diff --git a/.github/workflows/studio-e2e-test.yml b/.github/workflows/studio-e2e-test.yml
index 73204845f78..62505564f76 100644
--- a/.github/workflows/studio-e2e-test.yml
+++ b/.github/workflows/studio-e2e-test.yml
@@ -80,10 +80,6 @@ jobs:
           restore-keys: |
             ${{ runner.os }}-nextjs-${{ hashFiles('pnpm-lock.yaml') }}-
 
-      - name: Reset supabase
-        if: steps.filter.outputs.studio == 'true'
-        run: rm -rf supabase && pnpm exec supabase init && mkdir supabase/functions
-
       # Authenticate with AWS ECR to avoid rate limiting
       - name: configure aws credentials
         if: steps.filter.outputs.studio == 'true' && !github.event.pull_request.head.repo.fork
diff --git a/e2e/studio/supabase/functions/.gitkeep b/e2e/studio/supabase/functions/.gitkeep
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/package.json b/package.json
index e1d95dfb8c4..ff71db442bf 100644
--- a/package.json
+++ b/package.json
@@ -28,7 +28,7 @@
     "test:ui-patterns": "turbo run test --filter=ui-patterns",
     "test:studio": "turbo run test --filter=studio",
     "test:studio:watch": "turbo run test --filter=studio -- watch",
-    "e2e:setup:cli": "supabase stop --all --no-backup ; supabase start --exclude studio,mailpit && if [ -z \"${CI}\" ]; then supabase db reset; fi && supabase status --output json > keys.json && node scripts/generateLocalEnv.js",
+    "e2e:setup:cli": "supabase stop --all --no-backup --workdir ./e2e/studio; supabase start --exclude studio,mailpit --workdir ./e2e/studio && supabase status --output json --workdir ./e2e/studio > keys.json && node scripts/generateLocalEnv.js",
     "e2e:setup:selfhosted": "SKIP_ASSET_UPLOAD=1 pnpm e2e:setup:cli && NODE_ENV=test MODE=test NODE_OPTIONS=\"--max-old-space-size=4096\" pnpm run build:studio && NODE_ENV=test MODE=test pnpm --prefix ./apps/studio start",
     "e2e:setup:selfhosted:start-studio": "SKIP_ASSET_UPLOAD=1 NODE_ENV=test MODE=test pnpm --prefix ./apps/studio start",
     "e2e:setup:platform": "SKIP_ASSET_UPLOAD=1 NODE_OPTIONS=\"--max-old-space-size=4096\" pnpm run build:studio && pnpm --prefix ./apps/studio start",
@@ -67,6 +67,13 @@
     "pnpm": "10.24",
     "node": ">=22"
   },
-  "keywords": ["postgres", "firebase", "storage", "functions", "database", "auth"],
+  "keywords": [
+    "postgres",
+    "firebase",
+    "storage",
+    "functions",
+    "database",
+    "auth"
+  ],
   "packageManager": "pnpm@10.24.0"
 }