diff --git a/Makefile b/Makefile
index 6c82346bc31..2d9fe504ca1 100644
--- a/Makefile
+++ b/Makefile
@@ -183,7 +183,6 @@ CLUSTER_TEMPLATE ?= cluster-template.yaml
 MANAGED_CLUSTER_TEMPLATE ?= cluster-template-aks.yaml
 
 export KIND_CLUSTER_NAME ?= capz
-export AZWI ?= true
 
 ## --------------------------------------
 ## Binaries
@@ -670,7 +669,7 @@ test-cover: test ## Run tests with code coverage and generate reports.
 
 .PHONY: kind-create-bootstrap
 kind-create-bootstrap: $(KUBECTL) ## Create capz kind bootstrap cluster.
-	export KIND_CLUSTER_NAME=capz-e2e && ./scripts/kind-with-registry.sh
+	export AZWI=$${AZWI:-true} KIND_CLUSTER_NAME=capz-e2e && ./scripts/kind-with-registry.sh
 
 .PHONY: test-e2e-run
 test-e2e-run: generate-e2e-templates install-tools kind-create-bootstrap ## Run e2e tests.