diff --git a/.angular-cli.json b/.angular-cli.json
index 4b2170bbe..8fbc0f913 100644
--- a/.angular-cli.json
+++ b/.angular-cli.json
@@ -77,7 +77,7 @@
     "styleExt": "scss",
     "component": {},
     "serve": {
-      "proxyConfig": "proxy.conf.json",
+      "proxyConfig": "proxy.conf.js",
       "port": 3000
     }
   }
diff --git a/proxy.conf.js b/proxy.conf.js
new file mode 100644
index 000000000..5bea784f0
--- /dev/null
+++ b/proxy.conf.js
@@ -0,0 +1,14 @@
+module.exports = {
+    "/alfresco": {
+        "target": "http://0.0.0.0:8080",
+        "secure": false,
+        "changeOrigin": true,
+        // workaround for REPO-2260
+        onProxyRes: function (proxyRes, req, res) {
+            const header = proxyRes.headers['www-authenticate'];
+            if (header && header.startsWith('Basic')) {
+                proxyRes.headers['www-authenticate'] = 'x' + header;
+            }
+        }
+    }
+};
diff --git a/proxy.conf.json b/proxy.conf.json
deleted file mode 100644
index 8846e34c2..000000000
--- a/proxy.conf.json
+++ /dev/null
@@ -1,7 +0,0 @@
-{
-  "/alfresco": {
-    "target": "http://0.0.0.0:8080",
-    "secure": false,
-    "changeOrigin": true
-  }
-}