diff --git a/qubesbuilder/plugins/build_archlinux/scripts/update-local-repo.sh b/qubesbuilder/plugins/build_archlinux/scripts/update-local-repo.sh
index 636b96eb..a7bcd2fc 100755
--- a/qubesbuilder/plugins/build_archlinux/scripts/update-local-repo.sh
+++ b/qubesbuilder/plugins/build_archlinux/scripts/update-local-repo.sh
@@ -49,8 +49,8 @@ chroot_cmd sed "s/^ *CheckSpace/#CheckSpace/g" -i /etc/pacman.conf
 
 # Update archlinux keyring first so that Archlinux can be updated even after a long time
 chroot_cmd /bin/sh -c \
-    "http_proxy='${REPO_PROXY}' pacman -Sy --noconfirm --noprogressbar archlinux-keyring"
+    "no_proxy='${NO_PROXY:-127.0.0.1}' http_proxy='${REPO_PROXY}' pacman -Sy --noconfirm --noprogressbar archlinux-keyring"
 
 # Now update system
 chroot_cmd /bin/sh -c \
-    "http_proxy='${REPO_PROXY}' pacman -Syu --noconfirm --noprogressbar"
+    "no_proxy='${NO_PROXY:-127.0.0.1}' http_proxy='${REPO_PROXY}' pacman -Syu --noconfirm --noprogressbar"