diff --git a/.gitignore b/.gitignore
index ef7be5f3a..f052a4b89 100644
--- a/.gitignore
+++ b/.gitignore
@@ -37,6 +37,9 @@ cmake/
 # stage0 install directory
 .dotnet_stage0
 
+# build tools directory
+build_tools
+
 # `dotnet new` template zip files are generated by a pre-build step.
 /src/dotnet/commands/dotnet-new/*.zip 
 
diff --git a/BuildToolsVersion.txt b/BuildToolsVersion.txt
new file mode 100644
index 000000000..045389f0b
--- /dev/null
+++ b/BuildToolsVersion.txt
@@ -0,0 +1 @@
+1.0.26-prerelease-00607-01
diff --git a/init-tools.ps1 b/init-tools.ps1
index b68837bdb..909bab6e7 100644
--- a/init-tools.ps1
+++ b/init-tools.ps1
@@ -12,4 +12,52 @@ $RepoRoot = "$PSScriptRoot"
 Write-Host "Installing .NET Core CLI Stage 0 from branchinfo channel"
     
 & "$RepoRoot\scripts\obtain\dotnet-install.ps1" -Channel $env:CHANNEL -Architecture $Architecture -Verbose
-if($LASTEXITCODE -ne 0) { throw "Failed to install stage0" }
\ No newline at end of file
+if($LASTEXITCODE -ne 0) { throw "Failed to install stage0" }
+
+# Put the stage0 on the path
+$env:PATH = "$env:DOTNET_INSTALL_DIR;$env:PATH"
+
+# Disable first run since we want to control all package sources
+$env:DOTNET_SKIP_FIRST_TIME_EXPERIENCE=1
+
+# Setup BuildTools vars
+$BUILD_TOOLS_VERSION = Get-Content "$RepoRoot\BuildToolsVersion.txt"
+$BUILD_TOOLS_PATH=$RepoRoot + "\build_tools"
+$BUILD_TOOLS_SOURCE='https://dotnet.myget.org/F/dotnet-buildtools/api/v3/index.json'
+$BUILD_TOOLS_SEMAPHORE=$BUILD_TOOLS_PATH + "\init-tools.completed"
+$INIT_TOOLS_LOG=$RepoRoot + "\init-tools.log"
+$PROJECT_JSON_FILE=$BUILD_TOOLS_PATH + "\project.json"
+$PROJECT_JSON_CONTENTS="{ `"dependencies`": { `"Microsoft.DotNet.BuildTools`": `"" + $BUILD_TOOLS_VERSION + "`" }, `"frameworks`": { `"netcoreapp1.0`": { } } }"
+$PACKAGES_DIR=$RepoRoot + "\.nuget\packages"
+$BUILD_TOOLS_PACKAGE_PATH=$PACKAGES_DIR + "\Microsoft.DotNet.BuildTools\" + $BUILD_TOOLS_VERSION + "\lib"
+$DOTNET_EXE_CMD=$env:DOTNET_INSTALL_DIR + "\dotnet.exe"
+
+# If build tools are already installed, escape
+if (Test-Path "$BUILD_TOOLS_SEMAPHORE")
+{
+    Write-Host "Tools are already initialized"
+    exit 0
+}
+
+# Check for build tools
+if (!(Test-Path "$BUILD_TOOLS_PATH"))
+{
+    mkdir "$BUILD_TOOLS_PATH" | Out-Null
+}
+
+# Write the build tools project.json file
+"$PROJECT_JSON_CONTENTS" | Set-Content "$PROJECT_JSON_FILE"
+
+# Restore build tools
+$args="restore $PROJECT_JSON_FILE --packages $PACKAGES_DIR --source $BUILD_TOOLS_SOURCE"
+Start-Process -FilePath $DOTNET_EXE_CMD -ArgumentList $args -Wait -RedirectStandardOutput $INIT_TOOLS_LOG -NoNewWindow
+if (!(Test-Path "$BUILD_TOOLS_PACKAGE_PATH\init-tools.cmd"))
+{
+    Write-Host "ERROR: Could not restore build tools correctly. See '$INIT_TOOLS_LOG' for more details"
+    exit 1
+}
+
+# Initialize build tools
+cmd /c "$BUILD_TOOLS_PACKAGE_PATH\init-tools.cmd $RepoRoot $env:DOTNET_INSTALL_DIR\dotnet.exe $BUILD_TOOLS_PATH" >> "$INIT_TOOLS_LOG"
+Write-Host "Done initializing tools."
+Write-Host "Init-Tools completed for BuildTools Version: $BUILD_TOOLS_VERSION" > $BUILD_TOOLS_SEMAPHORE
diff --git a/init-tools.sh b/init-tools.sh
index 446c4eb85..661dd7b7f 100755
--- a/init-tools.sh
+++ b/init-tools.sh
@@ -14,4 +14,35 @@ while [ -h "$SOURCE" ]; do # resolve $SOURCE until the file is no longer a symli
 done
 DIR="$( cd -P "$( dirname "$SOURCE" )" && pwd )"
 
-$DIR/scripts/obtain/dotnet-install.sh --channel $CHANNEL --verbose
\ No newline at end of file
+$DIR/scripts/obtain/dotnet-install.sh --channel $CHANNEL --verbose
+
+__init_tools_log=$DIR/init-tools.log
+__DOTNET_CMD=$DOTNET_INSTALL_DIR/dotnet
+__BUILD_TOOLS_DIR=$DIR/build_tools
+__BUILD_TOOLS_SOURCE=https://dotnet.myget.org/F/dotnet-buildtools/api/v3/index.json
+__BUILD_TOOLS_PACKAGE_VERSION=$(cat $DIR/BuildToolsVersion.txt)
+__BUILD_TOOLS_PATH=$NUGET_PACKAGES/Microsoft.DotNet.BuildTools/$__BUILD_TOOLS_PACKAGE_VERSION/lib
+__BUILD_TOOLS_SEMAPHORE=$__BUILD_TOOLS_DIR/init-tools.completed
+__PROJECT_JSON_PATH=$__BUILD_TOOLS_DIR/$__BUILD_TOOLS_PACKAGE_VERSION
+__PROJECT_JSON_FILE=$__PROJECT_JSON_PATH/project.json
+__PROJECT_JSON_CONTENTS="{ \"dependencies\": { \"Microsoft.DotNet.BuildTools\": \"$__BUILD_TOOLS_PACKAGE_VERSION\" }, \"frameworks\": { \"netcoreapp1.0\": { } } }"
+
+if [ ! -e "$__PROJECT_JSON_FILE" ]; then
+  mkdir -p "$__PROJECT_JSON_PATH"
+  echo "$__PROJECT_JSON_CONTENTS" > "$__PROJECT_JSON_FILE"
+
+  if [ ! -d "$__BUILD_TOOLS_PATH" ]; then
+    echo "Restoring build tools version $__BUILD_TOOLS_PACKAGE_VERSION..."
+    "$__DOTNET_CMD" restore "$__PROJECT_JSON_FILE" --packages "$NUGET_PACKAGES" --source "$__BUILD_TOOLS_SOURCE" >> "$__init_tools_log" 2>&1
+
+    if [ ! -e "$__BUILD_TOOLS_PATH/init-tools.sh" ]; then echo "ERROR: Could not restore build tools correctly. See '$__init_tools_log' for more details."; fi
+
+  fi
+
+  echo "Initializing build tools..."
+  "$__BUILD_TOOLS_PATH/init-tools.sh" "$DIR" "$__DOTNET_CMD" "$__BUILD_TOOLS_DIR" >> "$__init_tools_log" 2>&1
+  echo "Init-Tools completed for BuildTools Version: $__BUILD_TOOLS_PACKAGE_VERSION" > "$__BUILD_TOOLS_SEMAPHORE"
+  echo "Done initializing tools"
+else
+  echo "Tools are already initialized"
+fi