diff --git a/Makefile b/Makefile
index 7e8a919425..d6ed105cf8 100644
--- a/Makefile
+++ b/Makefile
@@ -208,7 +208,7 @@ init:
 	if [ "$(AWX_GROUP_QUEUES)" == "tower,thepentagon" ]; then \
 		$(MANAGEMENT_COMMAND) provision_instance --hostname=isolated; \
 		$(MANAGEMENT_COMMAND) register_queue --queuename='thepentagon' --hostnames=isolated --controller=tower; \
-		$(MANAGEMENT_COMMAND) generate_isolated_key | ssh -o "StrictHostKeyChecking no" root@isolated 'cat >> /root/.ssh/authorized_keys'; \
+		$(MANAGEMENT_COMMAND) generate_isolated_key > /awx_devel/awx/main/expect/authorized_keys; \
 	fi;
 
 # Refresh development environment after pulling new code.
@@ -548,11 +548,6 @@ docker-isolated:
 	docker start tools_awx_1
 	docker start tools_isolated_1
 	echo "__version__ = '`git describe --long | cut -d - -f 1-1`'" | docker exec -i tools_isolated_1 /bin/bash -c "cat > /venv/awx/lib/python2.7/site-packages/awx.py"
-	if [ "`docker exec -i -t tools_isolated_1 cat /root/.ssh/authorized_keys`" == "`docker exec -t tools_awx_1 cat /root/.ssh/id_rsa.pub`" ]; then \
-		echo "SSH keys already copied to isolated instance"; \
-	else \
-		docker exec "tools_isolated_1" bash -c "mkdir -p /root/.ssh && rm -f /root/.ssh/authorized_keys && echo $$(docker exec -t tools_awx_1 cat /root/.ssh/id_rsa.pub) >> /root/.ssh/authorized_keys"; \
-	fi
 	CURRENT_UID=$(shell id -u) TAG=$(COMPOSE_TAG) DEV_DOCKER_TAG_BASE=$(DEV_DOCKER_TAG_BASE) docker-compose -f tools/docker-compose.yml -f tools/docker-isolated-override.yml up
 
 # Docker Compose Development environment
diff --git a/awx/main/expect/.gitignore b/awx/main/expect/.gitignore
new file mode 100644
index 0000000000..05b023b41d
--- /dev/null
+++ b/awx/main/expect/.gitignore
@@ -0,0 +1 @@
+authorized_keys
diff --git a/awx/main/expect/authorized_keys b/awx/main/expect/authorized_keys
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/tools/docker-isolated/Dockerfile b/tools/docker-isolated/Dockerfile
index 69af7526cc..4e65a48f95 100644
--- a/tools/docker-isolated/Dockerfile
+++ b/tools/docker-isolated/Dockerfile
@@ -23,8 +23,8 @@ RUN ssh-keygen -q -N "" -t dsa -f /etc/ssh/ssh_host_ecdsa_key
 RUN ssh-keygen -q -N "" -t rsa -f /etc/ssh/ssh_host_rsa_key
 RUN sed -i "s/#UsePrivilegeSeparation.*/UsePrivilegeSeparation no/g" /etc/ssh/sshd_config
 RUN sed -i "s/UsePAM.*/UsePAM yes/g" /etc/ssh/sshd_config
-RUN ssh-keygen -A
+RUN sed -i "s/#StrictModes.*/StrictModes no/g" /etc/ssh/sshd_config
 RUN mkdir -p /root/.ssh
-RUN touch /root/.ssh/authorized_keys
+RUN ln -s /awx_devel/authorized_keys /root/.ssh/authorized_keys
 
 CMD ["/usr/sbin/init"]