diff --git a/.golangci.yml b/.golangci.yml
index d2a3cda2e..5dcd7b559 100644
--- a/.golangci.yml
+++ b/.golangci.yml
@@ -2,3 +2,11 @@ version: "2"
 
 run:
   timeout: 10m
+
+linters:
+  exclusions:
+    rules:
+      # TODO(#241): Remove once TargetNamespace field is fully removed
+      - linters:
+          - staticcheck
+        text: "SA1019:.*TargetNamespace"
diff --git a/README.md b/README.md
index 6171bfc00..8b49c8c20 100644
--- a/README.md
+++ b/README.md
@@ -35,12 +35,11 @@ apiVersion: operator.shipwright.io/v1alpha1
 kind: ShipwrightBuild
 metadata:
   name: shipwright-operator
-spec:
-  targetNamespace: shipwright-build
+spec: {}
 ```
 
-The operator will deploy Shipwright Builds in the provided `targetNamespace`.
-When `.spec.targetNamespace` is not set, the namespace will default to `shipwright-build`.
+The operator will deploy Shipwright Builds in the operator's own namespace by default.
+The `.spec.targetNamespace` field is **deprecated** — if set, it is still honored but logs a deprecation warning. It will be removed in a future release.
 
 To deploy [Shipwright Triggers](https://github.com/shipwright-io/triggers), add the `triggers` field:
 
diff --git a/api/v1alpha1/shipwrightbuild_types.go b/api/v1alpha1/shipwrightbuild_types.go
index 3e7c87453..f5d65905a 100644
--- a/api/v1alpha1/shipwrightbuild_types.go
+++ b/api/v1alpha1/shipwrightbuild_types.go
@@ -34,6 +34,8 @@ type TriggersSpec struct {
 // ShipwrightBuildSpec defines the configuration of a Shipwright Build deployment.
 type ShipwrightBuildSpec struct {
 	// TargetNamespace is the target namespace where Shipwright's build controller will be deployed.
+	//
+	// Deprecated: will be removed in a future release. Defaults to the operator's namespace.
 	TargetNamespace string `json:"targetNamespace,omitempty"`
 
 	// Triggers configures the deployment of the Shipwright Triggers component.
diff --git a/bundle/manifests/operator.shipwright.io_shipwrightbuilds.yaml b/bundle/manifests/operator.shipwright.io_shipwrightbuilds.yaml
index 5491dd09a..91d450018 100644
--- a/bundle/manifests/operator.shipwright.io_shipwrightbuilds.yaml
+++ b/bundle/manifests/operator.shipwright.io_shipwrightbuilds.yaml
@@ -42,8 +42,10 @@ spec:
               Build deployment.
             properties:
               targetNamespace:
-                description: TargetNamespace is the target namespace where Shipwright's
-                  build controller will be deployed.
+                description: |-
+                  TargetNamespace is the target namespace where Shipwright's build controller will be deployed.
+
+                  Deprecated: will be removed in a future release. Defaults to the operator's namespace.
                 type: string
               triggers:
                 description: |-
diff --git a/bundle/manifests/shipwright-operator.clusterserviceversion.yaml b/bundle/manifests/shipwright-operator.clusterserviceversion.yaml
index b4497db9d..16605a28a 100644
--- a/bundle/manifests/shipwright-operator.clusterserviceversion.yaml
+++ b/bundle/manifests/shipwright-operator.clusterserviceversion.yaml
@@ -10,9 +10,7 @@ metadata:
           "metadata": {
             "name": "shipwright-build"
           },
-          "spec": {
-            "targetNamespace": "shipwright-build"
-          }
+          "spec": {}
         }
       ]
     capabilities: Basic Install
@@ -682,6 +680,10 @@ spec:
                 env:
                 - name: USE_MANAGED_WEBHOOK_CERTS
                   value: "true"
+                - name: POD_NAMESPACE
+                  valueFrom:
+                    fieldRef:
+                      fieldPath: metadata.namespace
                 image: ko://github.com/shipwright-io/operator
                 livenessProbe:
                   httpGet:
diff --git a/config/crd/bases/operator.shipwright.io_shipwrightbuilds.yaml b/config/crd/bases/operator.shipwright.io_shipwrightbuilds.yaml
index 862dc642d..afe9595fe 100644
--- a/config/crd/bases/operator.shipwright.io_shipwrightbuilds.yaml
+++ b/config/crd/bases/operator.shipwright.io_shipwrightbuilds.yaml
@@ -42,8 +42,10 @@ spec:
               Build deployment.
             properties:
               targetNamespace:
-                description: TargetNamespace is the target namespace where Shipwright's
-                  build controller will be deployed.
+                description: |-
+                  TargetNamespace is the target namespace where Shipwright's build controller will be deployed.
+
+                  Deprecated: will be removed in a future release. Defaults to the operator's namespace.
                 type: string
               triggers:
                 description: |-
diff --git a/config/manager/manager.yaml b/config/manager/manager.yaml
index 0e1da47d2..f658e4fe3 100644
--- a/config/manager/manager.yaml
+++ b/config/manager/manager.yaml
@@ -35,6 +35,10 @@ spec:
         env:
         - name: USE_MANAGED_WEBHOOK_CERTS
           value: "true"
+        - name: POD_NAMESPACE
+          valueFrom:
+            fieldRef:
+              fieldPath: metadata.namespace
         image: ko://github.com/shipwright-io/operator
         name: manager
         securityContext:
diff --git a/config/samples/operator_v1alpha1_shipwrightbuild.yaml b/config/samples/operator_v1alpha1_shipwrightbuild.yaml
index 42db15567..0199e6e81 100644
--- a/config/samples/operator_v1alpha1_shipwrightbuild.yaml
+++ b/config/samples/operator_v1alpha1_shipwrightbuild.yaml
@@ -2,5 +2,4 @@ apiVersion: operator.shipwright.io/v1alpha1
 kind: ShipwrightBuild
 metadata:
   name: shipwright-build
-spec:
-  targetNamespace: shipwright-build
+spec: {}
diff --git a/controllers/shipwrightbuild_controller.go b/controllers/shipwrightbuild_controller.go
index c9b3ef704..db15e58b8 100644
--- a/controllers/shipwrightbuild_controller.go
+++ b/controllers/shipwrightbuild_controller.go
@@ -38,8 +38,6 @@ import (
 const (
 	// FinalizerAnnotation annotation string appended on finalizer slice.
 	FinalizerAnnotation = "finalizer.operator.shipwright.io"
-	// defaultTargetNamespace fallback namespace when `.spec.namepace` is not informed.
-	defaultTargetNamespace = "shipwright-build"
 
 	// Ready object is providing service.
 	ConditionReady = "Ready"
@@ -64,6 +62,7 @@ type ShipwrightBuildReconciler struct {
 	TektonManifest        manifestival.Manifest // Tekton release manifest render
 	BuildStrategyManifest manifestival.Manifest // Build strategies manifest to render
 	TriggersManifest      manifestival.Manifest // Triggers manifest to render
+	OperatorNamespace     string                // namespace the operator is running in
 }
 
 type TektonCheckResult struct {
@@ -235,34 +234,33 @@ func (r *ShipwrightBuildReconciler) Reconcile(ctx context.Context, req ctrl.Requ
 		return Requeue()
 	}
 
-	// selecting the target namespace based on the CRD information, when not informed using the
-	// default namespace instead
 	targetNamespace := b.Spec.TargetNamespace
-	if targetNamespace == "" {
-		logger.Info(
-			"Namespace is not informed! Target namespace is selected from default settings instead",
-			"defaultTargetNamespace", defaultTargetNamespace,
+	if targetNamespace != "" && targetNamespace != r.OperatorNamespace {
+		logger.Info("spec.targetNamespace is deprecated, will be removed in a future release",
+			"targetNamespace", targetNamespace,
+			"operatorNamespace", r.OperatorNamespace,
 		)
-		targetNamespace = defaultTargetNamespace
-	}
-	logger = logger.WithValues("targetNamespace", targetNamespace)
-	// create if it does not exist
-	ns := &corev1.Namespace{}
-	if err := r.Get(ctx, types.NamespacedName{Name: targetNamespace}, ns); err != nil {
-		if !errors.IsNotFound(err) {
-			logger.Info("retrieving target namespace %s error: %s", targetNamespace, err.Error())
-			return RequeueOnError(err)
-		}
-		ns.Name = targetNamespace
-
-		if err = r.Create(ctx, ns, &client.CreateOptions{Raw: &metav1.CreateOptions{}}); err != nil {
-			if !errors.IsAlreadyExists(err) {
-				logger.Info("creating target namespace %s error: %s", targetNamespace, err.Error())
+		// Deprecated path: create the target namespace if it does not exist
+		ns := &corev1.Namespace{}
+		if err := r.Get(ctx, types.NamespacedName{Name: targetNamespace}, ns); err != nil {
+			if !errors.IsNotFound(err) {
+				logger.Info("retrieving target namespace %s error: %s", targetNamespace, err.Error())
 				return RequeueOnError(err)
 			}
+			ns.Name = targetNamespace
+
+			if err = r.Create(ctx, ns, &client.CreateOptions{Raw: &metav1.CreateOptions{}}); err != nil {
+				if !errors.IsAlreadyExists(err) {
+					logger.Info("creating target namespace %s error: %s", targetNamespace, err.Error())
+					return RequeueOnError(err)
+				}
+			}
+			logger.Info("created target namespace")
 		}
-		logger.Info("created target namespace")
+	} else {
+		targetNamespace = r.OperatorNamespace
 	}
+	logger = logger.WithValues("targetNamespace", targetNamespace)
 
 	// ReconcileCertManager
 	if common.BoolFromEnvVar(UseManagedWebhookCerts) {
diff --git a/controllers/shipwrightbuild_controller_test.go b/controllers/shipwrightbuild_controller_test.go
index 30460e5d0..afaab17a2 100644
--- a/controllers/shipwrightbuild_controller_test.go
+++ b/controllers/shipwrightbuild_controller_test.go
@@ -32,6 +32,9 @@ import (
 	"sigs.k8s.io/controller-runtime/pkg/reconcile"
 )
 
+// testOperatorNamespace is the namespace used as the operator's namespace in unit tests.
+const testOperatorNamespace = "shipwright-operator"
+
 // bootstrapShipwrightBuildReconciler start up a new instance of ShipwrightBuildReconciler which is
 // ready to interact with Manifestival, returning the Manifestival instance and the client.
 func bootstrapShipwrightBuildReconciler(
@@ -76,7 +79,7 @@ func bootstrapShipwrightBuildReconciler(
 	} else {
 		toClient = tektonoperatorv1alpha1client.NewSimpleClientset(tcfg)
 	}
-	r := &ShipwrightBuildReconciler{CRDClient: crdClient.ApiextensionsV1(), TektonOperatorClient: toClient.OperatorV1alpha1(), Client: c, Scheme: s, Logger: logger}
+	r := &ShipwrightBuildReconciler{CRDClient: crdClient.ApiextensionsV1(), TektonOperatorClient: toClient.OperatorV1alpha1(), Client: c, Scheme: s, Logger: logger, OperatorNamespace: testOperatorNamespace}
 
 	// creating targetNamespace on which Shipwright-Build will be deployed against, before the other
 	// tests takes place
@@ -248,7 +251,7 @@ func TestShipwrightBuildReconciler_Reconcile(t *testing.T) {
 		targetNamespace: "namespace",
 	}, {
 		testName:        "target namespace is not informed",
-		targetNamespace: defaultTargetNamespace,
+		targetNamespace: testOperatorNamespace,
 	}}
 
 	for _, tt := range tests {
diff --git a/controllers/shipwrightbuild_rbac.go b/controllers/shipwrightbuild_rbac.go
index 85b7b2f74..b694672d1 100644
--- a/controllers/shipwrightbuild_rbac.go
+++ b/controllers/shipwrightbuild_rbac.go
@@ -9,6 +9,7 @@ package controllers
 // +kubebuilder:rbac:groups=apps,resources=deployments/finalizers,resourceNames=shipwright-build-controller,verbs=update
 // +kubebuilder:rbac:groups=apps,resources=deployments,resourceNames=shipwright-build-webhook,verbs=update;patch;delete
 // +kubebuilder:rbac:groups=apps,resources=deployments/finalizers,resourceNames=shipwright-build-webhook,verbs=update
+// TODO(#241): Reduce to get;list;watch once TargetNamespace field is fully removed
 // +kubebuilder:rbac:groups=core,resources=namespaces,verbs=get;list;watch;create;update;patch;delete
 // +kubebuilder:rbac:groups=core,resources=pods;events;configmaps;secrets;limitranges;namespaces;services,verbs=get;list;watch;create;update;patch;delete
 // +kubebuilder:rbac:groups=core,resources=serviceaccounts,verbs=get;list;watch;create
diff --git a/controllers/suite_test.go b/controllers/suite_test.go
index 456cbebc9..ee746640b 100644
--- a/controllers/suite_test.go
+++ b/controllers/suite_test.go
@@ -302,6 +302,7 @@ var _ = BeforeSuite(func() {
 		Client:               mgr.GetClient(),
 		Scheme:               scheme.Scheme,
 		Logger:               ctrl.Log.WithName("controllers").WithName("shipwrightbuild"),
+		OperatorNamespace:    testOperatorNamespace,
 	}).SetupWithManager(mgr)
 	Expect(err).NotTo(HaveOccurred())
 
diff --git a/docs/shipwrightbuild.md b/docs/shipwrightbuild.md
index cb9dc1d10..75c39d05a 100644
--- a/docs/shipwrightbuild.md
+++ b/docs/shipwrightbuild.md
@@ -29,6 +29,6 @@ When the `ShipwrightBuild` instance is created, the following components are ins
 
 | Field | Description |
 | ----- | ----------- |
-| spec.targetNamespace | The target namespace where Shipwright Build will be deployed. If omitted, this will default to `shipwright-build` |
+| spec.targetNamespace | **Deprecated.** The target namespace where Shipwright Build will be deployed. If omitted, operands are deployed in the operator's own namespace (determined by the `POD_NAMESPACE` environment variable). Setting this field still works but logs a deprecation warning. This field will be removed in a future release. |
 | spec.triggers.deployment | When set to `Enabled`, deploys Shipwright Triggers alongside Build. Triggers are not deployed when this field is omitted or set to `Disabled`. Defaults to `Disabled`. |
 | status.conditions | Conditions which report the status of Shipwright Build. Current reported conditions:<br><br>- `Ready` |
diff --git a/main.go b/main.go
index a9e6d130e..68e377095 100644
--- a/main.go
+++ b/main.go
@@ -27,6 +27,7 @@ import (
 
 	operatorv1alpha1 "github.com/shipwright-io/operator/api/v1alpha1"
 	"github.com/shipwright-io/operator/controllers"
+	"github.com/shipwright-io/operator/pkg/common"
 	// +kubebuilder:scaffold:imports
 )
 
@@ -99,12 +100,19 @@ func main() {
 		os.Exit(1)
 	}
 
+	operatorNamespace := common.OperatorNamespace()
+	if operatorNamespace == "" {
+		operatorNamespace = common.DefaultNamespace
+		setupLog.Info("POD_NAMESPACE not set, falling back to default namespace for local development", "namespace", operatorNamespace)
+	}
+
 	if err = (&controllers.ShipwrightBuildReconciler{
 		CRDClient:            crdClient,
 		TektonOperatorClient: tektonOperatorClient,
 		Client:               mgr.GetClient(),
 		Scheme:               mgr.GetScheme(),
 		Logger:               ctrl.Log.WithName("controllers").WithName("ShipwrightBuild"),
+		OperatorNamespace:    operatorNamespace,
 	}).SetupWithManager(mgr); err != nil {
 		setupLog.Error(err, "unable to create controller", "controller", "ShipwrightBuild")
 		os.Exit(1)
diff --git a/pkg/common/const.go b/pkg/common/const.go
index 0bb07f481..2fc1c24bf 100644
--- a/pkg/common/const.go
+++ b/pkg/common/const.go
@@ -4,6 +4,11 @@ const (
 	koDataPathEnv         = "KO_DATA_PATH"
 	ShipwrightImagePrefix = "IMAGE_SHIPWRIGHT_"
 
+	// OperatorNamespaceEnvVar holds the operator pod's namespace.
+	OperatorNamespaceEnvVar = "POD_NAMESPACE"
+	// DefaultNamespace is the fallback namespace when POD_NAMESPACE is unset.
+	DefaultNamespace = "shipwright-build"
+
 	TektonOpMinSupportedVersion = "v0.50.0"
 	TektonOpMinSupportedMajor   = 0
 	TektonOpMinSupportedMinor   = 50
diff --git a/pkg/common/util.go b/pkg/common/util.go
index ad3b9634c..08af4abfb 100644
--- a/pkg/common/util.go
+++ b/pkg/common/util.go
@@ -242,3 +242,8 @@ func itemInSlice(item string, items []string) bool {
 func IsOpenShiftPlatform() bool {
 	return os.Getenv("PLATFORM") == "openshift"
 }
+
+// OperatorNamespace returns the operator pod's namespace from POD_NAMESPACE.
+func OperatorNamespace() string {
+	return os.Getenv(OperatorNamespaceEnvVar)
+}