diff --git a/.bazelignore b/.bazelignore
new file mode 100644
index 0000000000000..3c3629e647f5d
--- /dev/null
+++ b/.bazelignore
@@ -0,0 +1 @@
+node_modules
diff --git a/tools/bazel.rc b/.bazelrc
similarity index 96%
rename from tools/bazel.rc
rename to .bazelrc
index d9f63f2da3e54..e744c123721ab 100644
--- a/tools/bazel.rc
+++ b/.bazelrc
@@ -57,6 +57,6 @@ test --experimental_ui
 ################################
 # Temporary Settings for Ivy   #
 ################################
-# to determine if the compiler used should be Ivy or ViewEngine one can use `--define=compile=local` on 
+# to determine if the compiler used should be Ivy or ViewEngine one can use `--define=compile=local` on
 # any bazel target. This is a temporary flag until codebase is permanently switched to Ivy.
-build --define=compile=legacy
\ No newline at end of file
+build --define=compile=legacy
diff --git a/.circleci/config.yml b/.circleci/config.yml
index a7494b07750cf..f7b5c1be4bbca 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -12,8 +12,8 @@
 ## IMPORTANT
 # If you change the `docker_image` version, also change the `cache_key` suffix and the version of
 # `com_github_bazelbuild_buildtools` in the `/WORKSPACE` file.
-var_1: &docker_image angular/ngcontainer:0.6.0
-var_2: &cache_key v2-angular-{{ .Branch }}-{{ checksum "yarn.lock" }}-0.6.0
+var_1: &docker_image angular/ngcontainer:0.7.0
+var_2: &cache_key v2-angular-{{ .Branch }}-{{ checksum "yarn.lock" }}-0.7.0
 
 # Define common ENV vars
 var_3: &define_env_vars
diff --git a/.gitignore b/.gitignore
index eae2571fe11d0..039f0db9c2a64 100644
--- a/.gitignore
+++ b/.gitignore
@@ -14,7 +14,6 @@ pubspec.lock
 .settings/
 *.swo
 modules/.settings
-.bazelrc
 .vscode
 modules/.vscode
 
diff --git a/.pullapprove.yml b/.pullapprove.yml
index a19bffa035ee8..3f4c200c024e3 100644
--- a/.pullapprove.yml
+++ b/.pullapprove.yml
@@ -87,10 +87,10 @@ groups:
       files:
         include:
           - "WORKSPACE"
+          - ".bazel*"
           - "*.bazel"
           - "*.bzl"
           - "packages/bazel/*"
-          - "tools/bazel.rc"
           - "/docs/BAZEL.md"
     users:
       - alexeagle #primary
@@ -108,7 +108,6 @@ groups:
           - "*.lock"
           - "tools/*"
         exclude:
-          - "tools/bazel.rc"
           - "tools/public_api_guard/*"
           - "aio/*"
     users:
diff --git a/WORKSPACE b/WORKSPACE
index 55f7334eb379e..e490a0261e517 100644
--- a/WORKSPACE
+++ b/WORKSPACE
@@ -1,7 +1,7 @@
 workspace(name = "angular")
 
 load(
-    "//packages/bazel:package.bzl", 
+    "//packages/bazel:package.bzl",
     "rules_angular_dependencies",
     "rules_angular_dev_dependencies",
 )
@@ -14,9 +14,11 @@ rules_angular_dev_dependencies()
 #
 # Point Bazel to WORKSPACEs that live in subdirectories
 #
-local_repository(
+http_archive(
     name = "rxjs",
-    path = "node_modules/rxjs/src",
+    url = "https://registry.yarnpkg.com/rxjs/-/rxjs-6.3.3.tgz",
+    strip_prefix = "package/src",
+    sha256 = "72b0b4e517f43358f554c125e40e39f67688cd2738a8998b4a266981ed32f403",
 )
 
 # Point to the integration test workspace just so that Bazel doesn't descend into it
@@ -26,23 +28,12 @@ local_repository(
     path = "integration/bazel",
 )
 
-# Prevent Bazel from trying to build rxjs under angular devkit
-# TODO(alexeagle): remove after Bazel 0.18 upgrade
-local_repository(
-    name = "rxjs_ignore_nested_1",
-    path = "node_modules/@angular-devkit/core/node_modules/rxjs/src",
-)
-local_repository(
-    name = "rxjs_ignore_nested_2",
-    path = "node_modules/@angular-devkit/schematics/node_modules/rxjs/src",
-)
-
 #
 # Load and install our dependencies downloaded above.
 #
 load("@build_bazel_rules_nodejs//:defs.bzl", "check_bazel_version", "node_repositories", "yarn_install")
 
-check_bazel_version("0.17.0", """
+check_bazel_version("0.18.0", """
 If you are on a Mac and using Homebrew, there is a breaking change to the installation in Bazel 0.16
 See https://blog.bazel.build/2018/08/22/bazel-homebrew.html
 
diff --git a/docs/BAZEL.md b/docs/BAZEL.md
index bd13324161258..364279ec47dc1 100644
--- a/docs/BAZEL.md
+++ b/docs/BAZEL.md
@@ -72,7 +72,7 @@ keeps the outputs up-to-date as you save sources.
 
 If you're experiencing problems with seemingly unrelated tests failing, it may be because you're not using the proper flags with your Bazel test runs in Angular.
 
-See also: [`//tools/bazel.rc`](https://github.com/angular/angular/blob/master/tools/bazel.rc) where `--define=ivy=false` is defined as default.
+See also: [`//.bazelrc`](https://github.com/angular/angular/blob/master/.bazelrc) where `--define=ivy=false` is defined as default.
 
 - `--config=debug`: build and launch in debug mode (see [debugging](#debugging) instructions below)
 - `--test_arg=--node_options=--inspect=9228`: change the inspector port.
@@ -165,7 +165,7 @@ You can see an overview at https://www.kchodorow.com/blog/2017/03/27/stamping-yo
 In our repo, here is how it's configured:
 
 1) In `tools/bazel_stamp_vars.sh` we run the `git` commands to generate our versioning info.
-1) In `tools/bazel.rc` we register this script as the value for the `workspace_status_command` flag. Bazel will run the script when it needs to stamp a binary.
+1) In `.bazelrc` we register this script as the value for the `workspace_status_command` flag. Bazel will run the script when it needs to stamp a binary.
 
 Note that Bazel has a `--stamp` argument to `bazel build`, but this has no effect since our stamping takes place in Skylark rules. See https://github.com/bazelbuild/bazel/issues/1054
 
diff --git a/packages/bazel/package.bzl b/packages/bazel/package.bzl
index aeefa03a0336c..da0237000abaa 100644
--- a/packages/bazel/package.bzl
+++ b/packages/bazel/package.bzl
@@ -83,9 +83,9 @@ def rules_angular_dev_dependencies():
     # Fetching the Bazel source code allows us to compile the Skylark linter
     http_archive(
         name = "io_bazel",
-        sha256 = "ace8cced3b21e64a8fdad68508e9b0644201ec848ad583651719841d567fc66d",
-        strip_prefix = "bazel-0.17.1",
-        url = "https://github.com/bazelbuild/bazel/archive/0.17.1.zip",
+        sha256 = "978f7e0440dd82182563877e2e0b7c013b26b3368888b57837e9a0ae206fd396",
+        strip_prefix = "bazel-0.18.0",
+        url = "https://github.com/bazelbuild/bazel/archive/0.18.0.zip",
     )
 
     # This commit matches the version of buildifier in angular/ngcontainer
diff --git a/tools/ngcontainer/Dockerfile b/tools/ngcontainer/Dockerfile
index a3aca664c683a..33ba439296fa3 100644
--- a/tools/ngcontainer/Dockerfile
+++ b/tools/ngcontainer/Dockerfile
@@ -6,7 +6,7 @@ USER root
 # Bazel install
 # See https://bazel.build/versions/master/docs/install-ubuntu.html#using-bazel-custom-apt-repository-recommended
 # Note, only the latest release is available, see https://github.com/bazelbuild/bazel/issues/4947
-RUN BAZEL_VERSION="0.17.1" \
+RUN BAZEL_VERSION="0.18.0" \
  && wget -q -O - https://bazel.build/bazel-release.pub.gpg | apt-key add - \
  && echo "deb [arch=amd64] http://storage.googleapis.com/bazel-apt stable jdk1.8" > /etc/apt/sources.list.d/bazel.list \
  && apt-get update \
diff --git a/tools/ngcontainer/README.md b/tools/ngcontainer/README.md
index 554798924ceef..992ccb5fd3cdf 100644
--- a/tools/ngcontainer/README.md
+++ b/tools/ngcontainer/README.md
@@ -6,7 +6,7 @@ This docker container provides everything needed to build and test Angular appli
 - npm 6.2.0
 - yarn 1.9.2
 - Java 8 (for Closure Compiler and Bazel)
-- Bazel build tool v0.17.1 - http://bazel.build
+- Bazel build tool v0.18.0 - http://bazel.build
 - Google Chrome 69.0.3497.81
 - Mozilla Firefox 47.0.1
 - xvfb (virtual framebuffer) for headless testing