diff --git a/cmd/cmd.go b/cmd/cmd.go
index 978391f71..3f0832b6a 100644
--- a/cmd/cmd.go
+++ b/cmd/cmd.go
@@ -72,7 +72,7 @@ func (c Cmd) Execute() (cmdErr error) {
 
 	case *CreateEnvOpts:
 		envProvider := func(manifestPath string, statePath string, vars boshtpl.Variables, op patch.Op) DeploymentPreparer {
-			return NewEnvFactory(deps, manifestPath, statePath, vars, op, opts.RecreatePersistentDisks).Preparer()
+			return NewEnvFactory(deps, manifestPath, statePath, vars, op, opts.RecreatePersistentDisks, opts.PackageDir).Preparer()
 		}
 
 		stage := boshui.NewStage(deps.UI, deps.Time, deps.Logger)
@@ -80,7 +80,7 @@ func (c Cmd) Execute() (cmdErr error) {
 
 	case *DeleteEnvOpts:
 		envProvider := func(manifestPath string, statePath string, vars boshtpl.Variables, op patch.Op) DeploymentDeleter {
-			return NewEnvFactory(deps, manifestPath, statePath, vars, op, false).Deleter()
+			return NewEnvFactory(deps, manifestPath, statePath, vars, op, false, opts.PackageDir).Deleter()
 		}
 
 		stage := boshui.NewStage(deps.UI, deps.Time, deps.Logger)
@@ -88,7 +88,7 @@ func (c Cmd) Execute() (cmdErr error) {
 
 	case *StopEnvOpts:
 		envProvider := func(manifestPath string, statePath string, vars boshtpl.Variables, op patch.Op) DeploymentStateManager {
-			return NewEnvFactory(deps, manifestPath, statePath, vars, op, false).StateManager()
+			return NewEnvFactory(deps, manifestPath, statePath, vars, op, false, "").StateManager()
 		}
 
 		stage := boshui.NewStage(deps.UI, deps.Time, deps.Logger)
@@ -96,7 +96,7 @@ func (c Cmd) Execute() (cmdErr error) {
 
 	case *StartEnvOpts:
 		envProvider := func(manifestPath string, statePath string, vars boshtpl.Variables, op patch.Op) DeploymentStateManager {
-			return NewEnvFactory(deps, manifestPath, statePath, vars, op, false).StateManager()
+			return NewEnvFactory(deps, manifestPath, statePath, vars, op, false, "").StateManager()
 		}
 
 		stage := boshui.NewStage(deps.UI, deps.Time, deps.Logger)
diff --git a/cmd/env_factory.go b/cmd/env_factory.go
index 555e54e22..c0a50f4c1 100644
--- a/cmd/env_factory.go
+++ b/cmd/env_factory.go
@@ -71,6 +71,7 @@ func NewEnvFactory(
 	manifestVars boshtpl.Variables,
 	manifestOp patch.Op,
 	recreatePersistentDisks bool,
+	packageDir string,
 ) *envFactory {
 	f := envFactory{
 		deps:         deps,
@@ -126,7 +127,7 @@ func NewEnvFactory(
 	}
 
 	f.targetProvider = boshinst.NewTargetProvider(
-		f.deploymentStateService, deps.UUIDGen, filepath.Join(workspaceRootPath, "installations"))
+		f.deploymentStateService, deps.UUIDGen, filepath.Join(workspaceRootPath, "installations"), packageDir)
 
 	{
 		diskRepo := biconfig.NewDiskRepo(f.deploymentStateService, deps.UUIDGen)
diff --git a/cmd/opts/opts.go b/cmd/opts/opts.go
index b57e2fba4..2d8413c16 100644
--- a/cmd/opts/opts.go
+++ b/cmd/opts/opts.go
@@ -197,6 +197,7 @@ type CreateEnvOpts struct {
 	StatePath               string `long:"state" value-name:"PATH" description:"State file path"`
 	Recreate                bool   `long:"recreate" description:"Recreate VM in deployment"`
 	RecreatePersistentDisks bool   `long:"recreate-persistent-disks" description:"Recreate persistent disks in the deployment"`
+	PackageDir              string `long:"package-dir" value-name:"DIR" description:"Overrides default package cache location"`
 	cmd
 }
 
@@ -208,8 +209,9 @@ type DeleteEnvOpts struct {
 	Args DeleteEnvArgs `positional-args:"true" required:"true"`
 	VarFlags
 	OpsFlags
-	SkipDrain bool   `long:"skip-drain" description:"Skip running drain and pre-stop scripts"`
-	StatePath string `long:"state" value-name:"PATH" description:"State file path"`
+	SkipDrain  bool   `long:"skip-drain" description:"Skip running drain and pre-stop scripts"`
+	StatePath  string `long:"state" value-name:"PATH" description:"State file path"`
+	PackageDir string `long:"package-dir" value-name:"DIR" description:"Overrides default package cache location"`
 	cmd
 }
 
diff --git a/installation/target.go b/installation/target.go
index 31e8725e1..a9e008844 100644
--- a/installation/target.go
+++ b/installation/target.go
@@ -5,12 +5,14 @@ import (
 )
 
 type Target struct {
-	path string
+	path       string
+	packageDir string
 }
 
-func NewTarget(path string) Target {
+func NewTarget(path string, packageDir string) Target {
 	return Target{
 		path,
+		packageDir,
 	}
 }
 
@@ -31,7 +33,11 @@ func (t Target) TemplatesIndexPath() string {
 }
 
 func (t Target) PackagesPath() string {
-	return filepath.Join(t.path, "packages")
+	if t.packageDir != "" {
+		return t.packageDir
+	} else {
+		return filepath.Join(t.path, "packages")
+	}
 }
 
 func (t Target) JobsPath() string {
diff --git a/installation/target_provider.go b/installation/target_provider.go
index decb3d2ae..916acffd2 100644
--- a/installation/target_provider.go
+++ b/installation/target_provider.go
@@ -17,17 +17,20 @@ type targetProvider struct {
 	deploymentStateService biconfig.DeploymentStateService
 	uuidGenerator          boshuuid.Generator
 	installationsRootPath  string
+	packageDir             string
 }
 
 func NewTargetProvider(
 	deploymentStateService biconfig.DeploymentStateService,
 	uuidGenerator boshuuid.Generator,
 	installationsRootPath string,
+	packageDir string,
 ) TargetProvider {
 	return &targetProvider{
 		deploymentStateService: deploymentStateService,
 		uuidGenerator:          uuidGenerator,
 		installationsRootPath:  installationsRootPath,
+		packageDir:             packageDir,
 	}
 }
 
@@ -51,5 +54,5 @@ func (p *targetProvider) NewTarget() (Target, error) {
 		}
 	}
 
-	return NewTarget(filepath.Join(p.installationsRootPath, installationID)), nil
+	return NewTarget(filepath.Join(p.installationsRootPath, installationID), p.packageDir), nil
 }