diff --git a/common/tools/dev-tool/src/util/testProxyUtils.ts b/common/tools/dev-tool/src/util/testProxyUtils.ts
index dfd6ffe93bc7..0f4bffc316e2 100644
--- a/common/tools/dev-tool/src/util/testProxyUtils.ts
+++ b/common/tools/dev-tool/src/util/testProxyUtils.ts
@@ -287,8 +287,7 @@ export async function isProxyToolActive(): Promise<boolean> {
     }
 
     log.info(
-      `Proxy tool seems to be active at http://localhost:${
-        process.env.TEST_PROXY_HTTP_PORT ?? 5000
+      `Proxy tool seems to be active at http://localhost:${process.env.TEST_PROXY_HTTP_PORT ?? 5000
       }\n`,
     );
     return true;
@@ -299,15 +298,30 @@ export async function isProxyToolActive(): Promise<boolean> {
 
 async function getTargetVersion() {
   // Grab the tag from the `/eng/common/testproxy/target_version.txt` file [..is used to control the default version]
+  // 
+  // In times of longer lived version override, the file eng/target_proxy_version.txt can be used to override this version
+  // in both CI and local development.
   // Example content:
   //
   // 1.0.0-dev.20220224.2
   // (Bot regularly updates the tag in the file above.)
   try {
-    const contentInVersionFile = await fs.readFile(
-      `${path.join(await resolveRoot(), "eng/common/testproxy/target_version.txt")}`,
-      "utf-8",
-    );
+    let contentInVersionFile: string;
+    const overrideFile = `${path.join(await resolveRoot(), "eng/target_proxy_version.txt")}`;
+    const overrideExists = await fs.exists(overrideFile);
+
+    if (overrideExists) {
+      contentInVersionFile = await fs.readFile(
+        overrideFile,
+        "utf-8",
+      );
+    }
+    else {
+      contentInVersionFile = await fs.readFile(
+        `${path.join(await resolveRoot(), "eng/common/testproxy/target_version.txt")}`,
+        "utf-8",
+      );
+    }
 
     const tag = contentInVersionFile.trim();
 
diff --git a/eng/common/testproxy/test-proxy-docker.yml b/eng/common/testproxy/test-proxy-docker.yml
deleted file mode 100644
index 307b5032a494..000000000000
--- a/eng/common/testproxy/test-proxy-docker.yml
+++ /dev/null
@@ -1,40 +0,0 @@
-parameters:
-  rootFolder: '$(Build.SourcesDirectory)'
-  targetVersion: ''
-  templateRoot: '$(Build.SourcesDirectory)'
-  condition: true
-
-steps:
-  - pwsh: |
-        ${{ parameters.templateRoot }}/eng/common/scripts/trust-proxy-certificate.ps1
-    displayName: 'Language Specific Certificate Trust'
-    condition: and(succeeded(), ${{ parameters.condition }})
-
-  - task: PowerShell@2
-    displayName: 'Override proxy version if necessary'
-    condition: and(succeeded(), ${{ parameters.condition }}, ne('${{ parameters.targetVersion }}', ''))
-    inputs:
-      targetType: filePath
-      filePath: '${{ parameters.templateRoot }}/eng/common/testproxy/scripts/override-proxy-version.ps1'
-      arguments: '-TargetVersion "${{ parameters.targetVersion }}"'
-      pwsh: true
-
-  - pwsh: |
-      docker info
-    displayName: 'Dump active docker information'
-    condition: and(succeeded(), ${{ parameters.condition }})
-
-  - pwsh: |
-      ${{ parameters.templateRoot }}/eng/common/testproxy/docker-start-proxy.ps1 -Mode start -TargetFolder "${{ parameters.rootFolder }}" -VersionOverride="${{ parameters.targetVersion }}"
-    displayName: 'Run the docker container'
-    condition: and(succeeded(), ${{ parameters.condition }})
-
-  - pwsh: |
-      docker container ls -a
-    displayName: Check running container
-    condition: and(succeeded(), ${{ parameters.condition }})
-
-  - pwsh: |
-      Write-Host "##vso[task.setvariable variable=PROXY_MANUAL_START]true"
-    displayName: 'Set PROXY_MANUAL_START'
-    condition: and(succeeded(), ${{ parameters.condition }})
diff --git a/eng/common/testproxy/test-proxy-tool.yml b/eng/common/testproxy/test-proxy-tool.yml
index d9a166841926..9494b1cf0bfb 100644
--- a/eng/common/testproxy/test-proxy-tool.yml
+++ b/eng/common/testproxy/test-proxy-tool.yml
@@ -22,7 +22,17 @@ steps:
       pwsh: true
 
   - pwsh: |
-      $version = $(Get-Content "${{ parameters.templateRoot }}/eng/common/testproxy/target_version.txt" -Raw).Trim()
+      $standardVersion = "${{ parameters.templateRoot }}/eng/common/testproxy/target_version.txt"
+      $overrideVersion = "${{ parameters.templateRoot }}/eng/target_proxy_version.txt"
+
+      $version = $(Get-Content $standardVersion -Raw).Trim()
+
+      if (Test-Path $overrideVersion) {
+        $version = $(Get-Content $overrideVersion -Raw).Trim()
+      }
+
+      Write-Host "Installing test-proxy version $version"
+
       dotnet tool install azure.sdk.tools.testproxy `
         --tool-path $(Build.BinariesDirectory)/test-proxy `
         --add-source https://pkgs.dev.azure.com/azure-sdk/public/_packaging/azure-sdk-for-net/nuget/v3/index.json `
diff --git a/eng/target_proxy_version.txt b/eng/target_proxy_version.txt
new file mode 100644
index 000000000000..1979eff49e7b
--- /dev/null
+++ b/eng/target_proxy_version.txt
@@ -0,0 +1 @@
+1.0.0-dev.20240410.1