diff --git a/.envrc b/.envrc
index 8fa7260429..7fcbc7c74b 100644
--- a/.envrc
+++ b/.envrc
@@ -9,29 +9,22 @@ store_paths=$(find . -name default.nix  | grep -v '^./nix' | grep -v '^./dist-ne
 layout_dir=$(direnv_layout_dir)
 env_dir=./.env
 
-# The env_dir used to be a symlink to env in nix store, if it exists, delete it.
-[[ ! -L "$env_dir" ]] || rm -f "$env_dir"
-
 [[ -d "$layout_dir" ]] || mkdir -p "$layout_dir"
 
 if [[ ! -d "$env_dir" || ! -f "$layout_dir/nix-rebuild" || "$store_paths" != $(< "$layout_dir/nix-rebuild" ) ]]; then
-
-  [[ -d "$env_dir" ]] || mkdir -p "$env_dir"
-
-  # this builds "wireServer.devShell" defined in ./nix/default.nix and outputs to ./.env
-  nix-shell ./nix -A wireServer.devShell --run 'direnv dump bash' > "${env_dir}/dev-shell.sh"
-
-  nix-build ./nix -A profileEnv --out-link "${env_dir}/profile-env"
+  nix-build ./nix -A wireServer.devEnv --out-link ./.env
 
   echo "$store_paths" > "$layout_dir/nix-rebuild"
 fi
 
-source_env "${env_dir}/dev-shell.sh"
+PATH_add "./.env/bin"
+path_add "PKG_CONFIG_PATH" "./.env/lib/pkgconfig"
+path_add "LIBRARY_PATH" "./.env/lib"
 
 # source .profile from `$env`. This sets NIX_PATH to pkgs defined in
 # ./nix/default.nix. Tis is useful for nix tooling that runs inside this direnv,
 # e.g. "nix-shell -p foo" will get "foo" for pkgs defined in ./nix/default.nix
-[[ -f "${env_dir}/profile-env/.profile" ]] && source_env "${env_dir}/profile-env/.profile"
+[[ -f "./.env/.profile" ]] && source_env "./.env/.profile"
 
 # allow local .envrc overrides
 [[ -f .envrc.local ]] && source_env .envrc.local
diff --git a/changelog.d/0-release-notes/nix-builds b/changelog.d/0-release-notes/nix-builds
index 3dbdf2f44e..7bda5a83e0 100644
--- a/changelog.d/0-release-notes/nix-builds
+++ b/changelog.d/0-release-notes/nix-builds
@@ -1 +1 @@
-Build docker images using nix derivations instead of Dockerfiles (#2331, #2771, #2772, #2775)
+Build docker images using nix derivations instead of Dockerfiles (#2331, #2771, #2772, #2775, #2776)
diff --git a/nix/wire-server.nix b/nix/wire-server.nix
index b197f4bf35..f07f1eada3 100644
--- a/nix/wire-server.nix
+++ b/nix/wire-server.nix
@@ -57,13 +57,13 @@ let lib = pkgs.lib;
 
     gitignoreSource =
       let gitignoreSrc = pkgs.fetchFromGitHub {
-        owner = "hercules-ci";
-        repo = "gitignore.nix";
-        # put the latest commit sha of gitignore Nix library here:
-        rev = "a20de23b925fd8264fd7fad6454652e142fd7f73";
-        # use what nix suggests in the mismatch message here:
-        sha256 = "sha256:07vg2i9va38zbld9abs9lzqblz193vc5wvqd6h7amkmwf66ljcgh";
-      };
+            owner = "hercules-ci";
+            repo = "gitignore.nix";
+            # put the latest commit sha of gitignore Nix library here:
+            rev = "a20de23b925fd8264fd7fad6454652e142fd7f73";
+            # use what nix suggests in the mismatch message here:
+            sha256 = "sha256:07vg2i9va38zbld9abs9lzqblz193vc5wvqd6h7amkmwf66ljcgh";
+          };
       in (import gitignoreSrc { inherit (pkgs) lib; }).gitignoreSource;
 
     # Mapping from package -> [executable]
@@ -291,6 +291,21 @@ let lib = pkgs.lib;
         experimental-features = "nix-command";
       };
     };
+
+    shell = (hPkgs localModsOnlyTests).shellFor {
+      packages = p: builtins.map (e: p.${e}) wireServerPackages;
+    };
+    ghcWithPackages = shell.nativeBuildInputs ++ shell.buildInputs;
+
+    profileEnv = pkgs.writeTextFile {
+      name = "profile-env";
+      destination = "/.profile";
+      # This gets sourced by direnv. Set NIX_PATH, so `nix-shell` uses the same nixpkgs as here.
+      text = ''
+        export NIX_PATH=nixpkgs=${toString pkgs.path}
+        export LOCALE_ARCHIVE=${pkgs.glibcLocales}/lib/locale/locale-archive
+        '';
+    };
 in {
   inherit ciImage hoogleImage;
 
@@ -303,11 +318,11 @@ in {
     enableTests = true;
     enableDocs = false;
   };
-  imagesList = imagesList;
+  inherit imagesList;
 
-  devShell = (hPkgs localModsOnlyTests).shellFor {
-    packages = p: builtins.map (e: p.${e}) wireServerPackages;
-    buildInputs = commonTools ++ [
+  devEnv = pkgs.buildEnv {
+    name = "wire-server-dev-env";
+    paths = commonTools ++ [
       (pkgs.haskell-language-server.override { supportedGhcVersions = [ "8107" ]; })
       pkgs.ghcid
       pkgs.cfssl
@@ -322,13 +337,16 @@ in {
       pkgs.cabal-install
       pkgs.haskellPackages.cabal-plan
       pkgs.nix-prefetch-git
-    ] ++ pkgs.lib.optionals pkgs.stdenv.isLinux [
+      profileEnv
+    ]
+    ++ ghcWithPackages
+    ++ pkgs.lib.optionals pkgs.stdenv.isLinux [
       # linux-only, not strictly required tools
-
       pkgs.docker-compose
       pkgs.telepresence
     ];
   };
+
   inherit brig-templates;
   haskellPackages = hPkgs localModsEnableAll;
   haskellPackagesUnoptimizedNoDocs = hPkgs localModsOnlyTests;