", out _, out string stdError);
+            Assert.AreEqual("", stdError, "Failed to add local nuget source: " + stdError);
         }
 
         /// <summary>
diff --git a/test/Microsoft.Build.Sql.Tests/Template/nuget.config b/test/Microsoft.Build.Sql.Tests/Template/nuget.config
index fef809b..9f550ad 100644
--- a/test/Microsoft.Build.Sql.Tests/Template/nuget.config
+++ b/test/Microsoft.Build.Sql.Tests/Template/nuget.config
@@ -5,10 +5,4 @@
     <!-- Overrides default Nuget cache folder to make sure we are using the correct package. -->
     <add key="globalPackagesFolder" value="./pkg/cache" />
   </config>
-  <packageSources>
-    <!-- Clear all global package sources and only use local one for testing. -->
-    <clear />
-    <add key="nuget.org" value="https://api.nuget.org/v3/index.json" protocolVersion="3" />
-    <add key="local" value="./pkg" />
-  </packageSources>
 </configuration>
\ No newline at end of file