diff --git a/Tiltfile b/Tiltfile
index 51fc1cc529e..e07549bd16e 100644
--- a/Tiltfile
+++ b/Tiltfile
@@ -1,6 +1,5 @@
 # -*- mode: Python -*-
 
-kustomize_cmd = "./hack/tools/bin/kustomize"
 envsubst_cmd = "./hack/tools/bin/envsubst"
 
 update_settings(k8s_upsert_timeout_secs=60)  # on first tilt up, often can take longer than 30 seconds
@@ -152,7 +151,7 @@ COPY manager .
 # Build CAPZ and add feature gates
 def capz():
     # Apply the kustomized yaml for this provider
-    yaml = str(kustomize("./config"))
+    yaml = str(kustomizesub("./config"))
     substitutions = settings.get("kustomize_substitutions", {})
     for substitution in substitutions:
         value = substitutions[substitution]
@@ -200,7 +199,6 @@ def capz():
         ignore = ["templates"]
     )
 
-    yaml = envsubst(yaml)
     k8s_yaml(blob(yaml))
 
 
@@ -333,11 +331,14 @@ def base64_decode(to_decode):
     decode_blob = local("echo '{}' | base64 --decode -".format(to_decode), quiet=True)
     return str(decode_blob)
 
-
 def envsubst(yaml):
     yaml = yaml.replace('"', '\\"')
     return str(local("echo \"{}\" | {}".format(yaml, envsubst_cmd), quiet=True))
 
+def kustomizesub(folder):
+    yaml = local('hack/kustomize-sub.sh {}'.format(folder), quiet=True)
+    return yaml
+
 ##############################
 # Actual work happens here
 ##############################
diff --git a/hack/kustomize-sub.sh b/hack/kustomize-sub.sh
new file mode 100755
index 00000000000..f8df5ded816
--- /dev/null
+++ b/hack/kustomize-sub.sh
@@ -0,0 +1,21 @@
+#!/bin/bash
+# Copyright 2018 The Kubernetes Authors.
+#
+# 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.
+
+set -o errexit
+set -o nounset
+set -o pipefail
+
+root=$(dirname "${BASH_SOURCE[0]}")
+$root/tools/bin/kustomize build $1 | $root/tools/bin/envsubst
\ No newline at end of file