diff --git a/.gitignore b/.gitignore
index 749c86dc6fcd4..75f33e5b02a5b 100644
--- a/.gitignore
+++ b/.gitignore
@@ -32,6 +32,7 @@
 **/doc/api/
 .flutter-plugins
 .packages
+.pub-cache/
 .pub/
 build/
 flutter_*.png
diff --git a/bin/flutter b/bin/flutter
index ee4131c002cdb..587711b2c05e7 100755
--- a/bin/flutter
+++ b/bin/flutter
@@ -16,7 +16,7 @@ set -e
 
 function follow_links() {
   cd -P "${1%/*}"
-  file="$PWD/${1##*/}"
+  local file="$PWD/${1##*/}"
   while [ -h "$file" ]; do
     # On Mac OS, readlink -f doesn't work.
     cd -P "${file%/*}"
@@ -33,6 +33,39 @@ function path_uri() {
   echo "$1" | sed -E -e "s,^/+,/,"
 }
 
+function upgrade_flutter () {
+  if hash flock 2>/dev/null; then
+    flock 3 # ensures that we don't simultaneously update Dart in multiple parallel instances
+    # some platforms (e.g. Mac) don't have flock or any reliable alternative
+  fi
+
+  local revision=`(cd "$FLUTTER_ROOT"; git rev-parse HEAD)`
+  if [ ! -f "$SNAPSHOT_PATH" ] || [ ! -s "$STAMP_PATH" ] || [ `cat "$STAMP_PATH"` != "$revision" ] || [ "$FLUTTER_TOOLS_DIR/pubspec.yaml" -nt "$FLUTTER_TOOLS_DIR/pubspec.lock" ]; then
+    mkdir -p "$FLUTTER_ROOT/bin/cache"
+    touch "$FLUTTER_ROOT/bin/cache/.dartignore"
+    "$FLUTTER_ROOT/bin/internal/update_dart_sdk.sh"
+
+    echo Building flutter tool...
+    if [ "$TRAVIS" == "true" ] || [ "$BOT" == "true" ] || [ "$CONTINUOUS_INTEGRATION" == "true" ] || [ "$CHROME_HEADLESS" == "1" ] || [ "$APPVEYOR" == "true" ] || [ "$CI" == "true" ]; then
+      PUB_ENVIRONMENT="$PUB_ENVIRONMENT:flutter_bot"
+    fi
+    export PUB_ENVIRONMENT="$PUB_ENVIRONMENT:flutter_install"
+
+    if [ -d "$FLUTTER_ROOT/.pub-cache" ]; then
+      export PUB_CACHE="${PUB_CACHE:-"$FLUTTER_ROOT/.pub-cache"}"
+    fi
+
+    while : ; do
+      cd "$FLUTTER_TOOLS_DIR"
+      "$PUB" upgrade --verbosity=error --no-packages-dir && break
+      echo Error: Unable to 'pub upgrade' flutter tool. Retrying in five seconds...
+      sleep 5
+    done
+    "$DART" --snapshot="$SNAPSHOT_PATH" --packages="$FLUTTER_TOOLS_DIR/.packages" "$SCRIPT_PATH"
+    echo "$revision" > "$STAMP_PATH"
+  fi
+}
+
 PROG_NAME="$(path_uri "$(follow_links "$BASH_SOURCE")")"
 BIN_DIR="$(cd "${PROG_NAME%/*}" ; pwd -P)"
 export FLUTTER_ROOT="$(cd "${BIN_DIR}/.." ; pwd -P)"
@@ -70,33 +103,7 @@ FLUTTER_TOOL_ARGS="--assert-initializer $FLUTTER_TOOL_ARGS"
 # FLUTTER_TOOL_ARGS="--checked $FLUTTER_TOOL_ARGS"
 # FLUTTER_TOOL_ARGS="$FLUTTER_TOOL_ARGS --observe=65432"
 
-(
-  if hash flock 2>/dev/null; then
-    flock 3 # ensures that we don't simultaneously update Dart in multiple parallel instances
-    # some platforms (e.g. Mac) don't have flock or any reliable alternative
-  fi
-  REVISION=`(cd "$FLUTTER_ROOT"; git rev-parse HEAD)`
-  if [ ! -f "$SNAPSHOT_PATH" ] || [ ! -s "$STAMP_PATH" ] || [ `cat "$STAMP_PATH"` != "$REVISION" ] || [ "$FLUTTER_TOOLS_DIR/pubspec.yaml" -nt "$FLUTTER_TOOLS_DIR/pubspec.lock" ]; then
-    mkdir -p "$FLUTTER_ROOT/bin/cache"
-    touch "$FLUTTER_ROOT/bin/cache/.dartignore"
-    "$FLUTTER_ROOT/bin/internal/update_dart_sdk.sh"
-
-    echo Building flutter tool...
-    LOCAL_PUB_ENV="$PUB_ENVIRONMENT"
-    if [ "$TRAVIS" == "true" ] || [ "$BOT" == "true" ] || [ "$CONTINUOUS_INTEGRATION" == "true" ] || [ "$CHROME_HEADLESS" == "1" ] || [ "$APPVEYOR" == "true" ] || [ "$CI" == "true" ]; then
-      LOCAL_PUB_ENV="$LOCAL_PUB_ENV:flutter_bot"
-    fi
-    LOCAL_PUB_ENV="$LOCAL_PUB_ENV:flutter_install"
-    while : ; do
-      cd "$FLUTTER_TOOLS_DIR"
-      PUB_ENVIRONMENT="$LOCAL_PUB_ENV" "$PUB" upgrade --verbosity=error --no-packages-dir && break
-      echo Error: Unable to 'pub upgrade' flutter tool. Retrying in five seconds...
-      sleep 5
-    done
-    "$DART" --snapshot="$SNAPSHOT_PATH" --packages="$FLUTTER_TOOLS_DIR/.packages" "$SCRIPT_PATH"
-    echo $REVISION > "$STAMP_PATH"
-  fi
-) 3< "$PROG_NAME"
+(upgrade_flutter) 3< "$PROG_NAME"
 
 set +e
 "$DART" $FLUTTER_TOOL_ARGS "$SNAPSHOT_PATH" "$@"
diff --git a/bin/flutter.bat b/bin/flutter.bat
index 5318ccf834863..ce317cdfecc4d 100644
--- a/bin/flutter.bat
+++ b/bin/flutter.bat
@@ -24,6 +24,7 @@ SET script_path=%flutter_tools_dir%\bin\flutter_tools.dart
 SET dart_sdk_path=%cache_dir%\dart-sdk
 SET dart_stamp_path=%cache_dir%\dart-sdk.stamp
 SET dart_version_path=%FLUTTER_ROOT%\bin\internal\dart-sdk.version
+SET pub_cache_path=%FLUTTER_ROOT%\.pub-cache
 
 SET dart=%dart_sdk_path%\bin\dart.exe
 SET pub=%dart_sdk_path%\bin\pub.bat
@@ -106,6 +107,9 @@ GOTO :after_subroutine
         SET PUB_ENVIRONMENT=%PUB_ENVIRONMENT%:flutter_bot
       :not_on_bot
       SET PUB_ENVIRONMENT=%PUB_ENVIRONMENT%:flutter_install
+      IF "%PUB_CACHE%" == "" (
+       IF EXIST "%pub_cache_path%" SET PUB_CACHE=%pub_cache_path%
+      )
       :retry_pub_upgrade
       CALL "%pub%" upgrade --verbosity=error --no-packages-dir
       IF "%ERRORLEVEL%" NEQ "0" (
diff --git a/dev/bots/docs.sh b/dev/bots/docs.sh
index 4d9aaabce11be..fe07298f9549d 100755
--- a/dev/bots/docs.sh
+++ b/dev/bots/docs.sh
@@ -3,20 +3,29 @@ set -e
 
 # If you want to run this script locally, make sure you run it from
 # the root of the flutter repository.
+export FLUTTER_ROOT="$PWD"
 
 # This is called from travis_upload.sh on Travis.
 
 # Make sure dart is installed
 bin/flutter --version
 
+# If the pub cache directory exists in the root, then use that.
+FLUTTER_PUB_CACHE="$FLUTTER_ROOT/.pub-cache"
+if [ -d "$FLUTTER_PUB_CACHE" ]; then
+  # This has to be exported, because pub interprets setting it
+  # to the empty string in the same way as setting it to ".".
+  export PUB_CACHE="${PUB_CACHE:-"$FLUTTER_PUB_CACHE"}"
+fi
+
 # Install dartdoc.
 bin/cache/dart-sdk/bin/pub global activate dartdoc 0.14.1
 
 # This script generates a unified doc set, and creates
 # a custom index.html, placing everything into dev/docs/doc.
 (cd dev/tools; ../../bin/cache/dart-sdk/bin/pub get)
-FLUTTER_ROOT=$PWD bin/cache/dart-sdk/bin/dart dev/tools/dartdoc.dart
-FLUTTER_ROOT=$PWD bin/cache/dart-sdk/bin/dart dev/tools/java_and_objc_doc.dart
+bin/cache/dart-sdk/bin/dart dev/tools/dartdoc.dart
+bin/cache/dart-sdk/bin/dart dev/tools/java_and_objc_doc.dart
 
 # Ensure google webmaster tools can verify our site.
 cp dev/docs/google2ed1af765c529f57.html dev/docs/doc
diff --git a/dev/bots/test.dart b/dev/bots/test.dart
index 05135fb7836bd..dbfc795edc2aa 100644
--- a/dev/bots/test.dart
+++ b/dev/bots/test.dart
@@ -14,6 +14,7 @@ final String flutterRoot = path.dirname(path.dirname(path.dirname(path.fromUri(P
 final String flutter = path.join(flutterRoot, 'bin', Platform.isWindows ? 'flutter.bat' : 'flutter');
 final String dart = path.join(flutterRoot, 'bin', 'cache', 'dart-sdk', 'bin', Platform.isWindows ? 'dart.exe' : 'dart');
 final String pub = path.join(flutterRoot, 'bin', 'cache', 'dart-sdk', 'bin', Platform.isWindows ? 'pub.bat' : 'pub');
+final String pubCache = path.join(flutterRoot, '.pub-cache');
 final String flutterTestArgs = Platform.environment['FLUTTER_TEST_ARGS'];
 final bool hasColor = stdout.supportsAnsiEscapes;
 
@@ -204,8 +205,12 @@ Future<Null> _pubRunTest(
   final List<String> args = <String>['run', 'test', '-j1', '-rexpanded'];
   if (testPath != null)
     args.add(testPath);
+  final Map<String, String> pubEnvironment = <String, String>{'DART_VM_OPTIONS': '--assert-initializer'};
+  if (new Directory(pubCache).existsSync()) {
+    pubEnvironment['PUB_CACHE'] = pubCache;
+  }
   return _runCommand(pub, args, workingDirectory: workingDirectory,
-      environment: <String, String>{'DART_VM_OPTIONS': '--assert-initializer'});
+      environment: pubEnvironment);
 }
 
 class EvalResult {
diff --git a/dev/tools/dartdoc.dart b/dev/tools/dartdoc.dart
index 4bb53d0559f99..36816c794c9f6 100644
--- a/dev/tools/dartdoc.dart
+++ b/dev/tools/dartdoc.dart
@@ -65,14 +65,25 @@ dependencies:
   }
   new File('dev/docs/lib/temp_doc.dart').writeAsStringSync(contents.toString());
 
+  final String flutterRoot = Directory.current.path;
+  final Map<String, String> pubEnvironment = <String, String>{
+    'FLUTTER_ROOT': flutterRoot,
+  };
+
+  // If there's a .pub-cache dir in the flutter root, use that.
+  final String pubCachePath = '$flutterRoot/.pub-cache';
+  if (new Directory(pubCachePath).existsSync()) {
+    pubEnvironment['PUB_CACHE'] = pubCachePath;
+  }
+
+  final String pubExecutable = '$flutterRoot/bin/cache/dart-sdk/bin/pub';
+
   // Run pub.
   Process process = await Process.start(
-    '../../bin/cache/dart-sdk/bin/pub',
+    pubExecutable,
     <String>['get'],
     workingDirectory: 'dev/docs',
-    environment: <String, String>{
-      'FLUTTER_ROOT': Directory.current.path,
-    },
+    environment: pubEnvironment,
   );
   printStream(process.stdout, prefix: 'pub:stdout: ');
   printStream(process.stderr, prefix: 'pub:stderr: ');
@@ -84,9 +95,10 @@ dependencies:
 
   // Verify which version of dartdoc we're using.
   final ProcessResult result = Process.runSync(
-    '../../bin/cache/dart-sdk/bin/pub',
+    pubExecutable,
     <String>['global', 'run', 'dartdoc', '--version'],
     workingDirectory: 'dev/docs',
+    environment: pubEnvironment,
   );
   print('\n${result.stdout}');
 
@@ -113,9 +125,10 @@ dependencies:
   }
 
   process = await Process.start(
-    '../../bin/cache/dart-sdk/bin/pub',
+    pubExecutable,
     args,
     workingDirectory: 'dev/docs',
+    environment: pubEnvironment,
   );
   printStream(process.stdout, prefix: 'dartdoc:stdout: ',
     filter: kVerbose ? const <Pattern>[] : <Pattern>[
diff --git a/packages/flutter_tools/lib/src/dart/pub.dart b/packages/flutter_tools/lib/src/dart/pub.dart
index b1376b58844e7..2ec4dc3f3f150 100644
--- a/packages/flutter_tools/lib/src/dart/pub.dart
+++ b/packages/flutter_tools/lib/src/dart/pub.dart
@@ -148,16 +148,26 @@ List<String> _pubCommand(List<String> arguments) {
 ///
 /// [context] provides extra information to package server requests to
 /// understand usage. It must match the regular expression `[a-z][a-z_]*[a-z]`.
-Map<String, String> _createPubEnvironment(String context) => <String, String>{
-  'FLUTTER_ROOT': Cache.flutterRoot,
-  _pubEnvironmentKey: _getPubEnvironmentValue(context),
-};
+Map<String, String> _createPubEnvironment(String context) {
+  final Map<String, String> environment = <String, String>{
+    'FLUTTER_ROOT': Cache.flutterRoot,
+    _pubEnvironmentKey: _getPubEnvironmentValue(context),
+  };
+  final String pubCache = _getRootPubCacheIfAvailable();
+  if (pubCache != null) {
+    environment[_pubCacheEnvironmentKey] = pubCache;
+  }
+  return environment;
+}
 
 final RegExp _analyzerWarning = new RegExp(r'^! \w+ [^ ]+ from path \.\./\.\./bin/cache/dart-sdk/lib/\w+$');
 
 /// The console environment key used by the pub tool.
 const String _pubEnvironmentKey = 'PUB_ENVIRONMENT';
 
+/// The console environment key used by the pub tool to find the cache directory.
+const String _pubCacheEnvironmentKey = 'PUB_CACHE';
+
 final RegExp _validContext = new RegExp('[a-z][a-z_]*[a-z]');
 
 /// Returns the environment value that should be used when running pub.
@@ -189,6 +199,21 @@ String _getPubEnvironmentValue(String pubContext) {
   return values.join(':');
 }
 
+String _getRootPubCacheIfAvailable() {
+  if (platform.environment.containsKey(_pubCacheEnvironmentKey)) {
+    return platform.environment[_pubCacheEnvironmentKey];
+  }
+
+  final String cachePath = fs.path.join(Cache.flutterRoot, '.pub-cache');
+  if (fs.directory(cachePath).existsSync()) {
+    printTrace('Using $cachePath for the pub cache.');
+    return cachePath;
+  }
+
+  // Use pub's default location by returning null.
+  return null;
+}
+
 String _filterOverrideWarnings(String message) {
   // This function filters out these three messages:
   //   Warning: You are using these overridden dependencies:
diff --git a/packages/flutter_tools/test/dart/pub_get_test.dart b/packages/flutter_tools/test/dart/pub_get_test.dart
index 7756ab421009f..82e489b938505 100644
--- a/packages/flutter_tools/test/dart/pub_get_test.dart
+++ b/packages/flutter_tools/test/dart/pub_get_test.dart
@@ -8,7 +8,9 @@ import 'package:file/file.dart';
 import 'package:file/memory.dart';
 import 'package:flutter_tools/src/base/context.dart';
 import 'package:flutter_tools/src/base/io.dart';
+import 'package:flutter_tools/src/base/platform.dart';
 import 'package:flutter_tools/src/dart/pub.dart';
+
 import 'package:mockito/mockito.dart';
 import 'package:process/process.dart';
 import 'package:quiver/testing/async.dart';
@@ -26,8 +28,8 @@ void main() {
       expect(processMock.lastPubEnvironmment, isNull);
       pubGet(context: 'flutter_tests', checkLastModified: false).then((Null value) {
         error = 'test completed unexpectedly';
-      }, onError: (dynamic error) {
-        error = 'test failed unexpectedly';
+      }, onError: (dynamic thrownError) {
+        error = 'test failed unexpectedly: $thrownError';
       });
       expect(testLogger.statusText, '');
       time.elapse(const Duration(milliseconds: 500));
@@ -36,6 +38,7 @@ void main() {
         'pub get failed (69) -- attempting retry 1 in 1 second...\n'
       );
       expect(processMock.lastPubEnvironmment, contains('flutter_cli:ctx_flutter_tests'));
+      expect(processMock.lastPubCache, isNull);
       time.elapse(const Duration(milliseconds: 500));
       expect(testLogger.statusText,
         'Running "flutter packages get" in /...\n'
@@ -79,6 +82,61 @@ void main() {
   }, overrides: <Type, Generator>{
     ProcessManager: () => new MockProcessManager(69),
     FileSystem: () => new MockFileSystem(),
+    Platform: () => new FakePlatform(
+      environment: <String, String>{},
+    ),
+  });
+
+  testUsingContext('pub cache in root is used', () async {
+    String error;
+
+    final MockProcessManager processMock = context.getVariable(ProcessManager);
+
+    new FakeAsync().run((FakeAsync time) {
+      MockDirectory.findCache = true;
+      expect(processMock.lastPubEnvironmment, isNull);
+      expect(processMock.lastPubCache, isNull);
+      pubGet(context: 'flutter_tests', checkLastModified: false).then((Null value) {
+        error = 'test completed unexpectedly';
+      }, onError: (dynamic thrownError) {
+        error = 'test failed unexpectedly: $thrownError';
+      });
+      time.elapse(const Duration(milliseconds: 500));
+      expect(processMock.lastPubCache, endsWith('flutter/.pub-cache'));
+      expect(error, isNull);
+    });
+  }, overrides: <Type, Generator>{
+    ProcessManager: () => new MockProcessManager(69),
+    FileSystem: () => new MockFileSystem(),
+    Platform: () => new FakePlatform(
+      environment: <String, String>{},
+    ),
+  });
+
+  testUsingContext('pub cache in environment is used', () async {
+    String error;
+
+    final MockProcessManager processMock = context.getVariable(ProcessManager);
+
+    new FakeAsync().run((FakeAsync time) {
+      MockDirectory.findCache = false;
+      expect(processMock.lastPubEnvironmment, isNull);
+      expect(processMock.lastPubCache, isNull);
+      pubGet(context: 'flutter_tests', checkLastModified: false).then((Null value) {
+        error = 'test completed unexpectedly';
+      }, onError: (dynamic thrownError) {
+        error = 'test failed unexpectedly: $thrownError';
+      });
+      time.elapse(const Duration(milliseconds: 500));
+      expect(processMock.lastPubCache, equals('path/to/pub-cache'));
+      expect(error, isNull);
+    });
+  }, overrides: <Type, Generator>{
+    ProcessManager: () => new MockProcessManager(69),
+    FileSystem: () => new MockFileSystem(),
+    Platform: () => new FakePlatform(
+      environment: <String, String>{'PUB_CACHE': 'path/to/pub-cache'},
+    ),
   });
 }
 
@@ -90,6 +148,7 @@ class MockProcessManager implements ProcessManager {
   final int fakeExitCode;
 
   String lastPubEnvironmment;
+  String lastPubCache;
 
   @override
   Future<Process> start(
@@ -101,6 +160,7 @@ class MockProcessManager implements ProcessManager {
     ProcessStartMode mode: ProcessStartMode.NORMAL,
   }) {
     lastPubEnvironmment = environment['PUB_ENVIRONMENT'];
+    lastPubCache = environment['PUB_CACHE'];
     return new Future<Process>.value(new MockProcess(fakeExitCode));
   }
 
@@ -159,6 +219,11 @@ class MockFileSystem extends MemoryFileSystem {
   File file(dynamic path) {
     return new MockFile();
   }
+
+  @override
+  Directory directory(dynamic path) {
+    return new MockDirectory(path);
+  }
 }
 
 class MockFile implements File {
@@ -177,4 +242,19 @@ class MockFile implements File {
   dynamic noSuchMethod(Invocation invocation) => null;
 }
 
+class MockDirectory implements Directory {
+  static bool findCache = false;
+
+  MockDirectory(this.path);
+
+  @override
+  final String path;
+
+  @override
+  bool existsSync() => findCache && path.endsWith('.pub-cache');
+
+  @override
+  dynamic noSuchMethod(Invocation invocation) => null;
+}
+
 class MockRandomAccessFile extends Mock implements RandomAccessFile {}