diff --git a/server/backend/sqlite/sqlite.go b/server/backend/sqlite/sqlite.go
index d38ae26b8d0e801f2771a5346329dd10658bdbc9..91527e3fcc0a82b8b35e8f1cba9eab55477cd8bb 100644
--- a/server/backend/sqlite/sqlite.go
+++ b/server/backend/sqlite/sqlite.go
@@ -603,9 +603,6 @@ func (d *SqliteBackend) RemoveCollaborator(repo string, username string) error {
 }
 
 func (d *SqliteBackend) initRepo(repo string) error {
-	if os.Getenv("SOFT_SERVE_TEST_NO_HOOKS") == "1" {
-		return nil
-	}
 	return hooks.GenerateHooks(d.ctx, d.cfg, repo)
 }
 
diff --git a/server/hooks/hooks.go b/server/hooks/hooks.go
index 08968ed1056f46c7313279025a3c134633456056..adf185d3c8efdb43e7fcb4ce326b5e1339d9675f 100644
--- a/server/hooks/hooks.go
+++ b/server/hooks/hooks.go
@@ -3,6 +3,7 @@ package hooks
 import (
 	"bytes"
 	"context"
+	"flag"
 	"fmt"
 	"os"
 	"path/filepath"
@@ -28,8 +29,12 @@ const (
 // - post-update
 //
 // This function should be called by the backend when a repository is created.
-// TODO: support context
-func GenerateHooks(ctx context.Context, cfg *config.Config, repo string) error {
+// TODO: support context.
+func GenerateHooks(_ context.Context, cfg *config.Config, repo string) error {
+	if flag.Lookup("test.v") != nil {
+		log.WithPrefix("backend.hooks").Warn("refusing to set up hooks when in test")
+		return nil
+	}
 	repo = utils.SanitizeRepo(repo) + ".git"
 	hooksPath := filepath.Join(cfg.DataPath, "repos", repo, "hooks")
 	if err := os.MkdirAll(hooksPath, os.ModePerm); err != nil {
diff --git a/testscript/script_test.go b/testscript/script_test.go
index b31f4438bdfb5a11bd72251e310a41f64b139abd..468cb4f82ca330ac9914c176e849860cfbc6c98f 100644
--- a/testscript/script_test.go
+++ b/testscript/script_test.go
@@ -28,8 +28,6 @@ func TestScript(t *testing.T) {
 	flag.Parse()
 	var lock sync.Mutex
 
-	t.Setenv("SOFT_SERVE_TEST_NO_HOOKS", "1")
-
 	mkkey := func(name string) (string, *keygen.SSHKeyPair) {
 		path := filepath.Join(t.TempDir(), name)
 		pair, err := keygen.New(path, keygen.WithKeyType(keygen.Ed25519), keygen.WithWrite())