diff --git a/hack/lib/init.sh b/hack/lib/init.sh
index 06abade5f37..411f590b9cc 100755
--- a/hack/lib/init.sh
+++ b/hack/lib/init.sh
@@ -31,7 +31,10 @@ unset CDPATH
 # they can explicitly set GO111MODULE=on
 export GO111MODULE=off
 
-if [[ "${KUBE_PROVIDERLESS:-"off"}" == "on" ]]; then
+# FIXME(dims): Note that here we assume that if GOFLAGS are already set we
+# leave them as-is and not try to add providerless to it. So if you
+# really need to set your own GOFLAGS, ensure you add "providerless" explicitly
+if [[ "${KUBE_PROVIDERLESS:-"n"}" == "y" ]]; then
   export GOFLAGS=${GOFLAGS:-"-tags=providerless"}
 fi
 
diff --git a/test/e2e/provider_less.go b/test/e2e/provider_less.go
deleted file mode 100644
index c672eaff404..00000000000
--- a/test/e2e/provider_less.go
+++ /dev/null
@@ -1,20 +0,0 @@
-//go:build providerless
-// +build providerless
-
-/*
-Copyright 2024 The Kubernetes Authors.
-
-Licensed under the Apache License, Version 2.0 (the "License");
-you may not use this file except in compliance with the License.
-You may obtain a copy of the License at
-
-    http://www.apache.org/licenses/LICENSE-2.0
-
-Unless required by applicable law or agreed to in writing, software
-distributed under the License is distributed on an "AS IS" BASIS,
-WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-See the License for the specific language governing permissions and
-limitations under the License.
-*/
-
-package e2e