diff --git a/cmd/sync/sync.go b/cmd/sync/sync.go
index 798a5681..62d834e3 100644
--- a/cmd/sync/sync.go
+++ b/cmd/sync/sync.go
@@ -120,14 +120,26 @@ var syncCmd = &cobra.Command{
 			return err
 		}
 
-		s := sync.Sync{
-			LocalPath:       prj.Root(),
-			RemotePath:      *remotePath,
-			PersistSnapshot: *persistSnapshot,
-			PollInterval:    *interval,
+		cacheDir, err := prj.CacheDir()
+		if err != nil {
+			return err
 		}
 
-		return s.RunWatchdog(ctx, wsc)
+		opts := sync.SyncOptions{
+			LocalPath:        prj.Root(),
+			RemotePath:       *remotePath,
+			PersistSnapshot:  *persistSnapshot,
+			SnapshotBasePath: cacheDir,
+			PollInterval:     *interval,
+			WorkspaceClient:  wsc,
+		}
+
+		s, err := sync.New(opts)
+		if err != nil {
+			return err
+		}
+
+		return s.RunWatchdog(ctx)
 	},
 }
 
diff --git a/libs/sync/snapshot.go b/libs/sync/snapshot.go
index 54a7e29a..27f12b9b 100644
--- a/libs/sync/snapshot.go
+++ b/libs/sync/snapshot.go
@@ -16,7 +16,6 @@ import (
 	"encoding/hex"
 
 	"github.com/databricks/bricks/git"
-	"github.com/databricks/bricks/project"
 )
 
 // Bump it up every time a potentially breaking change is made to the snapshot schema
@@ -35,6 +34,13 @@ const LatestSnapshotVersion = "v1"
 // local files are being synced to will make bricks cli switch to a different
 // snapshot for persisting/loading sync state
 type Snapshot struct {
+	// Path where this snapshot was loaded from and will be saved to.
+	// Intentionally not part of the snapshot state because it may be moved by the user.
+	SnapshotPath string `json:"-"`
+
+	// New indicates if this is a fresh snapshot or if it was loaded from disk.
+	New bool `json:"-"`
+
 	// version for snapshot schema. Only snapshots matching the latest snapshot
 	// schema version are used and older ones are invalidated (by deleting them)
 	Version string `json:"version"`
@@ -76,52 +82,39 @@ func GetFileName(host, remotePath string) string {
 // Compute path of the snapshot file on the local machine
 // The file name for unique for a tuple of (host, remotePath)
 // precisely it's the first 16 characters of md5(concat(host, remotePath))
-func (s *Snapshot) getPath(ctx context.Context) (string, error) {
-	prj := project.Get(ctx)
-	cacheDir, err := prj.CacheDir()
-	if err != nil {
-		return "", err
-	}
-	snapshotDir := filepath.Join(cacheDir, syncSnapshotDirName)
+func SnapshotPath(opts *SyncOptions) (string, error) {
+	snapshotDir := filepath.Join(opts.SnapshotBasePath, syncSnapshotDirName)
 	if _, err := os.Stat(snapshotDir); os.IsNotExist(err) {
 		err = os.Mkdir(snapshotDir, os.ModeDir|os.ModePerm)
 		if err != nil {
 			return "", fmt.Errorf("failed to create config directory: %s", err)
 		}
 	}
-	fileName := GetFileName(s.Host, s.RemotePath)
+	fileName := GetFileName(opts.Host, opts.RemotePath)
 	return filepath.Join(snapshotDir, fileName), nil
 }
 
-func newSnapshot(ctx context.Context, remotePath string) (*Snapshot, error) {
-	prj := project.Get(ctx)
-
-	// Get host this snapshot is for
-	wsc := prj.WorkspacesClient()
-
-	// TODO: The host may be late-initialized in certain Azure setups where we
-	// specify the workspace by its resource ID. tracked in: https://databricks.atlassian.net/browse/DECO-194
-	host := wsc.Config.Host
-	if host == "" {
-		return nil, fmt.Errorf("failed to resolve host for snapshot")
+func newSnapshot(opts *SyncOptions) (*Snapshot, error) {
+	path, err := SnapshotPath(opts)
+	if err != nil {
+		return nil, err
 	}
 
 	return &Snapshot{
+		SnapshotPath: path,
+		New:          true,
+
 		Version:            LatestSnapshotVersion,
-		Host:               host,
-		RemotePath:         remotePath,
+		Host:               opts.Host,
+		RemotePath:         opts.RemotePath,
 		LastUpdatedTimes:   make(map[string]time.Time),
 		LocalToRemoteNames: make(map[string]string),
 		RemoteToLocalNames: make(map[string]string),
 	}, nil
 }
 
-func (s *Snapshot) storeSnapshot(ctx context.Context) error {
-	snapshotPath, err := s.getPath(ctx)
-	if err != nil {
-		return err
-	}
-	f, err := os.OpenFile(snapshotPath, os.O_CREATE|os.O_WRONLY|os.O_TRUNC, 0644)
+func (s *Snapshot) Save(ctx context.Context) error {
+	f, err := os.OpenFile(s.SnapshotPath, os.O_CREATE|os.O_WRONLY|os.O_TRUNC, 0644)
 	if err != nil {
 		return fmt.Errorf("failed to create/open persisted sync snapshot file: %s", err)
 	}
@@ -139,34 +132,42 @@ func (s *Snapshot) storeSnapshot(ctx context.Context) error {
 	return nil
 }
 
-func (s *Snapshot) loadSnapshot(ctx context.Context) error {
-	snapshotPath, err := s.getPath(ctx)
+func loadOrNewSnapshot(opts *SyncOptions) (*Snapshot, error) {
+	snapshot, err := newSnapshot(opts)
 	if err != nil {
-		return err
-	}
-	// Snapshot file not found. We do not load anything
-	if _, err := os.Stat(snapshotPath); os.IsNotExist(err) {
-		return nil
+		return nil, err
 	}
 
-	snapshotCopy := Snapshot{}
+	// Snapshot file not found. We return the new copy.
+	if _, err := os.Stat(snapshot.SnapshotPath); os.IsNotExist(err) {
+		return snapshot, nil
+	}
 
-	bytes, err := os.ReadFile(snapshotPath)
+	bytes, err := os.ReadFile(snapshot.SnapshotPath)
 	if err != nil {
-		return fmt.Errorf("failed to read sync snapshot from disk: %s", err)
+		return nil, fmt.Errorf("failed to read sync snapshot from disk: %s", err)
 	}
-	err = json.Unmarshal(bytes, &snapshotCopy)
+
+	var fromDisk Snapshot
+	err = json.Unmarshal(bytes, &fromDisk)
 	if err != nil {
-		return fmt.Errorf("failed to json unmarshal persisted snapshot: %s", err)
+		return nil, fmt.Errorf("failed to json unmarshal persisted snapshot: %s", err)
 	}
+
 	// invalidate old snapshot with schema versions
-	if snapshotCopy.Version != LatestSnapshotVersion {
-
-		log.Printf("Did not load existing snapshot because its version is %s while the latest version is %s", s.Version, LatestSnapshotVersion)
-		return nil
+	if fromDisk.Version != LatestSnapshotVersion {
+		log.Printf("Did not load existing snapshot because its version is %s while the latest version is %s", snapshot.Version, LatestSnapshotVersion)
+		return newSnapshot(opts)
 	}
-	*s = snapshotCopy
-	return nil
+
+	// unmarshal again over the existing snapshot instance
+	err = json.Unmarshal(bytes, &snapshot)
+	if err != nil {
+		return nil, fmt.Errorf("failed to json unmarshal persisted snapshot: %s", err)
+	}
+
+	snapshot.New = false
+	return snapshot, nil
 }
 
 func (d diff) IsEmpty() bool {
diff --git a/libs/sync/snapshot_test.go b/libs/sync/snapshot_test.go
index 933a1b2b..f02fde04 100644
--- a/libs/sync/snapshot_test.go
+++ b/libs/sync/snapshot_test.go
@@ -1,7 +1,6 @@
 package sync
 
 import (
-	"context"
 	"fmt"
 	"os"
 	"path/filepath"
@@ -10,8 +9,8 @@ import (
 
 	"github.com/databricks/bricks/git"
 	"github.com/databricks/bricks/libs/testfile"
-	"github.com/databricks/bricks/project"
 	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
 )
 
 func assertKeysOfMap(t *testing.T, m map[string]time.Time, expectedKeys []string) {
@@ -219,35 +218,25 @@ func TestErrorWhenIdenticalRemoteName(t *testing.T) {
 	assert.ErrorContains(t, err, "both foo and foo.py point to the same remote file location foo. Please remove one of them from your local project")
 }
 
-func TestNewSnapshotDefaults(t *testing.T) {
-	ctx := setupProject(t)
-	snapshot, err := newSnapshot(ctx, "/Repos/foo/bar")
-	prj := project.Get(ctx)
-	assert.NoError(t, err)
-
-	assert.Equal(t, LatestSnapshotVersion, snapshot.Version)
-	assert.Equal(t, "/Repos/foo/bar", snapshot.RemotePath)
-	assert.Equal(t, prj.WorkspacesClient().Config.Host, snapshot.Host)
-	assert.Empty(t, snapshot.LastUpdatedTimes)
-	assert.Empty(t, snapshot.RemoteToLocalNames)
-	assert.Empty(t, snapshot.LocalToRemoteNames)
-}
-
-func getEmptySnapshot() Snapshot {
-	return Snapshot{
-		LastUpdatedTimes:   make(map[string]time.Time),
-		LocalToRemoteNames: make(map[string]string),
-		RemoteToLocalNames: make(map[string]string),
+func defaultOptions(t *testing.T) *SyncOptions {
+	return &SyncOptions{
+		Host:             "www.foobar.com",
+		RemotePath:       "/Repos/foo/bar",
+		SnapshotBasePath: t.TempDir(),
 	}
 }
 
-func setupProject(t *testing.T) context.Context {
-	projectDir := t.TempDir()
-	ctx := context.TODO()
-	t.Setenv("DATABRICKS_HOST", "www.foobar.com")
-	ctx, err := project.Initialize(ctx, projectDir, "development")
-	assert.NoError(t, err)
-	return ctx
+func TestNewSnapshotDefaults(t *testing.T) {
+	opts := defaultOptions(t)
+	snapshot, err := newSnapshot(opts)
+	require.NoError(t, err)
+
+	assert.Equal(t, LatestSnapshotVersion, snapshot.Version)
+	assert.Equal(t, opts.RemotePath, snapshot.RemotePath)
+	assert.Equal(t, opts.Host, snapshot.Host)
+	assert.Empty(t, snapshot.LastUpdatedTimes)
+	assert.Empty(t, snapshot.RemoteToLocalNames)
+	assert.Empty(t, snapshot.LocalToRemoteNames)
 }
 
 func TestOldSnapshotInvalidation(t *testing.T) {
@@ -259,21 +248,18 @@ func TestOldSnapshotInvalidation(t *testing.T) {
 		"local_to_remote_names": {},
 		"remote_to_local_names": {}
 	}`
-	ctx := setupProject(t)
-	emptySnapshot := getEmptySnapshot()
-	snapshotPath, err := emptySnapshot.getPath(ctx)
-	assert.NoError(t, err)
 
+	opts := defaultOptions(t)
+	snapshotPath, err := SnapshotPath(opts)
+	require.NoError(t, err)
 	snapshotFile := testfile.CreateFile(t, snapshotPath)
 	snapshotFile.Overwrite(t, oldVersionSnapshot)
 	snapshotFile.Close(t)
 
-	assert.FileExists(t, snapshotPath)
-	snapshot := emptySnapshot
-	err = snapshot.loadSnapshot(ctx)
-	assert.NoError(t, err)
 	// assert snapshot did not get loaded
-	assert.Equal(t, emptySnapshot, snapshot)
+	snapshot, err := loadOrNewSnapshot(opts)
+	require.NoError(t, err)
+	assert.True(t, snapshot.New)
 }
 
 func TestNoVersionSnapshotInvalidation(t *testing.T) {
@@ -284,21 +270,18 @@ func TestNoVersionSnapshotInvalidation(t *testing.T) {
 		"local_to_remote_names": {},
 		"remote_to_local_names": {}
 	}`
-	ctx := setupProject(t)
-	emptySnapshot := getEmptySnapshot()
-	snapshotPath, err := emptySnapshot.getPath(ctx)
-	assert.NoError(t, err)
 
+	opts := defaultOptions(t)
+	snapshotPath, err := SnapshotPath(opts)
+	require.NoError(t, err)
 	snapshotFile := testfile.CreateFile(t, snapshotPath)
 	snapshotFile.Overwrite(t, noVersionSnapshot)
 	snapshotFile.Close(t)
 
-	assert.FileExists(t, snapshotPath)
-	snapshot := emptySnapshot
-	err = snapshot.loadSnapshot(ctx)
-	assert.NoError(t, err)
 	// assert snapshot did not get loaded
-	assert.Equal(t, emptySnapshot, snapshot)
+	snapshot, err := loadOrNewSnapshot(opts)
+	require.NoError(t, err)
+	assert.True(t, snapshot.New)
 }
 
 func TestLatestVersionSnapshotGetsLoaded(t *testing.T) {
@@ -311,22 +294,17 @@ func TestLatestVersionSnapshotGetsLoaded(t *testing.T) {
 			"remote_to_local_names": {}
 	}`, LatestSnapshotVersion)
 
-	ctx := setupProject(t)
-	emptySnapshot := getEmptySnapshot()
-	snapshotPath, err := emptySnapshot.getPath(ctx)
-	assert.NoError(t, err)
-
+	opts := defaultOptions(t)
+	snapshotPath, err := SnapshotPath(opts)
+	require.NoError(t, err)
 	snapshotFile := testfile.CreateFile(t, snapshotPath)
 	snapshotFile.Overwrite(t, latestVersionSnapshot)
 	snapshotFile.Close(t)
 
-	assert.FileExists(t, snapshotPath)
-	snapshot := emptySnapshot
-	err = snapshot.loadSnapshot(ctx)
-	assert.NoError(t, err)
-
 	// assert snapshot gets loaded
-	assert.NotEqual(t, emptySnapshot, snapshot)
+	snapshot, err := loadOrNewSnapshot(opts)
+	require.NoError(t, err)
+	assert.False(t, snapshot.New)
 	assert.Equal(t, LatestSnapshotVersion, snapshot.Version)
 	assert.Equal(t, "www.foobar.com", snapshot.Host)
 	assert.Equal(t, "/Repos/foo/bar", snapshot.RemotePath)
diff --git a/libs/sync/sync.go b/libs/sync/sync.go
index 9a247254..55055f8a 100644
--- a/libs/sync/sync.go
+++ b/libs/sync/sync.go
@@ -2,25 +2,60 @@ package sync
 
 import (
 	"context"
+	"fmt"
 	"time"
 
+	"github.com/databricks/bricks/git"
 	"github.com/databricks/bricks/libs/sync/repofiles"
 	"github.com/databricks/databricks-sdk-go"
 )
 
-type Sync struct {
+type SyncOptions struct {
 	LocalPath  string
 	RemotePath string
 
 	PersistSnapshot bool
 
+	SnapshotBasePath string
+
 	PollInterval time.Duration
+
+	WorkspaceClient *databricks.WorkspaceClient
+
+	Host string
+}
+
+type Sync struct {
+	*SyncOptions
+
+	fileSet *git.FileSet
+}
+
+// New initializes and returns a new [Sync] instance.
+func New(opts SyncOptions) (*Sync, error) {
+	fileSet := git.NewFileSet(opts.LocalPath)
+	err := fileSet.EnsureValidGitIgnoreExists()
+	if err != nil {
+		return nil, err
+	}
+
+	// TODO: The host may be late-initialized in certain Azure setups where we
+	// specify the workspace by its resource ID. tracked in: https://databricks.atlassian.net/browse/DECO-194
+	opts.Host = opts.WorkspaceClient.Config.Host
+	if opts.Host == "" {
+		return nil, fmt.Errorf("failed to resolve host for snapshot")
+	}
+
+	return &Sync{
+		SyncOptions: &opts,
+		fileSet:     fileSet,
+	}, nil
 }
 
 // RunWatchdog kicks off a polling loop to monitor local changes and synchronize
 // them to the remote workspace path.
-func (s *Sync) RunWatchdog(ctx context.Context, wsc *databricks.WorkspaceClient) error {
-	repoFiles := repofiles.Create(s.RemotePath, s.LocalPath, wsc)
+func (s *Sync) RunWatchdog(ctx context.Context) error {
+	repoFiles := repofiles.Create(s.RemotePath, s.LocalPath, s.WorkspaceClient)
 	syncCallback := syncCallback(ctx, repoFiles)
-	return spawnWatchdog(ctx, s.PollInterval, syncCallback, s.RemotePath, s.PersistSnapshot)
+	return spawnWatchdog(ctx, syncCallback, s)
 }
diff --git a/libs/sync/watchdog.go b/libs/sync/watchdog.go
index 8e45b0a6..bf8b7717 100644
--- a/libs/sync/watchdog.go
+++ b/libs/sync/watchdog.go
@@ -7,7 +7,6 @@ import (
 	"time"
 
 	"github.com/databricks/bricks/libs/sync/repofiles"
-	"github.com/databricks/bricks/project"
 	"golang.org/x/sync/errgroup"
 )
 
@@ -17,7 +16,7 @@ type watchdog struct {
 	wg      sync.WaitGroup
 	failure error // data race? make channel?
 
-	persistSnapshot bool
+	sync *Sync
 }
 
 // See https://docs.databricks.com/resources/limits.html#limits-api-rate-limits for per api
@@ -70,16 +69,14 @@ func syncCallback(ctx context.Context, repoFiles *repofiles.RepoFiles) func(loca
 }
 
 func spawnWatchdog(ctx context.Context,
-	interval time.Duration,
 	applyDiff func(diff) error,
-	remotePath string,
-	persistSnapshot bool) error {
+	sync *Sync) error {
 	w := &watchdog{
-		ticker:          time.NewTicker(interval),
-		persistSnapshot: persistSnapshot,
+		ticker: time.NewTicker(sync.PollInterval),
+		sync:   sync,
 	}
 	w.wg.Add(1)
-	go w.main(ctx, applyDiff, remotePath)
+	go w.main(ctx, applyDiff, sync.RemotePath)
 	w.wg.Wait()
 	return w.failure
 }
@@ -88,28 +85,27 @@ func spawnWatchdog(ctx context.Context,
 // https://github.com/gorakhargosh/watchdog/blob/master/src/watchdog/observers/kqueue.py#L394-L418
 func (w *watchdog) main(ctx context.Context, applyDiff func(diff) error, remotePath string) {
 	defer w.wg.Done()
-	snapshot, err := newSnapshot(ctx, remotePath)
+	snapshot, err := newSnapshot(w.sync.SyncOptions)
 	if err != nil {
 		log.Printf("[ERROR] cannot create snapshot: %s", err)
 		w.failure = err
 		return
 	}
-	if w.persistSnapshot {
-		err := snapshot.loadSnapshot(ctx)
+	if w.sync.PersistSnapshot {
+		snapshot, err = loadOrNewSnapshot(w.sync.SyncOptions)
 		if err != nil {
 			log.Printf("[ERROR] cannot load snapshot: %s", err)
 			w.failure = err
 			return
 		}
 	}
-	prj := project.Get(ctx)
 	var onlyOnceInitLog sync.Once
 	for {
 		select {
 		case <-ctx.Done():
 			return
 		case <-w.ticker.C:
-			all, err := prj.GetFileSet().All()
+			all, err := w.sync.fileSet.All()
 			if err != nil {
 				log.Printf("[ERROR] cannot list files: %s", err)
 				w.failure = err
@@ -132,8 +128,8 @@ func (w *watchdog) main(ctx context.Context, applyDiff func(diff) error, remoteP
 				w.failure = err
 				return
 			}
-			if w.persistSnapshot {
-				err = snapshot.storeSnapshot(ctx)
+			if w.sync.PersistSnapshot {
+				err = snapshot.Save(ctx)
 				if err != nil {
 					log.Printf("[ERROR] cannot store snapshot: %s", err)
 					w.failure = err