diff --git a/src/usr/local/containerbase/utils/constants.sh b/src/usr/local/containerbase/utils/constants.sh
index f5f9d7ff58..26e55f8c48 100644
--- a/src/usr/local/containerbase/utils/constants.sh
+++ b/src/usr/local/containerbase/utils/constants.sh
@@ -29,7 +29,7 @@ export TEMP_DIR=/tmp
 # used to source helper from tools
 export CONTAINERBASE_DIR=/usr/local/containerbase
 
-export TOOL_PREP_DIR=/var/lib/containerbase/tool.prep.d
+export CONTAINERBASE_VAR_DIR=/var/lib/containerbase
 
 # Used to find matching tool downloads
 ARCHITECTURE=$(uname -p)
diff --git a/src/usr/local/containerbase/utils/filesystem.sh b/src/usr/local/containerbase/utils/filesystem.sh
index 7472453a66..d885abbcd4 100644
--- a/src/usr/local/containerbase/utils/filesystem.sh
+++ b/src/usr/local/containerbase/utils/filesystem.sh
@@ -174,9 +174,14 @@ function get_containerbase_path () {
   echo "${CONTAINERBASE_DIR}"
 }
 
+# Gets the path to the var folder to persist prepared tools state
+function get_containerbase_var_path () {
+  echo "${CONTAINERBASE_VAR_DIR}"
+}
+
 # Gets the path to the cache folder
 function get_tool_prep_path () {
-  echo "${TOOL_PREP_DIR}"
+  echo "$(get_containerbase_var_path)/tool.prep.d"
 }
 
 function set_tool_prep () {
diff --git a/test/bash/util.sh b/test/bash/util.sh
index 52017ba860..2d7152c861 100644
--- a/test/bash/util.sh
+++ b/test/bash/util.sh
@@ -10,7 +10,7 @@ export BIN_DIR="${TEST_ROOT_DIR}/bin"
 export LIB_DIR="${TEST_ROOT_DIR}/lib"
 export USER_HOME="${TEST_ROOT_DIR}/user"
 export ENV_FILE="${TEST_ROOT_DIR}/env"
-export TOOL_PREP_DIR="${TEST_ROOT_DIR}/tool.prep.d"
+export CONTAINERBASE_VAR_DIR="${TEST_ROOT_DIR}/var"
 
 # set default test user
 export TEST_ROOT_USER=1000