diff --git a/Makefile b/Makefile
index 4b7b159de..7d1c24467 100644
--- a/Makefile
+++ b/Makefile
@@ -1,3 +1,6 @@
+# ENVTEST_K8S_VERSION refers to the version of kubebuilder assets to be downloaded by envtest binary.
+ENVTEST_K8S_VERSION = 1.26.0
+
 # Adding .PHONY to hold command shortcuts.
 .PHONY: release
 
@@ -100,12 +103,16 @@ all: test docker-build
 # Run tests
 test: build test-only
 
-test-only:
-	@echo
-	@echo "If tests fail due to no matches for kind \"CustomResourceDefinition\" in version \"apiextensions.k8s.io/v1\","
-	@echo "please remove the old kubebuilder and reinstall it - https://book.kubebuilder.io/quick-start.html#installation"
-	@echo
-	go test ${DIRS} -coverprofile cover.out
+LOCALBIN ?= $(shell pwd)/hack
+ENVTEST ?= $(LOCALBIN)/setup-envtest
+
+test-only: envtest
+	KUBEBUILDER_ASSETS="$(shell $(ENVTEST) use $(ENVTEST_K8S_VERSION) --bin-dir $(LOCALBIN) -p path)" go test ${DIRS} -coverprofile cover.out
+
+.PHONY: envtest
+envtest: $(ENVTEST) ## Download envtest-setup locally if necessary.
+$(ENVTEST): $(LOCALBIN)
+	test -s $(LOCALBIN)/setup-envtest || GOBIN=$(LOCALBIN) go install sigs.k8s.io/controller-runtime/tools/setup-envtest@latest
 
 # Builds all binaries (manager and kubectl) and manifests
 build: generate fmt vet staticcheck manifests