diff --git a/DESCRIPTION b/DESCRIPTION
index ef2fe46d7..b03d16539 100644
--- a/DESCRIPTION
+++ b/DESCRIPTION
@@ -1,7 +1,7 @@
 Package: renv
 Type: Package
 Title: Project Environments
-Version: 0.17.0-35
+Version: 0.17.0-36
 Authors@R: c(
     person("Kevin", "Ushey", role = c("aut", "cre"), email = "kevin@rstudio.com"),
     person("Posit Software, PBC", role = c("cph", "fnd"))
diff --git a/NEWS.md b/NEWS.md
index 8e99928be..c26cbd241 100644
--- a/NEWS.md
+++ b/NEWS.md
@@ -1,6 +1,8 @@
 
 # renv 0.18.0  (UNRELEASED)
 
+* The `renv` sandbox is now placed within the `renv` cache directory. (#1158)
+
 * Fixed an issue where `renv::status()` could erroneously report a project was
   out-of-sync when using explicit snapshots. (#1159)
 
diff --git a/R/paths.R b/R/paths.R
index a58c774c8..5092576ea 100644
--- a/R/paths.R
+++ b/R/paths.R
@@ -104,9 +104,9 @@ renv_paths_sandbox_unix <- function(project = NULL) {
   if (!is.na(root))
     return(paste(root, prefix, sep = "/"))
 
-  # otherwise, build path in renv folder
-  project <- renv_project_resolve(project)
-  renv_paths_renv("sandbox", prefix, profile = TRUE, project = project)
+  # otherwise, build path in user data directory
+  userdir <- renv_bootstrap_user_dir()
+  paste(userdir, "sandbox", prefix, sep = "/")
 
 }
 
diff --git a/R/sandbox.R b/R/sandbox.R
index 5d02cf43d..c03689620 100644
--- a/R/sandbox.R
+++ b/R/sandbox.R
@@ -8,28 +8,6 @@ renv_sandbox_init <- function() {
     options(renv.sandbox.locking_enabled = enabled)
   }
 
-  # ensure sandbox is unlocked on exit
-  reg.finalizer(
-    renv_envir_self(),
-    renv_sandbox_finalize,
-    onexit = TRUE
-  )
-
-}
-
-renv_sandbox_finalize <- function(self) {
-
-  # check if we're enabled
-  if (!renv_sandbox_activated())
-    return()
-
-  sandbox <- .Library
-  if (!file.exists(sandbox))
-    return()
-
-  dlog("sandbox", "Unlocking sandbox in finalizer.")
-  renv_sandbox_unlock(sandbox)
-
 }
 
 renv_sandbox_activate <- function(project = NULL) {
@@ -229,12 +207,6 @@ renv_sandbox_task <- function(...) {
     renv_sandbox_generate(sandbox)
   }
 
-  # make sure the sandbox is locked
-  if (!renv_sandbox_locked(sandbox)) {
-    dlog("sandbox", "Locking sandbox in task callback.")
-    renv_sandbox_lock(sandbox)
-  }
-
 }
 
 renv_sandbox_path <- function(project = NULL) {