diff --git a/installer/image_build/templates/Dockerfile.j2 b/installer/image_build/templates/Dockerfile.j2
index c805e88093..524cec02ef 100644
--- a/installer/image_build/templates/Dockerfile.j2
+++ b/installer/image_build/templates/Dockerfile.j2
@@ -30,7 +30,7 @@ RUN chgrp -Rf root /var/lib/awx && chmod -Rf g+w /var/lib/awx
 RUN yum -y install epel-release && \
     yum -y localinstall http://download.postgresql.org/pub/repos/yum/9.6/redhat/rhel-7-x86_64/pgdg-centos96-9.6-3.noarch.rpm && \
     yum -y update && \
-    yum -y install ansible git subversion curl python-psycopg2 python-pip python-setuptools libselinux-python setools-libs yum-utils sudo acl make postgresql-devel nginx python-psutil libxml2-devel libxslt-devel libstdc++.so.6 gcc cyrus-sasl-devel cyrus-sasl openldap-devel libffi-devel python-pip xmlsec1-devel swig krb5-devel xmlsec1-openssl xmlsec1 xmlsec1-openssl-devel libtool-ltdl-devel bubblewrap gcc-c++ python-devel krb5-workstation krb5-libs && \
+    yum -y install ansible git mercurial subversion curl python-psycopg2 python-pip python-setuptools libselinux-python setools-libs yum-utils sudo acl make postgresql-devel nginx python-psutil libxml2-devel libxslt-devel libstdc++.so.6 gcc cyrus-sasl-devel cyrus-sasl openldap-devel libffi-devel python-pip xmlsec1-devel swig krb5-devel xmlsec1-openssl xmlsec1 xmlsec1-openssl-devel libtool-ltdl-devel bubblewrap gcc-c++ python-devel krb5-workstation krb5-libs && \
     pip install virtualenv supervisor && \
     VENV_BASE=/var/lib/awx/venv make requirements_ansible && \
     VENV_BASE=/var/lib/awx/venv make requirements_awx && \
diff --git a/installer/local_docker/tasks/main.yml b/installer/local_docker/tasks/main.yml
index 4915d9e945..0e81ac8a10 100644
--- a/installer/local_docker/tasks/main.yml
+++ b/installer/local_docker/tasks/main.yml
@@ -187,9 +187,9 @@
     links: "{{ awx_web_container_links|list }}"
     hostname: awxweb
     env:
-      http_proxy: "{{ http_proxy | default(omit) }}"
-      https_proxy: "{{ https_proxy | default(omit) }}"
-      no_proxy: "{{ no_proxy | default(omit) }}"
+      http_proxy: "{{ http_proxy | default('') }}"
+      https_proxy: "{{ https_proxy | default('') }}"
+      no_proxy: "{{ no_proxy | default('') }}"
       SECRET_KEY: "{{ awx_secret_key }}"
       DATABASE_NAME: "{{ pg_database }}"
       DATABASE_USER: "{{ pg_username }}"
@@ -216,9 +216,9 @@
     user: root
     hostname: awx
     env:
-      http_proxy: "{{ http_proxy | default(omit) }}"
-      https_proxy: "{{ https_proxy | default(omit) }}"
-      no_proxy: "{{ no_proxy | default(omit) }}"
+      http_proxy: "{{ http_proxy | default('') }}"
+      https_proxy: "{{ https_proxy | default('') }}"
+      no_proxy: "{{ no_proxy | default('') }}"
       SECRET_KEY: "{{ awx_secret_key }}"
       DATABASE_NAME: "{{ pg_database }}"
       DATABASE_USER: "{{ pg_username }}"