diff --git a/.drone/drone.jsonnet b/.drone/drone.jsonnet
index 771e5a49c9..82c8779d55 100644
--- a/.drone/drone.jsonnet
+++ b/.drone/drone.jsonnet
@@ -87,6 +87,7 @@ local docker_operator(arch, operator) = {
   image: 'plugins/docker',
   settings: {
     repo: 'grafana/%s' % operator,
+    context: 'operator',
     dockerfile: 'operator/Dockerfile',
     username: { from_secret: docker_username_secret.name },
     password: { from_secret: docker_password_secret.name },
diff --git a/.drone/drone.yml b/.drone/drone.yml
index 6cf7308e6a..1e0eb0fb1f 100644
--- a/.drone/drone.yml
+++ b/.drone/drone.yml
@@ -707,6 +707,7 @@ steps:
   image: plugins/docker
   name: build-loki-operator-image
   settings:
+    context: operator
     dockerfile: operator/Dockerfile
     dry_run: true
     password:
@@ -722,6 +723,7 @@ steps:
   image: plugins/docker
   name: publish-loki-operator-image
   settings:
+    context: operator
     dockerfile: operator/Dockerfile
     dry_run: false
     password:
@@ -759,6 +761,7 @@ steps:
   image: plugins/docker
   name: build-loki-operator-image
   settings:
+    context: operator
     dockerfile: operator/Dockerfile
     dry_run: true
     password:
@@ -774,6 +777,7 @@ steps:
   image: plugins/docker
   name: publish-loki-operator-image
   settings:
+    context: operator
     dockerfile: operator/Dockerfile
     dry_run: false
     password:
@@ -811,6 +815,7 @@ steps:
   image: plugins/docker
   name: build-loki-operator-image
   settings:
+    context: operator
     dockerfile: operator/Dockerfile
     dry_run: true
     password:
@@ -826,6 +831,7 @@ steps:
   image: plugins/docker
   name: publish-loki-operator-image
   settings:
+    context: operator
     dockerfile: operator/Dockerfile
     dry_run: false
     password:
@@ -1411,6 +1417,6 @@ kind: secret
 name: deploy_config
 ---
 kind: signature
-hmac: 2082d23dcc8f69038e55b027f55a8b1fe8bc52b27f07d785db781fc935a434ad
+hmac: b99e5220d2f2fc15a0bca24bfd3ead78bb6b1ac276fc01ea76a06705fc920190
 
 ...
diff --git a/Makefile b/Makefile
index 8bf3d386cb..8ee65c85b7 100644
--- a/Makefile
+++ b/Makefile
@@ -581,9 +581,9 @@ endif
 
 # loki-operator
 loki-operator-image:
-	$(SUDO) docker build -t $(IMAGE_PREFIX)/loki-operator:$(IMAGE_TAG) -f operator/Dockerfile .
+	$(SUDO) docker build -t $(IMAGE_PREFIX)/loki-operator:$(IMAGE_TAG) -f operator/Dockerfile operator/
 loki-operator-image-cross:
-	$(SUDO) $(BUILD_OCI) -t $(IMAGE_PREFIX)/loki-operator:$(IMAGE_TAG) -f operator/Dockerfile.cross .
+	$(SUDO) $(BUILD_OCI) -t $(IMAGE_PREFIX)/loki-operator:$(IMAGE_TAG) -f operator/Dockerfile.cross operator/
 loki-operator-push: loki-operator-image-cross
 	$(SUDO) $(PUSH_OCI) $(IMAGE_PREFIX)/loki-operator:$(IMAGE_TAG)
 	
diff --git a/operator/Dockerfile b/operator/Dockerfile
index 0c96bed09e..77db603221 100644
--- a/operator/Dockerfile
+++ b/operator/Dockerfile
@@ -3,17 +3,17 @@ FROM golang:1.17.9 as builder
 
 WORKDIR /workspace
 # Copy the Go Modules manifests
-COPY operator/go.mod go.mod
-COPY operator/go.sum go.sum
+COPY go.mod go.mod
+COPY go.sum go.sum
 # cache deps before building and copying source so that we don't need to re-download as much
 # and so that source changes don't invalidate our downloaded layer
 RUN go mod download
 
 # Copy the go source
-COPY operator/main.go main.go
-COPY operator/apis/ apis/
-COPY operator/controllers/ controllers/
-COPY operator/internal/ internal/
+COPY main.go main.go
+COPY apis/ apis/
+COPY controllers/ controllers/
+COPY internal/ internal/
 
 # Build
 RUN CGO_ENABLED=0 GOOS=linux GO111MODULE=on go build -a -o manager main.go
diff --git a/operator/Dockerfile.cross b/operator/Dockerfile.cross
index c4252eb862..f19ca81bb4 100644
--- a/operator/Dockerfile.cross
+++ b/operator/Dockerfile.cross
@@ -8,17 +8,17 @@ FROM --platform=linux/amd64 $BUILD_IMAGE as builder
 COPY --from=goenv /goarch /goarm /
 WORKDIR /workspace
 # Copy the Go Modules manifests
-COPY operator/go.mod go.mod
-COPY operator/go.sum go.sum
+COPY go.mod go.mod
+COPY go.sum go.sum
 # cache deps before building and copying source so that we don't need to re-download as much
 # and so that source changes don't invalidate our downloaded layer
 RUN go mod download
 
 # Copy the go source
-COPY operator/main.go main.go
-COPY operator/apis/ apis/
-COPY operator/controllers/ controllers/
-COPY operator/internal/ internal/
+COPY main.go main.go
+COPY apis/ apis/
+COPY controllers/ controllers/
+COPY internal/ internal/
 
 # Build
 RUN CGO_ENABLED=0 GOOS=linux GO111MODULE=on GOARCH=$(cat /goarch) GOARM=$(cat /goarm) go build -a -o manager main.go