diff --git a/Tiltfile b/Tiltfile
index 0bc5e0019..a47ab9551 100644
--- a/Tiltfile
+++ b/Tiltfile
@@ -72,15 +72,6 @@ COPY --from=tilt-helper /usr/bin/docker /usr/bin/docker
 COPY --from=tilt-helper /go/kubernetes/client/bin/kubectl /usr/bin/kubectl
 """
 
-docker_build_download_restic_commands = """
-COPY ./hack/download-restic.sh /
-RUN apt update && apt install -y wget
-RUN mkdir -p /output/usr/bin && \
-    BIN=velero GOOS=linux GOARCH=amd64 RESTIC_VERSION=0.9.6 /download-restic.sh && \
-    mv /output/usr/bin/restic /usr/bin/restic && \
-    rm -rf /output/usr/bin
-"""
-
 ##############################
 # Setup Velero
 ##############################
@@ -110,13 +101,19 @@ local_resource(
     deps = ["internal", "pkg/cmd"],
 )
 
+local_resource(
+    "restic_binary",
+    cmd = 'cd ' + '.' + ';mkdir -p _tiltbuild/restic; BIN=velero GOOS=' + local_goos + ' GOARCH=amd64 RESTIC_VERSION=0.9.6 OUTPUT_DIR=_tiltbuild/restic ./hack/download-restic.sh',
+)
+
 # Note: we need a distro with a bash shell to exec into the Velero container
 tilt_dockerfile_header = """
 FROM ubuntu:focal as tilt
 WORKDIR /
 COPY --from=tilt-helper /start.sh .
 COPY --from=tilt-helper /restart.sh .
-COPY _tiltbuild/velero .
+COPY velero .
+COPY restic/restic /usr/bin/restic
 """
 
 dockerfile_contents = "\n".join([
@@ -124,10 +121,8 @@ dockerfile_contents = "\n".join([
     additional_docker_helper_commands,
     tilt_dockerfile_header,
     additional_docker_build_commands,
-    docker_build_download_restic_commands,
 ])
 
-
 def get_velero_entrypoint():
     """
     Returns the entrypoint for the Velero container image.
@@ -156,7 +151,7 @@ def get_velero_entrypoint():
 # build into the container.
 docker_build(
     ref = "velero/velero",
-    context = ".",
+    context = "_tiltbuild",
     dockerfile_contents = dockerfile_contents,
     target = "tilt",
     entrypoint = get_velero_entrypoint(),
diff --git a/hack/download-restic.sh b/hack/download-restic.sh
index 230c9cf65..93554f0c0 100755
--- a/hack/download-restic.sh
+++ b/hack/download-restic.sh
@@ -18,6 +18,11 @@ set -o errexit
 set -o nounset
 set -o pipefail
 
+# Use /output/usr/bin/ as the default output directory as this
+# is the path expected by the Velero Dockerfile.
+output_dir=${OUTPUT_DIR:-/output/usr/bin}
+restic_bin=${output_dir}/restic
+
 if [[ -z "${BIN}" ]]; then
     echo "BIN must be set"
     exit 1
@@ -44,11 +49,11 @@ fi
 # TODO: when the new restic version is released, make ppc64le to be also downloaded from their github releases.
 #  This has been merged and will be applied to next release: https://github.com/restic/restic/pull/2342
 if [[ "${GOARCH}" = "ppc64le" ]]; then
-    wget --timeout=1 --tries=5 --quiet https://oplab9.parqtec.unicamp.br/pub/ppc64el/restic/restic-${RESTIC_VERSION} -O /output/usr/bin/restic
+    wget --timeout=1 --tries=5 --quiet https://oplab9.parqtec.unicamp.br/pub/ppc64el/restic/restic-${RESTIC_VERSION} -O ${restic_bin}
 else
     wget --quiet https://github.com/restic/restic/releases/download/v${RESTIC_VERSION}/restic_${RESTIC_VERSION}_${GOOS}_${GOARCH}.bz2
     bunzip2 restic_${RESTIC_VERSION}_${GOOS}_${GOARCH}.bz2
-    mv restic_${RESTIC_VERSION}_${GOOS}_${GOARCH} /output/usr/bin/restic
+    mv restic_${RESTIC_VERSION}_${GOOS}_${GOARCH} ${restic_bin}
 fi
 
-chmod +x /output/usr/bin/restic
+chmod +x ${restic_bin}