diff --git a/incubator/hnc/Makefile b/incubator/hnc/Makefile
index 5a7d38508..39db10f39 100644
--- a/incubator/hnc/Makefile
+++ b/incubator/hnc/Makefile
@@ -92,7 +92,6 @@ all: test docker-build
 
 # Run tests
 test: build
-	./hack/crd_patches/ensure-all-served-for-envtest.sh
 	@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"
diff --git a/incubator/hnc/hack/crd_patches/ensure-all-served-for-envtest.sh b/incubator/hnc/hack/crd_patches/ensure-all-served-for-envtest.sh
deleted file mode 100755
index 3f59787c4..000000000
--- a/incubator/hnc/hack/crd_patches/ensure-all-served-for-envtest.sh
+++ /dev/null
@@ -1,21 +0,0 @@
-#!/usr/bin/env bash
-
-#  Licensed under the Apache License, Version 2.0 (the "License");
-#  you may not use this file except in compliance with the License.
-#  You may obtain a copy of the License at
-#
-#      http://www.apache.org/licenses/LICENSE-2.0
-#
-#  Unless required by applicable law or agreed to in writing, software
-#  distributed under the License is distributed on an "AS IS" BASIS,
-#  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-#  See the License for the specific language governing permissions and
-#  limitations under the License.
-
-# Generate CRD manifests in manifests/envtest/. Replace "served: false" with
-# "served: true" in the CRD manifests for envtest integration tests. See bug -
-# https://github.com/kubernetes-sigs/multi-tenancy/issues/1148
-cp -R config/crd/bases/. manifests/envtest/
-sed -i 's/served: false/served: true/' manifests/envtest/hnc.x-k8s.io_hierarchyconfigurations.yaml
-sed -i 's/served: false/served: true/' manifests/envtest/hnc.x-k8s.io_subnamespaceanchors.yaml
-sed -i 's/served: false/served: true/' manifests/envtest/hnc.x-k8s.io_hncconfigurations.yaml
diff --git a/incubator/hnc/internal/reconcilers/suite_test.go b/incubator/hnc/internal/reconcilers/suite_test.go
index 7b14cc6c4..9a0761671 100644
--- a/incubator/hnc/internal/reconcilers/suite_test.go
+++ b/incubator/hnc/internal/reconcilers/suite_test.go
@@ -71,11 +71,7 @@ var _ = BeforeSuite(func(done Done) {
 
 	By("bootstrapping test environment")
 	testEnv = &envtest.Environment{
-		// We set path to "../../manifests/envtest/" as a workaround for a known
-		// envtest bug. We should set it back to "../../config/crd/bases/" after the
-		// bug is fixed in controller-runtime. See issue -
-		// https://github.com/kubernetes-sigs/multi-tenancy/issues/1148
-		CRDDirectoryPaths: []string{filepath.Join("..", "..", "manifests", "envtest")},
+		CRDDirectoryPaths: []string{filepath.Join("..", "..", "config", "crd", "bases")},
 	}
 
 	var err error