diff --git a/docs/generated/packages/node/generators/setup-docker.json b/docs/generated/packages/node/generators/setup-docker.json
index aace4f77586d9..174b41f2f8d1a 100644
--- a/docs/generated/packages/node/generators/setup-docker.json
+++ b/docs/generated/packages/node/generators/setup-docker.json
@@ -25,6 +25,10 @@
         "description": "The name of the build target",
         "type": "string",
         "default": "build"
+      },
+      "outputPath": {
+        "description": "The output path for the node application",
+        "type": "string"
       }
     },
     "presets": []
diff --git a/packages/node/src/generators/application/application.ts b/packages/node/src/generators/application/application.ts
index e0345d7f84bc9..793000a03b050 100644
--- a/packages/node/src/generators/application/application.ts
+++ b/packages/node/src/generators/application/application.ts
@@ -54,6 +54,7 @@ import { logShowProjectCommand } from '@nx/devkit/src/utils/log-show-project-com
 export interface NormalizedSchema extends Schema {
   appProjectRoot: string;
   parsedTags: string[];
+  outputPath: string;
 }
 
 function getWebpackBuildConfig(
@@ -67,10 +68,7 @@ function getWebpackBuildConfig(
     options: {
       target: 'node',
       compiler: 'tsc',
-      outputPath: joinPathFragments(
-        'dist',
-        options.rootProject ? options.name : options.appProjectRoot
-      ),
+      outputPath: options.outputPath,
       main: joinPathFragments(
         project.sourceRoot,
         'main' + (options.js ? '.js' : '.ts')
@@ -101,10 +99,7 @@ function getEsBuildConfig(
     defaultConfiguration: 'production',
     options: {
       platform: 'node',
-      outputPath: joinPathFragments(
-        'dist',
-        options.rootProject ? options.name : options.appProjectRoot
-      ),
+      outputPath: options.outputPath,
       // Use CJS for Node apps for widest compatibility.
       format: ['cjs'],
       bundle: false,
@@ -199,10 +194,7 @@ function addAppFiles(tree: Tree, options: NormalizedSchema) {
       ),
       webpackPluginOptions: hasWebpackPlugin(tree)
         ? {
-            outputPath: joinPathFragments(
-              'dist',
-              options.rootProject ? options.name : options.appProjectRoot
-            ),
+            outputPath: options.outputPath,
             main: './src/main' + (options.js ? '.js' : '.ts'),
             tsConfig: './tsconfig.app.json',
             assets: ['./src/assets'],
@@ -562,6 +554,10 @@ async function normalizeOptions(
     unitTestRunner: options.unitTestRunner ?? 'jest',
     rootProject: options.rootProject ?? false,
     port: options.port ?? 3000,
+    outputPath: joinPathFragments(
+      'dist',
+      options.rootProject ? options.name : appProjectRoot
+    ),
   };
 }
 
diff --git a/packages/node/src/generators/setup-docker/schema.d.ts b/packages/node/src/generators/setup-docker/schema.d.ts
index 8083a66944495..0253937990b93 100644
--- a/packages/node/src/generators/setup-docker/schema.d.ts
+++ b/packages/node/src/generators/setup-docker/schema.d.ts
@@ -3,4 +3,5 @@ export interface SetUpDockerOptions {
   targetName?: string;
   buildTarget?: string;
   skipFormat?: boolean;
+  outputPath: string;
 }
diff --git a/packages/node/src/generators/setup-docker/schema.json b/packages/node/src/generators/setup-docker/schema.json
index 71d546ebabe56..333daa313903d 100644
--- a/packages/node/src/generators/setup-docker/schema.json
+++ b/packages/node/src/generators/setup-docker/schema.json
@@ -24,6 +24,10 @@
       "description": "The name of the build target",
       "type": "string",
       "default": "build"
+    },
+    "outputPath": {
+      "description": "The output path for the node application",
+      "type": "string"
     }
   }
 }
diff --git a/packages/node/src/generators/setup-docker/setup-docker.spec.ts b/packages/node/src/generators/setup-docker/setup-docker.spec.ts
index 8a1d4e4e853ca..7f344b7feea78 100644
--- a/packages/node/src/generators/setup-docker/setup-docker.spec.ts
+++ b/packages/node/src/generators/setup-docker/setup-docker.spec.ts
@@ -1,11 +1,6 @@
-import 'nx/src/internal-testing-utils/mock-project-graph';
-
-import {
-  ProjectConfiguration,
-  readProjectConfiguration,
-  Tree,
-} from '@nx/devkit';
+import { readProjectConfiguration, Tree } from '@nx/devkit';
 import { createTreeWithEmptyWorkspace } from '@nx/devkit/testing';
+import { applicationGenerator } from '../application/application';
 
 describe('setupDockerGenerator', () => {
   let tree: Tree;
@@ -18,15 +13,6 @@ describe('setupDockerGenerator', () => {
   describe('integrated', () => {
     it('should create docker assets when --docker is passed', async () => {
       const projectName = 'integreated-api';
-      // Since we mock the project graph, we need to mock the project configuration as well
-      mockReadCachedProjectConfiguration({
-        name: projectName,
-        root: projectName,
-      });
-
-      const { applicationGenerator } = await import(
-        '../application/application'
-      );
 
       await applicationGenerator(tree, {
         name: projectName,
@@ -56,11 +42,7 @@ describe('setupDockerGenerator', () => {
   describe('standalone', () => {
     it('should create docker assets when --docker is passed', async () => {
       const projectName = 'standalone-api';
-      mockReadCachedProjectConfiguration({ name: projectName, root: '' });
 
-      const { applicationGenerator } = await import(
-        '../application/application'
-      );
       await applicationGenerator(tree, {
         name: projectName,
         framework: 'fastify',
@@ -86,23 +68,3 @@ describe('setupDockerGenerator', () => {
     });
   });
 });
-
-const mockReadCachedProjectConfiguration = (
-  projectConfig: ProjectConfiguration
-) => {
-  jest.mock('nx/src/project-graph/project-graph', () => {
-    return {
-      ...jest.requireActual('nx/src/project-graph/project-graph'),
-      readCachedProjectConfiguration: jest.fn(() => {
-        return {
-          root: projectConfig.root,
-          targets: {
-            build: {
-              outputs: [`dist/${projectConfig.name}`],
-            },
-          },
-        };
-      }),
-    };
-  });
-};
diff --git a/packages/node/src/generators/setup-docker/setup-docker.ts b/packages/node/src/generators/setup-docker/setup-docker.ts
index f0c3277cbfeb3..88461c9f31f2a 100644
--- a/packages/node/src/generators/setup-docker/setup-docker.ts
+++ b/packages/node/src/generators/setup-docker/setup-docker.ts
@@ -3,8 +3,6 @@ import {
   generateFiles,
   GeneratorCallback,
   joinPathFragments,
-  logger,
-  ProjectConfiguration,
   readNxJson,
   readProjectConfiguration,
   runTasksInSerial,
@@ -14,8 +12,6 @@ import {
 
 import { SetUpDockerOptions } from './schema';
 import { join } from 'path';
-import { interpolate } from 'nx/src/tasks-runner/utils';
-import { readCachedProjectConfiguration } from 'nx/src/project-graph/project-graph';
 
 function normalizeOptions(
   tree: Tree,
@@ -30,47 +26,15 @@ function normalizeOptions(
 }
 
 function addDocker(tree: Tree, options: SetUpDockerOptions) {
-  // Inferred targets are only available in the project graph
-  const projectConfig = readCachedProjectConfiguration(options.project);
-
-  if (
-    !projectConfig ||
-    !projectConfig.targets ||
-    !projectConfig.targets[options.buildTarget]
-  ) {
-    return;
-  }
-
-  // Returns an string like {workspaceRoot}/dist/apps/{projectName}
-  // Non crystalized projects would return {options.outputPath}
-  const tokenizedOutputPath =
-    projectConfig.targets[`${options.buildTarget}`]?.outputs?.[0];
-  const maybeBuildOptions =
-    projectConfig.targets[`${options.buildTarget}`]?.options;
-
-  if (tree.exists(joinPathFragments(projectConfig.root, 'DockerFile'))) {
-    logger.info(
-      `Skipping setup since a Dockerfile already exists inside ${projectConfig.root}`
-    );
-  } else if (!tokenizedOutputPath) {
-    logger.error(
-      `Skipping setup since the output path for the build target ${options.buildTarget} is not defined.`
-    );
-  } else {
-    const outputPath = interpolate(tokenizedOutputPath, {
-      projectName: projectConfig.name,
-      projectRoot: projectConfig.root,
-      workspaceRoot: '',
-      options: maybeBuildOptions || '',
-    });
-
-    generateFiles(tree, join(__dirname, './files'), projectConfig.root, {
-      tmpl: '',
-      app: projectConfig.sourceRoot,
-      buildLocation: outputPath,
-      project: options.project,
-    });
+  const projectConfig = readProjectConfiguration(tree, options.project);
+  if (!projectConfig) {
+    throw new Error(`Cannot find project configuration for ${options.project}`);
   }
+  generateFiles(tree, join(__dirname, './files'), projectConfig.root, {
+    tmpl: '',
+    buildLocation: options.outputPath,
+    project: options.project,
+  });
 }
 
 export function updateProjectConfig(tree: Tree, options: SetUpDockerOptions) {