diff --git a/.bazelrc b/.bazelrc
index 1141edf..41e47fa 100644
--- a/.bazelrc
+++ b/.bazelrc
@@ -5,3 +5,7 @@
 test:debug --test_arg=--node_options=--inspect-brk --test_output=streamed --test_strategy=exclusive --test_timeout=9999 --nocache_test_results
 
 build --workspace_status_command=./tools/bazel_stamp_vars.sh
+
+# Turn off legacy external runfiles
+run --nolegacy_external_runfiles
+test --nolegacy_external_runfiles
diff --git a/.circleci/config.yml b/.circleci/config.yml
index 2f50695..50afdee 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -9,8 +9,8 @@
 
 ## IMPORTANT
 # If you change the `docker_image` version, also change the `cache_key` suffix
-var_1: &docker_image angular/ngcontainer:0.6.0
-var_2: &cache_key rules_typescript-{{ checksum "yarn.lock" }}-0.6.0
+var_1: &docker_image angular/ngcontainer:0.7.0
+var_2: &cache_key rules_typescript-{{ checksum "yarn.lock" }}-0.7.0
 var_3: &setup-bazel-remote-cache
   run:
     name: Start up bazel remote cache proxy
diff --git a/internal/karma/ts_web_test.bzl b/internal/karma/ts_web_test.bzl
index ddb3b02..728b887 100644
--- a/internal/karma/ts_web_test.bzl
+++ b/internal/karma/ts_web_test.bzl
@@ -25,6 +25,12 @@
 _CONF_TMPL = "//internal/karma:karma.conf.js"
 _DEFAULT_KARMA_BIN = "@npm//@bazel/karma/bin:karma"
 
+def _short_path_to_manifest_path(ctx, short_path):
+    if short_path.startswith("../"):
+        return short_path[3:]
+    else:
+        return ctx.workspace_name + "/" + short_path
+
 def _ts_web_test_impl(ctx):
     conf = ctx.actions.declare_file(
         "%s.conf.js" % ctx.label.name,
@@ -98,10 +104,6 @@
         },
     )
 
-    karma_executable_path = ctx.executable.karma.short_path
-    if karma_executable_path.startswith(".."):
-        karma_executable_path = "external" + karma_executable_path[2:]
-
     karma_runfiles = [
         conf,
         amd_names_shim,
@@ -118,15 +120,15 @@
 if [ -e "$RUNFILES_MANIFEST_FILE" ]; then
   while read line; do
     declare -a PARTS=($line)
-    if [ "${{PARTS[0]}}" == "{TMPL_workspace}/{TMPL_karma}" ]; then
+    if [ "${{PARTS[0]}}" == "{TMPL_karma}" ]; then
       readonly KARMA=${{PARTS[1]}}
-    elif [ "${{PARTS[0]}}" == "{TMPL_workspace}/{TMPL_conf}" ]; then
+    elif [ "${{PARTS[0]}}" == "{TMPL_conf}" ]; then
       readonly CONF=${{PARTS[1]}}
     fi
   done < $RUNFILES_MANIFEST_FILE
 else
-  readonly KARMA={TMPL_karma}
-  readonly CONF={TMPL_conf}
+  readonly KARMA=../{TMPL_karma}
+  readonly CONF=../{TMPL_conf}
 fi
 
 export HOME=$(mktemp -d)
@@ -143,8 +145,8 @@
 $KARMA ${{ARGV[@]}}
 """.format(
             TMPL_workspace = ctx.workspace_name,
-            TMPL_karma = karma_executable_path,
-            TMPL_conf = conf.short_path,
+            TMPL_karma = _short_path_to_manifest_path(ctx, ctx.executable.karma.short_path),
+            TMPL_conf = _short_path_to_manifest_path(ctx, conf.short_path),
         ),
     )
     return [DefaultInfo(
diff --git a/package.bzl b/package.bzl
index f2e223e..49848c7 100644
--- a/package.bzl
+++ b/package.bzl
@@ -38,8 +38,8 @@
     _maybe(
         http_archive,
         name = "build_bazel_rules_nodejs",
-        urls = ["https://github.com/bazelbuild/rules_nodejs/archive/0.15.1.zip"],
-        strip_prefix = "rules_nodejs-0.15.1",
+        urls = ["https://github.com/bazelbuild/rules_nodejs/archive/0.15.3.zip"],
+        strip_prefix = "rules_nodejs-0.15.3",
     )
 
     # ts_web_test depends on the web testing rules to provision browsers.