diff --git a/docs/shared/concepts/how-caching-works.md b/docs/shared/concepts/how-caching-works.md
index 54d8998672..98f0d33e9d 100644
--- a/docs/shared/concepts/how-caching-works.md
+++ b/docs/shared/concepts/how-caching-works.md
@@ -59,14 +59,14 @@ We can define a more precise configuration as follows:
 {
   "namedInputs": {
     "default": ["{projectRoot}/**/*"],
-    "prod": ["!{projectRoot}/**/*.spec.tsx"]
+    "production": ["!{projectRoot}/**/*.spec.tsx"]
   },
   "targetDefaults": {
     "build": {
-      "inputs": ["prod", "^prod"]
+      "inputs": ["production", "^production"]
     },
     "test": {
-      "inputs": ["default", "^prod", "{workspaceRoot}/jest.config.ts"]
+      "inputs": ["default", "^production", "{workspaceRoot}/jest.config.ts"]
     }
   }
 }
diff --git a/docs/shared/reference/nx-json.md b/docs/shared/reference/nx-json.md
index 21a5eab54f..605e0d5d27 100644
--- a/docs/shared/reference/nx-json.md
+++ b/docs/shared/reference/nx-json.md
@@ -25,11 +25,11 @@ The following is an expanded version showing all options. Your `nx.json` will li
   },
   "namedInputs": {
     "default": ["{projectRoot}/**/*"],
-    "prod": ["!{projectRoot}/**/*.spec.tsx"]
+    "production": ["!{projectRoot}/**/*.spec.tsx"]
   },
   "targetDefaults": {
     "build": {
-      "inputs": ["prod", "^prod"],
+      "inputs": ["production", "^production"],
       "dependsOn": ["^build"]
     }
   },
@@ -127,7 +127,7 @@ like this (which applies to every project):
 "test": {
   "inputs": [
     "default",
-    "^prod"
+    "^production"
   ]
 }
 ```
@@ -137,7 +137,10 @@ And projects can define their prod fileset, without having to redefine the input
 ```json title="project.json"
 {
   "namedInputs": {
-    "prod": ["!{projectRoot}/**/*.test.js", "{workspacRoot}/jest.config.js"]
+    "production": [
+      "!{projectRoot}/**/*.test.js",
+      "{workspacRoot}/jest.config.js"
+    ]
   }
 }
 ```
diff --git a/docs/shared/reference/project-configuration.md b/docs/shared/reference/project-configuration.md
index 4c14e5b4a0..177aeef24f 100644
--- a/docs/shared/reference/project-configuration.md
+++ b/docs/shared/reference/project-configuration.md
@@ -64,18 +64,18 @@ You can add Nx-specific configuration as follows:
       "default": [
         "{projectRoot}/**/*"
       ],
-      "prod": [
+      "production": [
         "!{projectRoot}/**/*.spec.tsx"
       ]
     },
     "targets": {
       "build": {
-        "inputs": ["prod", "^prod"],
+        "inputs": ["production", "^production"],
         "outputs": ["dist/libs/mylib"],
         "dependsOn": ["^build"]
       },
       "test": {
-        "inputs": ["default", "^prod"],
+        "inputs": ["default", "^production"],
         "outputs": [],
         "dependsOn": ["build"]
       }
@@ -94,19 +94,19 @@ You can add Nx-specific configuration as follows:
   "projectType": "library",
   "namedInputs": {
     "default": ["{projectRoot}/**/*"],
-    "prod": ["!{projectRoot}/**/*.spec.tsx"]
+    "production": ["!{projectRoot}/**/*.spec.tsx"]
   },
   "targets": {
     "test": {
       "executor": "@nrwl/jest:jest",
-      "inputs": ["default", "^prod"],
+      "inputs": ["default", "^production"],
       "outputs": [],
       "dependsOn": ["build"],
       "options": {}
     },
     "build": {
       "executor": "@nrwl/js:tsc",
-      "inputs": ["prod", "^prod"],
+      "inputs": ["production", "^production"],
       "outputs": ["dist/libs/mylib"],
       "dependsOn": ["^build"],
       "options": {}
@@ -154,8 +154,8 @@ _Named Inputs_
 
 Examples:
 
-- `inputs: ["prod"]`
-- same as `inputs: [{input: "prod", projects: "self"}]`
+- `inputs: ["production"]`
+- same as `inputs: [{input: "production", projects: "self"}]`
 
 Often the same glob will appear in many places (e.g., prod fileset will exclude spec files for all projects). Because
 keeping them in sync is error-prone, we recommend defining named inputs, which you can then reference in all of those
@@ -165,15 +165,15 @@ places.
 
 Examples:
 
-- `inputs: ["^prod"]`
-- same as `inputs: [{input: "prod", projects: "dependencies"}]`
+- `inputs: ["^production"]`
+- same as `inputs: [{input: "production", projects: "dependencies"}]`
 
 Similar to `dependsOn`, the "^" symbols means "dependencies". This is a very important idea, so let's illustrate it with
 an example.
 
 ```
 "test": {
-  "inputs": [ "default", "^prod" ]
+  "inputs": [ "default", "^production" ]
 }
 ```
 
diff --git a/nx.json b/nx.json
index 6edd21f9eb..3621fdaf5a 100644
--- a/nx.json
+++ b/nx.json
@@ -30,19 +30,22 @@
   },
   "namedInputs": {
     "default": ["{projectRoot}/**/*"],
-    "prod": ["!{projectRoot}/**/*.spec.ts{,.snap}"]
+    "production": [
+      "default",
+      "!{projectRoot}/**/?(*.)+(spec|test).[jt]s?(x)?(.snap)"
+    ]
   },
   "targetDefaults": {
     "build": {
       "dependsOn": ["build-base"],
-      "inputs": ["prod", "^prod"]
+      "inputs": ["production", "^production"]
     },
     "build-base": {
       "dependsOn": ["^build-base"],
-      "inputs": ["prod", "^prod"]
+      "inputs": ["production", "^production"]
     },
     "test": {
-      "inputs": ["default", "^prod", "{workspaceRoot}/jest.config.ts"]
+      "inputs": ["default", "^production", "{workspaceRoot}/jest.preset.js"]
     },
     "lint": {
       "inputs": [
@@ -54,7 +57,7 @@
     "e2e": {
       "inputs": [
         "default",
-        "^prod",
+        "^production",
         {
           "env": "SELECTED_CLI"
         },
diff --git a/packages/angular/src/generators/karma/karma.spec.ts b/packages/angular/src/generators/karma/karma.spec.ts
index f1637a494b..f97ef4511e 100644
--- a/packages/angular/src/generators/karma/karma.spec.ts
+++ b/packages/angular/src/generators/karma/karma.spec.ts
@@ -1,12 +1,13 @@
 import * as devkit from '@nrwl/devkit';
-import { createTreeWithEmptyV1Workspace } from '@nrwl/devkit/testing';
+import { createTreeWithEmptyWorkspace } from '@nrwl/devkit/testing';
 import { karmaGenerator } from './karma';
+import { NxJsonConfiguration, readJson, updateJson } from '@nrwl/devkit';
 
 describe('karma', () => {
   let tree: devkit.Tree;
 
   beforeEach(() => {
-    tree = createTreeWithEmptyV1Workspace();
+    tree = createTreeWithEmptyWorkspace();
   });
 
   it('should do nothing when karma is already installed and karma.conf.js exists', () => {
@@ -57,4 +58,27 @@ describe('karma', () => {
 
     expect(tree.exists('karma.conf.js')).toBeTruthy();
   });
+
+  it('should add inputs for test targets', () => {
+    updateJson<NxJsonConfiguration>(tree, 'nx.json', (json) => {
+      json.namedInputs ??= {};
+      json.namedInputs.production = ['default', '^production'];
+      return json;
+    });
+    karmaGenerator(tree, {});
+
+    const nxJson = readJson<NxJsonConfiguration>(tree, 'nx.json');
+    expect(nxJson.namedInputs.production).toContain(
+      '!{projectRoot}/karma.conf.js'
+    );
+    expect(nxJson.namedInputs.production).toContain(
+      '!{projectRoot}/tsconfig.spec.json'
+    );
+    expect(nxJson.namedInputs.production).toContain(
+      '!{projectRoot}/**/*.spec.[jt]s'
+    );
+    expect(nxJson.targetDefaults.test).toEqual({
+      inputs: ['default', '^production', '{workspaceRoot}/karma.conf.js'],
+    });
+  });
 });
diff --git a/packages/angular/src/generators/karma/karma.ts b/packages/angular/src/generators/karma/karma.ts
index 16e421c208..8f9717e520 100644
--- a/packages/angular/src/generators/karma/karma.ts
+++ b/packages/angular/src/generators/karma/karma.ts
@@ -4,6 +4,8 @@ import {
   generateFiles,
   joinPathFragments,
   readJson,
+  readWorkspaceConfiguration,
+  updateWorkspaceConfiguration,
 } from '@nrwl/devkit';
 import {
   jasmineCoreVersion,
@@ -18,6 +20,39 @@ import {
 } from '../../utils/versions';
 import { GeneratorOptions } from './schema';
 
+function addTestInputs(tree: Tree) {
+  const workspaceConfiguration = readWorkspaceConfiguration(tree);
+
+  const productionFileSet = workspaceConfiguration.namedInputs?.production;
+  if (productionFileSet) {
+    productionFileSet.push(
+      // Exclude spec files from production fileset
+      '!{projectRoot}/**/*.spec.[jt]s',
+      // Remove tsconfig.spec.json
+      '!{projectRoot}/tsconfig.spec.json',
+      // Remove karma.conf.js
+      '!{projectRoot}/karma.conf.js'
+    );
+    // Dedupe and set
+    workspaceConfiguration.namedInputs.production = Array.from(
+      new Set(productionFileSet)
+    );
+  }
+
+  // Test targets depend on all their project's sources + production sources of dependencies
+  workspaceConfiguration.targetDefaults ??= {};
+  workspaceConfiguration.targetDefaults.test ??= {};
+  workspaceConfiguration.targetDefaults.test.inputs ??= [
+    'default',
+    productionFileSet ? '^production' : '^default',
+  ];
+  workspaceConfiguration.targetDefaults.test.inputs.push(
+    '{workspaceRoot}/karma.conf.js'
+  );
+
+  updateWorkspaceConfiguration(tree, workspaceConfiguration);
+}
+
 export function karmaGenerator(tree: Tree, options: GeneratorOptions) {
   const packageJson = readJson(tree, 'package.json');
 
@@ -25,11 +60,14 @@ export function karmaGenerator(tree: Tree, options: GeneratorOptions) {
     generateFiles(tree, joinPathFragments(__dirname, 'files'), '.', {
       tmpl: '',
     });
+
+    addTestInputs(tree);
   }
 
   if (options.skipPackageJson || packageJson.devDependencies['karma']) {
     return () => {};
   }
+
   return addDependenciesToPackageJson(
     tree,
     {},
diff --git a/packages/angular/src/generators/ng-add/__snapshots__/migrate-from-angular-cli.spec.ts.snap b/packages/angular/src/generators/ng-add/__snapshots__/migrate-from-angular-cli.spec.ts.snap
index 46ca8be7a9..93c10fffe1 100644
--- a/packages/angular/src/generators/ng-add/__snapshots__/migrate-from-angular-cli.spec.ts.snap
+++ b/packages/angular/src/generators/ng-add/__snapshots__/migrate-from-angular-cli.spec.ts.snap
@@ -176,6 +176,12 @@ Object {
         "^build",
       ],
     },
+    "lint": Object {
+      "inputs": Array [
+        "default",
+        "{workspaceRoot}/.eslintrc.json",
+      ],
+    },
   },
   "tasksRunnerOptions": Object {
     "default": Object {
diff --git a/packages/cypress/src/generators/init/init.spec.ts b/packages/cypress/src/generators/init/init.spec.ts
index 839365489d..c1bd389088 100644
--- a/packages/cypress/src/generators/init/init.spec.ts
+++ b/packages/cypress/src/generators/init/init.spec.ts
@@ -1,5 +1,5 @@
-import { readJson, Tree, updateJson } from '@nrwl/devkit';
-import { createTreeWithEmptyV1Workspace } from '@nrwl/devkit/testing';
+import { NxJsonConfiguration, readJson, Tree, updateJson } from '@nrwl/devkit';
+import { createTreeWithEmptyWorkspace } from '@nrwl/devkit/testing';
 
 import { cypressVersion } from '../../utils/versions';
 import { cypressInitGenerator } from './init';
@@ -8,7 +8,7 @@ describe('init', () => {
   let tree: Tree;
 
   beforeEach(() => {
-    tree = createTreeWithEmptyV1Workspace();
+    tree = createTreeWithEmptyWorkspace();
   });
 
   it('should add dependencies into `package.json` file', async () => {
@@ -31,4 +31,20 @@ describe('init', () => {
     expect(packageJson.dependencies['@nrwl/cypress']).toBeUndefined();
     expect(packageJson.dependencies[existing]).toBeDefined();
   });
+
+  it('should setup e2e target defaults', async () => {
+    updateJson<NxJsonConfiguration>(tree, 'nx.json', (json) => {
+      json.namedInputs ??= {};
+      json.namedInputs.production = ['default'];
+      return json;
+    });
+
+    cypressInitGenerator(tree, {});
+
+    expect(
+      readJson<NxJsonConfiguration>(tree, 'nx.json').targetDefaults.e2e
+    ).toEqual({
+      inputs: ['default', '^production'],
+    });
+  });
 });
diff --git a/packages/cypress/src/generators/init/init.ts b/packages/cypress/src/generators/init/init.ts
index 05cb27e5db..7025647dbd 100644
--- a/packages/cypress/src/generators/init/init.ts
+++ b/packages/cypress/src/generators/init/init.ts
@@ -1,8 +1,10 @@
 import {
   addDependenciesToPackageJson,
   convertNxGenerator,
+  readWorkspaceConfiguration,
   removeDependenciesFromPackageJson,
   Tree,
+  updateWorkspaceConfiguration,
 } from '@nrwl/devkit';
 import {
   cypressVersion,
@@ -11,11 +13,27 @@ import {
 } from '../../utils/versions';
 import { Schema } from './schema';
 
-function updateDependencies(host: Tree) {
-  removeDependenciesFromPackageJson(host, ['@nrwl/cypress'], []);
+function setupE2ETargetDefaults(tree: Tree) {
+  const workspaceConfiguration = readWorkspaceConfiguration(tree);
+
+  // E2e targets depend on all their project's sources + production sources of dependencies
+  workspaceConfiguration.targetDefaults ??= {};
+
+  const productionFileSet = !!workspaceConfiguration.namedInputs?.production;
+  workspaceConfiguration.targetDefaults.e2e ??= {};
+  workspaceConfiguration.targetDefaults.e2e.inputs ??= [
+    'default',
+    productionFileSet ? '^production' : '^default',
+  ];
+
+  updateWorkspaceConfiguration(tree, workspaceConfiguration);
+}
+
+function updateDependencies(tree: Tree) {
+  removeDependenciesFromPackageJson(tree, ['@nrwl/cypress'], []);
 
   return addDependenciesToPackageJson(
-    host,
+    tree,
     {},
     {
       ['@nrwl/cypress']: nxVersion,
@@ -25,8 +43,9 @@ function updateDependencies(host: Tree) {
   );
 }
 
-export function cypressInitGenerator(host: Tree, options: Schema) {
-  return !options.skipPackageJson ? updateDependencies(host) : () => {};
+export function cypressInitGenerator(tree: Tree, options: Schema) {
+  setupE2ETargetDefaults(tree);
+  return !options.skipPackageJson ? updateDependencies(tree) : () => {};
 }
 
 export default cypressInitGenerator;
diff --git a/packages/jest/preset/jest-preset.ts b/packages/jest/preset/jest-preset.ts
index 1c9c2c5bc1..1c692da1c1 100644
--- a/packages/jest/preset/jest-preset.ts
+++ b/packages/jest/preset/jest-preset.ts
@@ -1,5 +1,6 @@
 export const nxPreset = {
-  testMatch: ['**/+(*.)+(spec|test).+(ts|js)?(x)'],
+  // This is one of the patterns that jest finds by default https://jestjs.io/docs/configuration#testmatch-arraystring
+  testMatch: ['**/?(*.)+(spec|test).[jt]s?(x)'],
   resolver: '@nrwl/jest/plugins/resolver',
   moduleFileExtensions: ['ts', 'js', 'mjs', 'html'],
   coverageReporters: ['html'],
diff --git a/packages/jest/src/generators/init/init.spec.ts b/packages/jest/src/generators/init/init.spec.ts
index 4e39b37c63..a23e8e300f 100644
--- a/packages/jest/src/generators/init/init.spec.ts
+++ b/packages/jest/src/generators/init/init.spec.ts
@@ -1,4 +1,11 @@
-import { readJson, stripIndents, Tree, writeJson } from '@nrwl/devkit';
+import {
+  NxJsonConfiguration,
+  readJson,
+  stripIndents,
+  Tree,
+  updateJson,
+  writeJson,
+} from '@nrwl/devkit';
 import { createTreeWithEmptyV1Workspace } from '@nrwl/devkit/testing';
 import { jestInitGenerator } from './init';
 
@@ -39,6 +46,61 @@ describe('jest', () => {
     expect(tree.read('jest.config.ts', 'utf-8')).toEqual('test');
   });
 
+  it('should add target defaults for test', async () => {
+    updateJson<NxJsonConfiguration>(tree, 'nx.json', (json) => {
+      json.namedInputs ??= {};
+      json.namedInputs.production = ['default'];
+      return json;
+    });
+
+    jestInitGenerator(tree, {});
+
+    const productionFileSet = readJson<NxJsonConfiguration>(tree, 'nx.json')
+      .namedInputs.production;
+    const testDefaults = readJson<NxJsonConfiguration>(tree, 'nx.json')
+      .targetDefaults.test;
+    expect(productionFileSet).toContain(
+      '!{projectRoot}/**/?(*.)+(spec|test).[jt]s?(x)?(.snap)'
+    );
+    expect(productionFileSet).toContain('!{projectRoot}/tsconfig.spec.json');
+    expect(productionFileSet).toContain('!{projectRoot}/jest.config.[jt]s');
+    expect(testDefaults).toEqual({
+      inputs: ['default', '^production', '{workspaceRoot}/jest.preset.js'],
+    });
+  });
+
+  it('should not alter target defaults if jest.preset.js already exists', async () => {
+    updateJson<NxJsonConfiguration>(tree, 'nx.json', (json) => {
+      json.namedInputs ??= {};
+      json.namedInputs.production = ['default', '^production'];
+      return json;
+    });
+
+    jestInitGenerator(tree, {});
+
+    let nxJson: NxJsonConfiguration;
+    updateJson<NxJsonConfiguration>(tree, 'nx.json', (json) => {
+      json.namedInputs.production = [
+        'default',
+        '^production',
+        '!{projectRoot}/**/?(*.)+(spec|test).[jt]s?(x)?(.snap)',
+        '!{projectRoot}/**/*.md',
+      ];
+      json.targetDefaults.test = {
+        inputs: [
+          'default',
+          '^production',
+          '{workspaceRoot}/jest.preset.js',
+          '{workspaceRoot}/testSetup.ts',
+        ],
+      };
+      nxJson = json;
+      return json;
+    });
+    jestInitGenerator(tree, {});
+    expect(readJson<NxJsonConfiguration>(tree, 'nx.json')).toEqual(nxJson);
+  });
+
   it('should add dependencies', async () => {
     jestInitGenerator(tree, {});
     const packageJson = readJson(tree, 'package.json');
diff --git a/packages/jest/src/generators/init/init.ts b/packages/jest/src/generators/init/init.ts
index d7bcb6b9a8..87692a383b 100644
--- a/packages/jest/src/generators/init/init.ts
+++ b/packages/jest/src/generators/init/init.ts
@@ -2,10 +2,12 @@ import {
   addDependenciesToPackageJson,
   convertNxGenerator,
   GeneratorCallback,
+  readWorkspaceConfiguration,
   removeDependenciesFromPackageJson,
   stripIndents,
   Tree,
   updateJson,
+  updateWorkspaceConfiguration,
 } from '@nrwl/devkit';
 import {
   babelJestVersion,
@@ -26,9 +28,9 @@ const schemaDefaults = {
   js: false,
 } as const;
 
-function createJestConfig(host: Tree, js: boolean = false) {
+function createJestConfig(tree: Tree, js: boolean = false) {
   // if the root ts config already exists then don't make a js one or vice versa
-  if (!host.exists('jest.config.ts') && !host.exists('jest.config.js')) {
+  if (!tree.exists('jest.config.ts') && !tree.exists('jest.config.js')) {
     const contents = js
       ? stripIndents`
       const { getJestProjects } = require('@nrwl/jest');
@@ -42,21 +44,57 @@ function createJestConfig(host: Tree, js: boolean = false) {
       export default {
        projects: getJestProjects()
       };`;
-    host.write(`jest.config.${js ? 'js' : 'ts'}`, contents);
+    tree.write(`jest.config.${js ? 'js' : 'ts'}`, contents);
   }
 
-  if (!host.exists('jest.preset.js')) {
+  if (!tree.exists('jest.preset.js')) {
     // preset is always js file.
-    host.write(
+    tree.write(
       `jest.preset.js`,
       `
       const nxPreset = require('@nrwl/jest/preset').default;
      
       module.exports = { ...nxPreset }`
     );
+
+    addTestInputs(tree);
   }
 }
 
+function addTestInputs(tree: Tree) {
+  const workspaceConfiguration = readWorkspaceConfiguration(tree);
+
+  const productionFileSet = workspaceConfiguration.namedInputs?.production;
+  if (productionFileSet) {
+    // This is one of the patterns in the default jest patterns
+    productionFileSet.push(
+      // Remove spec, test, and snapshots from the production fileset
+      '!{projectRoot}/**/?(*.)+(spec|test).[jt]s?(x)?(.snap)',
+      // Remove tsconfig.spec.json
+      '!{projectRoot}/tsconfig.spec.json',
+      // Remove jest.config.js/ts
+      '!{projectRoot}/jest.config.[jt]s'
+    );
+    // Dedupe and set
+    workspaceConfiguration.namedInputs.production = Array.from(
+      new Set(productionFileSet)
+    );
+  }
+
+  // Test targets depend on all their project's sources + production sources of dependencies
+  workspaceConfiguration.targetDefaults ??= {};
+  workspaceConfiguration.targetDefaults.test ??= {};
+  workspaceConfiguration.targetDefaults.test.inputs ??= [
+    'default',
+    productionFileSet ? '^production' : '^default',
+  ];
+  workspaceConfiguration.targetDefaults.test.inputs.push(
+    '{workspaceRoot}/jest.preset.js'
+  );
+
+  updateWorkspaceConfiguration(tree, workspaceConfiguration);
+}
+
 function updateDependencies(tree: Tree, options: NormalizedSchema) {
   const dependencies = {
     tslib: tslibVersion,
diff --git a/packages/linter/src/generators/init/init.spec.ts b/packages/linter/src/generators/init/init.spec.ts
index 984bfdb301..a2281f0d97 100644
--- a/packages/linter/src/generators/init/init.spec.ts
+++ b/packages/linter/src/generators/init/init.spec.ts
@@ -1,13 +1,13 @@
 import { Linter } from '../utils/linter';
-import { Tree } from '@nrwl/devkit';
-import { createTreeWithEmptyV1Workspace } from '@nrwl/devkit/testing';
+import { readJson, Tree } from '@nrwl/devkit';
+import { createTreeWithEmptyWorkspace } from '@nrwl/devkit/testing';
 import { lintInitGenerator } from './init';
 
 describe('@nrwl/linter:init', () => {
   let tree: Tree;
 
   beforeEach(() => {
-    tree = createTreeWithEmptyV1Workspace();
+    tree = createTreeWithEmptyWorkspace();
   });
 
   describe('--linter', () => {
@@ -20,6 +20,16 @@ describe('@nrwl/linter:init', () => {
         expect(tree.read('.eslintrc.json', 'utf-8')).toMatchSnapshot();
       });
 
+      it('should add the root eslint config to the lint targetDefaults for lint', async () => {
+        await lintInitGenerator(tree, {
+          linter: Linter.EsLint,
+        });
+
+        expect(readJson(tree, 'nx.json').targetDefaults.lint).toEqual({
+          inputs: ['default', '{workspaceRoot}/.eslintrc.json'],
+        });
+      });
+
       it('should not generate the global eslint config if it already exist', async () => {
         tree.write('.eslintrc.js', '{}');
 
diff --git a/packages/linter/src/generators/init/init.ts b/packages/linter/src/generators/init/init.ts
index 8f39e70593..b4db914407 100644
--- a/packages/linter/src/generators/init/init.ts
+++ b/packages/linter/src/generators/init/init.ts
@@ -1,8 +1,10 @@
 import type { GeneratorCallback, Tree } from '@nrwl/devkit';
 import {
   addDependenciesToPackageJson,
+  readWorkspaceConfiguration,
   removeDependenciesFromPackageJson,
   updateJson,
+  updateWorkspaceConfiguration,
   writeJson,
 } from '@nrwl/devkit';
 import {
@@ -15,7 +17,7 @@ import {
 } from '../../utils/versions';
 
 import { Linter } from '../utils/linter';
-import { containsEslint } from '../utils/eslint-file';
+import { findEslintFile } from '../utils/eslint-file';
 import { ESLint } from 'eslint';
 
 export interface LinterInitOptions {
@@ -180,8 +182,31 @@ function initTsLint(tree: Tree, options: LinterInitOptions): GeneratorCallback {
     : () => {};
 }
 
+function addTargetDefaults(tree: Tree) {
+  const workspaceConfiguration = readWorkspaceConfiguration(tree);
+
+  const productionFileSet = workspaceConfiguration.namedInputs?.production;
+  if (productionFileSet) {
+    // Remove .eslintrc.json
+    productionFileSet.push('!{projectRoot}/.eslintrc.json');
+    // Dedupe and set
+    workspaceConfiguration.namedInputs.production = Array.from(
+      new Set(productionFileSet)
+    );
+  }
+
+  workspaceConfiguration.targetDefaults ??= {};
+
+  workspaceConfiguration.targetDefaults.lint ??= {};
+  workspaceConfiguration.targetDefaults.lint.inputs ??= [
+    'default',
+    `{workspaceRoot}/.eslintrc.json`,
+  ];
+  updateWorkspaceConfiguration(tree, workspaceConfiguration);
+}
+
 function initEsLint(tree: Tree, options: LinterInitOptions): GeneratorCallback {
-  if (containsEslint(tree)) {
+  if (findEslintFile(tree)) {
     return () => {};
   }
 
@@ -194,6 +219,7 @@ function initEsLint(tree: Tree, options: LinterInitOptions): GeneratorCallback {
     '.eslintrc.json',
     getGlobalEsLintConfiguration(options.unitTestRunner)
   );
+  addTargetDefaults(tree);
 
   if (tree.exists('.vscode/extensions.json')) {
     updateJson(tree, '.vscode/extensions.json', (json) => {
diff --git a/packages/linter/src/generators/lint-project/lint-project.ts b/packages/linter/src/generators/lint-project/lint-project.ts
index bea245a3d9..83839f770b 100644
--- a/packages/linter/src/generators/lint-project/lint-project.ts
+++ b/packages/linter/src/generators/lint-project/lint-project.ts
@@ -42,8 +42,11 @@ function createEsLintConfiguration(
   projectConfig: ProjectConfiguration,
   setParserOptionsProject: boolean
 ) {
+  const eslintConfig = findEslintFile(tree);
   writeJson(tree, join(projectConfig.root, `.eslintrc.json`), {
-    extends: [`${offsetFromRoot(projectConfig.root)}${findEslintFile(tree)}`],
+    extends: eslintConfig
+      ? [`${offsetFromRoot(projectConfig.root)}${eslintConfig}`]
+      : undefined,
     // Include project files to be linted since the global one excludes all files.
     ignorePatterns: ['!**/*'],
     overrides: [
diff --git a/packages/linter/src/generators/utils/eslint-file.spec.ts b/packages/linter/src/generators/utils/eslint-file.spec.ts
index bd936229ce..78fd172402 100644
--- a/packages/linter/src/generators/utils/eslint-file.spec.ts
+++ b/packages/linter/src/generators/utils/eslint-file.spec.ts
@@ -1,4 +1,4 @@
-import { containsEslint, findEslintFile } from './eslint-file';
+import { findEslintFile } from './eslint-file';
 
 import { Tree } from '@nrwl/devkit';
 import { createTreeWithEmptyV1Workspace } from '@nrwl/devkit/testing';
@@ -10,30 +10,9 @@ describe('@nrwl/linter:eslint-file', () => {
     tree = createTreeWithEmptyV1Workspace();
   });
 
-  describe('containsEslint', () => {
-    it('should return false when calling containsEslint without a eslint config', () => {
-      expect(containsEslint(tree)).toBe(false);
-    });
-
-    it('should return true when calling containsEslint with a .eslintrc.json config', () => {
-      tree.write('.eslintrc.json', '{}');
-      expect(containsEslint(tree)).toBe(true);
-    });
-
-    it('should return true when calling containsEslint with a .eslintrc.js config', () => {
-      tree.write('.eslintrc.js', '{}');
-      expect(containsEslint(tree)).toBe(true);
-    });
-
-    it('should return false when calling containsEslint witn an incorrect eslint file name', () => {
-      tree.write('.eslintrc.yaml', '{}');
-      expect(containsEslint(tree)).toBe(false);
-    });
-  });
-
   describe('findEslintFile', () => {
-    it('should return default name when calling findEslintFile when no eslint is found', () => {
-      expect(findEslintFile(tree)).toBe('.eslintrc.json');
+    it('should return null when calling findEslintFile when no eslint is found', () => {
+      expect(findEslintFile(tree)).toBe(null);
     });
 
     it('should return the name of the eslint config when calling findEslintFile', () => {
@@ -49,7 +28,7 @@ describe('@nrwl/linter:eslint-file', () => {
     it('should return default name when calling findEslintFile when no eslint is found', () => {
       tree.write('.eslintrc.yaml', '{}');
 
-      expect(findEslintFile(tree)).toBe('.eslintrc.json');
+      expect(findEslintFile(tree)).toBe(null);
     });
   });
 });
diff --git a/packages/linter/src/generators/utils/eslint-file.ts b/packages/linter/src/generators/utils/eslint-file.ts
index 43b4ddecb7..b48b4f7fe5 100644
--- a/packages/linter/src/generators/utils/eslint-file.ts
+++ b/packages/linter/src/generators/utils/eslint-file.ts
@@ -2,21 +2,11 @@ import type { Tree } from '@nrwl/devkit';
 
 const eslintFileList = ['.eslintrc.json', '.eslintrc.js'];
 
-export function containsEslint(tree: Tree): boolean {
-  for (const file of eslintFileList) {
-    if (tree.exists(file)) {
-      return true;
-    }
-  }
-  return false;
-}
-
-export function findEslintFile(tree: Tree): string {
+export function findEslintFile(tree: Tree): string | null {
   for (const file of eslintFileList) {
     if (tree.exists(file)) {
       return file;
     }
   }
-  // Default file
-  return '.eslintrc.json';
+  return null;
 }
diff --git a/packages/linter/src/generators/workspace-rule/workspace-rule.spec.ts b/packages/linter/src/generators/workspace-rule/workspace-rule.spec.ts
index b41eadf1be..89a9be5a8d 100644
--- a/packages/linter/src/generators/workspace-rule/workspace-rule.spec.ts
+++ b/packages/linter/src/generators/workspace-rule/workspace-rule.spec.ts
@@ -1,12 +1,12 @@
-import { Tree } from '@nrwl/devkit';
-import { createTreeWithEmptyV1Workspace } from '@nrwl/devkit/testing';
+import { NxJsonConfiguration, readJson, Tree } from '@nrwl/devkit';
+import { createTreeWithEmptyWorkspace } from '@nrwl/devkit/testing';
 import { lintWorkspaceRuleGenerator } from './workspace-rule';
 
 describe('@nrwl/linter:workspace-rule', () => {
   let tree: Tree;
 
   beforeEach(async () => {
-    tree = createTreeWithEmptyV1Workspace();
+    tree = createTreeWithEmptyWorkspace();
   });
 
   it('should generate the required files', async () => {
diff --git a/packages/linter/src/generators/workspace-rules-project/workspace-rules-project.spec.ts b/packages/linter/src/generators/workspace-rules-project/workspace-rules-project.spec.ts
index 0039b358a1..bebac35632 100644
--- a/packages/linter/src/generators/workspace-rules-project/workspace-rules-project.spec.ts
+++ b/packages/linter/src/generators/workspace-rules-project/workspace-rules-project.spec.ts
@@ -1,10 +1,12 @@
 import {
   addProjectConfiguration,
+  NxJsonConfiguration,
   readJson,
   readProjectConfiguration,
   Tree,
+  updateJson,
 } from '@nrwl/devkit';
-import { createTreeWithEmptyV1Workspace } from '@nrwl/devkit/testing';
+import { createTreeWithEmptyWorkspace } from '@nrwl/devkit/testing';
 import {
   lintWorkspaceRulesProjectGenerator,
   WORKSPACE_RULES_PROJECT_NAME,
@@ -14,22 +16,23 @@ describe('@nrwl/linter:workspace-rules-project', () => {
   let tree: Tree;
 
   beforeEach(() => {
-    tree = createTreeWithEmptyV1Workspace();
+    tree = createTreeWithEmptyWorkspace();
   });
 
-  it('should update implicitDependencies in nx.json', async () => {
-    expect(
-      readJson(tree, 'nx.json').implicitDependencies
-    ).toMatchInlineSnapshot(`undefined`);
-
+  it('should add lint project files to lint inputs', async () => {
+    updateJson<NxJsonConfiguration>(tree, 'nx.json', (json) => {
+      json.targetDefaults = {
+        lint: {
+          inputs: ['default', '{workspaceRoot}/.eslintrc.json'],
+        },
+      };
+      return json;
+    });
     await lintWorkspaceRulesProjectGenerator(tree);
 
-    expect(readJson(tree, 'nx.json').implicitDependencies)
-      .toMatchInlineSnapshot(`
-      Object {
-        "tools/eslint-rules/**/*": "*",
-      }
-    `);
+    expect(
+      readJson<NxJsonConfiguration>(tree, 'nx.json').targetDefaults.lint.inputs
+    ).toContain('{workspaceRoot}/tools/eslint-rules/**/*');
   });
 
   it('should generate the required files', async () => {
@@ -72,6 +75,7 @@ describe('@nrwl/linter:workspace-rules-project', () => {
     expect(readProjectConfiguration(tree, WORKSPACE_RULES_PROJECT_NAME))
       .toMatchInlineSnapshot(`
       Object {
+        "$schema": "../../node_modules/nx/schemas/project-schema.json",
         "root": "tools/eslint-rules",
         "sourceRoot": "tools/eslint-rules",
         "targets": Object {
diff --git a/packages/linter/src/generators/workspace-rules-project/workspace-rules-project.ts b/packages/linter/src/generators/workspace-rules-project/workspace-rules-project.ts
index 2fcf5c3341..0a212ce109 100644
--- a/packages/linter/src/generators/workspace-rules-project/workspace-rules-project.ts
+++ b/packages/linter/src/generators/workspace-rules-project/workspace-rules-project.ts
@@ -47,13 +47,14 @@ export async function lintWorkspaceRulesProjectGenerator(tree: Tree) {
    * TODO: Explore writing a ProjectGraph plugin to make this more surgical.
    */
   const workspaceConfig = readWorkspaceConfiguration(tree);
-  updateWorkspaceConfiguration(tree, {
-    ...workspaceConfig,
-    implicitDependencies: {
-      ...workspaceConfig.implicitDependencies,
-      [`${WORKSPACE_PLUGIN_DIR}/**/*`]: '*',
-    },
-  });
+
+  if (workspaceConfig.targetDefaults?.lint?.inputs) {
+    workspaceConfig.targetDefaults.lint.inputs.push(
+      `{workspaceRoot}/${WORKSPACE_PLUGIN_DIR}/**/*`
+    );
+
+    updateWorkspaceConfiguration(tree, workspaceConfig);
+  }
 
   // Add jest to the project and return installation task
   const installTask = await jestProjectGenerator(tree, {
diff --git a/packages/react-native/src/generators/init/init.spec.ts b/packages/react-native/src/generators/init/init.spec.ts
index e4f0e585af..1af24307a8 100644
--- a/packages/react-native/src/generators/init/init.spec.ts
+++ b/packages/react-native/src/generators/init/init.spec.ts
@@ -1,4 +1,4 @@
-import { logger } from '@nrwl/devkit';
+import { NxJsonConfiguration } from '@nrwl/devkit';
 import { Tree, readJson, updateJson } from '@nrwl/devkit';
 import { createTreeWithEmptyV1Workspace } from '@nrwl/devkit/testing';
 import { reactNativeInitGenerator } from './init';
@@ -38,11 +38,23 @@ describe('init', () => {
 
   describe('babel config', () => {
     it('should create babel config if not present', async () => {
+      updateJson<NxJsonConfiguration>(tree, 'nx.json', (json) => {
+        json.namedInputs = {
+          sharedGlobals: ['{workspaceRoot}/exiting-file.json'],
+        };
+        return json;
+      });
+
       await reactNativeInitGenerator(tree, {
         unitTestRunner: 'none',
         e2eTestRunner: 'none',
       });
+
       expect(tree.exists('babel.config.json')).toBe(true);
+      const sharedGloabls = readJson<NxJsonConfiguration>(tree, 'nx.json')
+        .namedInputs.sharedGlobals;
+      expect(sharedGloabls).toContain('{workspaceRoot}/exiting-file.json');
+      expect(sharedGloabls).toContain('{workspaceRoot}/babel.config.json');
     });
 
     it('should not overwrite existing babel config', async () => {
diff --git a/packages/react-native/src/generators/init/lib/init-root-babel-config.ts b/packages/react-native/src/generators/init/lib/init-root-babel-config.ts
index a3f079a2ce..4b836f344c 100644
--- a/packages/react-native/src/generators/init/lib/init-root-babel-config.ts
+++ b/packages/react-native/src/generators/init/lib/init-root-babel-config.ts
@@ -1,4 +1,9 @@
-import { Tree, writeJson } from '@nrwl/devkit';
+import {
+  readWorkspaceConfiguration,
+  Tree,
+  updateWorkspaceConfiguration,
+  writeJson,
+} from '@nrwl/devkit';
 
 export function initRootBabelConfig(tree: Tree) {
   if (tree.exists('/babel.config.json') || tree.exists('/babel.config.js')) {
@@ -8,4 +13,13 @@ export function initRootBabelConfig(tree: Tree) {
   writeJson(tree, '/babel.config.json', {
     babelrcRoots: ['*'], // Make sure .babelrc files other than root can be loaded in a monorepo
   });
+
+  const workspaceConfiguration = readWorkspaceConfiguration(tree);
+
+  if (workspaceConfiguration.namedInputs?.sharedGlobals) {
+    workspaceConfiguration.namedInputs.sharedGlobals.push(
+      '{workspaceRoot}/babel.config.json'
+    );
+  }
+  updateWorkspaceConfiguration(tree, workspaceConfiguration);
 }
diff --git a/packages/storybook/src/generators/configuration/__snapshots__/configuration.spec.ts.snap b/packages/storybook/src/generators/configuration/__snapshots__/configuration.spec.ts.snap
index 85c92caf11..fe7f89089e 100644
--- a/packages/storybook/src/generators/configuration/__snapshots__/configuration.spec.ts.snap
+++ b/packages/storybook/src/generators/configuration/__snapshots__/configuration.spec.ts.snap
@@ -39,7 +39,46 @@ Object {
   "affected": Object {
     "defaultBase": "main",
   },
+  "namedInputs": Object {
+    "production": Array [
+      "default",
+      "!{projectRoot}/.eslintrc.json",
+      "!{projectRoot}/**/?(*.)+(spec|test).[jt]s?(x)?(.snap)",
+      "!{projectRoot}/tsconfig.spec.json",
+      "!{projectRoot}/jest.config.[jt]s",
+      "!{projectRoot}/.storybook/**/*",
+      "!{projectRoot}/**/*.stories.@(js|jsx|ts|tsx|mdx)",
+    ],
+  },
   "npmScope": "proj",
+  "targetDefaults": Object {
+    "build-storybook": Object {
+      "inputs": Array [
+        "default",
+        "^production",
+        "{workspaceRoot}/.storybook/**/*",
+      ],
+    },
+    "e2e": Object {
+      "inputs": Array [
+        "default",
+        "^production",
+      ],
+    },
+    "lint": Object {
+      "inputs": Array [
+        "default",
+        "{workspaceRoot}/.eslintrc.json",
+      ],
+    },
+    "test": Object {
+      "inputs": Array [
+        "default",
+        "^production",
+        "{workspaceRoot}/jest.preset.js",
+      ],
+    },
+  },
   "tasksRunnerOptions": Object {
     "default": Object {
       "options": Object {
diff --git a/packages/storybook/src/generators/configuration/configuration.spec.ts b/packages/storybook/src/generators/configuration/configuration.spec.ts
index 62d841ed3d..6e04d06ccf 100644
--- a/packages/storybook/src/generators/configuration/configuration.spec.ts
+++ b/packages/storybook/src/generators/configuration/configuration.spec.ts
@@ -1,11 +1,12 @@
 import {
+  NxJsonConfiguration,
   readJson,
   readProjectConfiguration,
   Tree,
   updateJson,
   writeJson,
 } from '@nrwl/devkit';
-import { createTreeWithEmptyV1Workspace } from '@nrwl/devkit/testing';
+import { createTreeWithEmptyWorkspace } from '@nrwl/devkit/testing';
 
 import { Linter } from '@nrwl/linter';
 import { libraryGenerator } from '@nrwl/workspace/generators';
@@ -18,7 +19,13 @@ describe('@nrwl/storybook:configuration', () => {
     let tree: Tree;
 
     beforeEach(async () => {
-      tree = createTreeWithEmptyV1Workspace();
+      tree = createTreeWithEmptyWorkspace();
+      updateJson<NxJsonConfiguration>(tree, 'nx.json', (json) => {
+        json.namedInputs = {
+          production: ['default'],
+        };
+        return json;
+      });
       await libraryGenerator(tree, {
         name: 'test-ui-lib',
         standaloneConfig: false,
@@ -425,7 +432,7 @@ describe('@nrwl/storybook:configuration', () => {
     describe('for js Storybook configurations', () => {
       let tree: Tree;
       beforeAll(async () => {
-        tree = createTreeWithEmptyV1Workspace();
+        tree = createTreeWithEmptyWorkspace();
         writeJson(tree, 'workspace.json', workspaceConfiguration);
         writeJson(tree, 'apps/nxapp/tsconfig.json', {});
         writeJson(tree, 'apps/reapp/tsconfig.json', {});
@@ -523,7 +530,7 @@ describe('@nrwl/storybook:configuration', () => {
     describe('for TypeScript Storybook configurations', () => {
       let tree: Tree;
       beforeAll(async () => {
-        tree = createTreeWithEmptyV1Workspace();
+        tree = createTreeWithEmptyWorkspace();
         writeJson(tree, 'workspace.json', workspaceConfiguration);
         writeJson(tree, 'apps/nxapp/tsconfig.json', {});
         writeJson(tree, 'apps/reapp/tsconfig.json', {});
diff --git a/packages/storybook/src/generators/configuration/util-functions.ts b/packages/storybook/src/generators/configuration/util-functions.ts
index f49997d7d3..6bd13ea9af 100644
--- a/packages/storybook/src/generators/configuration/util-functions.ts
+++ b/packages/storybook/src/generators/configuration/util-functions.ts
@@ -5,10 +5,12 @@ import {
   offsetFromRoot,
   readJson,
   readProjectConfiguration,
+  readWorkspaceConfiguration,
   toJS,
   Tree,
   updateJson,
   updateProjectConfiguration,
+  updateWorkspaceConfiguration,
   writeJson,
 } from '@nrwl/devkit';
 import { Linter } from '@nrwl/linter';
@@ -263,6 +265,31 @@ export function createRootStorybookDir(
     rootTsConfigPath: getRootTsConfigPathInTree(tree),
   });
 
+  const workspaceConfiguration = readWorkspaceConfiguration(tree);
+
+  const hasProductionFileset = !!workspaceConfiguration.namedInputs?.production;
+  if (hasProductionFileset) {
+    workspaceConfiguration.namedInputs.production.push(
+      '!{projectRoot}/.storybook/**/*'
+    );
+    workspaceConfiguration.namedInputs.production.push(
+      '!{projectRoot}/**/*.stories.@(js|jsx|ts|tsx|mdx)'
+    );
+  }
+
+  workspaceConfiguration.targetDefaults ??= {};
+  workspaceConfiguration.targetDefaults['build-storybook'] ??= {};
+  workspaceConfiguration.targetDefaults['build-storybook'].inputs ??= [
+    'default',
+    hasProductionFileset ? '^production' : '^default',
+  ];
+
+  workspaceConfiguration.targetDefaults['build-storybook'].inputs.push(
+    '{workspaceRoot}/.storybook/**/*'
+  );
+
+  updateWorkspaceConfiguration(tree, workspaceConfiguration);
+
   if (js) {
     toJS(tree);
   }
diff --git a/packages/web/src/generators/init/init.spec.ts b/packages/web/src/generators/init/init.spec.ts
index ea505c5582..787ec81e30 100644
--- a/packages/web/src/generators/init/init.spec.ts
+++ b/packages/web/src/generators/init/init.spec.ts
@@ -5,7 +5,7 @@ import {
   Tree,
   updateJson,
 } from '@nrwl/devkit';
-import { createTreeWithEmptyV1Workspace } from '@nrwl/devkit/testing';
+import { createTreeWithEmptyWorkspace } from '@nrwl/devkit/testing';
 
 import { nxVersion } from '../../utils/versions';
 
@@ -15,7 +15,7 @@ describe('init', () => {
   let tree: Tree;
 
   beforeEach(() => {
-    tree = createTreeWithEmptyV1Workspace();
+    tree = createTreeWithEmptyWorkspace();
   });
 
   it('should add web dependencies', async () => {
@@ -48,10 +48,22 @@ describe('init', () => {
 
   describe('babel config', () => {
     it('should create babel config if not present', async () => {
+      updateJson<NxJsonConfiguration>(tree, 'nx.json', (json) => {
+        json.namedInputs = {
+          sharedGlobals: ['{workspaceRoot}/exiting-file.json'],
+        };
+        return json;
+      });
+
       await webInitGenerator(tree, {
         unitTestRunner: 'none',
       });
+
       expect(tree.exists('babel.config.json')).toBe(true);
+      const sharedGloabls = readJson<NxJsonConfiguration>(tree, 'nx.json')
+        .namedInputs.sharedGlobals;
+      expect(sharedGloabls).toContain('{workspaceRoot}/exiting-file.json');
+      expect(sharedGloabls).toContain('{workspaceRoot}/babel.config.json');
     });
 
     it('should not overwrite existing babel config', async () => {
diff --git a/packages/web/src/generators/init/init.ts b/packages/web/src/generators/init/init.ts
index 21d1de243e..8c03ac7aef 100644
--- a/packages/web/src/generators/init/init.ts
+++ b/packages/web/src/generators/init/init.ts
@@ -4,8 +4,10 @@ import {
   convertNxGenerator,
   formatFiles,
   GeneratorCallback,
+  readWorkspaceConfiguration,
   removeDependenciesFromPackageJson,
   Tree,
+  updateWorkspaceConfiguration,
   writeJson,
 } from '@nrwl/devkit';
 import { jestInitGenerator } from '@nrwl/jest';
@@ -42,6 +44,15 @@ function initRootBabelConfig(tree: Tree) {
   writeJson(tree, '/babel.config.json', {
     babelrcRoots: ['*'], // Make sure .babelrc files other than root can be loaded in a monorepo
   });
+
+  const workspaceConfiguration = readWorkspaceConfiguration(tree);
+
+  if (workspaceConfiguration.namedInputs?.sharedGlobals) {
+    workspaceConfiguration.namedInputs.sharedGlobals.push(
+      '{workspaceRoot}/babel.config.json'
+    );
+  }
+  updateWorkspaceConfiguration(tree, workspaceConfiguration);
 }
 
 export async function webInitGenerator(tree: Tree, schema: Schema) {
diff --git a/packages/workspace/src/generators/new/__snapshots__/new.spec.ts.snap b/packages/workspace/src/generators/new/__snapshots__/new.spec.ts.snap
index 06132c4e07..7daa1c15ac 100644
--- a/packages/workspace/src/generators/new/__snapshots__/new.spec.ts.snap
+++ b/packages/workspace/src/generators/new/__snapshots__/new.spec.ts.snap
@@ -75,12 +75,15 @@ Object {
   "affected": Object {
     "defaultBase": "main",
   },
-  "implicitDependencies": Object {
-    ".eslintrc.json": "*",
-    "package.json": Object {
-      "dependencies": "*",
-      "devDependencies": "*",
-    },
+  "namedInputs": Object {
+    "default": Array [
+      "{projectRoot}/**/*",
+      "sharedGlobals",
+    ],
+    "production": Array [
+      "default",
+    ],
+    "sharedGlobals": Array [],
   },
   "npmScope": "npmScope",
   "targetDefaults": Object {
@@ -88,6 +91,10 @@ Object {
       "dependsOn": Array [
         "^build",
       ],
+      "inputs": Array [
+        "production",
+        "^production",
+      ],
     },
   },
   "tasksRunnerOptions": Object {
diff --git a/packages/workspace/src/generators/workspace/files/nx.json__tmpl__ b/packages/workspace/src/generators/workspace/files/nx.json__tmpl__
deleted file mode 100644
index 76914de804..0000000000
--- a/packages/workspace/src/generators/workspace/files/nx.json__tmpl__
+++ /dev/null
@@ -1,32 +0,0 @@
-{
-  "$schema": "./node_modules/nx/schemas/nx-schema.json",
-  "npmScope": "<%= npmScope %>",
-  "affected": {
-    "defaultBase": "<%= defaultBase %>"
-  },
-<% if (packageManager && cli === 'angular') { -%>
-  "cli": {
-    "packageManager": "<%=packageManager%>"
-  },
-<% } -%>
-  "implicitDependencies": {
-    "package.json": {
-      "dependencies": "*",
-      "devDependencies": "*"
-    },
-    ".eslintrc.json": "*"
-  },
-  "tasksRunnerOptions": {
-    "default": {
-      "runner": "nx/tasks-runners/default",
-      "options": {
-        "cacheableOperations": ["build", "lint", "test", "e2e"]
-      }
-    }
-  },
-  "targetDefaults": {
-    "build": {
-      "dependsOn": ["^build"]
-    }
-  }
-}
diff --git a/packages/workspace/src/generators/workspace/schema.d.ts b/packages/workspace/src/generators/workspace/schema.d.ts
index 10398c15a7..9690c6e02c 100644
--- a/packages/workspace/src/generators/workspace/schema.d.ts
+++ b/packages/workspace/src/generators/workspace/schema.d.ts
@@ -1,3 +1,5 @@
+import { PackageManager } from '@nrwl/devkit';
+
 export interface Schema {
   name: string;
   directory: string;
@@ -9,5 +11,5 @@ export interface Schema {
   cli: 'nx' | 'angular';
   preset: string;
   defaultBase: string;
-  packageManager?: string;
+  packageManager?: PackageManager;
 }
diff --git a/packages/workspace/src/generators/workspace/workspace.spec.ts b/packages/workspace/src/generators/workspace/workspace.spec.ts
index 18049d6afe..57d94b4a2c 100644
--- a/packages/workspace/src/generators/workspace/workspace.spec.ts
+++ b/packages/workspace/src/generators/workspace/workspace.spec.ts
@@ -45,13 +45,6 @@ describe('@nrwl/workspace:workspace', () => {
       affected: {
         defaultBase: 'main',
       },
-      implicitDependencies: {
-        'package.json': {
-          dependencies: '*',
-          devDependencies: '*',
-        },
-        '.eslintrc.json': '*',
-      },
       tasksRunnerOptions: {
         default: {
           runner: 'nx/tasks-runners/default',
@@ -60,11 +53,6 @@ describe('@nrwl/workspace:workspace', () => {
           },
         },
       },
-      targetDefaults: {
-        build: {
-          dependsOn: ['^build'],
-        },
-      },
     });
     const validateNxJson = ajv.compile(nxSchema);
     expect(validateNxJson(nxJson)).toEqual(true);
@@ -79,6 +67,43 @@ describe('@nrwl/workspace:workspace', () => {
     expect(validateWorkspaceJson(workspaceJson)).toEqual(true);
   });
 
+  it('should setup named inputs and target defaults for non-empty presets', async () => {
+    await workspaceGenerator(tree, {
+      name: 'proj',
+      directory: 'proj',
+      cli: 'nx',
+      preset: Preset.React,
+      defaultBase: 'main',
+    });
+    const nxJson = readJson<NxJsonConfiguration>(tree, '/proj/nx.json');
+    expect(nxJson).toEqual({
+      $schema: './node_modules/nx/schemas/nx-schema.json',
+      npmScope: 'proj',
+      affected: {
+        defaultBase: 'main',
+      },
+      tasksRunnerOptions: {
+        default: {
+          runner: 'nx/tasks-runners/default',
+          options: {
+            cacheableOperations: ['build', 'lint', 'test', 'e2e'],
+          },
+        },
+      },
+      namedInputs: {
+        default: ['{projectRoot}/**/*', 'sharedGlobals'],
+        production: ['default'],
+        sharedGlobals: [],
+      },
+      targetDefaults: {
+        build: {
+          dependsOn: ['^build'],
+          inputs: ['production', '^production'],
+        },
+      },
+    });
+  });
+
   it('should create a prettierrc file', async () => {
     await workspaceGenerator(tree, {
       name: 'proj',
diff --git a/packages/workspace/src/generators/workspace/workspace.ts b/packages/workspace/src/generators/workspace/workspace.ts
index f307f2b893..502022de2a 100644
--- a/packages/workspace/src/generators/workspace/workspace.ts
+++ b/packages/workspace/src/generators/workspace/workspace.ts
@@ -8,6 +8,7 @@ import {
   formatFiles,
   getPackageManagerVersion,
   PackageManager,
+  NxJsonConfiguration,
 } from '@nrwl/devkit';
 import { Schema } from './schema';
 import {
@@ -59,8 +60,54 @@ function createAppsAndLibsFolders(host: Tree, options: Schema) {
   }
 }
 
+function createNxJson(
+  host: Tree,
+  { directory, npmScope, cli, packageManager, defaultBase, preset }: Schema
+) {
+  const nxJson: NxJsonConfiguration & { $schema: string } = {
+    $schema: './node_modules/nx/schemas/nx-schema.json',
+    npmScope: npmScope,
+    affected: {
+      defaultBase,
+    },
+    tasksRunnerOptions: {
+      default: {
+        runner: 'nx/tasks-runners/default',
+        options: {
+          cacheableOperations: ['build', 'lint', 'test', 'e2e'],
+        },
+      },
+    },
+  };
+
+  if (
+    preset !== Preset.Core &&
+    preset !== Preset.NPM &&
+    preset !== Preset.Empty
+  ) {
+    nxJson.namedInputs = {
+      default: ['{projectRoot}/**/*', 'sharedGlobals'],
+      production: ['default'],
+      sharedGlobals: [],
+    };
+    nxJson.targetDefaults = {
+      build: {
+        dependsOn: ['^build'],
+        inputs: ['production', '^production'],
+      },
+    };
+  }
+
+  if (packageManager && cli === 'angular') {
+    nxJson.cli = {
+      packageManager: packageManager,
+    };
+  }
+
+  writeJson<NxJsonConfiguration>(host, join(directory, 'nx.json'), nxJson);
+}
+
 function createFiles(host: Tree, options: Schema) {
-  const npmScope = options.npmScope ?? options.name;
   const formattedNames = names(options.name);
   generateFiles(host, pathJoin(__dirname, './files'), options.directory, {
     formattedNames,
@@ -75,7 +122,6 @@ function createFiles(host: Tree, options: Schema) {
     angularCliVersion,
     ...(options as object),
     nxVersion,
-    npmScope,
     packageManager: options.packageManager,
   });
 }
@@ -157,6 +203,7 @@ export async function workspaceGenerator(host: Tree, options: Schema) {
   }
   options = normalizeOptions(options);
   createFiles(host, options);
+  createNxJson(host, options);
   createPrettierrc(host, options);
   if (options.cli === 'angular') {
     decorateAngularClI(host, options);
@@ -193,6 +240,7 @@ function addPropertyWithStableKeys(obj: any, key: string, value: string) {
 function normalizeOptions(options: Schema) {
   let defaultBase = options.defaultBase || deduceDefaultBase();
   return {
+    npmScope: options.name,
     ...options,
     defaultBase,
   };
diff --git a/scripts/nx-release.ts b/scripts/nx-release.ts
index 0a10bb881f..8d7966bd85 100755
--- a/scripts/nx-release.ts
+++ b/scripts/nx-release.ts
@@ -1,7 +1,7 @@
 #!/usr/bin/env node
 import * as yargs from 'yargs';
 import { execSync } from 'child_process';
-import { readFileSync, writeFileSync } from 'fs';
+import { existsSync, readFileSync, writeFileSync } from 'fs';
 import { URL } from 'url';
 import { join } from 'path';
 
@@ -75,7 +75,8 @@ function hideFromGitIndex(uncommittedFiles: string[]) {
     const uncommittedFiles = execSync('git diff --name-only --relative HEAD .')
       .toString()
       .split('\n')
-      .filter((i) => i.length > 0);
+      .filter((i) => i.length > 0)
+      .filter((f) => existsSync(f));
     const unhideFromGitIndex = hideFromGitIndex(uncommittedFiles);
 
     process.on('exit', unhideFromGitIndex);