diff --git a/resources/apply-resources-istio.sh b/resources/apply-resources-istio.sh
index 89f8cb0ddf..f1c10eade5 100755
--- a/resources/apply-resources-istio.sh
+++ b/resources/apply-resources-istio.sh
@@ -1,15 +1,18 @@
-if [ -z "$1" ] ; then  
+#!/bin/bash
+set -e
+
+if [ -z "$1" ] ; then
     echo "No domain passed as first argument, aborting." 
     exit 1
 fi
 
 export DOMAIN=$1
 export NAMESPACE=${2:-busola}
+export ENVIRONMENT=$3
+TMP_DIR="../temp/resources"
 
-mkdir -p ../temp/resources
-cp -rf . ../temp/resources
-
-envsubst < ../temp/resources/istio/virtualservice-busola-template.yaml > ../temp/resources/istio/virtualservice-busola.yaml
+./apply-resources.sh "$@"
 
-kubectl apply -k ../temp/resources/istio --namespace=$NAMESPACE
+envsubst < "${TMP_DIR}"/istio/virtualservice-busola.tpl.yaml > "${TMP_DIR}"/istio/virtualservice-busola.yaml
 
+kubectl apply -k "${TMP_DIR}"/istio --namespace=$NAMESPACE
diff --git a/resources/apply-resources.sh b/resources/apply-resources.sh
index d7eca07ace..f624eec7ef 100755
--- a/resources/apply-resources.sh
+++ b/resources/apply-resources.sh
@@ -1,16 +1,21 @@
-if [ -z "$1" ] ; then  
+#!/bin/bash
+set -e
+
+if [ -z "$1" ] ; then
     echo "No domain passed as first argument, aborting." 
     exit 1
 fi
 
-namespace=${2:-busola}
+export DOMAIN=$1
+NAMESPACE=${2:-busola}
+export ENVIRONMENT=$3
+TMP_DIR="../temp/resources"
 
-mkdir -p ../temp/resources 
 
-cp -rf . ../temp/resources
+mkdir -p "${TMP_DIR}"
+cp -rf . "${TMP_DIR}"
 
-for i in ../temp/resources/**{/*,}.yaml; do
-    sed -i'' "s/%DOMAIN%/$1/g" $i
-done
+envsubst < "${TMP_DIR}"/base/ingress.tpl.yaml > "${TMP_DIR}"/base/ingress.yaml
 
-kubectl apply -k ../temp/resources --namespace=$namespace
+kubectl create namespace "${NAMESPACE}" || true
+kubectl apply -k "${TMP_DIR}/environments/${ENVIRONMENT}" --namespace="${NAMESPACE}"
diff --git a/resources/backend/deployment.yaml b/resources/base/backend/deployment.yaml
similarity index 100%
rename from resources/backend/deployment.yaml
rename to resources/base/backend/deployment.yaml
diff --git a/resources/backend/hpa.yaml b/resources/base/backend/hpa.yaml
similarity index 100%
rename from resources/backend/hpa.yaml
rename to resources/base/backend/hpa.yaml
diff --git a/resources/backend/kustomization.yaml b/resources/base/backend/kustomization.yaml
similarity index 100%
rename from resources/backend/kustomization.yaml
rename to resources/base/backend/kustomization.yaml
diff --git a/resources/backend/service.yaml b/resources/base/backend/service.yaml
similarity index 100%
rename from resources/backend/service.yaml
rename to resources/base/backend/service.yaml
diff --git a/resources/base/environment.env b/resources/base/environment.env
new file mode 100644
index 0000000000..52ad709329
--- /dev/null
+++ b/resources/base/environment.env
@@ -0,0 +1 @@
+ENVIRONMENT="test"
diff --git a/resources/extensions-patch/builtin-resource-extensions.configmap.yaml b/resources/base/extensions-patch/builtin-resource-extensions.configmap.yaml
similarity index 100%
rename from resources/extensions-patch/builtin-resource-extensions.configmap.yaml
rename to resources/base/extensions-patch/builtin-resource-extensions.configmap.yaml
diff --git a/resources/extensions-patch/kustomization.yaml b/resources/base/extensions-patch/kustomization.yaml
similarity index 100%
rename from resources/extensions-patch/kustomization.yaml
rename to resources/base/extensions-patch/kustomization.yaml
diff --git a/resources/extensions-patch/web-deployment.patch.yaml b/resources/base/extensions-patch/web-deployment.patch.yaml
similarity index 100%
rename from resources/extensions-patch/web-deployment.patch.yaml
rename to resources/base/extensions-patch/web-deployment.patch.yaml
diff --git a/resources/ingress.yaml b/resources/base/ingress.tpl.yaml
similarity index 97%
rename from resources/ingress.yaml
rename to resources/base/ingress.tpl.yaml
index ba3589f0f4..afda2cee0a 100644
--- a/resources/ingress.yaml
+++ b/resources/base/ingress.tpl.yaml
@@ -10,7 +10,7 @@ metadata:
 spec:
   ingressClassName: nginx
   rules:
-    - host: %DOMAIN%
+    - host: $DOMAIN
       http:
         paths:
           - backend:
diff --git a/resources/ingressClass.yaml b/resources/base/ingressClass.yaml
similarity index 100%
rename from resources/ingressClass.yaml
rename to resources/base/ingressClass.yaml
diff --git a/resources/kustomization.yaml b/resources/base/kustomization.yaml
similarity index 95%
rename from resources/kustomization.yaml
rename to resources/base/kustomization.yaml
index 2fcd961732..79ab6dae88 100644
--- a/resources/kustomization.yaml
+++ b/resources/base/kustomization.yaml
@@ -3,6 +3,5 @@ kind: Kustomization
 resources:
   - ingress.yaml
   - ingressClass.yaml
-bases:
   - backend
   - web
diff --git a/resources/resource-validation/rule-sets/datree/rules.yaml b/resources/base/resource-validation/rule-sets/datree/rules.yaml
similarity index 100%
rename from resources/resource-validation/rule-sets/datree/rules.yaml
rename to resources/base/resource-validation/rule-sets/datree/rules.yaml
diff --git a/resources/resource-validation/rule-sets/default/policies.yaml b/resources/base/resource-validation/rule-sets/default/policies.yaml
similarity index 100%
rename from resources/resource-validation/rule-sets/default/policies.yaml
rename to resources/base/resource-validation/rule-sets/default/policies.yaml
diff --git a/resources/resource-validation/rule-sets/kubernetes-pod-security-standards/policies.yaml b/resources/base/resource-validation/rule-sets/kubernetes-pod-security-standards/policies.yaml
similarity index 100%
rename from resources/resource-validation/rule-sets/kubernetes-pod-security-standards/policies.yaml
rename to resources/base/resource-validation/rule-sets/kubernetes-pod-security-standards/policies.yaml
diff --git a/resources/resource-validation/rule-sets/kubernetes-pod-security-standards/rules.yaml b/resources/base/resource-validation/rule-sets/kubernetes-pod-security-standards/rules.yaml
similarity index 100%
rename from resources/resource-validation/rule-sets/kubernetes-pod-security-standards/rules.yaml
rename to resources/base/resource-validation/rule-sets/kubernetes-pod-security-standards/rules.yaml
diff --git a/resources/resource-validation/rulesetSchema.json b/resources/base/resource-validation/rulesetSchema.json
similarity index 100%
rename from resources/resource-validation/rulesetSchema.json
rename to resources/base/resource-validation/rulesetSchema.json
diff --git a/resources/web/configmap.yaml b/resources/base/web/configmap.yaml
similarity index 100%
rename from resources/web/configmap.yaml
rename to resources/base/web/configmap.yaml
diff --git a/resources/web/deployment.yaml b/resources/base/web/deployment.yaml
similarity index 80%
rename from resources/web/deployment.yaml
rename to resources/base/web/deployment.yaml
index 54d5c4630f..cfb4d8ff2c 100644
--- a/resources/web/deployment.yaml
+++ b/resources/base/web/deployment.yaml
@@ -16,8 +16,14 @@ spec:
     spec:
       containers:
         - name: busola
-          image: europe-docker.pkg.dev/kyma-project/prod/busola-web:latest
+          image: europe-docker.pkg.dev/kyma-project/prod/busola-kyma-web:latest
           imagePullPolicy: Always
+          env:
+            - name: ENVIRONMENT
+              valueFrom:
+                configMapKeyRef:
+                  key: ENVIRONMENT
+                  name: environment
           resources:
             requests:
               cpu: 100m
diff --git a/resources/web/hpa.yaml b/resources/base/web/hpa.yaml
similarity index 100%
rename from resources/web/hpa.yaml
rename to resources/base/web/hpa.yaml
diff --git a/resources/web/kustomization.yaml b/resources/base/web/kustomization.yaml
similarity index 100%
rename from resources/web/kustomization.yaml
rename to resources/base/web/kustomization.yaml
diff --git a/resources/web/service.yaml b/resources/base/web/service.yaml
similarity index 100%
rename from resources/web/service.yaml
rename to resources/base/web/service.yaml
diff --git a/resources/environments/dev/environment.env b/resources/environments/dev/environment.env
new file mode 100644
index 0000000000..baf48fa88b
--- /dev/null
+++ b/resources/environments/dev/environment.env
@@ -0,0 +1 @@
+ENVIRONMENT=dev
diff --git a/resources/environments/dev/kustomization.yaml b/resources/environments/dev/kustomization.yaml
new file mode 100644
index 0000000000..407303f71f
--- /dev/null
+++ b/resources/environments/dev/kustomization.yaml
@@ -0,0 +1,6 @@
+resources:
+  - ../../base
+configMapGenerator:
+  - name: environment
+    envs:
+      - environment.env
diff --git a/resources/environments/prod/environment.env b/resources/environments/prod/environment.env
new file mode 100644
index 0000000000..2237a08b79
--- /dev/null
+++ b/resources/environments/prod/environment.env
@@ -0,0 +1 @@
+ENVIRONMENT=prod
diff --git a/resources/environments/prod/kustomization.yaml b/resources/environments/prod/kustomization.yaml
new file mode 100644
index 0000000000..407303f71f
--- /dev/null
+++ b/resources/environments/prod/kustomization.yaml
@@ -0,0 +1,6 @@
+resources:
+  - ../../base
+configMapGenerator:
+  - name: environment
+    envs:
+      - environment.env
diff --git a/resources/environments/stage/environment.env b/resources/environments/stage/environment.env
new file mode 100644
index 0000000000..f5c101f28d
--- /dev/null
+++ b/resources/environments/stage/environment.env
@@ -0,0 +1 @@
+ENVIRONMENT=stage
diff --git a/resources/environments/stage/kustomization.yaml b/resources/environments/stage/kustomization.yaml
new file mode 100644
index 0000000000..407303f71f
--- /dev/null
+++ b/resources/environments/stage/kustomization.yaml
@@ -0,0 +1,6 @@
+resources:
+  - ../../base
+configMapGenerator:
+  - name: environment
+    envs:
+      - environment.env
diff --git a/resources/istio/kustomization.yaml b/resources/istio/kustomization.yaml
index b286bf2b18..ff3b2d8a2b 100644
--- a/resources/istio/kustomization.yaml
+++ b/resources/istio/kustomization.yaml
@@ -6,7 +6,3 @@ resources:
   # This will tell the istio sidecar to use TLS to connect to the backend service.
   # For this to work, you need to enable TLS in the backend. See docs/install-kyma-dashboard-manually.md for more information.
   # - destinationrule-busola-backend.yaml
-
-bases:
-  - ../backend
-  - ../web
diff --git a/resources/istio/virtualservice-busola-template.yaml b/resources/istio/virtualservice-busola.tpl.yaml
similarity index 100%
rename from resources/istio/virtualservice-busola-template.yaml
rename to resources/istio/virtualservice-busola.tpl.yaml