diff --git a/hack/lib/init.sh b/hack/lib/init.sh
index 0ef514d5d5a..3464a96330d 100644
--- a/hack/lib/init.sh
+++ b/hack/lib/init.sh
@@ -25,6 +25,10 @@ KUBE_OUTPUT_SUBPATH="${KUBE_OUTPUT_SUBPATH:-_output/local}"
 KUBE_OUTPUT="${KUBE_ROOT}/${KUBE_OUTPUT_SUBPATH}"
 KUBE_OUTPUT_BINPATH="${KUBE_OUTPUT}/bin"
 
+# Set no_proxy for localhost if behind a proxy, otherwise, 
+# the connections to localhost in scripts will time out
+export no_proxy=127.0.0.1,localhost
+
 source "${KUBE_ROOT}/hack/lib/util.sh"
 source "${KUBE_ROOT}/cluster/lib/util.sh"
 source "${KUBE_ROOT}/cluster/lib/logging.sh"