diff --git a/pkg/skaffold/runner/runcontext/v2/context.go b/pkg/skaffold/runner/runcontext/v2/context.go
index b80e88fa20c..b7aa5da8634 100644
--- a/pkg/skaffold/runner/runcontext/v2/context.go
+++ b/pkg/skaffold/runner/runcontext/v2/context.go
@@ -19,6 +19,7 @@ package v2
 import (
 	"fmt"
 	"os"
+	"path/filepath"
 
 	"github.com/google/uuid"
 	"github.com/sirupsen/logrus"
@@ -212,10 +213,14 @@ func GetRunContext(opts config.SkaffoldOptions, configs []*latestV2.SkaffoldConf
 	kubeContext := kubeConfig.CurrentContext
 	logrus.Infof("Using kubectl context: %s", kubeContext)
 
-	// TODO(dgageot): this should be the folder containing skaffold.yaml. Should also be moved elsewhere.
-	cwd, err := os.Getwd()
-	if err != nil {
-		return nil, fmt.Errorf("finding current directory: %w", err)
+	var cwd string
+	if opts.ConfigurationFile == "" {
+		cwd, err = os.Getwd()
+		if err != nil {
+			return nil, fmt.Errorf("finding current directory: %w", err)
+		}
+	} else {
+		cwd = filepath.Dir(opts.ConfigurationFile)
 	}
 
 	namespaces, err := runnerutil.GetAllPodNamespaces(opts.Namespace, pipelines)
diff --git a/pkg/skaffold/runner/runcontext/v2/context_test.go b/pkg/skaffold/runner/runcontext/v2/context_test.go
index 53555a24848..936cfbc3f46 100644
--- a/pkg/skaffold/runner/runcontext/v2/context_test.go
+++ b/pkg/skaffold/runner/runcontext/v2/context_test.go
@@ -17,8 +17,14 @@ limitations under the License.
 package v2
 
 import (
+	"fmt"
+	"os"
+	"path/filepath"
 	"testing"
 
+	"github.com/GoogleContainerTools/skaffold/pkg/skaffold/config"
+	latestV1 "github.com/GoogleContainerTools/skaffold/pkg/skaffold/schema/latest/v1"
+	latestV2 "github.com/GoogleContainerTools/skaffold/pkg/skaffold/schema/latest/v2"
 	"github.com/GoogleContainerTools/skaffold/testutil"
 )
 
@@ -89,3 +95,25 @@ func TestRunContext_UpdateNamespaces(t *testing.T) {
 		})
 	}
 }
+
+func TestGetRunContextDefaultWorkdir(t *testing.T) {
+	testutil.Run(t, "default workdir", func(t *testutil.T) {
+		rctx, err := GetRunContext(config.SkaffoldOptions{}, []*latestV2.SkaffoldConfig{})
+		pwd, _ := os.Getwd()
+		t.CheckDeepEqual(pwd, rctx.WorkingDir)
+		t.CheckNoError(err)
+	})
+}
+
+func TestGetRunContextCustomWorkdir(t *testing.T) {
+	testutil.Run(t, "default workdir", func(t *testutil.T) {
+		tmpDir := t.NewTempDir()
+		tmpDir.Write("skaffold.yaml", fmt.Sprintf("apiVersion: %s\nkind: Config", latestV1.Version)).
+			Chdir()
+		rctx, err := GetRunContext(config.SkaffoldOptions{
+			ConfigurationFile: filepath.Join(tmpDir.Root(), "skaffold.yaml"),
+		}, []*latestV2.SkaffoldConfig{})
+		t.CheckDeepEqual(tmpDir.Root(), rctx.WorkingDir)
+		t.CheckNoError(err)
+	})
+}