diff --git a/build-tools/automation/yaml-templates/build-windows.yaml b/build-tools/automation/yaml-templates/build-windows.yaml
index 067c9d0a4a0..92cbd13ccb7 100644
--- a/build-tools/automation/yaml-templates/build-windows.yaml
+++ b/build-tools/automation/yaml-templates/build-windows.yaml
@@ -53,16 +53,25 @@ stages:
         projects: Xamarin.Android.sln
         arguments: '-c $(XA.Build.Configuration) -t:Prepare --no-restore -p:AutoProvision=true -bl:$(System.DefaultWorkingDirectory)\bin\Build$(XA.Build.Configuration)\dotnet-build-prepare.binlog'
 
-    # Build, pack .nupkgs, and extract workload packs to dotnet preview test directory
+    # Build Xamarin.Android and configure local workloads to test improved local build loop
     - template: /build-tools/automation/yaml-templates/run-dotnet-preview.yaml
       parameters:
         project: Xamarin.Android.sln
         arguments: >-
-          -t:BuildDotNet,PackDotNet -c $(XA.Build.Configuration) -v:n
+          -t:BuildDotNet -c $(XA.Build.Configuration) -v:n
           -bl:$(System.DefaultWorkingDirectory)\bin\Build$(XA.Build.Configuration)\dotnet-build.binlog
         displayName: Build Solution
         continueOnError: false
 
+    - template: /build-tools/automation/yaml-templates/run-dotnet-preview.yaml
+      parameters:
+        project: build-tools/create-packs/Microsoft.Android.Sdk.proj
+        arguments: >-
+          -t:ConfigureLocalWorkload -c $(XA.Build.Configuration) -v:n -p:RunningOnCI=false
+          -bl:$(System.DefaultWorkingDirectory)\bin\Build$(XA.Build.Configuration)\local-workload.binlog
+        displayName: Run ConfigureLocalWorkload target
+        continueOnError: false
+
     - template: /build-tools/automation/yaml-templates/install-dotnet-tool.yaml
       parameters:
         toolName: apkdiff
@@ -75,10 +84,25 @@ stages:
         dotNetTestExtraArgs: --filter "TestCategory = SmokeTests"
 
     - task: BatchScript@1
-      displayName: Test dotnet-local.cmd
+      displayName: Test dotnet-local.cmd - create template
+      inputs:
+        filename: dotnet-local.cmd
+        arguments: new android -o $(Build.StagingDirectory)/LocalWorkloadTest
+
+    - task: BatchScript@1
+      displayName: Test dotnet-local.cmd - build template
       inputs:
         filename: dotnet-local.cmd
-        arguments: build samples\HelloWorld\HelloWorld\HelloWorld.DotNet.csproj
+        arguments: build -v:n $(Build.StagingDirectory)/LocalWorkloadTest
+
+    # Pack .nupkgs and extract workload packs to dotnet preview test directory
+    - template: /build-tools/automation/yaml-templates/run-dotnet-preview.yaml
+      parameters:
+        project: Xamarin.Android.sln
+        arguments: >-
+          -t:PackDotNet -c $(XA.Build.Configuration) -v:n
+          -bl:$(System.DefaultWorkingDirectory)\bin\Build$(XA.Build.Configuration)\dotnet-pack.binlog
+        displayName: Test PackDotNet
 
     - template: /build-tools/automation/yaml-templates/upload-results.yaml
       parameters:
diff --git a/build-tools/create-packs/ConfigureLocalWorkload.targets b/build-tools/create-packs/ConfigureLocalWorkload.targets
new file mode 100644
index 00000000000..9db9c214c59
--- /dev/null
+++ b/build-tools/create-packs/ConfigureLocalWorkload.targets
@@ -0,0 +1,128 @@
+<Project>
+
+  <ItemGroup>
+    <_FrameworkListInputs  Include="$(MicrosoftAndroidRefPackDir)**" />
+    <_FrameworkListOutputs Include="$(BuildOutputDirectory)lib\packs\Microsoft.Android.Ref.$(AndroidDefaultTargetDotnetApiLevel)\$(AndroidPackVersion)\data\FrameworkList.xml" />
+    <_FrameworkListOutputs Include="$(BuildOutputDirectory)lib\packs\Microsoft.Android.Ref.$(AndroidLatestStableApiLevel)\$(AndroidPackVersion)\data\FrameworkList.xml" />
+    <_FrameworkListOutputs Include="$(BuildOutputDirectory)lib\packs\Microsoft.Android.Ref.$(AndroidLatestUnstableApiLevel)\$(AndroidPackVersion)\data\FrameworkList.xml" />
+    <_RuntimeListInputs  Include="$(MicrosoftAndroidArmPackDir)**" />
+    <_RuntimeListInputs  Include="$(MicrosoftAndroidArm64PackDir)**" />
+    <_RuntimeListInputs  Include="$(MicrosoftAndroidx86PackDir)**" />
+    <_RuntimeListInputs  Include="$(MicrosoftAndroidx64PackDir)**" />
+    <_RuntimeListOutputs Include="@(AndroidSupportedTargetJitAbi->'$(BuildOutputDirectory)lib\packs\Microsoft.Android.Runtime.$(AndroidDefaultTargetDotnetApiLevel).%(AndroidRID)\$(AndroidPackVersion)\data\RuntimeList.xml')" AndroidRID="%(AndroidRID)" />
+    <_RuntimeListOutputs Include="@(AndroidSupportedTargetJitAbi->'$(BuildOutputDirectory)lib\packs\Microsoft.Android.Runtime.$(AndroidLatestStableApiLevel).%(AndroidRID)\$(AndroidPackVersion)\data\RuntimeList.xml')" AndroidRID="%(AndroidRID)" />
+    <_RuntimeListOutputs Include="@(AndroidSupportedTargetJitAbi->'$(BuildOutputDirectory)lib\packs\Microsoft.Android.Runtime.$(AndroidLatestUnstableApiLevel).%(AndroidRID)\$(AndroidPackVersion)\data\RuntimeList.xml')" AndroidRID="%(AndroidRID)" />
+    <_TemplatesInputs Include="$(XamarinAndroidSourcePath)src\Microsoft.Android.Templates\**" />
+    <_TemplatesOutputs Include="$(BuildOutputDirectory)lib\template-packs\microsoft.android.templates.$(AndroidPackVersion).nupkg" />
+  </ItemGroup>
+
+  <Target Name="CreateLocalRuntimeLists"
+      Inputs="$(MSBuildThisFile);@(_RuntimeListInputs)"
+      Outputs="@(_RuntimeListOutputs)">
+    <MSBuild
+        Projects="$(MSBuildThisFileDirectory)Microsoft.Android.Runtime.proj"
+        Properties="FrameworkListFile=%(_RuntimeListOutputs.Identity);AndroidRID=%(_RuntimeListOutputs.AndroidRID)"
+        Targets="_GetRuntimePackItems;_GenerateFrameworkListFile"
+    />
+  </Target>
+
+  <Target Name="CreateLocalFrameworkLists"
+      Inputs="$(MSBuildThisFile);@(_FrameworkListInputs)"
+      Outputs="@(_FrameworkListOutputs)">
+    <MSBuild
+        Projects="$(MSBuildThisFileDirectory)Microsoft.Android.Ref.proj"
+        Properties="FrameworkListFile=%(_FrameworkListOutputs.Identity)"
+        Targets="_GetTargetingPackItems;_GenerateFrameworkListFile"
+    />
+  </Target>
+
+  <Target Name="PackLocalTemplates"
+      Inputs="@(_TemplatesInputs)"
+      Outputs="@(_TemplatesOutputs)">
+    <ItemGroup>
+      <_PackProps Include="-v:n -c $(Configuration)" />
+      <_PackProps Include="-p:IncludeSymbols=False" />
+      <_PackProps Include="-p:OutputPath=$(BuildOutputDirectory)lib\template-packs" />
+      <_PackProps Include="-p:TemplatePackVersion=$(AndroidPackVersion)" />
+      <_PackProps Include="-p:PackageId=microsoft.android.templates" />
+    </ItemGroup>
+    <Exec Command="&quot;$(DotNetPreviewTool)&quot; pack @(_PackProps, ' ') &quot;$(XamarinAndroidSourcePath)src\Microsoft.Android.Templates\Microsoft.Android.Templates.csproj&quot;" />
+  </Target>
+
+  <UsingTask TaskName="GetAndroidWorkloadExtends" TaskFactory="RoslynCodeTaskFactory" AssemblyFile="$(MSBuildToolsPath)\Microsoft.Build.Tasks.Core.dll">
+    <ParameterGroup>
+      <JsonFilePath ParameterType="System.String" Required="true" />
+      <ExtendsElement Output="true" ParameterType="System.String" />
+    </ParameterGroup>
+    <Task>
+      <Using Namespace="System" />
+      <Using Namespace="System.IO" />
+      <Code Type="Fragment" Language="cs">
+        <![CDATA[
+        var jsonContent = File.ReadAllText(JsonFilePath);
+        var startElement = "\"extends\" : [";
+        var startIndex = jsonContent.IndexOf(startElement);
+        var endIndex = jsonContent.IndexOf("]");
+        if (startIndex != -1) {
+            startIndex += startElement.Length;
+            endIndex = jsonContent.IndexOf("]", startIndex);
+            if (endIndex != -1) {
+                ExtendsElement = jsonContent.Substring(startIndex, endIndex - startIndex)?.Trim();
+            }
+        }
+        if (startIndex == -1 || endIndex == -1 || string.IsNullOrEmpty(ExtendsElement))
+            Log.LogError($"Failed to find extends element in workload json '{JsonFilePath}'");
+        ]]>
+      </Code>
+    </Task>
+  </UsingTask>
+
+  <Target Name="InstallManifestAndDependencies"
+      DependsOnTargets="_GetDefaultPackageVersion">
+    <PropertyGroup>
+      <_LocalSdkManifestsFolder>$(BuildOutputDirectory)lib\sdk-manifests\$(DotNetSdkManifestsFolder)\</_LocalSdkManifestsFolder>
+      <_LocalAndroidManifestFolder>$(_LocalSdkManifestsFolder)microsoft.net.sdk.android\$(AndroidPackVersionLong)\</_LocalAndroidManifestFolder>
+      <_EmptyWorkloadDir>$(_LocalSdkManifestsFolder)android.deps.workload\0.0.1\</_EmptyWorkloadDir>
+    </PropertyGroup>
+
+    <MakeDir Directories="$(_LocalAndroidManifestFolder)" />
+    <MSBuild
+        Projects="$(MSBuildThisFileDirectory)Microsoft.NET.Sdk.Android.proj"
+        Properties="WorkloadManifestJsonPath=$(_LocalAndroidManifestFolder)WorkloadManifest.json;WorkloadManifestTargetsPath=$(_LocalAndroidManifestFolder)WorkloadManifest.targets;WorkloadVersion=$(AndroidPackVersion)"
+        Targets="_GenerateXAWorkloadContent"
+    />
+
+    <GetAndroidWorkloadExtends JsonFilePath="$(_LocalAndroidManifestFolder)WorkloadManifest.json">
+      <Output TaskParameter="ExtendsElement" PropertyName="AndroidWorkloadExtendsElement" />
+    </GetAndroidWorkloadExtends>
+
+    <PropertyGroup>
+      <_EmptyWorkloadJsonContent>
+<![CDATA[
+{"version": "0.0.1", "workloads": { "android-deps": { "extends" : [ $(AndroidWorkloadExtendsElement) ] } } }
+]]>
+      </_EmptyWorkloadJsonContent>
+    </PropertyGroup>
+
+    <!-- Create empty workload to install dotnet/runtime dependencies, and then clean up the workload and metadata files from install -->
+    <Error Condition=" '$(AndroidWorkloadExtendsElement)' == '' " Text="Failed to find extends element in workload json" />
+    <MakeDir Directories="$(_EmptyWorkloadDir)" />
+    <WriteLinesToFile
+        File="$(_EmptyWorkloadDir)WorkloadManifest.json"
+        Lines="$(_EmptyWorkloadJsonContent)"
+        Overwrite="true"
+    />
+    <Exec
+        Command="&quot;$(DotNetPreviewTool)&quot; workload install android-deps --configfile &quot;$(XamarinAndroidSourcePath)NuGet.config&quot; --skip-manifest-update --skip-sign-check --verbosity diag"
+        EnvironmentVariables="DOTNETSDK_WORKLOAD_MANIFEST_ROOTS=$(BuildOutputDirectory)lib\sdk-manifests"
+        WorkingDirectory="$(XamarinAndroidSourcePath)"
+    />
+     <RemoveDir Directories="$(_EmptyWorkloadDir)" />
+  </Target>
+
+  <PropertyGroup>
+    <ConfigureLocalWorkloadDependsOn Condition="'$(RunningOnCI)' != 'true'">CreateLocalFrameworkLists;CreateLocalRuntimeLists;InstallManifestAndDependencies;DeleteExtractedWorkloadPacks;PackLocalTemplates</ConfigureLocalWorkloadDependsOn>
+  </PropertyGroup>
+  <Target Name="ConfigureLocalWorkload" DependsOnTargets="$(ConfigureLocalWorkloadDependsOn)" />
+
+</Project>
diff --git a/build-tools/create-packs/Directory.Build.targets b/build-tools/create-packs/Directory.Build.targets
index d1913bae21a..7a0b67e7f39 100644
--- a/build-tools/create-packs/Directory.Build.targets
+++ b/build-tools/create-packs/Directory.Build.targets
@@ -213,90 +213,6 @@
   </Target>
 
   <!-- Targets for setting up a local workload test environment without needing to pack .nupkg files -->
-  <ItemGroup>
-    <_FrameworkListInputs  Include="$(MicrosoftAndroidRefPackDir)**" />
-    <_FrameworkListOutputs Include="$(BuildOutputDirectory)lib\packs\Microsoft.Android.Ref.$(AndroidDefaultTargetDotnetApiLevel)\$(AndroidPackVersion)\data\FrameworkList.xml" />
-    <_FrameworkListOutputs Include="$(BuildOutputDirectory)lib\packs\Microsoft.Android.Ref.$(AndroidLatestStableApiLevel)\$(AndroidPackVersion)\data\FrameworkList.xml" />
-    <_FrameworkListOutputs Include="$(BuildOutputDirectory)lib\packs\Microsoft.Android.Ref.$(AndroidLatestUnstableApiLevel)\$(AndroidPackVersion)\data\FrameworkList.xml" />
-    <_RuntimeListInputs  Include="$(MicrosoftAndroidArmPackDir)**" />
-    <_RuntimeListInputs  Include="$(MicrosoftAndroidArm64PackDir)**" />
-    <_RuntimeListInputs  Include="$(MicrosoftAndroidx86PackDir)**" />
-    <_RuntimeListInputs  Include="$(MicrosoftAndroidx64PackDir)**" />
-    <_RuntimeListOutputs Include="@(AndroidSupportedTargetJitAbi->'$(BuildOutputDirectory)lib\packs\Microsoft.Android.Runtime.$(AndroidDefaultTargetDotnetApiLevel).%(AndroidRID)\$(AndroidPackVersion)\data\RuntimeList.xml')" AndroidRID="%(AndroidRID)" />
-    <_RuntimeListOutputs Include="@(AndroidSupportedTargetJitAbi->'$(BuildOutputDirectory)lib\packs\Microsoft.Android.Runtime.$(AndroidLatestStableApiLevel).%(AndroidRID)\$(AndroidPackVersion)\data\RuntimeList.xml')" AndroidRID="%(AndroidRID)" />
-    <_RuntimeListOutputs Include="@(AndroidSupportedTargetJitAbi->'$(BuildOutputDirectory)lib\packs\Microsoft.Android.Runtime.$(AndroidLatestUnstableApiLevel).%(AndroidRID)\$(AndroidPackVersion)\data\RuntimeList.xml')" AndroidRID="%(AndroidRID)" />
-    <_TemplatesInputs Include="$(XamarinAndroidSourcePath)src\Microsoft.Android.Templates\**" />
-    <_TemplatesOutputs Include="$(BuildOutputDirectory)lib\template-packs\microsoft.android.templates.$(AndroidPackVersion).nupkg" />
-  </ItemGroup>
-
-  <Target Name="CreateLocalRuntimeLists"
-      Inputs="$(MSBuildThisFile);@(_RuntimeListInputs)"
-      Outputs="@(_RuntimeListOutputs)">
-    <MSBuild
-        Projects="$(MSBuildThisFileDirectory)Microsoft.Android.Runtime.proj"
-        Properties="FrameworkListFile=%(_RuntimeListOutputs.Identity);AndroidRID=%(_RuntimeListOutputs.AndroidRID)"
-        Targets="_GetRuntimePackItems;_GenerateFrameworkListFile"
-    />
-  </Target>
-
-  <Target Name="CreateLocalFrameworkLists"
-      Inputs="$(MSBuildThisFile);@(_FrameworkListInputs)"
-      Outputs="@(_FrameworkListOutputs)">
-    <MSBuild
-        Projects="$(MSBuildThisFileDirectory)Microsoft.Android.Ref.proj"
-        Properties="FrameworkListFile=%(_FrameworkListOutputs.Identity)"
-        Targets="_GetTargetingPackItems;_GenerateFrameworkListFile"
-    />
-  </Target>
-
-  <Target Name="PackAndCopyTemplates"
-      Inputs="@(_TemplatesInputs)"
-      Outputs="@(_TemplatesOutputs)">
-    <ItemGroup>
-      <_PackProps Include="-v:n -c $(Configuration)" />
-      <_PackProps Include="-p:IncludeSymbols=False" />
-      <_PackProps Include="-p:OutputPath=$(DotNetPreviewPath)template-packs" />
-      <_PackProps Include="-p:TemplatePackVersion=$(AndroidPackVersion)" />
-      <_PackProps Include="-p:PackageId=microsoft.android.templates" />
-    </ItemGroup>
-    <Exec Command="&quot;$(DotNetPreviewTool)&quot; pack @(_PackProps, ' ') &quot;$(XamarinAndroidSourcePath)src\Microsoft.Android.Templates\Microsoft.Android.Templates.csproj&quot;" />
-  </Target>
-
-  <Target Name="InstallManifestAndDependencies"
-      DependsOnTargets="DeleteExtractedWorkloadPacks;_GetDefaultPackageVersion">
-    <PropertyGroup>
-      <_LocalSdkManifestsFolder>$(BuildOutputDirectory)lib\sdk-manifests\$(DotNetSdkManifestsFolder)\</_LocalSdkManifestsFolder>
-      <_LocalAndroidManifestFolder>$(_LocalSdkManifestsFolder)microsoft.net.sdk.android\$(AndroidPackVersionLong)\</_LocalAndroidManifestFolder>
-      <_EmptyWorkloadDir>$(_LocalSdkManifestsFolder)android.deps.workload\0.0.1\</_EmptyWorkloadDir>
-      <_EmptyWorkloadJsonContent>
-<![CDATA[
-{"version": "0.0.1", "workloads": { "android-deps": { "extends" : [ "microsoft-net-runtime-android", "microsoft-net-runtime-android-aot" ] } } }
-]]>
-      </_EmptyWorkloadJsonContent>
-    </PropertyGroup>
-    <MakeDir Directories="$(_LocalAndroidManifestFolder)" />
-    <MSBuild
-        Projects="$(MSBuildThisFileDirectory)Microsoft.NET.Sdk.Android.proj"
-        Properties="WorkloadManifestJsonPath=$(_LocalAndroidManifestFolder)WorkloadManifest.json;WorkloadManifestTargetsPath=$(_LocalAndroidManifestFolder)WorkloadManifest.targets;WorkloadVersion=$(AndroidPackVersion)"
-        Targets="_GenerateXAWorkloadContent"
-    />
-    <!-- Create empty workload to install dotnet/runtime dependencies -->
-    <MakeDir Directories="$(_EmptyWorkloadDir)" />
-    <WriteLinesToFile
-        File="$(_EmptyWorkloadDir)WorkloadManifest.json"
-        Lines="$(_EmptyWorkloadJsonContent)"
-        Overwrite="true"
-    />
-    <Exec
-        Command="&quot;$(DotNetPreviewTool)&quot; workload install android-deps --configfile &quot;$(XamarinAndroidSourcePath)NuGet.config&quot; --skip-manifest-update --skip-sign-check --verbosity diag"
-        EnvironmentVariables="DOTNETSDK_WORKLOAD_MANIFEST_ROOTS=$(BuildOutputDirectory)lib\sdk-manifests"
-        WorkingDirectory="$(XamarinAndroidSourcePath)"
-    />
-  </Target>
-
-  <PropertyGroup>
-    <ConfigureLocalWorkloadDependsOn Condition="'$(RunningOnCI)' != 'true'">CreateLocalFrameworkLists;CreateLocalRuntimeLists;PackAndCopyTemplates;InstallManifestAndDependencies</ConfigureLocalWorkloadDependsOn>
-  </PropertyGroup>
-  <Target Name="ConfigureLocalWorkload" DependsOnTargets="$(ConfigureLocalWorkloadDependsOn)" />
+  <Import Project="ConfigureLocalWorkload.targets" />
 
 </Project>