diff --git a/images/homelab-workspace/Dockerfile b/images/homelab-workspace/Dockerfile
index 7374c72c..7e5be654 100644
--- a/images/homelab-workspace/Dockerfile
+++ b/images/homelab-workspace/Dockerfile
@@ -500,8 +500,4 @@ COPY --link --chown=root:root --chmod=755 coder/*.sh /opt/coder/bin/
 
 RUN rm -f /etc/apt/apt.conf.d/keep-cache
 
-# Add `coder` user (coder platform will connect the user in as this user)
-# hadolint ignore=DL3059
-RUN useradd coder --no-create-home --shell /bin/bash -g coder --groups sudo,docker
-USER coder
 WORKDIR /
diff --git a/templates/docker/homelab-workspace/main.tf b/templates/docker/homelab-workspace/main.tf
index fa7f66fe..2dc7d8af 100644
--- a/templates/docker/homelab-workspace/main.tf
+++ b/templates/docker/homelab-workspace/main.tf
@@ -35,13 +35,16 @@ else
   DEBIAN_FRONTEND="noninteractive" apt-get install -yq --no-install-recommends curl sudo adduser
 fi
 echo "---------------------------------------------------------------------------------"
-if grep coder /etc/passwd > /dev/null; then
-  echo "Modifying user: coder -> ${local.username}..."
-  usermod --home /home/${local.username} --shell /bin/bash --login $username coder
-else
-  echo "Creating user - ${local.username}..."
-  useradd --groups sudo --home-dir /home/${local.username} --shell /bin/bash ${local.username}
+if ! getent group coder > /dev/null; then
+  echo "Creating group: coder..."
+  groupadd coder
+fi
+if ! getent group docker > /dev/null; then
+  echo "Creating group: docker..."
+  groupadd docker
 fi
+echo "Creating user - ${local.username}..."
+useradd -g coder --groups sudo,docker --home-dir /home/${local.username} --shell /bin/bash ${local.username}
 # allow coder user to sudo to so that they can run any system actions (such as using apt-get) within their workspace container.
 echo "Enabling ${local.username} to sudo"
 echo "${local.username} ALL=(ALL) NOPASSWD:ALL" >/etc/sudoers.d/${local.username}