diff --git a/e2e/next/src/next.test.ts b/e2e/next/src/next.test.ts
index 932dd116cca406..05b0d546fca6b1 100644
--- a/e2e/next/src/next.test.ts
+++ b/e2e/next/src/next.test.ts
@@ -5,6 +5,7 @@ import {
   cleanupProject,
   getPackageManagerCommand,
   isNotWindows,
+  killPort,
   killPorts,
   newProject,
   packageManagerLockFile,
@@ -20,25 +21,22 @@ import {
 } from '@nrwl/e2e/utils';
 import * as http from 'http';
 import { checkApp } from './utils';
+import { removeSync } from 'fs-extra';
 
 describe('Next.js Applications', () => {
   let proj: string;
   let originalEnv: string;
   let packageManager;
 
-  beforeAll(() => {
+  beforeEach(() => {
     proj = newProject();
     packageManager = detectPackageManager(tmpProjPath());
-  });
-
-  afterAll(() => cleanupProject());
-
-  beforeEach(() => {
     originalEnv = process.env.NODE_ENV;
   });
 
   afterEach(() => {
     process.env.NODE_ENV = originalEnv;
+    cleanupProject();
   });
 
   it('should generate app + libs', async () => {
@@ -169,6 +167,22 @@ describe('Next.js Applications', () => {
       `dist/apps/${appName}/public/a/b.txt`,
       `dist/apps/${appName}/public/shared/ui/hello.txt`
     );
+
+    // Check that the output is self-contained (i.e. can run with its own package.json + node_modules)
+    const distPath = joinPathFragments(tmpProjPath(), 'dist/apps', appName);
+    const port = 3000;
+    const pmc = getPackageManagerCommand();
+    runCommand(`${pmc.install}`, {
+      cwd: distPath,
+    });
+    runCLI(
+      `generate @nrwl/workspace:run-commands serve-prod --project ${appName} --cwd=dist/apps/${appName} --command="npx next start --port=${port}"`
+    );
+    await runCommandUntil(`run ${appName}:serve-prod`, (output) => {
+      return output.includes(`localhost:${port}`);
+    });
+
+    await killPort(port);
   }, 300_000);
 
   it('should build and install pruned lock file', () => {
@@ -399,17 +413,19 @@ describe('Next.js Applications', () => {
   }, 300_000);
 });
 
-function getData(port: number, path = ''): Promise<any> {
-  return new Promise((resolve) => {
-    http.get(`http://localhost:${port}${path}`, (res) => {
-      expect(res.statusCode).toEqual(200);
-      let data = '';
-      res.on('data', (chunk) => {
-        data += chunk;
-      });
-      res.once('end', () => {
-        resolve(data);
-      });
-    });
+function getData(port, path = ''): Promise<any> {
+  return new Promise((resolve, reject) => {
+    http
+      .get(`http://localhost:${port}${path}`, (res) => {
+        expect(res.statusCode).toEqual(200);
+        let data = '';
+        res.on('data', (chunk) => {
+          data += chunk;
+        });
+        res.once('end', () => {
+          resolve(data);
+        });
+      })
+      .on('error', (err) => reject(err));
   });
 }
diff --git a/packages/next/package.json b/packages/next/package.json
index 6e37247e68c9d7..782c8b10517ed3 100644
--- a/packages/next/package.json
+++ b/packages/next/package.json
@@ -35,22 +35,21 @@
   },
   "dependencies": {
     "@babel/plugin-proposal-decorators": "^7.14.5",
-    "@nrwl/cypress": "file:../cypress",
     "@nrwl/devkit": "file:../devkit",
-    "@nrwl/jest": "file:../jest",
     "@nrwl/js": "file:../js",
     "@nrwl/linter": "file:../linter",
     "@nrwl/react": "file:../react",
-    "@nrwl/webpack": "file:../webpack",
     "@nrwl/workspace": "file:../workspace",
     "@svgr/webpack": "^6.1.2",
     "chalk": "^4.1.0",
+    "copy-webpack-plugin": "^10.2.4",
     "dotenv": "~10.0.0",
     "fs-extra": "^11.1.0",
     "ignore": "^5.0.4",
     "semver": "7.3.4",
     "ts-node": "10.9.1",
     "tsconfig-paths": "^4.1.2",
+    "tsconfig-paths-webpack-plugin": "4.0.0",
     "url-loader": "^4.1.1",
     "webpack-merge": "^5.8.0"
   },
diff --git a/packages/next/plugins/with-nx.ts b/packages/next/plugins/with-nx.ts
index 211850bbe94ad4..e0e94bd0f86710 100644
--- a/packages/next/plugins/with-nx.ts
+++ b/packages/next/plugins/with-nx.ts
@@ -13,8 +13,15 @@ import {
   DependentBuildableProjectNode,
 } from '@nrwl/js/src/utils/buildable-libs-utils';
 import type { NextConfig } from 'next';
-
-import path = require('path');
+import {
+  PHASE_DEVELOPMENT_SERVER,
+  PHASE_PRODUCTION_BUILD,
+  PHASE_PRODUCTION_SERVER,
+  PHASE_EXPORT,
+  PHASE_TEST,
+} from 'next/constants';
+
+import * as path from 'path';
 import { createWebpackConfig } from '../src/utils/config';
 import { NextBuildBuilderOptions } from '../src/utils/types';
 export interface WithNxOptions extends NextConfig {
@@ -110,65 +117,79 @@ function getNxContext(
   }
 }
 
+type Phase =
+  | typeof PHASE_DEVELOPMENT_SERVER
+  | typeof PHASE_PRODUCTION_BUILD
+  | typeof PHASE_PRODUCTION_SERVER
+  | typeof PHASE_EXPORT
+  | typeof PHASE_TEST;
+
 export function withNx(
   _nextConfig = {} as WithNxOptions,
   context: WithNxContext = getWithNxContext()
-): () => Promise<NextConfig> {
-  return async () => {
-    let dependencies: DependentBuildableProjectNode[] = [];
-
-    const graph = await createProjectGraphAsync();
-
-    const originalTarget = {
-      project: process.env.NX_TASK_TARGET_PROJECT,
-      target: process.env.NX_TASK_TARGET_TARGET,
-      configuration: process.env.NX_TASK_TARGET_CONFIGURATION,
-    };
-
-    const {
-      node: projectNode,
-      options,
-      projectName: project,
-      targetName,
-      configurationName,
-    } = getNxContext(graph, originalTarget);
-    const projectDirectory = projectNode.data.root;
-
-    if (options.buildLibsFromSource === false && targetName) {
-      const result = calculateProjectDependencies(
-        graph,
-        workspaceRoot,
-        project,
+): (phase: Phase) => Promise<NextConfig> {
+  return async (phase: Phase) => {
+    if (phase === PHASE_PRODUCTION_SERVER) {
+      // If we are running an already built production server, just return the configuration.
+      const { nx, ...validNextConfig } = _nextConfig;
+      return { ...validNextConfig, distDir: '.next' };
+    } else {
+      // Otherwise, add in webpack and eslint configuration for build or test.
+      let dependencies: DependentBuildableProjectNode[] = [];
+
+      const graph = await createProjectGraphAsync();
+
+      const originalTarget = {
+        project: process.env.NX_TASK_TARGET_PROJECT,
+        target: process.env.NX_TASK_TARGET_TARGET,
+        configuration: process.env.NX_TASK_TARGET_CONFIGURATION,
+      };
+
+      const {
+        node: projectNode,
+        options,
+        projectName: project,
         targetName,
-        configurationName
-      );
-      dependencies = result.dependencies;
-    }
+        configurationName,
+      } = getNxContext(graph, originalTarget);
+      const projectDirectory = projectNode.data.root;
+
+      if (options.buildLibsFromSource === false && targetName) {
+        const result = calculateProjectDependencies(
+          graph,
+          workspaceRoot,
+          project,
+          targetName,
+          configurationName
+        );
+        dependencies = result.dependencies;
+      }
 
-    // Get next config
-    const nextConfig = getNextConfig(_nextConfig, context);
-
-    const outputDir = `${offsetFromRoot(projectDirectory)}${
-      options.outputPath
-    }`;
-    nextConfig.distDir =
-      nextConfig.distDir && nextConfig.distDir !== '.next'
-        ? joinPathFragments(outputDir, nextConfig.distDir)
-        : joinPathFragments(outputDir, '.next');
-
-    const userWebpackConfig = nextConfig.webpack;
-
-    nextConfig.webpack = (a, b) =>
-      createWebpackConfig(
-        workspaceRoot,
-        options.root,
-        options.fileReplacements,
-        options.assets,
-        dependencies,
-        path.join(workspaceRoot, context.libsDir)
-      )(userWebpackConfig ? userWebpackConfig(a, b) : a, b);
-
-    return nextConfig;
+      // Get next config
+      const nextConfig = getNextConfig(_nextConfig, context);
+
+      const outputDir = `${offsetFromRoot(projectDirectory)}${
+        options.outputPath
+      }`;
+      nextConfig.distDir =
+        nextConfig.distDir && nextConfig.distDir !== '.next'
+          ? joinPathFragments(outputDir, nextConfig.distDir)
+          : joinPathFragments(outputDir, '.next');
+
+      const userWebpackConfig = nextConfig.webpack;
+
+      nextConfig.webpack = (a, b) =>
+        createWebpackConfig(
+          workspaceRoot,
+          options.root,
+          options.fileReplacements,
+          options.assets,
+          dependencies,
+          path.join(workspaceRoot, context.libsDir)
+        )(userWebpackConfig ? userWebpackConfig(a, b) : a, b);
+
+      return nextConfig;
+    }
   };
 }
 
diff --git a/packages/next/src/executors/build/lib/create-next-config-file.ts b/packages/next/src/executors/build/lib/create-next-config-file.ts
index 39d13be27882fa..535aa218543e7f 100644
--- a/packages/next/src/executors/build/lib/create-next-config-file.ts
+++ b/packages/next/src/executors/build/lib/create-next-config-file.ts
@@ -1,17 +1,9 @@
-import type { ExecutorContext } from '@nrwl/devkit';
-import {
-  applyChangesToString,
-  ChangeType,
-  workspaceLayout,
-  workspaceRoot,
-  stripIndents,
-} from '@nrwl/devkit';
-import * as ts from 'typescript';
-import { existsSync, readFileSync, writeFileSync } from 'fs';
+import { ExecutorContext } from '@nrwl/devkit';
+
+import { copyFileSync, existsSync } from 'fs';
 import { join } from 'path';
 
 import type { NextBuildBuilderOptions } from '../../../utils/types';
-import { findNodes } from 'nx/src/utils/typescript';
 
 export function createNextConfigFile(
   options: NextBuildBuilderOptions,
@@ -21,53 +13,7 @@ export function createNextConfigFile(
     ? join(context.root, options.nextConfig)
     : join(context.root, options.root, 'next.config.js');
 
-  // Copy config file and our `with-nx.js` file to remove dependency on @nrwl/next for production build.
   if (existsSync(nextConfigPath)) {
-    writeFileSync(join(options.outputPath, 'with-nx.js'), getWithNxContent());
-    writeFileSync(
-      join(options.outputPath, 'next.config.js'),
-      readFileSync(nextConfigPath)
-        .toString()
-        .replace('@nrwl/next/plugins/with-nx', './with-nx.js')
-    );
-  }
-}
-
-function getWithNxContent() {
-  const withNxFile = join(__dirname, '../../../../plugins/with-nx.js');
-  let withNxContent = readFileSync(withNxFile).toString();
-  const withNxSource = ts.createSourceFile(
-    withNxFile,
-    withNxContent,
-    ts.ScriptTarget.Latest,
-    true
-  );
-  const getWithNxContextDeclaration = findNodes(
-    withNxSource,
-    ts.SyntaxKind.FunctionDeclaration
-  )?.find(
-    (node: ts.FunctionDeclaration) => node.name?.text === 'getWithNxContext'
-  );
-
-  if (getWithNxContextDeclaration) {
-    withNxContent = applyChangesToString(withNxContent, [
-      {
-        type: ChangeType.Delete,
-        start: getWithNxContextDeclaration.getStart(withNxSource),
-        length: getWithNxContextDeclaration.getWidth(withNxSource),
-      },
-      {
-        type: ChangeType.Insert,
-        index: getWithNxContextDeclaration.getStart(withNxSource),
-        text: stripIndents`function getWithNxContext() {
-          return {
-            workspaceRoot: '${workspaceRoot}',
-            libsDir: '${workspaceLayout().libsDir}'
-          }
-        }`,
-      },
-    ]);
+    copyFileSync(nextConfigPath, join(options.outputPath, 'next.config.js'));
   }
-
-  return withNxContent;
 }
diff --git a/packages/next/src/generators/application/lib/add-cypress.ts b/packages/next/src/generators/application/lib/add-cypress.ts
index 33ac31ffa759b7..fb3be4b8aeae34 100644
--- a/packages/next/src/generators/application/lib/add-cypress.ts
+++ b/packages/next/src/generators/application/lib/add-cypress.ts
@@ -1,13 +1,17 @@
-import { cypressProjectGenerator } from '@nrwl/cypress';
-import { Tree } from '@nrwl/devkit';
-import { NormalizedSchema } from './normalize-options';
+import { ensurePackage, Tree } from '@nrwl/devkit';
 import { Linter } from '@nrwl/linter';
 
+import { nxVersion } from '../../../utils/versions';
+import { NormalizedSchema } from './normalize-options';
+
 export async function addCypress(host: Tree, options: NormalizedSchema) {
   if (options.e2eTestRunner !== 'cypress') {
     return () => {};
   }
 
+  const { cypressProjectGenerator } = ensurePackage<
+    typeof import('@nrwl/cypress')
+  >('@nrwl/cypress', nxVersion);
   return cypressProjectGenerator(host, {
     ...options,
     linter: Linter.EsLint,
diff --git a/packages/next/src/generators/application/lib/add-jest.ts b/packages/next/src/generators/application/lib/add-jest.ts
index 3237a4ebb664ff..5e6e52e5de28df 100644
--- a/packages/next/src/generators/application/lib/add-jest.ts
+++ b/packages/next/src/generators/application/lib/add-jest.ts
@@ -1,5 +1,12 @@
-import { joinPathFragments, readJson, Tree, updateJson } from '@nrwl/devkit';
-import { jestProjectGenerator } from '@nrwl/jest';
+import {
+  ensurePackage,
+  joinPathFragments,
+  readJson,
+  Tree,
+  updateJson,
+} from '@nrwl/devkit';
+
+import { nxVersion } from '../../../utils/versions';
 import { NormalizedSchema } from './normalize-options';
 
 export async function addJest(host: Tree, options: NormalizedSchema) {
@@ -7,6 +14,10 @@ export async function addJest(host: Tree, options: NormalizedSchema) {
     return () => {};
   }
 
+  const { jestProjectGenerator } = ensurePackage<typeof import('@nrwl/jest')>(
+    '@nrwl/jest',
+    nxVersion
+  );
   const jestTask = await jestProjectGenerator(host, {
     ...options,
     project: options.projectName,
diff --git a/packages/next/src/generators/init/init.ts b/packages/next/src/generators/init/init.ts
index acdeb2034390db..dd7c4e225c6f95 100644
--- a/packages/next/src/generators/init/init.ts
+++ b/packages/next/src/generators/init/init.ts
@@ -1,13 +1,12 @@
 import {
   addDependenciesToPackageJson,
   convertNxGenerator,
+  ensurePackage,
   GeneratorCallback,
   runTasksInSerial,
   Tree,
 } from '@nrwl/devkit';
 
-import { jestInitGenerator } from '@nrwl/jest';
-import { cypressInitGenerator } from '@nrwl/cypress';
 import { reactDomVersion, reactVersion } from '@nrwl/react/src/utils/versions';
 import reactInitGenerator from '@nrwl/react/src/generators/init/init';
 import { initGenerator as jsInitGenerator } from '@nrwl/js';
@@ -48,10 +47,17 @@ export async function nextInitGenerator(host: Tree, schema: InitSchema) {
   );
 
   if (!schema.unitTestRunner || schema.unitTestRunner === 'jest') {
+    const { jestInitGenerator } = ensurePackage<typeof import('@nrwl/jest')>(
+      '@nrwl/jest',
+      nxVersion
+    );
     const jestTask = await jestInitGenerator(host, schema);
     tasks.push(jestTask);
   }
   if (!schema.e2eTestRunner || schema.e2eTestRunner === 'cypress') {
+    const { cypressInitGenerator } = ensurePackage<
+      typeof import('@nrwl/cypress')
+    >('@nrwl/cypress', nxVersion);
     const cypressTask = await cypressInitGenerator(host, {});
     tasks.push(cypressTask);
   }
diff --git a/packages/next/src/utils/config.ts b/packages/next/src/utils/config.ts
index 9b5cb25b72280b..3e6a0cc885bf1b 100644
--- a/packages/next/src/utils/config.ts
+++ b/packages/next/src/utils/config.ts
@@ -2,7 +2,7 @@ import { join, resolve } from 'path';
 import { TsconfigPathsPlugin } from 'tsconfig-paths-webpack-plugin';
 import { Configuration, RuleSetRule } from 'webpack';
 import { FileReplacement } from './types';
-import { createCopyPlugin, normalizeAssets } from '@nrwl/webpack';
+import { createCopyPlugin } from './create-copy-plugin';
 import {
   createTmpTsConfig,
   DependentBuildableProjectNode,
@@ -77,14 +77,7 @@ export function createWebpackConfig(
 
     // Copy (shared) assets to `public` folder during client-side compilation
     if (!isServer && Array.isArray(assets) && assets.length > 0) {
-      config.plugins.push(
-        createCopyPlugin(
-          normalizeAssets(assets, workspaceRoot, projectRoot).map((asset) => ({
-            ...asset,
-            output: join('../public', asset.output),
-          }))
-        )
-      );
+      config.plugins.push(createCopyPlugin(assets, workspaceRoot, projectRoot));
     }
 
     return config;
diff --git a/packages/next/src/utils/create-copy-plugin.ts b/packages/next/src/utils/create-copy-plugin.ts
new file mode 100644
index 00000000000000..01294f2f0be174
--- /dev/null
+++ b/packages/next/src/utils/create-copy-plugin.ts
@@ -0,0 +1,83 @@
+import * as CopyWebpackPlugin from 'copy-webpack-plugin';
+import { normalizePath } from 'nx/src/utils/path';
+import { basename, dirname, join, relative, resolve } from 'path';
+import { statSync } from 'fs';
+
+interface AssetGlobPattern {
+  glob: string;
+  input: string;
+  output: string;
+  ignore?: string[];
+}
+
+function normalizeAssets(
+  assets: any[],
+  root: string,
+  sourceRoot: string
+): AssetGlobPattern[] {
+  return assets.map((asset) => {
+    if (typeof asset === 'string') {
+      const assetPath = normalizePath(asset);
+      const resolvedAssetPath = resolve(root, assetPath);
+      const resolvedSourceRoot = resolve(root, sourceRoot);
+
+      if (!resolvedAssetPath.startsWith(resolvedSourceRoot)) {
+        throw new Error(
+          `The ${resolvedAssetPath} asset path must start with the project source root: ${sourceRoot}`
+        );
+      }
+
+      const isDirectory = statSync(resolvedAssetPath).isDirectory();
+      const input = isDirectory
+        ? resolvedAssetPath
+        : dirname(resolvedAssetPath);
+      const output = relative(resolvedSourceRoot, resolve(root, input));
+      const glob = isDirectory ? '**/*' : basename(resolvedAssetPath);
+      return {
+        input,
+        output,
+        glob,
+      };
+    } else {
+      if (asset.output.startsWith('..')) {
+        throw new Error(
+          'An asset cannot be written to a location outside of the output path.'
+        );
+      }
+
+      const assetPath = normalizePath(asset.input);
+      const resolvedAssetPath = resolve(root, assetPath);
+      return {
+        ...asset,
+        input: resolvedAssetPath,
+        // Now we remove starting slash to make Webpack place it from the output root.
+        output: asset.output.replace(/^\//, ''),
+      };
+    }
+  });
+}
+
+export function createCopyPlugin(
+  assets: any[],
+  root: string,
+  sourceRoot: string
+) {
+  return new CopyWebpackPlugin({
+    patterns: normalizeAssets(assets, root, sourceRoot).map((asset) => {
+      return {
+        context: asset.input,
+        to: join('../public', asset.output),
+        from: asset.glob,
+        globOptions: {
+          ignore: [
+            '.gitkeep',
+            '**/.DS_Store',
+            '**/Thumbs.db',
+            ...(asset.ignore ?? []),
+          ],
+          dot: true,
+        },
+      };
+    }),
+  });
+}