diff --git a/build/README.md b/build/README.md
index cc57ef1af88..586ceabc6cb 100644
--- a/build/README.md
+++ b/build/README.md
@@ -73,17 +73,19 @@ When building final release tars, they are first staged into `_output/release-st
 ## Proxy Settings
 
 
-If you are behind a proxy, you need to edit `build/build-image/Dockerfile` and add proxy settings to execute command in that container correctly.
+If you are behind a proxy, you need to export proxy settings for kubernetes build, the following environment variables should be defined.
 
-example:
+```
+export KUBE_BUILD_HTTP_PROXY=http://username:password@proxyaddr:proxyport
+export KUBE_BUILD_HTTPS_PROXY=http://username:password@proxyaddr:proxyport
+```
 
-`ENV http_proxy http://username:password@proxyaddr:proxyport`
+Optionally, you can specify addresses of no proxy for kubernetes build, for example
 
-`ENV https_proxy http://username:password@proxyaddr:proxyport`
-
-Besides, to avoid integration test touch the proxy while connecting to local etcd service, you need to set
-
-`ENV no_proxy 127.0.0.1`
+```
+export KUBE_BUILD_NO_PROXY=127.0.0.1
+```
+If you are using sudo to make kubernetes build for example make quick-release, you need run `sudo -E make quick-release` to pass the environment variables.
 
 ## TODOs
 
diff --git a/build/build-image/Dockerfile b/build/build-image/Dockerfile
index 1c6a414bc48..151a118207e 100644
--- a/build/build-image/Dockerfile
+++ b/build/build-image/Dockerfile
@@ -24,6 +24,10 @@ MAINTAINER  Joe Beda <jbeda@google.com>
 ENV GOARM 5
 ENV GOOS    linux
 ENV GOARCH  amd64
+ENV http_proxy KUBE_BUILD_HTTP_PROXY
+ENV https_proxy KUBE_BUILD_HTTPS_PROXY
+ENV no_proxy KUBE_BUILD_NO_PROXY
+
 
 # work around 64MB tmpfs size in Docker 1.6
 ENV TMPDIR /tmp.k8s
diff --git a/build/common.sh b/build/common.sh
index b653ea298cd..0dc7289f14a 100755
--- a/build/common.sh
+++ b/build/common.sh
@@ -159,7 +159,11 @@ function kube::build::prepare_docker_machine() {
   kube::log::status "docker-machine was found."
   docker-machine inspect "${DOCKER_MACHINE_NAME}" >/dev/null || {
     kube::log::status "Creating a machine to build Kubernetes"
-    docker-machine create --driver "${DOCKER_MACHINE_DRIVER}" "${DOCKER_MACHINE_NAME}" > /dev/null || {
+    docker-machine create --driver "${DOCKER_MACHINE_DRIVER}" \
+      --engine-env HTTP_PROXY="${KUBE_BUILD_HTTP_PROXY:-}" \
+      --engine-env HTTPS_PROXY="${KUBE_BUILD_HTTPS_PROXY:-}" \
+      --engine-env NO_PROXY="${KUBE_BUILD_NO_PROXY:-127.0.0.1}" \
+      "${DOCKER_MACHINE_NAME}" > /dev/null || {
       kube::log::error "Something went wrong creating a machine."
       kube::log::error "Try the following: "
       kube::log::error "docker-machine create -d ${DOCKER_MACHINE_DRIVER} ${DOCKER_MACHINE_NAME}"
@@ -203,6 +207,18 @@ function kube::build::is_osx() {
   [[ "$(uname)" == "Darwin" ]]
 }
 
+function kube::build::update_dockerfile() {
+  if kube::build::is_osx; then
+    sed_arg=\"\"
+  else
+    sed_arg=""
+  fi
+  sed -i $sed_arg "s/KUBE_BUILD_IMAGE_CROSS/${KUBE_BUILD_IMAGE_CROSS}/" ${build_context_dir}/Dockerfile
+  sed -i $sed_arg "s#KUBE_BUILD_HTTP_PROXY#"`echo ${KUBE_BUILD_HTTP_PROXY:-\"\"}`"#" ${build_context_dir}/Dockerfile
+  sed -i $sed_arg "s#KUBE_BUILD_HTTPS_PROXY#"`echo ${KUBE_BUILD_HTTPS_PROXY:-\"\"}`"#" ${build_context_dir}/Dockerfile
+  sed -i $sed_arg "s#KUBE_BUILD_NO_PROXY#"`echo ${KUBE_BUILD_NO_PROXY:-127.0.0.1}`"#" ${build_context_dir}/Dockerfile
+}
+
 function kube::build::ensure_docker_in_path() {
   if [[ -z "$(which docker)" ]]; then
     kube::log::error "Can't find 'docker' in PATH, please fix and retry."
@@ -472,11 +488,8 @@ function kube::build::build_image() {
   kube::version::save_version_vars "${build_context_dir}/kube-version-defs"
 
   cp build/build-image/Dockerfile ${build_context_dir}/Dockerfile
-  if kube::build::is_osx; then
-    sed -i "" "s/KUBE_BUILD_IMAGE_CROSS/${KUBE_BUILD_IMAGE_CROSS}/" ${build_context_dir}/Dockerfile
-  else
-    sed -i "s/KUBE_BUILD_IMAGE_CROSS/${KUBE_BUILD_IMAGE_CROSS}/" ${build_context_dir}/Dockerfile
-  fi
+  kube::build::update_dockerfile
+
   # We don't want to force-pull this image because it's based on a local image
   # (see kube::build::build_image_cross), not upstream.
   kube::build::docker_build "${KUBE_BUILD_IMAGE}" "${build_context_dir}" 'false'