diff --git a/.github/workflows/.luarc.json b/.github/workflows/.luarc.json
deleted file mode 100644
index 311cd64..0000000
--- a/.github/workflows/.luarc.json
+++ /dev/null
@@ -1,30 +0,0 @@
-{
-  "$schema": "https://raw.githubusercontent.com/sumneko/vscode-lua/master/setting/schema.json",
-  "runtime": {
-    "version": "LuaJIT",
-    "pathStrict": true
-  },
-  "workspace": {
-    "library": [
-      "$VIMRUNTIME/lua",
-      "$VIMRUNTIME/lua/vim/lsp",
-      "$PWD/lua",
-      "${3rd}/luv/library",
-      "$DEPS_PATH/lazy.nvim/lua",
-      "$DEPS_PATH/dressing.nvim/lua",
-      "$DEPS_PATH/snacks.nvim/lua",
-      "$DEPS_PATH/plenary.nvim/lua",
-      "$DEPS_PATH/nui.nvim/lua",
-      "$DEPS_PATH/mini.pick/lua",
-      "$DEPS_PATH/telescope.nvim/lua",
-      "$DEPS_PATH/nvim-cmp/lua",
-      "$DEPS_PATH/fzf-lua/lua",
-      "$DEPS_PATH/nvim-web-devicons/lua",
-      "$DEPS_PATH/copilot.lua/lua"
-    ],
-    "ignoreDir": [
-      "/lua"
-    ],
-    "checkThirdParty": false
-  }
-}
diff --git a/.github/workflows/lua.yaml b/.github/workflows/lua.yaml
index 83d9fff..0290dae 100644
--- a/.github/workflows/lua.yaml
+++ b/.github/workflows/lua.yaml
@@ -69,38 +69,8 @@ jobs:
           neovim: true
           version: ${{ matrix.nvim_version }}
 
-      - name: Install luals
-        run: |
-          mkdir -p luals
-          curl -L "https://github.com/LuaLS/lua-language-server/releases/download/${{ matrix.luals_version }}/lua-language-server-${{ matrix.luals_version }}-linux-x64.tar.gz" | tar zx --directory luals
-
-      - run: echo "luals/bin" >> "$GITHUB_PATH"
-
-      - name: Checkout dependencies
-        run: |
-          mkdir -p deps
-          DEPS=(
-            "folke/neodev.nvim"
-            "nvim-lua/plenary.nvim"
-            "MunifTanjim/nui.nvim"
-            "stevearc/dressing.nvim"
-            "folke/snacks.nvim"
-            "echasnovski/mini.nvim"
-            "nvim-telescope/telescope.nvim"
-            "hrsh7th/nvim-cmp"
-            "ibhagwan/fzf-lua"
-            "nvim-tree/nvim-web-devicons"
-            "zbirenbaum/copilot.lua"
-            "folke/lazy.nvim"
-          )
-          for dep in "${DEPS[@]}"; do
-            repo_name=$(echo $dep | cut -d'/' -f2)
-            git clone --depth 1 "https://github.com/${dep}.git" "deps/${repo_name}"
-          done
-
       - name: Typecheck
         env:
           VIMRUNTIME: /home/runner/nvim-${{ matrix.nvim_version }}/share/nvim/runtime
-          DEPS_PATH: /home/runner/work/avante.nvim/avante.nvim/deps/
         run: |
           make lua-typecheck
diff --git a/Makefile b/Makefile
index 978dac1..69d8bbe 100644
--- a/Makefile
+++ b/Makefile
@@ -102,7 +102,7 @@ lint: luacheck luastylecheck ruststylecheck rustlint
 
 .PHONY: lua-typecheck
 lua-typecheck:
-	bash ./scripts/lua-typecheck.sh
+	@./scripts/lua-typecheck.sh
 
 .PHONY: build-image
 build-image:
diff --git a/luarc.json.template b/luarc.json.template
new file mode 100644
index 0000000..489717e
--- /dev/null
+++ b/luarc.json.template
@@ -0,0 +1,21 @@
+{
+  "$schema": "https://raw.githubusercontent.com/sumneko/vscode-lua/master/setting/schema.json",
+  "runtime": {
+    "version": "LuaJIT",
+    "pathStrict": true
+  },
+  "workspace": {
+    "library": [
+      "$VIMRUNTIME/lua",
+      "$VIMRUNTIME/lua/vim/lsp",
+      "$PWD/lua",
+      "${3rd}/luv/library",
+      "$DEPS_PATH/luvit-meta/library"
+      {{DEPS}}
+    ],
+    "ignoreDir": [
+      "/lua"
+    ],
+    "checkThirdParty": false
+  }
+}
diff --git a/scripts/lua-typecheck.sh b/scripts/lua-typecheck.sh
index 9bd6ed0..68ee8cf 100755
--- a/scripts/lua-typecheck.sh
+++ b/scripts/lua-typecheck.sh
@@ -1,15 +1,142 @@
-#!/bin/env bash
+#!/usr/bin/env bash
+set -e
 
-if [ -z "${VIMRUNTIME}" ]; then
-    export VIMRUNTIME=$(nvim --headless --noplugin -u NONE -c "echo \$VIMRUNTIME" +qa 2>&1)
-fi
+# This script performs a Lua typecheck, with different behaviors for local and CI environments.
+#
+# It supports two local modes:
+# 1. Default (Managed): Downloads all dependencies into a project-local ./target/deps directory.
+# 2. --live: Uses the system's installed `nvim` and `lua-language-server`. It does not
+#    manage plugin dependencies, assuming the user has them configured.
 
-echo "VIMRUNTIME: ${VIMRUNTIME}"
+verbose=false
 
-if [ -z "${DEPS_PATH}" ]; then
-    export DEPS_PATH=${HOME}/.local/share/nvim/lazy/
-fi
+log() {
+    echo "$1" >&2
+}
 
-echo "DEPS_PATH: ${DEPS_PATH}"
+log_verbose() {
+    if [ "$verbose" = "true" ]; then
+        echo "$1" >&2
+    fi
+}
 
-lua-language-server --check=${PWD}/lua --configpath=${PWD}/.github/workflows/.luarc.json --checklevel=Information
+die() {
+    echo "Error: $1" >&2
+    exit 1
+}
+
+handle_live_mode() {
+    export DEPS_PATH="$HOME/.local/share/nvim/lazy"
+    log_verbose "Setting DEPS_PATH for live mode to: $DEPS_PATH"
+
+    command -v nvim &>/dev/null || die "nvim command not found. Please install Neovim."
+
+    if command -v lua-language-server &>/dev/null; then
+        log_verbose "Found lua-language-server in PATH."
+    else
+        log_verbose "lua-language-server not found in PATH. Checking Mason..."
+        local mason_luals_path="$HOME/.local/share/nvim/mason/bin/lua-language-server"
+        if [ -x "$mason_luals_path" ]; then
+            log_verbose "Found lua-language-server in Mason packages."
+            export PATH="$HOME/.local/share/nvim/mason/bin:$PATH"
+        else
+            die "lua-language-server not found in PATH or in Mason packages. Please install it."
+        fi
+    fi
+
+    # $VIMRUNTIME is not supposed to be expanded below
+    # shellcheck disable=SC2016
+    VIMRUNTIME="$(nvim --headless --noplugin -u NONE -c 'echo $VIMRUNTIME' +qa 2>&1)"
+    export VIMRUNTIME
+}
+
+manage_plugin_dependencies() {
+    local deps_dir=$1
+    local setup_deps_flags=$2
+    log "Cloning/updating dependencies to $deps_dir..."
+    ./scripts/setup-deps.sh "$setup_deps_flags" clone "$deps_dir"
+    export DEPS_PATH="$deps_dir"
+    log_verbose "Set DEPS_PATH to $DEPS_PATH"
+}
+
+run_typechecker() {
+    local config_path=$1
+    if [ -z "$VIMRUNTIME" ]; then
+        die "VIMRUNTIME is not set. Cannot proceed."
+    fi
+    if [ -z "$config_path" ]; then
+        die "Luarc config path is not set. Cannot proceed."
+    fi
+    command -v lua-language-server &>/dev/null || die "lua-language-server not found in PATH."
+
+    log "Running Lua typechecker..."
+    lua-language-server --check="$PWD/lua" \
+        --loglevel=trace \
+        --configpath="$config_path" \
+        --checklevel=Information
+    log_verbose "Typecheck complete."
+}
+
+main() {
+    local dest_dir="$PWD/target/tests"
+    local luarc_path="$dest_dir/luarc.json"
+    local mode="managed"
+    local setup_deps_flags=""
+
+    for arg in "$@"; do
+        case $arg in
+            --live)
+            mode="live"
+            shift
+            ;;
+            --verbose|-v)
+            verbose=true
+            setup_deps_flags="--verbose"
+            shift
+            ;;
+        esac
+    done
+
+    if [ "$GITHUB_ACTIONS" = "true" ]; then
+        mode="ci"
+        # Always be verbose in CI
+        setup_deps_flags="--verbose"
+    fi
+
+    log "mode: $mode"
+
+    if [ "$mode" == "live" ]; then
+        handle_live_mode
+    else
+        log "Setting up environment in: $dest_dir"
+        mkdir -p "$dest_dir"
+
+        if [ "$mode" == "managed" ]; then
+            log "Installing nvim runtime..."
+            VIMRUNTIME="$(./scripts/setup-deps.sh "$setup_deps_flags" install-nvim "$dest_dir")"
+            export VIMRUNTIME
+            log_verbose "Installed nvim runtime at: $VIMRUNTIME"
+        fi
+
+        log "Installing lua-language-server..."
+        local luals_bin_path
+        luals_bin_path="$(./scripts/setup-deps.sh "$setup_deps_flags" install-luals "$dest_dir")"
+        export PATH="$luals_bin_path:$PATH"
+        log_verbose "Added $luals_bin_path to PATH"
+
+        local deps_dir="$dest_dir/deps"
+        log "Cloning/updating dependencies to $deps_dir..."
+        ./scripts/setup-deps.sh "$setup_deps_flags" clone "$deps_dir"
+        export DEPS_PATH="$deps_dir"
+        log_verbose "Set DEPS_PATH to $DEPS_PATH"
+    fi
+
+    ./scripts/setup-deps.sh $setup_deps_flags generate-luarc "$luarc_path"
+
+    log "VIMRUNTIME: $VIMRUNTIME"
+    log "DEPS_PATH: $DEPS_PATH"
+
+    run_typechecker "$luarc_path"
+}
+
+main "$@"
diff --git a/scripts/setup-deps.sh b/scripts/setup-deps.sh
new file mode 100755
index 0000000..931c146
--- /dev/null
+++ b/scripts/setup-deps.sh
@@ -0,0 +1,187 @@
+#!/bin/bash
+
+DEPS=(
+  "folke/neodev.nvim"
+  "nvim-lua/plenary.nvim"
+  "MunifTanjim/nui.nvim"
+  "stevearc/dressing.nvim"
+  "folke/snacks.nvim"
+  "echasnovski/mini.nvim"
+  "nvim-telescope/telescope.nvim"
+  "hrsh7th/nvim-cmp"
+  "ibhagwan/fzf-lua"
+  "nvim-tree/nvim-web-devicons"
+  "zbirenbaum/copilot.lua"
+  "folke/lazy.nvim"
+)
+
+LUALS_VERSION="3.13.6"
+
+verbose=false
+
+log() {
+    echo "$1" >&2
+}
+
+log_verbose() {
+    if [ "$verbose" = "true" ]; then
+        echo "$1" >&2
+    fi
+}
+
+clone_deps() {
+    local deps_dir=${1:-"$PWD/deps"}
+    log_verbose "Cloning dependencies into: $deps_dir"
+    mkdir -p "$deps_dir"
+
+    for dep in "${DEPS[@]}"; do
+        repo_name="$(echo "$dep" | cut -d'/' -f2)"
+        local repo_path="$deps_dir/$repo_name"
+        if [ -d "$repo_path/.git" ]; then
+            log_verbose "Updating existing repository: $repo_path"
+            (
+                cd "$repo_path"
+                git fetch -q
+                if git show-ref --verify --quiet refs/remotes/origin/main; then
+                    git reset -q --hard origin/main
+                elif git show-ref --verify --quiet refs/remotes/origin/master; then
+                    git reset -q --hard origin/master
+                else
+                    log "Could not find main or master branch for $repo_name"
+                fi
+            )
+        else
+            if [ -d "$repo_path" ]; then
+                log_verbose "Directory '$repo_path' exists but is not a git repository. Removing and re-cloning."
+                rm -rf "$repo_path"
+            fi
+            log_verbose "Cloning new repository: $dep to $repo_path"
+            git clone -q --depth 1 "https://github.com/${dep}.git" "$repo_path"
+        fi
+    done
+}
+
+install_luals() {
+    local dest_dir=${1:-"$PWD/target/tests"}
+    local luals_url_template="https://github.com/LuaLS/lua-language-server/releases/download/__VERSION__/lua-language-server-__VERSION__-linux-x64.tar.gz"
+    local luals_download_url="${luals_url_template//__VERSION__/$LUALS_VERSION}"
+    local luals_dir="$dest_dir/lua-language-server-${LUALS_VERSION}"
+
+    if [ ! -d "$luals_dir" ]; then
+        log "Installing lua-language-server ${LUALS_VERSION}..."
+        mkdir -p "$luals_dir"
+        curl -sSL "${luals_download_url}" | tar zx --directory "$luals_dir"
+    else
+        log_verbose "lua-language-server is already installed in $luals_dir"
+    fi
+    echo "$luals_dir/bin"
+}
+
+install_nvim_runtime() {
+    local dest_dir=${1:-"$PWD/target/tests"}
+
+    command -v yq &>/dev/null || die "yq is not installed for parsing GitHub API responses."
+
+    local nvim_version
+    nvim_version="$(yq -r '.jobs.typecheck.strategy.matrix.nvim_version[0]' .github/workflows/lua.yaml)"
+    log_verbose "Parsed nvim version from workflow: $nvim_version"
+
+    log_verbose "Resolving ${nvim_version} Neovim release from GitHub API..."
+    local api_url="https://api.github.com/repos/neovim/neovim/releases"
+    if [ "$nvim_version" == "stable" ]; then
+        api_url="$api_url/latest"
+    else
+        api_url="$api_url/tags/${nvim_version}"
+    fi
+
+    local release_data
+    release_data="$(curl -s "$api_url")"
+    if [ -z "$release_data" ] || echo "$release_data" | yq -e '.message == "Not Found"' > /dev/null; then
+        die "Failed to fetch release data from GitHub API for version '${nvim_version}'."
+    fi
+
+    # Find the correct asset by regex and extract its name and download URL.
+    local asset_info
+    asset_info="$(echo "$release_data" | \
+      yq -r '.assets[] | select(.name | test("nvim-linux(64|-x86_64)\\.tar\\.gz$")) | .name + " " + .browser_download_url')"
+
+    if [ -z "$asset_info" ]; then
+        die "Could not find a suitable linux tarball asset for version '${nvim_version}'."
+    fi
+
+    local asset_name
+    local download_url
+    read -r asset_name download_url <<< "$asset_info"
+
+    local actual_version
+    actual_version="$(echo "$download_url" | grep -E -o 'v[0-9]+\.[0-9]+\.[0-9]+' | head -n 1)"
+    if [ -z "$actual_version" ]; then
+        die "Could not resolve a version tag from URL: $download_url"
+    fi
+    log_verbose "Resolved Neovim version is ${actual_version}"
+
+    local runtime_dir="$dest_dir/nvim-${actual_version}-runtime"
+    if [ ! -d "$runtime_dir" ]; then
+        log "Installing Neovim runtime (${actual_version})..."
+        mkdir -p "$runtime_dir"
+        curl -sSL "${download_url}" | \
+            tar xzf - -C "$runtime_dir" --strip-components=4 \
+                "${asset_name%.tar.gz}/share/nvim/runtime"
+    else
+        log_verbose "Neovim runtime (${actual_version}) is already installed"
+    fi
+    echo "$runtime_dir"
+}
+
+generate_luarc() {
+    local luarc_path=${1:-"$PWD/target/tests/luarc.json"}
+    local luarc_template="luarc.json.template"
+
+    log_verbose "Generating luarc file at: $luarc_path"
+    mkdir -p "$(dirname "$luarc_path")"
+
+    local lua_deps=""
+    for dep in "${DEPS[@]}"; do
+        repo_name="$(echo "$dep" | cut -d'/' -f2)"
+        lua_deps="${lua_deps},\n      \"\$DEPS_PATH/${repo_name}/lua\""
+    done
+    sed "s#{{DEPS}}#${lua_deps}#" "$luarc_template" > "$luarc_path"
+}
+
+main() {
+    local command=""
+    local args=()
+
+    # Manual parsing for flags and command
+    while [[ $# -gt 0 ]]; do
+        case $1 in
+            -v|--verbose)
+            verbose=true
+            shift
+            ;;
+            *)
+            if [ -z "$command" ]; then
+                command=$1
+            else
+                args+=("$1")
+            fi
+            shift
+            ;;
+        esac
+    done
+
+    if [ "$command" == "clone" ]; then
+        clone_deps "${args[@]}"
+    elif [ "$command" == "generate-luarc" ]; then
+        generate_luarc "${args[@]}"
+    elif [ "$command" == "install-luals" ]; then
+        install_luals "${args[@]}"
+    elif [ "$command" == "install-nvim" ]; then
+        install_nvim_runtime "${args[@]}"
+    else
+        echo "Usage: $0 [-v|--verbose] {clone [dir]|generate-luarc [path]|install-luals [dir]|install-nvim [dir]}"
+        exit 1
+    fi
+}
+
+main "$@"