diff --git a/Makefile b/Makefile
index d7ebe46d..a3645cd4 100644
--- a/Makefile
+++ b/Makefile
@@ -1,6 +1,15 @@
 VERSION?=$(shell grep 'VERSION' cmd/flux/main.go | awk '{ print $$4 }' | tr -d '"')
 EMBEDDED_MANIFESTS_TARGET=cmd/flux/manifests
 TEST_KUBECONFIG?=/tmp/flux-e2e-test-kubeconfig
+ENVTEST_BIN_VERSION?=latest
+KUBEBUILDER_ASSETS?="$(shell $(SETUP_ENVTEST) use -i $(ENVTEST_BIN_VERSION) -p path)"
+
+# Get the currently used golang install path (in GOPATH/bin, unless GOBIN is set)
+ifeq (,$(shell go env GOBIN))
+GOBIN=$(shell go env GOPATH)/bin
+else
+GOBIN=$(shell go env GOBIN)
+endif
 
 rwildcard=$(foreach d,$(wildcard $(addsuffix *,$(1))),$(call rwildcard,$(d)/,$(2)) $(filter $(subst *,%,$(2)),$(d)))
 
@@ -15,21 +24,6 @@ fmt:
 vet:
 	go vet ./...
 
-setup-envtest:
-ifeq (, $(shell which setup-envtest))
-	@{ \
-	set -e ;\
-	SETUP_ENVTEST_TMP_DIR=$$(mktemp -d) ;\
-	cd $$SETUP_ENVTEST_TMP_DIR ;\
-	go mod init tmp ;\
-	go get sigs.k8s.io/controller-runtime/tools/setup-envtest@latest ;\
-	rm -rf $$SETUP_ENVTEST_TMP_DIR ;\
-	}
-SETUP_ENVTEST=$(GOBIN)/setup-envtest
-else
-SETUP_ENVTEST=$(shell which setup-envtest)
-endif
-
 setup-kind:
 	kind create cluster --name=flux-e2e-test --kubeconfig=$(TEST_KUBECONFIG) --config=.github/kind/config.yaml
 	kubectl --kubeconfig=$(TEST_KUBECONFIG) apply -f https://docs.projectcalico.org/v3.16/manifests/calico.yaml
@@ -39,8 +33,8 @@ cleanup-kind:
 	kind delete cluster --name=flux-e2e-test
 	rm $(TEST_KUBECONFIG)
 
-test: $(EMBEDDED_MANIFESTS_TARGET) tidy fmt vet
-	go test ./... -coverprofile cover.out --tags=unit
+test: $(EMBEDDED_MANIFESTS_TARGET) tidy fmt vet setup-envtest
+	KUBEBUILDER_ASSETS=$(KUBEBUILDER_ASSETS) go test ./... -coverprofile cover.out --tags=unit
 
 e2e: $(EMBEDDED_MANIFESTS_TARGET) tidy fmt vet
 	TEST_KUBECONFIG=$(TEST_KUBECONFIG) go test ./cmd/flux/... -coverprofile e2e.cover.out --tags=e2e -v -failfast
@@ -61,3 +55,19 @@ install:
 
 install-dev:
 	CGO_ENABLED=0 go build -o /usr/local/bin ./cmd/flux
+
+# Find or download setup-envtest
+setup-envtest:
+ifeq (, $(shell which setup-envtest))
+	@{ \
+	set -e ;\
+	SETUP_ENVTEST_TMP_DIR=$$(mktemp -d) ;\
+	cd $$SETUP_ENVTEST_TMP_DIR ;\
+	go mod init tmp ;\
+	go get sigs.k8s.io/controller-runtime/tools/setup-envtest@latest ;\
+	rm -rf $$SETUP_ENVTEST_TMP_DIR ;\
+	}
+SETUP_ENVTEST=$(GOBIN)/setup-envtest
+else
+SETUP_ENVTEST=$(shell which setup-envtest)
+endif