diff --git a/.devcontainer/kpack/python-builder.yaml b/.devcontainer/kpack/python-builder.yaml
index a8ae69139..c6cc5bfb7 100644
--- a/.devcontainer/kpack/python-builder.yaml
+++ b/.devcontainer/kpack/python-builder.yaml
@@ -4,7 +4,7 @@ metadata:
   name: python-builder
   namespace: default
 spec:
-  tag: host.k3d.internal:5000/apps/python-builder:latest
+  tag: kpack-registry.local:5000/apps/python-builder:latest
   stack:
     name: base
     kind: ClusterStack
diff --git a/Makefile b/Makefile
index 3c1af7041..bd405b163 100644
--- a/Makefile
+++ b/Makefile
@@ -157,7 +157,7 @@ k3d_cluster:  ## Creates a k3d cluster for testing
 	k3d cluster delete
 	# k3d registry delete myregistry.localhost || true
 	# k3d registry create myregistry.localhost
-	k3d cluster create --registry-create k3d-myregistry.localhost:5000 --agents 1 --k3s-arg --disable=metrics-server@server:0 
+	./setup-k3d-cluster.sh
 
 install_amaltheas:  ## Installs both version of amalthea in the. NOTE: It uses the currently active k8s context.
 	helm repo add renku https://swissdatasciencecenter.github.io/helm-charts
diff --git a/registries.yaml b/registries.yaml
new file mode 100644
index 000000000..bcc16c3bc
--- /dev/null
+++ b/registries.yaml
@@ -0,0 +1,4 @@
+mirrors:
+  "kpack-registry.local:5000":
+    endpoint:
+      - http://k3d-kpack-registry.local:5000
diff --git a/setup-k3d-cluster.sh b/setup-k3d-cluster.sh
new file mode 100755
index 000000000..3bf9c1f3b
--- /dev/null
+++ b/setup-k3d-cluster.sh
@@ -0,0 +1,121 @@
+#!/usr/bin/env bash
+
+KPACK_VERSION=0.15.0
+INTERNL_RE="host\.k3d\.internal"
+REGISTRY_NAME="kpack-registry.local"
+REGISTRY_PORT=5000
+REGISTRY_URI=$REGISTRY_NAME:$REGISTRY_PORT
+K3D_REGISTRY_NAME="k3d-$REGISTRY_NAME"
+
+function setup_registry() {
+    set +e
+    registry=$(k3d registry list | grep $REGISTRY_NAME)
+
+    set -e
+
+    if [[ "$registry" == "" ]]
+    then
+        echo "Creating registry $REGISTRY_URI"
+        k3d registry create $REGISTRY_NAME -p $REGISTRY_PORT
+    else
+        echo "Registry $REGISTRY_NAME already exist -> reusing."
+    fi
+}
+
+function setup_dns() {
+    echo "Updating the cluster DNS configuration to make the registry accessible"
+
+    # Wait for the DNS to contain the internal entry
+    internal_added=false
+
+    until [ $internal_added == true ]
+    do
+
+        configmap=$(kubectl get configmaps --namespace kube-system coredns -o yaml)
+        if [[ $configmap =~ $INTERNL_RE ]]
+        then
+            internal_added=true
+        fi
+    done
+
+    # Add entry to the DNS so that the API of the registry can be accessed
+    kubectl get configmaps --namespace kube-system coredns -o yaml | sed -e "s/\(host.k3d.internal\)/\\1 $REGISTRY_NAME/g" | kubectl apply -f -
+    # Restart the coredns pod to take into account the config change
+    coredns_pod=$(kubectl --namespace kube-system get pods | grep coredns | awk '{print $1}')
+    kubectl --namespace kube-system delete pod "$coredns_pod" --wait=true
+    # Wait for the pod to be back on track
+    coredns_pod=$(kubectl --namespace kube-system get pods | grep coredns | awk '{print $1}')
+    kubectl --namespace kube-system wait --for=condition=Ready "pod/$coredns_pod"
+}
+
+function copy_image() {
+    # copy image to registry
+    echo "Copying image from source registry to $REGISTRY_URI"
+    kubectl create job copy-image --image quay.io/skopeo/stable:latest -- skopeo copy docker://paketobuildpacks/builder-jammy-base:latest docker://$REGISTRY_URI/paketobuildpacks/builder-jammy-base:latest --dest-tls-verify=false
+    kubectl wait --for=condition=complete job/copy-image
+    kubectl delete job copy-image
+}
+
+function setup_kpack() {
+    # deploy kpack
+    kubectl apply -f https://github.com/buildpacks-community/kpack/releases/download/v$KPACK_VERSION/release-$KPACK_VERSION.yaml
+    kubectl --namespace kpack wait deployments.apps/kpack-controller --for='jsonpath={.status.conditions[?(@.type=="Available")].status}=True'
+
+    # create kpack resources
+    kubectl apply -f .devcontainer/kpack/clusterstore.yaml
+    kubectl wait --for=condition=Ready=True clusterstores.kpack.io/default
+    kubectl apply -f .devcontainer/kpack/clusterstack.yaml
+    kubectl wait --for=condition=Ready=True clusterstack.kpack.io/base
+    kubectl apply -f .devcontainer/kpack/python-builder.yaml
+
+    # Fails sometimes because it seems some things happens a bit too fast and it
+    # looks like the reconciler does not retry to reconcile the builder.
+    # Recreating it fixes the situation
+    set +e
+    kubectl wait --for=condition=Ready=True builder.kpack.io/python-builder
+    if [[ $? -eq 1 ]]
+    then
+        kubectl delete -f builder.yaml
+        kubectl apply -f builder.yaml
+    fi
+    set -e
+    kubectl wait --for=condition=Ready=True builder.kpack.io/python-builder
+}
+
+deploy_kpack=false
+create_image=false
+
+while [[ $# -gt 0 ]]; do
+    case $1 in
+        --deploy-kpack)
+            deploy_kpack=true
+            shift # past value
+            ;;
+        --create-image)
+            create_image=true
+            shift # past value
+            ;;
+        -*|--*)
+            echo "Unknown option $1"
+            exit 1
+            ;;
+    esac
+done
+
+setup_registry
+
+set -e
+k3d cluster create kpack-test --registry-use $K3D_REGISTRY_NAME:$REGISTRY_PORT --registry-config registries.yaml --agents 1 --k3s-arg --disable=metrics-server@server:0
+
+setup_dns
+copy_image
+
+if [[ $deploy_kpack == true ]]
+then
+    setup_kpack
+fi
+
+if [[ $create_image == true ]]
+then
+    kubectl apply -f image.yaml
+fi