diff --git a/api/v1alpha1/custom_package_types.go b/api/v1alpha1/custom_package_types.go
index 8d0bd33f..b3ef4b73 100644
--- a/api/v1alpha1/custom_package_types.go
+++ b/api/v1alpha1/custom_package_types.go
@@ -26,7 +26,9 @@ type CustomPackageSpec struct {
 	// Replicate specifies whether to replicate remote or local contents to the local gitea server.
 	Replicate bool `json:"replicate"`
 	// GitServerURL specifies the base URL for the git server for API calls. for example, http://gitea.cnoe.localtest.me:8880
-	GitServerURL           string          `json:"gitServerURL"`
+	GitServerURL string `json:"gitServerURL"`
+	// InternalGitServeURL specifies the base URL for the git server accessible within the cluster. for example, http://my-gitea-http.gitea.svc.cluster.local:3000
+	InternalGitServeURL    string          `json:"internalGitServeURL"`
 	GitServerAuthSecretRef SecretReference `json:"gitServerAuthSecretRef"`
 
 	ArgoCD ArgoCDPackageSpec `json:"argoCD,omitempty"`
diff --git a/pkg/controllers/custompackage/controller.go b/pkg/controllers/custompackage/controller.go
index 989e540c..4cb4d60f 100644
--- a/pkg/controllers/custompackage/controller.go
+++ b/pkg/controllers/custompackage/controller.go
@@ -71,9 +71,20 @@ func (r *Reconciler) reconcileCustomPackage(ctx context.Context, resource *v1alp
 	}
 
 	appName := app.GetName()
-	if app.Spec.HasMultipleSources() {
-		for j := range app.Spec.Sources {
-			s := app.Spec.Sources[j]
+	if resource.Spec.Replicate {
+		if app.Spec.HasMultipleSources() {
+			for j := range app.Spec.Sources {
+				s := app.Spec.Sources[j]
+				res, repo, sErr := r.reconcileArgocdSource(ctx, resource, appName, resource.Spec.ArgoCD.ApplicationFile, s.RepoURL)
+				if sErr != nil {
+					return res, sErr
+				}
+				if repo != nil {
+					s.RepoURL = repo.Status.InternalGitRepositoryUrl
+				}
+			}
+		} else {
+			s := app.Spec.Source
 			res, repo, sErr := r.reconcileArgocdSource(ctx, resource, appName, resource.Spec.ArgoCD.ApplicationFile, s.RepoURL)
 			if sErr != nil {
 				return res, sErr
@@ -82,15 +93,6 @@ func (r *Reconciler) reconcileCustomPackage(ctx context.Context, resource *v1alp
 				s.RepoURL = repo.Status.InternalGitRepositoryUrl
 			}
 		}
-	} else {
-		s := app.Spec.Source
-		res, repo, sErr := r.reconcileArgocdSource(ctx, resource, appName, resource.Spec.ArgoCD.ApplicationFile, s.RepoURL)
-		if sErr != nil {
-			return res, sErr
-		}
-		if repo != nil {
-			s.RepoURL = repo.Status.InternalGitRepositoryUrl
-		}
 	}
 
 	foundAppObj := argov1alpha1.Application{}
@@ -102,7 +104,7 @@ func (r *Reconciler) reconcileCustomPackage(ctx context.Context, resource *v1alp
 				return ctrl.Result{}, fmt.Errorf("creating %s app CR: %w", appName, err)
 			}
 
-			return ctrl.Result{}, nil
+			return ctrl.Result{RequeueAfter: requeueTime}, nil
 		}
 		return ctrl.Result{}, fmt.Errorf("getting argocd application object: %w", err)
 	}
@@ -148,8 +150,9 @@ func (r *Reconciler) reconcileGitRepo(ctx context.Context, resource *v1alpha1.Cu
 				Type: "local",
 				Path: absPath,
 			},
-			GitURL:    resource.Spec.GitServerURL,
-			SecretRef: resource.Spec.GitServerAuthSecretRef,
+			GitURL:         resource.Spec.GitServerURL,
+			InternalGitURL: resource.Spec.InternalGitServeURL,
+			SecretRef:      resource.Spec.GitServerAuthSecretRef,
 		},
 	}
 
diff --git a/pkg/controllers/custompackage/controller_test.go b/pkg/controllers/custompackage/controller_test.go
new file mode 100644
index 00000000..58158201
--- /dev/null
+++ b/pkg/controllers/custompackage/controller_test.go
@@ -0,0 +1,185 @@
+package custompackage
+
+import (
+	"context"
+	"fmt"
+	argov1alpha1 "github.com/argoproj/argo-cd/v2/pkg/apis/application/v1alpha1"
+	"github.com/cnoe-io/idpbuilder/api/v1alpha1"
+	v1 "k8s.io/api/core/v1"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	k8sruntime "k8s.io/apimachinery/pkg/runtime"
+	"os"
+	"path/filepath"
+	"reflect"
+	"runtime"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/client"
+	"sigs.k8s.io/controller-runtime/pkg/envtest"
+	"strings"
+	"testing"
+)
+
+func TestReconcileCustomPkg(t *testing.T) {
+	s := k8sruntime.NewScheme()
+	sb := k8sruntime.NewSchemeBuilder(
+		v1.AddToScheme,
+		argov1alpha1.AddToScheme,
+		v1alpha1.AddToScheme,
+	)
+	sb.AddToScheme(s)
+	testEnv := &envtest.Environment{
+		CRDDirectoryPaths: []string{
+			filepath.Join("..", "resources"),
+			"../localbuild/resources/argo/install.yaml",
+		},
+		ErrorIfCRDPathMissing: true,
+		Scheme:                s,
+		BinaryAssetsDirectory: filepath.Join("..", "..", "..", "bin", "k8s",
+			fmt.Sprintf("1.27.1-%s-%s", runtime.GOOS, runtime.GOARCH)),
+	}
+
+	cfg, err := testEnv.Start()
+	if err != nil {
+		t.Fatalf("Starting testenv: %v", err)
+	}
+	defer testEnv.Stop()
+
+	mgr, err := ctrl.NewManager(cfg, ctrl.Options{
+		Scheme: s,
+	})
+	if err != nil {
+		t.Fatalf("getting manager: %v", err)
+	}
+
+	ctx, ctxCancel := context.WithCancel(context.Background())
+	stoppedCh := make(chan error)
+	go func() {
+		err := mgr.Start(ctx)
+		stoppedCh <- err
+	}()
+
+	defer func() {
+		ctxCancel()
+		err := <-stoppedCh
+		if err != nil {
+			t.Errorf("Starting controller manager: %v", err)
+			t.FailNow()
+		}
+	}()
+
+	r := &Reconciler{
+		Client:   mgr.GetClient(),
+		Scheme:   mgr.GetScheme(),
+		Recorder: mgr.GetEventRecorderFor("test-custompkg-controller"),
+	}
+	cwd, err := os.Getwd()
+	if err != nil {
+		t.Fatalf("getting cwd %v", err)
+	}
+	customPkgs := []v1alpha1.CustomPackage{
+		{
+			ObjectMeta: metav1.ObjectMeta{
+				Name:      "test1",
+				Namespace: "test",
+				UID:       "abc",
+			},
+			Spec: v1alpha1.CustomPackageSpec{
+				Replicate:           true,
+				GitServerURL:        "https://cnoe.io",
+				InternalGitServeURL: "http://internal.cnoe.io",
+				ArgoCD: v1alpha1.ArgoCDPackageSpec{
+					ApplicationFile: filepath.Join(cwd, "test/resources/customPackages/testDir/app.yaml"),
+					Name:            "my-app",
+					Namespace:       "argocd",
+				},
+			},
+		},
+		{
+			ObjectMeta: metav1.ObjectMeta{
+				Name:      "test2",
+				Namespace: "test",
+				UID:       "abc",
+			},
+			Spec: v1alpha1.CustomPackageSpec{
+				Replicate:           false,
+				GitServerURL:        "https://cnoe.io",
+				InternalGitServeURL: "http://cnoe.io/internal",
+				ArgoCD: v1alpha1.ArgoCDPackageSpec{
+					ApplicationFile: filepath.Join(cwd, "test/resources/customPackages/testDir2/exampleApp.yaml"),
+					Name:            "guestbook",
+					Namespace:       "argocd",
+				},
+			},
+		},
+	}
+
+	for _, n := range []string{"argocd", "test"} {
+		ns := v1.Namespace{
+			ObjectMeta: metav1.ObjectMeta{
+				Name: n,
+			},
+		}
+		err = mgr.GetClient().Create(context.Background(), &ns)
+		if err != nil {
+			t.Fatalf("creating test ns: %v", err)
+		}
+	}
+
+	for i := range customPkgs {
+		_, err = r.reconcileCustomPackage(context.Background(), &customPkgs[i])
+		if err != nil {
+			t.Fatalf("reconciling custom packages %v", err)
+		}
+	}
+
+	// verify repo.
+	c := mgr.GetClient()
+	repo := v1alpha1.GitRepository{
+		ObjectMeta: metav1.ObjectMeta{
+			Name:      repoName("my-app", "test/resources/customPackages/testDir/busybox"),
+			Namespace: "test",
+		},
+	}
+	err = c.Get(context.Background(), client.ObjectKeyFromObject(&repo), &repo)
+	if err != nil {
+		t.Fatalf("getting my-app-busybox git repo %v", err)
+	}
+
+	p, _ := filepath.Abs("test/resources/customPackages/testDir/busybox")
+	expectedRepo := v1alpha1.GitRepository{
+		Spec: v1alpha1.GitRepositorySpec{
+			Source: v1alpha1.GitRepositorySource{
+				Type: "local",
+				Path: p,
+			},
+			GitURL:         "https://cnoe.io",
+			InternalGitURL: "http://internal.cnoe.io",
+		},
+	}
+	ok := reflect.DeepEqual(repo.Spec, expectedRepo.Spec)
+	if !ok {
+		t.Fatalf("expected spec does not match")
+	}
+
+	// verify argocd apps
+	localApp := argov1alpha1.Application{
+		ObjectMeta: metav1.ObjectMeta{
+			Name:      "my-app",
+			Namespace: "argocd",
+		},
+	}
+	err = c.Get(context.Background(), client.ObjectKeyFromObject(&localApp), &localApp)
+	if err != nil {
+		t.Fatalf("failed getting my-app %v", err)
+	}
+	if strings.HasPrefix(localApp.Spec.Source.RepoURL, "cnoe://") {
+		t.Fatalf("cnoe:// prefix should be removed")
+	}
+
+	for _, n := range []string{"guestbook", "guestbook2"} {
+		err = c.Get(context.Background(), client.ObjectKeyFromObject(&localApp), &localApp)
+		if err != nil {
+			t.Fatalf("expected %s arogapp : %v", n, err)
+		}
+	}
+}
diff --git a/pkg/controllers/localbuild/test/resources/customPackages/testDir/app.yaml b/pkg/controllers/custompackage/test/resources/customPackages/testDir/app.yaml
similarity index 100%
rename from pkg/controllers/localbuild/test/resources/customPackages/testDir/app.yaml
rename to pkg/controllers/custompackage/test/resources/customPackages/testDir/app.yaml
diff --git a/pkg/controllers/localbuild/test/resources/customPackages/testDir/busybox/busybox.yaml b/pkg/controllers/custompackage/test/resources/customPackages/testDir/busybox/busybox.yaml
similarity index 100%
rename from pkg/controllers/localbuild/test/resources/customPackages/testDir/busybox/busybox.yaml
rename to pkg/controllers/custompackage/test/resources/customPackages/testDir/busybox/busybox.yaml
diff --git a/pkg/controllers/localbuild/test/resources/customPackages/testDir2/exampleApp.yaml b/pkg/controllers/custompackage/test/resources/customPackages/testDir2/exampleApp.yaml
similarity index 100%
rename from pkg/controllers/localbuild/test/resources/customPackages/testDir2/exampleApp.yaml
rename to pkg/controllers/custompackage/test/resources/customPackages/testDir2/exampleApp.yaml
diff --git a/pkg/controllers/localbuild/test/resources/customPackages/testDir2/exampleApp2.yaml b/pkg/controllers/custompackage/test/resources/customPackages/testDir2/exampleApp2.yaml
similarity index 100%
rename from pkg/controllers/localbuild/test/resources/customPackages/testDir2/exampleApp2.yaml
rename to pkg/controllers/custompackage/test/resources/customPackages/testDir2/exampleApp2.yaml
diff --git a/pkg/controllers/gitrepository/controller_test.go b/pkg/controllers/gitrepository/controller_test.go
index 78c73e7c..5799e582 100644
--- a/pkg/controllers/gitrepository/controller_test.go
+++ b/pkg/controllers/gitrepository/controller_test.go
@@ -259,6 +259,7 @@ func TestGitRepositoryContentReconcileEmbedded(t *testing.T) {
 				EmbeddedAppName: "nginx",
 				Type:            "embedded",
 			},
+			InternalGitURL: "http://cnoe.io",
 		},
 	}
 
@@ -315,6 +316,7 @@ func TestGitRepositoryReconcile(t *testing.T) {
 						Path: resourcePath,
 						Type: "local",
 					},
+					InternalGitURL: "http://cnoe.io",
 				},
 			},
 			expect: expect{
@@ -322,6 +324,7 @@ func TestGitRepositoryReconcile(t *testing.T) {
 					ExternalGitRepositoryUrl: dir,
 					LatestCommit:             v1alpha1.Commit{Hash: hash},
 					Synced:                   true,
+					InternalGitRepositoryUrl: "http://cnoe.io/giteaAdmin/test-test.git",
 				},
 			},
 		},
@@ -340,12 +343,14 @@ func TestGitRepositoryReconcile(t *testing.T) {
 						Path: addDir,
 						Type: "local",
 					},
+					InternalGitURL: "http://cnoe.io",
 				},
 			},
 			expect: expect{
 				resource: v1alpha1.GitRepositoryStatus{
 					ExternalGitRepositoryUrl: dir,
 					Synced:                   true,
+					InternalGitRepositoryUrl: "http://cnoe.io/giteaAdmin/test-test.git",
 				},
 			},
 		},
diff --git a/pkg/controllers/localbuild/controller.go b/pkg/controllers/localbuild/controller.go
index 34ac7c0e..b8eec71a 100644
--- a/pkg/controllers/localbuild/controller.go
+++ b/pkg/controllers/localbuild/controller.go
@@ -427,8 +427,9 @@ func (r *LocalbuildReconciler) reconcileCustomPkg(ctx context.Context, resource
 					Namespace: globals.GetProjectNamespace(resource.Name),
 				},
 				Spec: v1alpha1.CustomPackageSpec{
-					Replicate:    true,
-					GitServerURL: resource.Status.Gitea.ExternalURL,
+					Replicate:           true,
+					GitServerURL:        resource.Status.Gitea.ExternalURL,
+					InternalGitServeURL: resource.Status.Gitea.InternalURL,
 					GitServerAuthSecretRef: v1alpha1.SecretReference{
 						Name:      resource.Status.Gitea.AdminUserSecretName,
 						Namespace: resource.Status.Gitea.AdminUserSecretNamespace,
diff --git a/pkg/controllers/localbuild/controller_test.go b/pkg/controllers/localbuild/controller_test.go
deleted file mode 100644
index b2d87b3a..00000000
--- a/pkg/controllers/localbuild/controller_test.go
+++ /dev/null
@@ -1,182 +0,0 @@
-package localbuild
-
-//
-//import (
-//	"context"
-//	"fmt"
-//	argov1alpha1 "github.com/argoproj/argo-cd/v2/pkg/apis/application/v1alpha1"
-//	"github.com/cnoe-io/idpbuilder/api/v1alpha1"
-//	"github.com/cnoe-io/idpbuilder/globals"
-//	v1 "k8s.io/api/core/v1"
-//	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-//	k8sruntime "k8s.io/apimachinery/pkg/runtime"
-//	"path/filepath"
-//	"reflect"
-//	"runtime"
-//	ctrl "sigs.k8s.io/controller-runtime"
-//	"sigs.k8s.io/controller-runtime/pkg/client"
-//	"sigs.k8s.io/controller-runtime/pkg/envtest"
-//	"strings"
-//	"testing"
-//)
-//
-//func TestReconcileCustomPkg(t *testing.T) {
-//	s := k8sruntime.NewScheme()
-//	sb := k8sruntime.NewSchemeBuilder(
-//		v1.AddToScheme,
-//		argov1alpha1.AddToScheme,
-//		v1alpha1.AddToScheme,
-//	)
-//	sb.AddToScheme(s)
-//	testEnv := &envtest.Environment{
-//		CRDDirectoryPaths: []string{
-//			filepath.Join("..", "resources"),
-//			"resources/argo/install.yaml",
-//		},
-//		ErrorIfCRDPathMissing: true,
-//		Scheme:                s,
-//		BinaryAssetsDirectory: filepath.Join("..", "..", "..", "bin", "k8s",
-//			fmt.Sprintf("1.27.1-%s-%s", runtime.GOOS, runtime.GOARCH)),
-//	}
-//
-//	cfg, err := testEnv.Start()
-//	if err != nil {
-//		t.Fatalf("Starting testenv: %v", err)
-//	}
-//	defer testEnv.Stop()
-//
-//	mgr, err := ctrl.NewManager(cfg, ctrl.Options{
-//		Scheme: s,
-//	})
-//	if err != nil {
-//		t.Fatalf("getting manager: %v", err)
-//	}
-//
-//	ctx, ctxCancel := context.WithCancel(context.Background())
-//	stoppedCh := make(chan error)
-//	go func() {
-//		err := mgr.Start(ctx)
-//		stoppedCh <- err
-//	}()
-//
-//	defer func() {
-//		ctxCancel()
-//		err := <-stoppedCh
-//		if err != nil {
-//			t.Errorf("Starting controller manager: %v", err)
-//			t.FailNow()
-//		}
-//	}()
-//
-//	r := &LocalbuildReconciler{
-//		Client:         mgr.GetClient(),
-//		Scheme:         mgr.GetScheme(),
-//		CancelFunc:     nil,
-//		shouldShutdown: false,
-//	}
-//	customPkgs := []v1alpha1.CustomPackageSpec{
-//		{
-//			Directory: "test/resources/customPackages/testDir",
-//		},
-//		{
-//			Directory: "test/resources/customPackages/testDir2",
-//		},
-//	}
-//
-//	res := v1alpha1.Localbuild{
-//		ObjectMeta: metav1.ObjectMeta{
-//			Name: "test",
-//			UID:  "uid",
-//		},
-//		Spec: v1alpha1.LocalbuildSpec{
-//			PackageConfigs: v1alpha1.PackageConfigsSpec{
-//				GitConfig:                v1alpha1.GitConfigSpec{},
-//				Argo:                     v1alpha1.ArgoPackageConfigSpec{},
-//				EmbeddedArgoApplications: v1alpha1.EmbeddedArgoApplicationsPackageConfigSpec{},
-//				CustomPackages:           customPkgs,
-//			},
-//		},
-//		Status: v1alpha1.LocalbuildStatus{
-//			Gitea: v1alpha1.GiteaStatus{
-//				Available:                true,
-//				ExternalURL:              "https://cnoe.io",
-//				InternalURL:              "http://internal.cnoe.io",
-//				AdminUserSecretName:      "abc",
-//				AdminUserSecretNamespace: "abc",
-//			},
-//		},
-//	}
-//
-//	for _, n := range []string{"argocd", globals.GetProjectNamespace(res.Name)} {
-//		ns := v1.Namespace{
-//			ObjectMeta: metav1.ObjectMeta{
-//				Name: n,
-//			},
-//		}
-//		err = mgr.GetClient().Create(context.Background(), &ns)
-//		if err != nil {
-//			t.Fatalf("creating test ns: %v", err)
-//		}
-//	}
-//
-//	for i := range customPkgs {
-//		_, err = r.reconcileCustomPkg(context.Background(), &res, customPkgs[i])
-//		if err != nil {
-//			t.Fatalf("reconciling custom packages %v", err)
-//		}
-//	}
-//
-//	// verify repo.
-//	c := mgr.GetClient()
-//	repo := v1alpha1.GitRepository{
-//		ObjectMeta: metav1.ObjectMeta{
-//			Name:      "my-app-busybox",
-//			Namespace: globals.GetProjectNamespace(res.Name),
-//		},
-//	}
-//	err = c.Get(context.Background(), client.ObjectKeyFromObject(&repo), &repo)
-//	if err != nil {
-//		t.Fatalf("getting my-app-busybox git repo %v", err)
-//	}
-//
-//	p, _ := filepath.Abs("test/resources/customPackages/testDir/busybox")
-//	expectedRepo := v1alpha1.GitRepository{
-//		Spec: v1alpha1.GitRepositorySpec{
-//			Source: v1alpha1.GitRepositorySource{
-//				Type: "local",
-//				Path: p,
-//			},
-//			GitURL: "https://cnoe.io",
-//			SecretRef: v1alpha1.SecretReference{
-//				Name:      "abc",
-//				Namespace: "abc",
-//			},
-//		},
-//	}
-//	ok := reflect.DeepEqual(repo.Spec, expectedRepo.Spec)
-//	if !ok {
-//		t.Fatalf("expected spec does not match")
-//	}
-//
-//	// verify argocd apps
-//	localApp := argov1alpha1.Application{
-//		ObjectMeta: metav1.ObjectMeta{
-//			Name:      "my-app",
-//			Namespace: "argocd",
-//		},
-//	}
-//	err = c.Get(context.Background(), client.ObjectKeyFromObject(&localApp), &localApp)
-//	if err != nil {
-//		t.Fatalf("failed getting my-app %v", err)
-//	}
-//	if strings.HasPrefix(localApp.Spec.Source.RepoURL, "cnoe://") {
-//		t.Fatalf("cnoe:// prefix should be removed")
-//	}
-//
-//	for _, n := range []string{"guestbook", "guestbook2"} {
-//		err = c.Get(context.Background(), client.ObjectKeyFromObject(&localApp), &localApp)
-//		if err != nil {
-//			t.Fatalf("expected %s arogapp : %v", n, err)
-//		}
-//	}
-//}
diff --git a/pkg/controllers/resources/idpbuilder.cnoe.io_custompackages.yaml b/pkg/controllers/resources/idpbuilder.cnoe.io_custompackages.yaml
index 35e8699f..12f4c596 100644
--- a/pkg/controllers/resources/idpbuilder.cnoe.io_custompackages.yaml
+++ b/pkg/controllers/resources/idpbuilder.cnoe.io_custompackages.yaml
@@ -63,6 +63,10 @@ spec:
                 description: GitServerURL specifies the base URL for the git server
                   for API calls. for example, http://gitea.cnoe.localtest.me:8880
                 type: string
+              internalGitServeURL:
+                description: InternalGitServeURL specifies the base URL for the git
+                  server accessible within the cluster. for example, http://my-gitea-http.gitea.svc.cluster.local:3000
+                type: string
               replicate:
                 description: // Type specifies what kind of package this is. local
                   means local files specified in the Directory field must be synced
@@ -73,6 +77,7 @@ spec:
             required:
             - gitServerAuthSecretRef
             - gitServerURL
+            - internalGitServeURL
             - replicate
             type: object
           status: