diff --git a/.envrc b/.envrc
index b0d5a510..0783ed12 100644
--- a/.envrc
+++ b/.envrc
@@ -2,7 +2,6 @@ AKASH_ROOT=$(pwd)
 export AKASH_ROOT
 
 dotenv
-dotenv_if_exists dev.env
 
 TOOLS=${AKASH_ROOT}/script/tools.sh
 SEMVER=${AKASH_ROOT}/script/semver.sh
@@ -19,6 +18,14 @@ fi
 
 AKASH_DIRENV_SET=1
 
+dotenv_if_exists dev.env
+
+if [[ ${GOWORK} != "off" ]] && [[ -f go.work ]]; then
+	GOWORK=${AKASH_ROOT}/go.work
+else
+	GOWORK=off
+fi
+
 export TOOLS
 export SEMVER
 export GOTOOLCHAIN
diff --git a/Makefile b/Makefile
index 5a308ba6..65fc7e70 100644
--- a/Makefile
+++ b/Makefile
@@ -23,6 +23,31 @@ ifeq (, $(GOTOOLCHAIN))
 $(error "GOTOOLCHAIN is not set")
 endif
 
+ifeq ($(GO111MODULE),off)
+else
+	GOMOD=readonly
+endif
+
+ifneq ($(GOWORK),off)
+	ifeq ($(shell test -e ${AKASH_ROOT}/go/go.work && echo -n yes),yes)
+		GOWORK=${AKASH_ROOT}/go/go.work
+	else
+		GOWORK=off
+	endif
+endif
+
+ifneq ($(GOWORK),off)
+	ifeq ($(GOMOD),$(filter $(GOMOD),mod ""))
+$(error '-mod may only be set to readonly or vendor when in workspace mode, but it is set to ""')
+	endif
+endif
+
+ifeq ($(GOMOD),vendor)
+	ifneq ($(wildcard ./vendor/.),)
+$(error "go -mod is in vendor mode but vendor dir has not been found. consider to run go mod vendor")
+	endif
+endif
+
 GO_ROOT                       := go
 TS_ROOT                       := $(AKASH_TS_ROOT)
 
diff --git a/make/test.mk b/make/test.mk
index 6265358c..d9b6f0bc 100644
--- a/make/test.mk
+++ b/make/test.mk
@@ -8,7 +8,7 @@ ts
 GO_TEST_OPTS     ?=
 GO_TEST_TIMEOUT  ?= 300
 
-test_go_flags := -mod=readonly -timeout $(GO_TEST_TIMEOUT)s
+test_go_flags := -mod=$(GOMOD) -timeout $(GO_TEST_TIMEOUT)s
 
 ifneq (,$(findstring nocache,$(GO_TEST_OPTS)))
 test_go_flags += -count=1
@@ -38,10 +38,12 @@ test-coverage-ts: $(AKASH_TS_NODE_MODULES)
 
 .PHONY: test-go
 test-go: export GO111MODULE := $(GO111MODULE)
+test-coverage-go: export GOWORK := $(GOWORK)
 test-go:
 	@$(TOOLS) gotest "$(GO_MODULES)" "$(test_go_flags)" "$(GO_TEST_DIRS)"
 
 .PHONY: test-coverage-go
 test-coverage-go: export GO111MODULE := $(GO111MODULE)
+test-coverage-go: export GOWORK := $(GOWORK)
 test-coverage-go:
 	@$(TOOLS) gocoverage "$(GO_MODULES)" "$(test_go_flags)" "$(GO_TEST_DIRS)"