diff --git a/.changes/unreleased/BUG FIXES-20230404-100828.yaml b/.changes/unreleased/BUG FIXES-20230404-100828.yaml
new file mode 100644
index 000000000..65b69ab7f
--- /dev/null
+++ b/.changes/unreleased/BUG FIXES-20230404-100828.yaml	
@@ -0,0 +1,5 @@
+kind: BUG FIXES
+body: 'helper/resource: Fix path used when persisting working directory'
+time: 2023-04-04T10:08:28.3828+01:00
+custom:
+  Issue: "113"
diff --git a/helper/resource/testing_new.go b/helper/resource/testing_new.go
index d671a0a6f..da4785f0a 100644
--- a/helper/resource/testing_new.go
+++ b/helper/resource/testing_new.go
@@ -460,11 +460,13 @@ func copyWorkingDir(ctx context.Context, t testing.T, stepNumber int, wd *plugin
 	}
 
 	workingDir := wd.GetHelper().WorkingDirectory()
-	parentDir := filepath.Dir(workingDir)
 
-	dest := parentDir + "_" + strconv.Itoa(stepNumber)
+	dest := filepath.Join(workingDir, fmt.Sprintf("%s%s", "step_", strconv.Itoa(stepNumber)))
 
-	err := plugintest.CopyDir(wd.GetHelper().WorkingDirectory(), dest)
+	baseDir := wd.BaseDir()
+	rootBaseDir := strings.TrimLeft(baseDir, workingDir)
+
+	err := plugintest.CopyDir(workingDir, dest, rootBaseDir)
 	if err != nil {
 		logging.HelperResourceError(ctx,
 			"Unexpected error copying working directory files",
diff --git a/helper/resource/teststep_providers_test.go b/helper/resource/teststep_providers_test.go
index 986cf7b0c..44960abc0 100644
--- a/helper/resource/teststep_providers_test.go
+++ b/helper/resource/teststep_providers_test.go
@@ -1819,10 +1819,8 @@ func TestTest_TestStep_ProviderFactories_Import_External_WithPersistMatch_WithPe
 		Steps:      testSteps,
 	})
 
-	workingDirPath := filepath.Dir(workingDir)
-
 	for testStepIndex := range testSteps {
-		dir := workingDirPath + "_" + strconv.Itoa(testStepIndex+1)
+		dir := filepath.Join(workingDir, fmt.Sprintf("step_%s", strconv.Itoa(testStepIndex+1)))
 
 		dirEntries, err := os.ReadDir(dir)
 		if err != nil {
@@ -1929,10 +1927,8 @@ func TestTest_TestStep_ProviderFactories_Import_External_WithoutPersistNonMatch_
 		Steps:      testSteps,
 	})
 
-	workingDirPath := filepath.Dir(workingDir)
-
 	for testStepIndex := range testSteps {
-		dir := workingDirPath + "_" + strconv.Itoa(testStepIndex+1)
+		dir := filepath.Join(workingDir, fmt.Sprintf("step_%s", strconv.Itoa(testStepIndex+1)))
 
 		dirEntries, err := os.ReadDir(dir)
 		if err != nil {
@@ -2075,10 +2071,8 @@ func TestTest_TestStep_ProviderFactories_CopyWorkingDir_EachTestStep(t *testing.
 		Steps:      testSteps,
 	})
 
-	workingDirPath := filepath.Dir(workingDir)
-
 	for k := range testSteps {
-		dir := workingDirPath + "_" + strconv.Itoa(k+1)
+		dir := filepath.Join(workingDir, fmt.Sprintf("step_%s", strconv.Itoa(k+1)))
 
 		_, err := os.ReadDir(dir)
 		if err != nil {
diff --git a/internal/plugintest/helper.go b/internal/plugintest/helper.go
index 04b12fe9c..ef14a0596 100644
--- a/internal/plugintest/helper.go
+++ b/internal/plugintest/helper.go
@@ -92,6 +92,10 @@ func InitHelper(ctx context.Context, config *Config) (*Helper, error) {
 // Call this before returning from TestMain to minimize the amount of detritus
 // left behind in the filesystem after the tests complete.
 func (h *Helper) Close() error {
+	if os.Getenv(EnvTfAccPersistWorkingDir) != "" {
+		return nil
+	}
+
 	if h.execTempDir != "" {
 		err := os.RemoveAll(h.execTempDir)
 		if err != nil {
diff --git a/internal/plugintest/util.go b/internal/plugintest/util.go
index bd1d00abb..067dc74af 100644
--- a/internal/plugintest/util.go
+++ b/internal/plugintest/util.go
@@ -9,6 +9,7 @@ import (
 	"os"
 	"path"
 	"path/filepath"
+	"strings"
 )
 
 func symlinkFile(src string, dest string) error {
@@ -100,7 +101,7 @@ func CopyFile(src, dest string) error {
 
 // CopyDir recursively copies directories and files
 // from src to dest.
-func CopyDir(src string, dest string) error {
+func CopyDir(src, dest, baseDirName string) error {
 	srcInfo, err := os.Stat(src)
 	if err != nil {
 		return fmt.Errorf("unable to stat: %w", err)
@@ -119,8 +120,12 @@ func CopyDir(src string, dest string) error {
 		srcFilepath := path.Join(src, dirEntry.Name())
 		destFilepath := path.Join(dest, dirEntry.Name())
 
+		if !strings.Contains(srcFilepath, baseDirName) {
+			continue
+		}
+
 		if dirEntry.IsDir() {
-			if err = CopyDir(srcFilepath, destFilepath); err != nil {
+			if err = CopyDir(srcFilepath, destFilepath, baseDirName); err != nil {
 				return fmt.Errorf("unable to copy directory: %w", err)
 			}
 		} else {
diff --git a/internal/plugintest/util_test.go b/internal/plugintest/util_test.go
index 58c0dc12f..ceb3badc0 100644
--- a/internal/plugintest/util_test.go
+++ b/internal/plugintest/util_test.go
@@ -50,7 +50,7 @@ func TestCopyDir(t *testing.T) {
 		t.Fatalf("cannot create src file: %s", err)
 	}
 
-	err = CopyDir(srcDir, srcDir+"_1")
+	err = CopyDir(srcDir, srcDir+"_1", "")
 	if err != nil {
 		t.Fatalf("cannot copy dir: %s", err)
 	}
diff --git a/internal/plugintest/working_dir.go b/internal/plugintest/working_dir.go
index 734b6c9b5..9ee2046f2 100644
--- a/internal/plugintest/working_dir.go
+++ b/internal/plugintest/working_dir.go
@@ -47,10 +47,19 @@ type WorkingDir struct {
 	reattachInfo tfexec.ReattachInfo
 }
 
+// BaseDir returns the path to the root of the working directory tree.
+func (wd *WorkingDir) BaseDir() string {
+	return wd.baseDir
+}
+
 // Close deletes the directories and files created to represent the receiving
 // working directory. After this method is called, the working directory object
 // is invalid and may no longer be used.
 func (wd *WorkingDir) Close() error {
+	if os.Getenv(EnvTfAccPersistWorkingDir) != "" {
+		return nil
+	}
+
 	return os.RemoveAll(wd.baseDir)
 }