diff --git a/bin/docker-compose.override.yml.template b/bin/docker-compose.override.yml.template
new file mode 100644
index 00000000000000..465211fe7a4a63
--- /dev/null
+++ b/bin/docker-compose.override.yml.template
@@ -0,0 +1,17 @@
+services:
+  wordpress-develop:
+    volumes:
+      - %PLUGIN_MOUNT_DIR%:/var/www/${LOCAL_DIR-src}/wp-content/plugins/%PLUGIN_INSTALL_DIR%
+      - %PLUGIN_MOUNT_DIR%/packages/e2e-tests/plugins:/var/www/${LOCAL_DIR-src}/wp-content/plugins/gutenberg-test-plugins
+      - %PLUGIN_MOUNT_DIR%/packages/e2e-tests/mu-plugins:/var/www/${LOCAL_DIR-src}/wp-content/mu-plugins
+  php:
+    volumes:
+      - %PLUGIN_MOUNT_DIR%:/var/www/${LOCAL_DIR-src}/wp-content/plugins/%PLUGIN_INSTALL_DIR%
+      - %PLUGIN_MOUNT_DIR%/packages/e2e-tests/plugins:/var/www/${LOCAL_DIR-src}/wp-content/plugins/gutenberg-test-plugins
+      - %PLUGIN_MOUNT_DIR%/packages/e2e-tests/mu-plugins:/var/www/${LOCAL_DIR-src}/wp-content/mu-plugins
+  cli:
+    volumes:
+      - %PLUGIN_MOUNT_DIR%:/var/www/${LOCAL_DIR-src}/wp-content/plugins/%PLUGIN_INSTALL_DIR%
+  phpunit:
+    volumes:
+      - %PLUGIN_MOUNT_DIR%:/var/www/${LOCAL_DIR-src}/wp-content/plugins/%PLUGIN_INSTALL_DIR%
diff --git a/package.json b/package.json
index 1b4c65d3dfa112..6ad5baf4760e9c 100644
--- a/package.json
+++ b/package.json
@@ -236,6 +236,7 @@
 		]
 	},
 	"wp-env": {
-		"plugin-dir": "gutenberg"
+		"plugin-dir": "gutenberg",
+		"docker-template": "./bin/docker-compose.override.yml.template"
 	}
 }
diff --git a/packages/scripts/config/docker-compose.override.yml.template b/packages/scripts/config/docker-compose.override.yml.template
index 43d2fc0fddb8fc..092d2df9c3568c 100644
--- a/packages/scripts/config/docker-compose.override.yml.template
+++ b/packages/scripts/config/docker-compose.override.yml.template
@@ -1,17 +1,13 @@
 services:
   wordpress-develop:
     volumes:
-      - %PLUGIN_MOUNT_DIR%:/var/www/${LOCAL_DIR-src}/wp-content/plugins/gutenberg
-      - %PLUGIN_MOUNT_DIR%/packages/e2e-tests/plugins:/var/www/${LOCAL_DIR-src}/wp-content/plugins/gutenberg-test-plugins
-      - %PLUGIN_MOUNT_DIR%/packages/e2e-tests/mu-plugins:/var/www/${LOCAL_DIR-src}/wp-content/mu-plugins
+      - %PLUGIN_MOUNT_DIR%:/var/www/${LOCAL_DIR-src}/wp-content/plugins/%PLUGIN_INSTALL_DIR%
   php:
     volumes:
-      - %PLUGIN_MOUNT_DIR%:/var/www/${LOCAL_DIR-src}/wp-content/plugins/gutenberg
-      - %PLUGIN_MOUNT_DIR%/packages/e2e-tests/plugins:/var/www/${LOCAL_DIR-src}/wp-content/plugins/gutenberg-test-plugins
-      - %PLUGIN_MOUNT_DIR%/packages/e2e-tests/mu-plugins:/var/www/${LOCAL_DIR-src}/wp-content/mu-plugins
+      - %PLUGIN_MOUNT_DIR%:/var/www/${LOCAL_DIR-src}/wp-content/plugins/%PLUGIN_INSTALL_DIR%
   cli:
     volumes:
-      - %PLUGIN_MOUNT_DIR%:/var/www/${LOCAL_DIR-src}/wp-content/plugins/gutenberg
+      - %PLUGIN_MOUNT_DIR%:/var/www/${LOCAL_DIR-src}/wp-content/plugins/%PLUGIN_INSTALL_DIR%
   phpunit:
     volumes:
-      - %PLUGIN_MOUNT_DIR%:/var/www/${LOCAL_DIR-src}/wp-content/plugins/gutenberg
+      - %PLUGIN_MOUNT_DIR%:/var/www/${LOCAL_DIR-src}/wp-content/plugins/%PLUGIN_INSTALL_DIR%
diff --git a/packages/scripts/scripts/env/connect.js b/packages/scripts/scripts/env/connect.js
index 1512d92ef6948c..66db5d4671da66 100644
--- a/packages/scripts/scripts/env/connect.js
+++ b/packages/scripts/scripts/env/connect.js
@@ -45,8 +45,11 @@ try {
 
 const pluginMountDir = normalize( cwd() );
 
-const composeTemplate = readFileSync( fromConfigRoot( 'docker-compose.override.yml.template' ), 'utf8' )
-	.replace( /%PLUGIN_MOUNT_DIR%/gi, pluginMountDir );
+const composeTemplateFile = env.npm_package_wp_env_docker_template ? normalize( cwd() + `/${ env.npm_package_wp_env_docker_template }` ) : fromConfigRoot( 'docker-compose.override.yml.template' );
+
+const composeTemplate = readFileSync( composeTemplateFile, 'utf8' )
+	.replace( /%PLUGIN_MOUNT_DIR%/gi, pluginMountDir )
+	.replace( /%PLUGIN_INSTALL_DIR%/gi, env.npm_package_wp_env_plugin_dir );
 
 const pluginCompose = yaml.safeLoad( composeTemplate );
 
diff --git a/packages/scripts/scripts/env/install.js b/packages/scripts/scripts/env/install.js
index 294f8251b48ddb..fe1ab8ee88a7c1 100644
--- a/packages/scripts/scripts/env/install.js
+++ b/packages/scripts/scripts/env/install.js
@@ -55,5 +55,5 @@ function buildWordPress() {
 
 	// Mount Gutenberg into the WordPress install.
 	execSync( 'npm run env connect', { stdio: 'inherit' } );
-	execSync( 'npm run env cli plugin activate gutenberg', { stdio: 'inherit' } );
+	execSync( `npm run env cli plugin activate ${ env.npm_package_wp_env_plugin_dir }`, { stdio: 'inherit' } );
 }