diff --git a/src/commands/env/install.ts b/src/commands/env/install.ts
index a0ed55ff..1ee3d089 100644
--- a/src/commands/env/install.ts
+++ b/src/commands/env/install.ts
@@ -3,7 +3,7 @@ import { SwankyCommand } from "../../lib/swankyCommand.js";
 import { InputError } from "../../lib/errors.js";
 import { installCliDevDeps } from "../../lib/tasks.js";
 import { SUPPORTED_DEPS } from "../../lib/consts.js";
-import { DependencyName, getSwankyConfig } from "../../index.js";
+import { DependencyName, SwankyConfig, getSwankyConfig } from "../../index.js";
 import { ConfigBuilder } from "../../lib/config-builder.js";
 
 export class Install extends SwankyCommand<typeof Install> {
@@ -50,9 +50,10 @@ export class Install extends SwankyCommand<typeof Install> {
       newDeps[key] = value || "latest";
     }
 
-    const globalConfig = getSwankyConfig("global");
-    const newEnv = { ...globalConfig.env, ...newDeps };
+    const localConfig = getSwankyConfig("local") as SwankyConfig;
+    const newEnv = { ...localConfig.env, ...newDeps };
     const deps = Object.entries(newEnv);
+    
     for (const [dep, version] of deps) {
       const typedDep = dep as DependencyName;
       await this.spinner.runCommand(
@@ -63,10 +64,10 @@ export class Install extends SwankyCommand<typeof Install> {
 
     if (Object.keys(newDeps).length > 0) {
       await this.spinner.runCommand(async () => {
-        const newLocalConfig = new ConfigBuilder(getSwankyConfig("global"))
+        const newLocalConfig = new ConfigBuilder(getSwankyConfig("local"))
           .updateEnv(newDeps)
           .build();
-        await this.storeConfig(newLocalConfig, "global");
+        await this.storeConfig(newLocalConfig, "local");
       }, "Updating swanky config");
     }
 
diff --git a/src/lib/config-builder.ts b/src/lib/config-builder.ts
index 0938a099..9a4f4b0b 100644
--- a/src/lib/config-builder.ts
+++ b/src/lib/config-builder.ts
@@ -33,7 +33,9 @@ export class ConfigBuilder<T extends SwankySystemConfig | SwankyConfig> {
   }
 
   updateEnv(env: Record<string, string>): ConfigBuilder<T> {
-    this.config.env = {...this.config.env, ...env};
+    if ("env" in this.config) {
+      this.config.env = {...this.config.env, ...env};
+    }
     return this;
   }
 
diff --git a/src/lib/swankyCommand.ts b/src/lib/swankyCommand.ts
index bb53c7a1..d3c3ff43 100644
--- a/src/lib/swankyCommand.ts
+++ b/src/lib/swankyCommand.ts
@@ -108,7 +108,6 @@ export abstract class SwankyCommand<T extends typeof Command> extends Command {
           defaultAccount: newConfig.defaultAccount,
           accounts: newConfig.accounts,
           networks: newConfig.networks,
-          env: newConfig.env,
         };
       }
       if (existsSync(configPath)) {
diff --git a/src/types/index.ts b/src/types/index.ts
index c9ff8a11..8c243e2e 100644
--- a/src/types/index.ts
+++ b/src/types/index.ts
@@ -61,13 +61,13 @@ export interface SwankyConfig extends SwankySystemConfig{
   };
   contracts: Record<string, ContractData> | Record<string, never>;
   zombienet?: ZombienetData;
+  env: Record<string, string>;
 }
 
 export interface SwankySystemConfig {
   defaultAccount: string | null;
   accounts: AccountData[];
   networks: Record<string, {url: string}>;
-  env: Record<string, string>;
 }
 
 export interface ZombienetData {