diff --git a/sdk/digitaltwins/azure-digitaltwins-core/src/test/resources/prerequisite/prerequisite readme.md b/sdk/digitaltwins/azure-digitaltwins-core/src/test/resources/prerequisite/prerequisite readme.md
index 31822a792c68b..58463c94f87ee 100644
--- a/sdk/digitaltwins/azure-digitaltwins-core/src/test/resources/prerequisite/prerequisite readme.md	
+++ b/sdk/digitaltwins/azure-digitaltwins-core/src/test/resources/prerequisite/prerequisite readme.md	
@@ -30,7 +30,7 @@ The script outputs [test-resources.bicep](https://github.com/Azure/azure-sdk-for
 
 ### Generate the ARM template
 
-The ARM template [test-resources.json](https://github.com/Azure/azure-sdk-for-java/blob/main/sdk/digitaltwins/test-resources.json) is generated from the [test-resources.bicep](https://github.com/Azure/azure-sdk-for-java/blob/main/sdk/digitaltwins/test-resources.bicep) file by running the following script
+The ARM template is generated from the [test-resources.bicep](https://github.com/Azure/azure-sdk-for-java/blob/main/sdk/digitaltwins/test-resources.bicep) file by running the following script
 
 - `.\generateArmTemplate.ps1`
 
diff --git a/sdk/digitaltwins/azure-digitaltwins-core/src/test/resources/prerequisite/setup.ps1 b/sdk/digitaltwins/azure-digitaltwins-core/src/test/resources/prerequisite/setup.ps1
index fc768d2540607..ae150b05f9b68 100644
--- a/sdk/digitaltwins/azure-digitaltwins-core/src/test/resources/prerequisite/setup.ps1
+++ b/sdk/digitaltwins/azure-digitaltwins-core/src/test/resources/prerequisite/setup.ps1
@@ -82,13 +82,17 @@ if ($rgExists -eq "False")
     az group create --name $ResourceGroup --location $Region --output none
 }
 
+Write-Host "`nGenerating the ARM template using the cli bicep extention."
+$bicepFilePath = Join-Path -Path $PSScriptRoot -ChildPath "../../../../../test-resources.bicep";
+az bicep build --f $bicepFilePath
+
 Write-Host "`nDeploying resources to $ResourceGroup in $Region`n"
 
 $armTemplateFile = Join-Path -Path $PSScriptRoot -ChildPath "../../../../../test-resources.json";
 
 if (-not (Test-Path $armTemplateFile -PathType leaf))
 {
-    throw "`nARM template was not found. Please make sure you have an ARM template file named test-resources.json in the root of the service directory`n"
+    throw "`nARM template was not found. Please make sure you have a bicep file called test-resources.bicep in the root of the service directory`n"
 }
 
 # Deploy test-resources.json ARM template.
@@ -128,4 +132,7 @@ $protectedBytes = [Security.Cryptography.ProtectedData]::Protect($bytes, $null,
 Set-Content $outputFile -Value $protectedBytes -AsByteStream -Force
 Write-Host "`nTest environment settings stored into encrypted $outputFile`n"
 
+Write-Host "`nRemoving generated ARM template JSON file."
+rm -r $armTemplateFile
+
 Write-Host "Done!"
diff --git a/sdk/digitaltwins/test-resources.json b/sdk/digitaltwins/test-resources.json
deleted file mode 100644
index bec784dcde9da..0000000000000
--- a/sdk/digitaltwins/test-resources.json
+++ /dev/null
@@ -1,143 +0,0 @@
-{
-  "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentTemplate.json#",
-  "contentVersion": "1.0.0.0",
-  "metadata": {
-    "_generator": {
-      "name": "bicep",
-      "version": "0.4.63.48766",
-      "templateHash": "7080001263714194046"
-    }
-  },
-  "parameters": {
-    "testApplicationOid": {
-      "type": "string",
-      "metadata": {
-        "description": "The client OID to grant access to test resources."
-      }
-    },
-    "baseName": {
-      "type": "string",
-      "defaultValue": "[resourceGroup().name]",
-      "metadata": {
-        "description": "The base resource name."
-      },
-      "maxLength": 50,
-      "minLength": 6
-    },
-    "location": {
-      "type": "string",
-      "defaultValue": "[resourceGroup().location]",
-      "metadata": {
-        "description": "The location of the resource. By default, this is the same as the resource group."
-      }
-    }
-  },
-  "functions": [],
-  "variables": {
-    "adtOwnerRoleDefinitionId": "[format('/subscriptions/{0}/providers/Microsoft.Authorization/roleDefinitions/bcd981a7-7f74-457b-83e1-cceb9e632ffe', subscription().subscriptionId)]"
-  },
-  "resources": [
-    {
-      "type": "Microsoft.DigitalTwins/digitalTwinsInstances",
-      "apiVersion": "2020-03-01-preview",
-      "name": "[parameters('baseName')]",
-      "location": "[parameters('location')]",
-      "sku": {
-        "name": "S1"
-      },
-      "properties": {}
-    },
-    {
-      "type": "Microsoft.DigitalTwins/digitalTwinsInstances/providers/roleAssignments",
-      "apiVersion": "2020-03-01-preview",
-      "name": "[format('{0}/Microsoft.Authorization/{1}', parameters('baseName'), guid(uniqueString(parameters('baseName'))))]",
-      "properties": {
-        "roleDefinitionId": "[variables('adtOwnerRoleDefinitionId')]",
-        "principalId": "[parameters('testApplicationOid')]"
-      },
-      "dependsOn": [
-        "[resourceId('Microsoft.DigitalTwins/digitalTwinsInstances', parameters('baseName'))]"
-      ]
-    },
-    {
-      "type": "Microsoft.EventHub/namespaces",
-      "apiVersion": "2018-01-01-preview",
-      "name": "[parameters('baseName')]",
-      "location": "[parameters('location')]",
-      "sku": {
-        "name": "Standard",
-        "tier": "Standard",
-        "capacity": 1
-      },
-      "properties": {
-        "zoneRedundant": false,
-        "isAutoInflateEnabled": false,
-        "maximumThroughputUnits": 0,
-        "kafkaEnabled": false
-      }
-    },
-    {
-      "type": "Microsoft.EventHub/namespaces/eventhubs",
-      "apiVersion": "2017-04-01",
-      "name": "[format('{0}/{1}', parameters('baseName'), parameters('baseName'))]",
-      "properties": {
-        "messageRetentionInDays": 7,
-        "partitionCount": 4,
-        "status": "Active"
-      },
-      "dependsOn": [
-        "[resourceId('Microsoft.EventHub/namespaces', parameters('baseName'))]"
-      ]
-    },
-    {
-      "type": "Microsoft.EventHub/namespaces/authorizationRules",
-      "apiVersion": "2017-04-01",
-      "name": "[format('{0}/RootManageSharedAccessKey', parameters('baseName'))]",
-      "properties": {
-        "rights": [
-          "Listen",
-          "Manage",
-          "Send"
-        ]
-      },
-      "dependsOn": [
-        "[resourceId('Microsoft.EventHub/namespaces', parameters('baseName'))]"
-      ]
-    },
-    {
-      "type": "Microsoft.EventHub/namespaces/eventhubs/authorizationRules",
-      "apiVersion": "2017-04-01",
-      "name": "[format('{0}/owner', format('{0}/{1}', parameters('baseName'), parameters('baseName')))]",
-      "properties": {
-        "rights": [
-          "Listen",
-          "Manage",
-          "Send"
-        ]
-      },
-      "dependsOn": [
-        "[resourceId('Microsoft.EventHub/namespaces/eventhubs', split(format('{0}/{1}', parameters('baseName'), parameters('baseName')), '/')[0], split(format('{0}/{1}', parameters('baseName'), parameters('baseName')), '/')[1])]"
-      ]
-    },
-    {
-      "type": "Microsoft.DigitalTwins/digitalTwinsInstances/endpoints",
-      "apiVersion": "2020-03-01-preview",
-      "name": "[format('{0}/someEventHubEndpoint', parameters('baseName'))]",
-      "properties": {
-        "endpointType": "EventHub",
-        "connectionString-PrimaryKey": "[listKeys(resourceId('Microsoft.EventHub/namespaces/eventhubs/authorizationRules', split(format('{0}/owner', format('{0}/{1}', parameters('baseName'), parameters('baseName'))), '/')[0], split(format('{0}/owner', format('{0}/{1}', parameters('baseName'), parameters('baseName'))), '/')[1], split(format('{0}/owner', format('{0}/{1}', parameters('baseName'), parameters('baseName'))), '/')[2]), '2017-04-01').primaryConnectionString]",
-        "connectionString-SecondaryKey": "[listKeys(resourceId('Microsoft.EventHub/namespaces/eventhubs/authorizationRules', split(format('{0}/owner', format('{0}/{1}', parameters('baseName'), parameters('baseName'))), '/')[0], split(format('{0}/owner', format('{0}/{1}', parameters('baseName'), parameters('baseName'))), '/')[1], split(format('{0}/owner', format('{0}/{1}', parameters('baseName'), parameters('baseName'))), '/')[2]), '2017-04-01').secondaryConnectionString]"
-      },
-      "dependsOn": [
-        "[resourceId('Microsoft.DigitalTwins/digitalTwinsInstances', parameters('baseName'))]",
-        "[resourceId('Microsoft.EventHub/namespaces/eventhubs/authorizationRules', split(format('{0}/owner', format('{0}/{1}', parameters('baseName'), parameters('baseName'))), '/')[0], split(format('{0}/owner', format('{0}/{1}', parameters('baseName'), parameters('baseName'))), '/')[1], split(format('{0}/owner', format('{0}/{1}', parameters('baseName'), parameters('baseName'))), '/')[2])]"
-      ]
-    }
-  ],
-  "outputs": {
-    "DIGITALTWINS_URL": {
-      "type": "string",
-      "value": "[format('https://{0}', reference(resourceId('Microsoft.DigitalTwins/digitalTwinsInstances', parameters('baseName'))).hostName)]"
-    }
-  }
-}
\ No newline at end of file