diff --git a/Makefile b/Makefile
index 09ea22d6e..72e6239d6 100644
--- a/Makefile
+++ b/Makefile
@@ -11,6 +11,7 @@ RELEASE_DIR := _dist
 # Image URL to use all building/pushing image targets
 IMG ?= ${STAGING_REGISTRY}/${IMAGE_NAME}:${TAG}
 BYOH_BASE_IMG = byoh/node:v1.22.3
+BYOH_BASE_IMG_DEV = byoh-dev/node:v1.22.3
 # Produce CRDs that work back to Kubernetes 1.11 (no version conversion)
 CRD_OPTIONS ?= "crd:trivialVersions=true,preserveUnknownFields=false"
 
@@ -111,6 +112,9 @@ docker-push: ## Push docker image with the manager.
 prepare-byoh-docker-host-image:
 	docker build test/e2e -f test/e2e/BYOHDockerFile -t ${BYOH_BASE_IMG}
 
+prepare-byoh-docker-host-image-dev:
+	docker build test/e2e -f docs/BYOHDockerFileDev -t ${BYOH_BASE_IMG_DEV}
+
 test-e2e: docker-build prepare-byoh-docker-host-image $(GINKGO) cluster-templates ## Run the end-to-end tests
 	CONTROL_PLANE_ENDPOINT_IP=172.18.10.151 $(GINKGO) -v -trace -tags=e2e -focus="$(GINKGO_FOCUS)" $(_SKIP_ARGS) -nodes=$(GINKGO_NODES) --noColor=$(GINKGO_NOCOLOR) $(GINKGO_ARGS) test/e2e -- \
 	    -e2e.artifacts-folder="$(ARTIFACTS)" \
diff --git a/docs/BYOHDockerFileDev b/docs/BYOHDockerFileDev
new file mode 100644
index 000000000..c22138a20
--- /dev/null
+++ b/docs/BYOHDockerFileDev
@@ -0,0 +1,28 @@
+ARG BASE_IMAGE=ubuntu:20.04
+FROM $BASE_IMAGE as build
+ARG TARGETARCH
+# install containerd
+RUN apt-get update \
+    && DEBIAN_FRONTEND=noninteractive apt-get install -y --no-install-recommends \
+        systemd conntrack iptables iproute2 ethtool socat util-linux mount \
+        ebtables kmod libseccomp2 pigz bash ca-certificates \
+        rsync nfs-common fuse-overlayfs containerd curl gnupg2 \
+    && mkdir -p /etc/containerd \
+    && containerd config default | tee /etc/containerd/config.toml \
+    && ln -s "$(which systemd)" /sbin/init
+RUN  systemctl enable containerd
+COPY kubernetes.list /etc/apt/sources.list.d/kubernetes.list
+RUN echo "Installing kubectl kubeadm kubelet" \
+    && curl -s https://packages.cloud.google.com/apt/doc/apt-key.gpg | apt-key add - \
+    && apt-get update \
+    && apt-get install -y linux-image-$(uname -r) \
+    && apt-get install -y kubelet=1.22.3-00 kubeadm=1.22.3-00 kubectl=1.22.3-00 \
+    && apt-mark hold containerd kubelet kubeadm kubectl \
+    && apt-get clean \
+    && systemctl enable kubelet.service \
+    && systemctl enable containerd.service
+
+FROM scratch
+COPY --from=build / /
+
+ENTRYPOINT ["/sbin/init"]
\ No newline at end of file
diff --git a/docs/getting_started.md b/docs/getting_started.md
index 3e9f88130..c61857bf4 100644
--- a/docs/getting_started.md
+++ b/docs/getting_started.md
@@ -81,7 +81,7 @@ If not, you could create containers to deploy your workload clusters on. We have
 
 ```shell
 cd cluster-api-provider-bringyourownhost
-make prepare-byoh-docker-host-image
+make prepare-byoh-docker-host-image-dev
 ```
 
 Once the image is ready, lets start 2 docker containers for our deployment. One for the control plane, and one for the worker. (you could of course run more)
diff --git a/docs/local_dev.md b/docs/local_dev.md
index ca5331904..c4bc91a86 100644
--- a/docs/local_dev.md
+++ b/docs/local_dev.md
@@ -94,7 +94,7 @@ make host-agent-binaries
 ### Create docker hosts
 ```shell
 cd cluster-api-provider-bringyourownhost
-make prepare-byoh-docker-host-image
+make prepare-byoh-docker-host-image-dev
 ```
 Run the following to create n hosts, where ```n>1```
 ```shell
diff --git a/test/e2e/BYOHDockerFile b/test/e2e/BYOHDockerFile
index 3e154c56f..7e5990c34 100644
--- a/test/e2e/BYOHDockerFile
+++ b/test/e2e/BYOHDockerFile
@@ -1,26 +1,14 @@
 ARG BASE_IMAGE=ubuntu:20.04
 FROM $BASE_IMAGE as build
 ARG TARGETARCH
-# install containerd
+
 RUN apt-get update \
     && DEBIAN_FRONTEND=noninteractive apt-get install -y --no-install-recommends \
-       systemd conntrack iptables iproute2 ethtool socat util-linux mount \
-       ebtables kmod libseccomp2 pigz bash ca-certificates \
-       rsync nfs-common fuse-overlayfs containerd curl gnupg2\
-    && mkdir -p /etc/containerd \
-    && containerd config default | tee /etc/containerd/config.toml \
+        systemd conntrack iptables iproute2 ethtool socat util-linux mount \
+        ebtables kmod libseccomp2 pigz bash ca-certificates \
+        rsync nfs-common fuse-overlayfs curl gnupg2 \
+        dbus ufw linux-image-$(uname -r) \
     && ln -s "$(which systemd)" /sbin/init
-RUN  systemctl enable containerd
-COPY kubernetes.list /etc/apt/sources.list.d/kubernetes.list
-RUN echo "Installing kubectl kubeadm kubelet" \
-    && curl -s https://packages.cloud.google.com/apt/doc/apt-key.gpg | apt-key add - \
-    && apt-get update \
-    && apt-get install -y linux-image-$(uname -r) \
-    && apt-get install -y kubelet=1.22.3-00 kubeadm=1.22.3-00 kubectl=1.22.3-00 \
-    && apt-mark hold containerd kubelet kubeadm kubectl \
-    && apt-get clean \
-    && systemctl enable kubelet.service \
-    && systemctl enable containerd.service
 
 FROM scratch
 COPY --from=build / /
diff --git a/test/e2e/e2e_docker_helper.go b/test/e2e/e2e_docker_helper.go
index 0a240e7ad..bb5725672 100644
--- a/test/e2e/e2e_docker_helper.go
+++ b/test/e2e/e2e_docker_helper.go
@@ -191,7 +191,7 @@ func setupByoDockerHost(ctx context.Context, clusterConName, byoHostName, namesp
 	rconfig := types.ExecConfig{
 		AttachStdout: true,
 		AttachStderr: true,
-		Cmd:          []string{"./agent", "--kubeconfig", "/mgmt.conf", "--namespace", namespace, "--skip-installation"},
+		Cmd:          []string{"./agent", "--kubeconfig", "/mgmt.conf", "--namespace", namespace},
 	}
 
 	resp, err := dockerClient.ContainerExecCreate(ctx, byohost.ID, rconfig)