diff --git a/changelog/fragments/fix-run-packagemanifests-e2e.yaml b/changelog/fragments/fix-run-packagemanifests-e2e.yaml
new file mode 100644
index 00000000000..0416698865d
--- /dev/null
+++ b/changelog/fragments/fix-run-packagemanifests-e2e.yaml
@@ -0,0 +1,17 @@
+entries:
+  - description:
+      Fixed a bug with `run packagemanifests` that caused the underlying
+      registry pod to fail to start. Changed the registry pod image from
+      `quay.io/openshift/origin-operator-registry:latest` to
+      `quay.io/operator-framework/upstream-registry-builder:latest`
+
+    # kind is one of:
+    # - addition
+    # - change
+    # - deprecation
+    # - removal
+    # - bugfix
+    kind: bugfix
+
+    # Is this a breaking change?
+    breaking: false
diff --git a/changelog/fragments/run-pkgmnfs-writable-dir.yaml b/changelog/fragments/run-pkgmnfs-writable-dir.yaml
new file mode 100644
index 00000000000..7dbae3a846e
--- /dev/null
+++ b/changelog/fragments/run-pkgmnfs-writable-dir.yaml
@@ -0,0 +1,5 @@
+entries:
+  - description: >
+      Fix an issue in `run packagemanifests` where the registry server
+      writes files in locations that require root.
+    kind: bugfix
diff --git a/hack/tests/integration.sh b/hack/tests/integration.sh
index 05b98136216..4d6de154184 100755
--- a/hack/tests/integration.sh
+++ b/hack/tests/integration.sh
@@ -16,7 +16,7 @@ popd
 # Install OLM on the cluster if not installed.
 olm_latest_exists=0
 if ! operator-sdk olm status > /dev/null 2>&1; then
-  operator-sdk olm install
+  operator-sdk olm install --version=0.15.1
   olm_latest_exists=1
 fi
 
@@ -26,7 +26,7 @@ go test -v ./test/integration
 
 # Uninstall OLM if it was installed for test purposes.
 if eval "(( $olm_latest_exists ))"; then
-  operator-sdk olm uninstall
+  operator-sdk olm uninstall --version=0.15.1
 fi
 
 echo -e "\n=== Integration tests succeeded ===\n"
diff --git a/internal/olm/client/client.go b/internal/olm/client/client.go
index 9cfb7341fd0..2a80e978398 100644
--- a/internal/olm/client/client.go
+++ b/internal/olm/client/client.go
@@ -211,7 +211,15 @@ func (c Client) DoCSVWait(ctx context.Context, key types.NamespacedName) error {
 			curPhase = newPhase
 			log.Printf("  Found ClusterServiceVersion %q phase: %s", key, curPhase)
 		}
-		return curPhase == olmapiv1alpha1.CSVPhaseSucceeded, nil
+
+		switch curPhase {
+		case olmapiv1alpha1.CSVPhaseFailed:
+			return false, fmt.Errorf("csv failed: reason: %q, message: %q", csv.Status.Reason, csv.Status.Message)
+		case olmapiv1alpha1.CSVPhaseSucceeded:
+			return true, nil
+		default:
+			return false, nil
+		}
 	}
 
 	return wait.PollImmediateUntil(time.Second, csvPhaseSucceeded, ctx.Done())
diff --git a/internal/olm/operator/internal/deployment.go b/internal/olm/operator/internal/deployment.go
index 3538be6bc2d..a69c7609bad 100644
--- a/internal/olm/operator/internal/deployment.go
+++ b/internal/olm/operator/internal/deployment.go
@@ -17,25 +17,26 @@ package olm
 import (
 	"fmt"
 
-	"github.com/operator-framework/operator-sdk/internal/util/k8sutil"
-
 	appsv1 "k8s.io/api/apps/v1"
 	corev1 "k8s.io/api/core/v1"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+
+	"github.com/operator-framework/operator-sdk/internal/util/k8sutil"
 )
 
 const (
 	// The image operator-registry's initializer and registry-server binaries
 	// are run from.
 	// QUESTION(estroz): version registry image?
-	registryBaseImage = "quay.io/openshift/origin-operator-registry:latest"
+	registryBaseImage = "quay.io/operator-framework/upstream-registry-builder:latest"
 	// The port registry-server will listen on within a container.
 	registryGRPCPort = 50051
-	// Path of the bundle database generated by initializer.
-	regisryDBName = "bundle.db"
-	// Path of the log file generated by registry-server.
-	// TODO(estroz): have this log file in an obvious place, ex. /var/log.
-	registryLogFile = "termination.log"
+	// Path of the bundle database generated by initializer. Use /tmp since it is
+	// typically world-writable.
+	registryDBName = "/tmp/bundle.db"
+	// Path of the log file generated by registry-server. Use /tmp since it is
+	// typically world-writable.
+	registryLogFile = "/tmp/termination.log"
 )
 
 func getRegistryServerName(pkgName string) string {
@@ -99,13 +100,12 @@ func withContainerVolumeMounts(volName string, paths ...string) func(*appsv1.Dep
 }
 
 // getDBContainerCmd returns a command string that, when run, does two things:
-// 1. Runs a database initializer on the manifests in the current working
+// 1. Runs a database initializer on the manifests in the /registry
 //    directory.
 // 2. Runs an operator-registry server serving the bundle database.
-// The database must be in the current working directory.
 func getDBContainerCmd(dbPath, logPath string) string {
-	initCmd := fmt.Sprintf("/usr/bin/initializer -o %s", dbPath)
-	srvCmd := fmt.Sprintf("/usr/bin/registry-server -d %s -t %s", dbPath, logPath)
+	initCmd := fmt.Sprintf("/bin/initializer -o %s -m %s", dbPath, containerManifestsDir)
+	srvCmd := fmt.Sprintf("/bin/registry-server -d %s -t %s", dbPath, logPath)
 	return fmt.Sprintf("%s && %s", initCmd, srvCmd)
 }
 
@@ -114,13 +114,14 @@ func getDBContainerCmd(dbPath, logPath string) string {
 // pod template spec.
 func withRegistryGRPCContainer(pkgName string) func(*appsv1.Deployment) {
 	container := corev1.Container{
-		Name:    getRegistryServerName(pkgName),
-		Image:   registryBaseImage,
-		Command: []string{"/bin/bash"},
+		Name:       getRegistryServerName(pkgName),
+		Image:      registryBaseImage,
+		WorkingDir: "/tmp",
+		Command:    []string{"/bin/sh"},
 		Args: []string{
 			"-c",
 			// TODO(estroz): grab logs and print if error
-			getDBContainerCmd(regisryDBName, registryLogFile),
+			getDBContainerCmd(registryDBName, registryLogFile),
 		},
 		Ports: []corev1.ContainerPort{
 			{Name: "registry-grpc", ContainerPort: registryGRPCPort},
diff --git a/test/e2e-new/e2e_suite.go b/test/e2e-new/e2e_suite.go
index af46fe26de2..6a445967c36 100644
--- a/test/e2e-new/e2e_suite.go
+++ b/test/e2e-new/e2e_suite.go
@@ -169,7 +169,7 @@ var _ = Describe("operator-sdk", func() {
 			By("building the operator bundle image")
 			// Use the existing image tag but with a "-bundle" suffix.
 			imageSplit := strings.SplitN(tc.ImageName, ":", 2)
-			bundleImage := path.Join("quay.io", imageSplit[0]+"-bundle")
+			bundleImage := imageSplit[0] + "-bundle"
 			if len(imageSplit) == 2 {
 				bundleImage += ":" + imageSplit[1]
 			}