diff --git a/auximageprovider/static_provider.go b/auximageprovider/static_provider.go
index 353abf18..c169ea29 100644
--- a/auximageprovider/static_provider.go
+++ b/auximageprovider/static_provider.go
@@ -21,7 +21,7 @@ func (s *staticProvider) Get(_ context.Context, po *options.ProcessingOptions) (
 }
 
 // NewStaticFromTriple creates a new ImageProvider from either a base64 string, file path, or URL
-func NewStaticProvider(ctx context.Context, c *StaticConfig, desc string) (Provider, error) {
+func NewStaticProvider(ctx context.Context, c *StaticConfig, desc string, idf *imagedata.Factory) (Provider, error) {
 	var (
 		data    imagedata.ImageData
 		headers = make(http.Header)
@@ -30,11 +30,11 @@ func NewStaticProvider(ctx context.Context, c *StaticConfig, desc string) (Provi
 
 	switch {
 	case len(c.Base64Data) > 0:
-		data, err = imagedata.NewFromBase64(c.Base64Data)
+		data, err = idf.NewFromBase64(c.Base64Data)
 	case len(c.Path) > 0:
-		data, err = imagedata.NewFromPath(c.Path)
+		data, err = idf.NewFromPath(c.Path)
 	case len(c.URL) > 0:
-		data, headers, err = imagedata.DownloadSync(
+		data, headers, err = idf.DownloadSync(
 			ctx, c.URL, desc, imagedata.DownloadOptions{},
 		)
 	default:
diff --git a/auximageprovider/static_provider_test.go b/auximageprovider/static_provider_test.go
index fef9d4b1..44c90bfb 100644
--- a/auximageprovider/static_provider_test.go
+++ b/auximageprovider/static_provider_test.go
@@ -12,9 +12,11 @@ import (
 	"github.com/stretchr/testify/suite"
 
 	"github.com/imgproxy/imgproxy/v3/config"
+	"github.com/imgproxy/imgproxy/v3/fetcher"
 	"github.com/imgproxy/imgproxy/v3/httpheaders"
 	"github.com/imgproxy/imgproxy/v3/imagedata"
 	"github.com/imgproxy/imgproxy/v3/options"
+	"github.com/imgproxy/imgproxy/v3/transport"
 )
 
 type ImageProviderTestSuite struct {
@@ -62,8 +64,6 @@ func (s *ImageProviderTestSuite) SetupSuite() {
 		rw.WriteHeader(s.status)
 		rw.Write(data)
 	}))
-
-	s.Require().NoError(imagedata.Init())
 }
 
 func (s *ImageProviderTestSuite) TearDownSuite() {
@@ -168,13 +168,23 @@ func (s *ImageProviderTestSuite) TestNewProvider() {
 		},
 	}
 
+	trc := transport.NewDefaultConfig()
+	tr, err := transport.New(trc)
+	s.Require().NoError(err)
+
+	fc := fetcher.NewDefaultConfig()
+	f, err := fetcher.New(tr, fc)
+	s.Require().NoError(err)
+
+	idf := imagedata.NewFactory(f)
+
 	for _, tt := range tests {
 		s.T().Run(tt.name, func(t *testing.T) {
 			if tt.setupFunc != nil {
 				tt.setupFunc()
 			}
 
-			provider, err := NewStaticProvider(s.T().Context(), tt.config, "test image")
+			provider, err := NewStaticProvider(s.T().Context(), tt.config, "test image", idf)
 
 			if tt.expectError {
 				s.Require().Error(err)
diff --git a/fetcher/fetcher.go b/fetcher/fetcher.go
index 5ef81c65..5796be84 100644
--- a/fetcher/fetcher.go
+++ b/fetcher/fetcher.go
@@ -23,8 +23,8 @@ type Fetcher struct {
 	config    *Config              // Configuration for the image fetcher
 }
 
-// NewFetcher creates a new ImageFetcher with the provided transport
-func NewFetcher(transport *transport.Transport, config *Config) (*Fetcher, error) {
+// New creates a new ImageFetcher with the provided transport
+func New(transport *transport.Transport, config *Config) (*Fetcher, error) {
 	if err := config.Validate(); err != nil {
 		return nil, err
 	}
diff --git a/fetcher/request.go b/fetcher/request.go
index 93ed5bfa..52a46711 100644
--- a/fetcher/request.go
+++ b/fetcher/request.go
@@ -67,9 +67,11 @@ func (r *Request) Send() (*http.Response, error) {
 	}
 }
 
-// FetchImage fetches the image using the request and returns the response or an error.
-// It checks for the NotModified status and handles partial content responses.
-func (r *Request) FetchImage() (*http.Response, error) {
+// Fetch fetches the image using the request and returns the response or an error.
+// Unlike Send, it checks the request status and converts it into typed errors.
+// Specifically, it checks for Not Modified, ensures that Partial Content response
+// contains the entire image, and wraps gzip-encoded responses.
+func (r *Request) Fetch() (*http.Response, error) {
 	res, err := r.Send()
 	if err != nil {
 		return nil, err
diff --git a/handlers/processing/config.go b/handlers/processing/config.go
index 493368fe..2368d297 100644
--- a/handlers/processing/config.go
+++ b/handlers/processing/config.go
@@ -17,9 +17,6 @@ type Config struct {
 	ReportIOErrors          bool   // Whether to report IO errors
 	FallbackImageHTTPCode   int    // Fallback image HTTP status code
 	EnableDebugHeaders      bool   // Whether to enable debug headers
-	FallbackImageData       string // Fallback image data (base64)
-	FallbackImagePath       string // Fallback image path (local file system)
-	FallbackImageURL        string // Fallback image URL (remote)
 }
 
 // NewDefaultConfig creates a new configuration with defaults
diff --git a/handlers/processing/handler.go b/handlers/processing/handler.go
index 95d37a0d..28d3bf74 100644
--- a/handlers/processing/handler.go
+++ b/handlers/processing/handler.go
@@ -10,6 +10,7 @@ import (
 	"github.com/imgproxy/imgproxy/v3/handlers/stream"
 	"github.com/imgproxy/imgproxy/v3/headerwriter"
 	"github.com/imgproxy/imgproxy/v3/ierrors"
+	"github.com/imgproxy/imgproxy/v3/imagedata"
 	"github.com/imgproxy/imgproxy/v3/monitoring"
 	"github.com/imgproxy/imgproxy/v3/monitoring/stats"
 	"github.com/imgproxy/imgproxy/v3/options"
@@ -19,11 +20,13 @@ import (
 
 // Handler handles image processing requests
 type Handler struct {
-	hw            *headerwriter.Writer // Configured HeaderWriter instance
-	stream        *stream.Handler      // Stream handler for raw image streaming
-	config        *Config              // Handler configuration
-	semaphores    *semaphores.Semaphores
-	fallbackImage auximageprovider.Provider
+	hw             *headerwriter.Writer // Configured HeaderWriter instance
+	stream         *stream.Handler      // Stream handler for raw image streaming
+	config         *Config              // Handler configuration
+	semaphores     *semaphores.Semaphores
+	fallbackImage  auximageprovider.Provider
+	watermarkImage auximageprovider.Provider
+	imageData      *imagedata.Factory
 }
 
 // New creates new handler object
@@ -32,6 +35,8 @@ func New(
 	hw *headerwriter.Writer,
 	semaphores *semaphores.Semaphores,
 	fi auximageprovider.Provider,
+	wi auximageprovider.Provider,
+	idf *imagedata.Factory,
 	config *Config,
 ) (*Handler, error) {
 	if err := config.Validate(); err != nil {
@@ -39,11 +44,13 @@ func New(
 	}
 
 	return &Handler{
-		hw:            hw,
-		config:        config,
-		stream:        stream,
-		semaphores:    semaphores,
-		fallbackImage: fi,
+		hw:             hw,
+		config:         config,
+		stream:         stream,
+		semaphores:     semaphores,
+		fallbackImage:  fi,
+		watermarkImage: wi,
+		imageData:      idf,
 	}, nil
 }
 
@@ -81,6 +88,7 @@ func (h *Handler) Execute(
 		monitoringMeta: mm,
 		semaphores:     h.semaphores,
 		hwr:            h.hw.NewRequest(),
+		idf:            h.imageData,
 	}
 
 	return req.execute(ctx)
diff --git a/handlers/processing/request.go b/handlers/processing/request.go
index db178ef5..ae35ae8a 100644
--- a/handlers/processing/request.go
+++ b/handlers/processing/request.go
@@ -8,6 +8,7 @@ import (
 	"github.com/imgproxy/imgproxy/v3/fetcher"
 	"github.com/imgproxy/imgproxy/v3/headerwriter"
 	"github.com/imgproxy/imgproxy/v3/ierrors"
+	"github.com/imgproxy/imgproxy/v3/imagedata"
 	"github.com/imgproxy/imgproxy/v3/imagetype"
 	"github.com/imgproxy/imgproxy/v3/monitoring"
 	"github.com/imgproxy/imgproxy/v3/monitoring/stats"
@@ -29,6 +30,7 @@ type request struct {
 	monitoringMeta monitoring.Meta
 	semaphores     *semaphores.Semaphores
 	hwr            *headerwriter.Request
+	idf            *imagedata.Factory
 }
 
 // execute handles the actual processing logic
diff --git a/handlers/processing/request_methods.go b/handlers/processing/request_methods.go
index 219ad41c..599a5778 100644
--- a/handlers/processing/request_methods.go
+++ b/handlers/processing/request_methods.go
@@ -81,7 +81,7 @@ func (r *request) fetchImage(ctx context.Context, do imagedata.DownloadOptions)
 		}
 	}
 
-	return imagedata.DownloadAsync(ctx, r.imageURL, "source image", do)
+	return r.idf.DownloadAsync(ctx, r.imageURL, "source image", do)
 }
 
 // handleDownloadError replaces the image data with fallback image if needed
@@ -154,7 +154,7 @@ func (r *request) getFallbackImage(
 // processImage calls actual image processing
 func (r *request) processImage(ctx context.Context, originData imagedata.ImageData) (*processing.Result, error) {
 	defer monitoring.StartProcessingSegment(ctx, r.monitoringMeta.Filter(monitoring.MetaProcessingOptions))()
-	return processing.ProcessImage(ctx, originData, r.po)
+	return processing.ProcessImage(ctx, originData, r.po, r.handler.watermarkImage, r.handler.imageData)
 }
 
 // writeDebugHeaders writes debug headers (X-Origin-*, X-Result-*) to the response
diff --git a/handlers/stream/handler_test.go b/handlers/stream/handler_test.go
index 843ce352..aff41edb 100644
--- a/handlers/stream/handler_test.go
+++ b/handlers/stream/handler_test.go
@@ -57,7 +57,7 @@ func (s *HandlerTestSuite) SetupTest() {
 
 	fc := fetcher.NewDefaultConfig()
 
-	fetcher, err := fetcher.NewFetcher(tr, fc)
+	fetcher, err := fetcher.New(tr, fc)
 	s.Require().NoError(err)
 
 	cfg := NewDefaultConfig()
@@ -358,7 +358,7 @@ func (s *HandlerTestSuite) TestHandlerCacheControl() {
 
 			fc := fetcher.NewDefaultConfig()
 
-			fetcher, err := fetcher.NewFetcher(tr, fc)
+			fetcher, err := fetcher.New(tr, fc)
 			s.Require().NoError(err)
 
 			cfg := NewDefaultConfig()
@@ -454,7 +454,7 @@ func (s *HandlerTestSuite) TestHandlerCookiePassthrough() {
 	s.Require().NoError(err)
 
 	fc := fetcher.NewDefaultConfig()
-	fetcher, err := fetcher.NewFetcher(tr, fc)
+	fetcher, err := fetcher.New(tr, fc)
 	s.Require().NoError(err)
 
 	cfg := NewDefaultConfig()
@@ -514,7 +514,7 @@ func (s *HandlerTestSuite) TestHandlerCanonicalHeader() {
 		s.Require().NoError(err)
 
 		fc := fetcher.NewDefaultConfig()
-		fetcher, err := fetcher.NewFetcher(tr, fc)
+		fetcher, err := fetcher.New(tr, fc)
 		s.Require().NoError(err)
 
 		cfg := NewDefaultConfig()
diff --git a/imagedata/download.go b/imagedata/download.go
index 8132f980..482008b0 100644
--- a/imagedata/download.go
+++ b/imagedata/download.go
@@ -3,16 +3,9 @@ package imagedata
 import (
 	"context"
 	"net/http"
-
-	"github.com/imgproxy/imgproxy/v3/config"
-	"github.com/imgproxy/imgproxy/v3/fetcher"
-	"github.com/imgproxy/imgproxy/v3/ierrors"
-	"github.com/imgproxy/imgproxy/v3/transport"
 )
 
 var (
-	Fetcher *fetcher.Fetcher
-
 	// For tests. This needs to move to fetcher once we will have a way to isolate
 	// the fetcher in tests.
 	redirectAllRequestsTo string
@@ -25,39 +18,7 @@ type DownloadOptions struct {
 	DownloadFinished context.CancelFunc
 }
 
-func DefaultDownloadOptions() DownloadOptions {
-	return DownloadOptions{
-		Header:           nil,
-		CookieJar:        nil,
-		MaxSrcFileSize:   config.MaxSrcFileSize,
-		DownloadFinished: nil,
-	}
-}
-
-func initDownloading() error {
-	trc, err := transport.LoadFromEnv(transport.NewDefaultConfig())
-	if err != nil {
-		return err
-	}
-
-	ts, err := transport.New(trc)
-	if err != nil {
-		return err
-	}
-
-	c, err := fetcher.LoadFromEnv(fetcher.NewDefaultConfig())
-	if err != nil {
-		return ierrors.Wrap(err, 0, ierrors.WithPrefix("configuration error"))
-	}
-
-	Fetcher, err = fetcher.NewFetcher(ts, c)
-	if err != nil {
-		return ierrors.Wrap(err, 0, ierrors.WithPrefix("can't create image fetcher"))
-	}
-
-	return nil
-}
-
+// TODO: get rid of this global variable
 func RedirectAllRequestsTo(u string) {
 	redirectAllRequestsTo = u
 }
diff --git a/imagedata/factory.go b/imagedata/factory.go
index 72cd0989..525af107 100644
--- a/imagedata/factory.go
+++ b/imagedata/factory.go
@@ -14,6 +14,18 @@ import (
 	"github.com/imgproxy/imgproxy/v3/security"
 )
 
+// Factory represents ImageData factory
+type Factory struct {
+	fetcher *fetcher.Fetcher
+}
+
+// NewFactory creates a new factory
+func NewFactory(fetcher *fetcher.Fetcher) *Factory {
+	return &Factory{
+		fetcher: fetcher,
+	}
+}
+
 // NewFromBytesWithFormat creates a new ImageData instance from the provided format
 // and byte slice.
 func NewFromBytesWithFormat(format imagetype.Type, b []byte) ImageData {
@@ -25,7 +37,7 @@ func NewFromBytesWithFormat(format imagetype.Type, b []byte) ImageData {
 }
 
 // NewFromBytes creates a new ImageData instance from the provided byte slice.
-func NewFromBytes(b []byte) (ImageData, error) {
+func (f *Factory) NewFromBytes(b []byte) (ImageData, error) {
 	r := bytes.NewReader(b)
 
 	format, err := imagetype.Detect(r)
@@ -37,7 +49,7 @@ func NewFromBytes(b []byte) (ImageData, error) {
 }
 
 // NewFromPath creates a new ImageData from an os.File
-func NewFromPath(path string) (ImageData, error) {
+func (f *Factory) NewFromPath(path string) (ImageData, error) {
 	fl, err := os.Open(path)
 	if err != nil {
 		return nil, err
@@ -49,21 +61,21 @@ func NewFromPath(path string) (ImageData, error) {
 		return nil, err
 	}
 
-	return NewFromBytes(b)
+	return f.NewFromBytes(b)
 }
 
 // NewFromBase64 creates a new ImageData from a base64 encoded byte slice
-func NewFromBase64(encoded string) (ImageData, error) {
+func (f *Factory) NewFromBase64(encoded string) (ImageData, error) {
 	b, err := base64.StdEncoding.DecodeString(encoded)
 	if err != nil {
 		return nil, err
 	}
 
-	return NewFromBytes(b)
+	return f.NewFromBytes(b)
 }
 
 // sendRequest is a common logic between sync and async download.
-func sendRequest(ctx context.Context, url string, opts DownloadOptions) (*fetcher.Request, *http.Response, http.Header, error) {
+func (f *Factory) sendRequest(ctx context.Context, url string, opts DownloadOptions) (*fetcher.Request, *http.Response, http.Header, error) {
 	h := make(http.Header)
 
 	// NOTE: This will be removed in the future when our test context gets better isolation
@@ -71,12 +83,12 @@ func sendRequest(ctx context.Context, url string, opts DownloadOptions) (*fetche
 		url = redirectAllRequestsTo
 	}
 
-	req, err := Fetcher.BuildRequest(ctx, url, opts.Header, opts.CookieJar)
+	req, err := f.fetcher.BuildRequest(ctx, url, opts.Header, opts.CookieJar)
 	if err != nil {
 		return req, nil, h, err
 	}
 
-	res, err := req.FetchImage()
+	res, err := req.Fetch()
 	if res != nil {
 		h = res.Header.Clone()
 	}
@@ -103,12 +115,12 @@ func sendRequest(ctx context.Context, url string, opts DownloadOptions) (*fetche
 }
 
 // DownloadSync downloads the image synchronously and returns the ImageData and HTTP headers.
-func DownloadSync(ctx context.Context, imageURL, desc string, opts DownloadOptions) (ImageData, http.Header, error) {
+func (f *Factory) DownloadSync(ctx context.Context, imageURL, desc string, opts DownloadOptions) (ImageData, http.Header, error) {
 	if opts.DownloadFinished != nil {
 		defer opts.DownloadFinished()
 	}
 
-	req, res, h, err := sendRequest(ctx, imageURL, opts)
+	req, res, h, err := f.sendRequest(ctx, imageURL, opts)
 	if res != nil {
 		defer res.Body.Close()
 	}
@@ -137,10 +149,10 @@ func DownloadSync(ctx context.Context, imageURL, desc string, opts DownloadOptio
 
 // DownloadAsync downloads the image asynchronously and returns the ImageData
 // backed by AsyncBuffer and HTTP headers.
-func DownloadAsync(ctx context.Context, imageURL, desc string, opts DownloadOptions) (ImageData, http.Header, error) {
+func (f *Factory) DownloadAsync(ctx context.Context, imageURL, desc string, opts DownloadOptions) (ImageData, http.Header, error) {
 	// We pass this responsibility to AsyncBuffer
 	//nolint:bodyclose
-	req, res, h, err := sendRequest(ctx, imageURL, opts)
+	req, res, h, err := f.sendRequest(ctx, imageURL, opts)
 	if err != nil {
 		if opts.DownloadFinished != nil {
 			defer opts.DownloadFinished()
diff --git a/imagedata/image_data.go b/imagedata/image_data.go
index 4a663c2c..4d56d9ad 100644
--- a/imagedata/image_data.go
+++ b/imagedata/image_data.go
@@ -7,8 +7,6 @@ import (
 	"sync"
 
 	"github.com/imgproxy/imgproxy/v3/asyncbuffer"
-	"github.com/imgproxy/imgproxy/v3/config"
-	"github.com/imgproxy/imgproxy/v3/ierrors"
 	"github.com/imgproxy/imgproxy/v3/imagetype"
 )
 
@@ -126,48 +124,3 @@ func (d *imageDataAsyncBuffer) Error() error {
 	}
 	return nil
 }
-
-func Init() error {
-	if err := initDownloading(); err != nil {
-		return err
-	}
-
-	if err := loadWatermark(); err != nil {
-		return err
-	}
-
-	return nil
-}
-
-func loadWatermark() error {
-	var err error
-
-	switch {
-	case len(config.WatermarkData) > 0:
-		Watermark, err = NewFromBase64(config.WatermarkData)
-
-		// NOTE: this should be something like err = ierrors.Wrap(err).WithStackDeep(0).WithPrefix("watermark")
-		// In the NewFromBase64 all errors should be wrapped to something like
-		// .WithPrefix("load from base64")
-		if err != nil {
-			return ierrors.Wrap(err, 0, ierrors.WithPrefix("can't load watermark from Base64"))
-		}
-
-	case len(config.WatermarkPath) > 0:
-		Watermark, err = NewFromPath(config.WatermarkPath)
-		if err != nil {
-			return ierrors.Wrap(err, 0, ierrors.WithPrefix("can't read watermark from file"))
-		}
-
-	case len(config.WatermarkURL) > 0:
-		Watermark, _, err = DownloadSync(context.Background(), config.WatermarkURL, "watermark", DefaultDownloadOptions())
-		if err != nil {
-			return ierrors.Wrap(err, 0, ierrors.WithPrefix("can't download from URL"))
-		}
-
-	default:
-		Watermark = nil
-	}
-
-	return nil
-}
diff --git a/imagedata/image_data_test.go b/imagedata/image_data_test.go
index 553e5d2d..3c49ae60 100644
--- a/imagedata/image_data_test.go
+++ b/imagedata/image_data_test.go
@@ -17,10 +17,12 @@ import (
 	"github.com/stretchr/testify/suite"
 
 	"github.com/imgproxy/imgproxy/v3/config"
+	"github.com/imgproxy/imgproxy/v3/fetcher"
 	"github.com/imgproxy/imgproxy/v3/httpheaders"
 	"github.com/imgproxy/imgproxy/v3/ierrors"
 	"github.com/imgproxy/imgproxy/v3/imagetype"
 	"github.com/imgproxy/imgproxy/v3/testutil"
+	"github.com/imgproxy/imgproxy/v3/transport"
 )
 
 type ImageDataTestSuite struct {
@@ -28,10 +30,11 @@ type ImageDataTestSuite struct {
 
 	server *httptest.Server
 
-	status int
-	data   []byte
-	header http.Header
-	check  func(*http.Request)
+	status  int
+	data    []byte
+	header  http.Header
+	check   func(*http.Request)
+	factory *Factory
 
 	defaultData []byte
 }
@@ -40,8 +43,6 @@ func (s *ImageDataTestSuite) SetupSuite() {
 	config.Reset()
 	config.ClientKeepAliveTimeout = 0
 
-	Init()
-
 	f, err := os.Open("../testdata/test1.jpg")
 	s.Require().NoError(err)
 	defer f.Close()
@@ -68,6 +69,20 @@ func (s *ImageDataTestSuite) SetupSuite() {
 		rw.WriteHeader(s.status)
 		rw.Write(data)
 	}))
+
+	ctr, err := transport.LoadFromEnv(transport.NewDefaultConfig())
+	s.Require().NoError(err)
+
+	ts, err := transport.New(ctr)
+	s.Require().NoError(err)
+
+	c, err := fetcher.LoadFromEnv(fetcher.NewDefaultConfig())
+	s.Require().NoError(err)
+
+	fetcher, err := fetcher.New(ts, c)
+	s.Require().NoError(err)
+
+	s.factory = NewFactory(fetcher)
 }
 
 func (s *ImageDataTestSuite) TearDownSuite() {
@@ -84,10 +99,11 @@ func (s *ImageDataTestSuite) SetupTest() {
 
 	s.header = http.Header{}
 	s.header.Set("Content-Type", "image/jpeg")
+
 }
 
 func (s *ImageDataTestSuite) TestDownloadStatusOK() {
-	imgdata, _, err := DownloadSync(context.Background(), s.server.URL, "Test image", DefaultDownloadOptions())
+	imgdata, _, err := s.factory.DownloadSync(context.Background(), s.server.URL, "Test image", DownloadOptions{})
 
 	s.Require().NoError(err)
 	s.Require().NotNil(imgdata)
@@ -154,7 +170,7 @@ func (s *ImageDataTestSuite) TestDownloadStatusPartialContent() {
 		s.Run(tc.name, func() {
 			s.header.Set("Content-Range", tc.contentRange)
 
-			imgdata, _, err := DownloadSync(context.Background(), s.server.URL, "Test image", DefaultDownloadOptions())
+			imgdata, _, err := s.factory.DownloadSync(context.Background(), s.server.URL, "Test image", DownloadOptions{})
 
 			if tc.expectErr {
 				s.Require().Error(err)
@@ -174,7 +190,7 @@ func (s *ImageDataTestSuite) TestDownloadStatusNotFound() {
 	s.data = []byte("Not Found")
 	s.header.Set("Content-Type", "text/plain")
 
-	imgdata, _, err := DownloadSync(context.Background(), s.server.URL, "Test image", DefaultDownloadOptions())
+	imgdata, _, err := s.factory.DownloadSync(context.Background(), s.server.URL, "Test image", DownloadOptions{})
 
 	s.Require().Error(err)
 	s.Require().Equal(404, ierrors.Wrap(err, 0).StatusCode())
@@ -186,7 +202,7 @@ func (s *ImageDataTestSuite) TestDownloadStatusForbidden() {
 	s.data = []byte("Forbidden")
 	s.header.Set("Content-Type", "text/plain")
 
-	imgdata, _, err := DownloadSync(context.Background(), s.server.URL, "Test image", DefaultDownloadOptions())
+	imgdata, _, err := s.factory.DownloadSync(context.Background(), s.server.URL, "Test image", DownloadOptions{})
 
 	s.Require().Error(err)
 	s.Require().Equal(404, ierrors.Wrap(err, 0).StatusCode())
@@ -198,7 +214,7 @@ func (s *ImageDataTestSuite) TestDownloadStatusInternalServerError() {
 	s.data = []byte("Internal Server Error")
 	s.header.Set("Content-Type", "text/plain")
 
-	imgdata, _, err := DownloadSync(context.Background(), s.server.URL, "Test image", DefaultDownloadOptions())
+	imgdata, _, err := s.factory.DownloadSync(context.Background(), s.server.URL, "Test image", DownloadOptions{})
 
 	s.Require().Error(err)
 	s.Require().Equal(500, ierrors.Wrap(err, 0).StatusCode())
@@ -212,7 +228,7 @@ func (s *ImageDataTestSuite) TestDownloadUnreachable() {
 
 	serverURL := fmt.Sprintf("http://%s", l.Addr().String())
 
-	imgdata, _, err := DownloadSync(context.Background(), serverURL, "Test image", DefaultDownloadOptions())
+	imgdata, _, err := s.factory.DownloadSync(context.Background(), serverURL, "Test image", DownloadOptions{})
 
 	s.Require().Error(err)
 	s.Require().Equal(500, ierrors.Wrap(err, 0).StatusCode())
@@ -222,7 +238,7 @@ func (s *ImageDataTestSuite) TestDownloadUnreachable() {
 func (s *ImageDataTestSuite) TestDownloadInvalidImage() {
 	s.data = []byte("invalid")
 
-	imgdata, _, err := DownloadSync(context.Background(), s.server.URL, "Test image", DefaultDownloadOptions())
+	imgdata, _, err := s.factory.DownloadSync(context.Background(), s.server.URL, "Test image", DownloadOptions{})
 
 	s.Require().Error(err)
 	s.Require().Equal(422, ierrors.Wrap(err, 0).StatusCode())
@@ -232,7 +248,7 @@ func (s *ImageDataTestSuite) TestDownloadInvalidImage() {
 func (s *ImageDataTestSuite) TestDownloadSourceAddressNotAllowed() {
 	config.AllowLoopbackSourceAddresses = false
 
-	imgdata, _, err := DownloadSync(context.Background(), s.server.URL, "Test image", DefaultDownloadOptions())
+	imgdata, _, err := s.factory.DownloadSync(context.Background(), s.server.URL, "Test image", DownloadOptions{})
 
 	s.Require().Error(err)
 	s.Require().Equal(404, ierrors.Wrap(err, 0).StatusCode())
@@ -240,10 +256,11 @@ func (s *ImageDataTestSuite) TestDownloadSourceAddressNotAllowed() {
 }
 
 func (s *ImageDataTestSuite) TestDownloadImageFileTooLarge() {
-	config.MaxSrcFileSize = 1
-
-	imgdata, _, err := DownloadSync(context.Background(), s.server.URL, "Test image", DefaultDownloadOptions())
+	imgdata, _, err := s.factory.DownloadSync(context.Background(), s.server.URL, "Test image", DownloadOptions{
+		MaxSrcFileSize: 1,
+	})
 
+	fmt.Println(err)
 	s.Require().Error(err)
 	s.Require().Equal(422, ierrors.Wrap(err, 0).StatusCode())
 	s.Require().Nil(imgdata)
@@ -261,7 +278,7 @@ func (s *ImageDataTestSuite) TestDownloadGzip() {
 	s.data = buf.Bytes()
 	s.header.Set("Content-Encoding", "gzip")
 
-	imgdata, _, err := DownloadSync(context.Background(), s.server.URL, "Test image", DefaultDownloadOptions())
+	imgdata, _, err := s.factory.DownloadSync(context.Background(), s.server.URL, "Test image", DownloadOptions{})
 
 	s.Require().NoError(err)
 	s.Require().NotNil(imgdata)
@@ -270,7 +287,7 @@ func (s *ImageDataTestSuite) TestDownloadGzip() {
 }
 
 func (s *ImageDataTestSuite) TestFromFile() {
-	imgdata, err := NewFromPath("../testdata/test1.jpg")
+	imgdata, err := s.factory.NewFromPath("../testdata/test1.jpg")
 
 	s.Require().NoError(err)
 	s.Require().NotNil(imgdata)
@@ -281,7 +298,7 @@ func (s *ImageDataTestSuite) TestFromFile() {
 func (s *ImageDataTestSuite) TestFromBase64() {
 	b64 := base64.StdEncoding.EncodeToString(s.defaultData)
 
-	imgdata, err := NewFromBase64(b64)
+	imgdata, err := s.factory.NewFromBase64(b64)
 
 	s.Require().NoError(err)
 	s.Require().NotNil(imgdata)
diff --git a/main.go b/main.go
index e1e476f1..440458fd 100644
--- a/main.go
+++ b/main.go
@@ -17,6 +17,7 @@ import (
 	"github.com/imgproxy/imgproxy/v3/config"
 	"github.com/imgproxy/imgproxy/v3/config/loadenv"
 	"github.com/imgproxy/imgproxy/v3/errorreport"
+	"github.com/imgproxy/imgproxy/v3/fetcher"
 	"github.com/imgproxy/imgproxy/v3/gliblog"
 	"github.com/imgproxy/imgproxy/v3/handlers"
 	processingHandler "github.com/imgproxy/imgproxy/v3/handlers/processing"
@@ -32,6 +33,7 @@ import (
 	"github.com/imgproxy/imgproxy/v3/processing"
 	"github.com/imgproxy/imgproxy/v3/semaphores"
 	"github.com/imgproxy/imgproxy/v3/server"
+	"github.com/imgproxy/imgproxy/v3/transport"
 	"github.com/imgproxy/imgproxy/v3/version"
 	"github.com/imgproxy/imgproxy/v3/vips"
 )
@@ -59,7 +61,29 @@ func callHandleProcessing(reqID string, rw http.ResponseWriter, r *http.Request)
 		return ierrors.Wrap(err, 0, ierrors.WithCategory(categoryConfig))
 	}
 
-	stream, err := stream.New(sc, hw, imagedata.Fetcher)
+	tcfg, err := transport.LoadFromEnv(transport.NewDefaultConfig())
+	if err != nil {
+		return ierrors.Wrap(err, 0, ierrors.WithCategory(categoryConfig))
+	}
+
+	tr, err := transport.New(tcfg)
+	if err != nil {
+		return ierrors.Wrap(err, 0, ierrors.WithCategory(categoryConfig))
+	}
+
+	fc, err := fetcher.LoadFromEnv(fetcher.NewDefaultConfig())
+	if err != nil {
+		return ierrors.Wrap(err, 0, ierrors.WithCategory(categoryConfig))
+	}
+
+	fetcher, err := fetcher.New(tr, fc)
+	if err != nil {
+		return ierrors.Wrap(err, 0, ierrors.WithCategory(categoryConfig))
+	}
+
+	idf := imagedata.NewFactory(fetcher)
+
+	stream, err := stream.New(sc, hw, fetcher)
 	if err != nil {
 		return ierrors.Wrap(err, 0, ierrors.WithCategory(categoryConfig))
 	}
@@ -89,12 +113,29 @@ func callHandleProcessing(reqID string, rw http.ResponseWriter, r *http.Request)
 		r.Context(),
 		fic,
 		"fallback image",
+		idf,
 	)
 	if err != nil {
 		return ierrors.Wrap(err, 0, ierrors.WithCategory(categoryConfig))
 	}
 
-	h, err := processingHandler.New(stream, hw, semaphores, fi, phc)
+	wic := auximageprovider.NewDefaultStaticConfig()
+	wic, err = auximageprovider.LoadFallbackStaticConfigFromEnv(wic)
+	if err != nil {
+		return ierrors.Wrap(err, 0, ierrors.WithCategory(categoryConfig))
+	}
+
+	wi, err := auximageprovider.NewStaticProvider(
+		r.Context(),
+		wic,
+		"watermark image",
+		idf,
+	)
+	if err != nil {
+		return ierrors.Wrap(err, 0, ierrors.WithCategory(categoryConfig))
+	}
+
+	h, err := processingHandler.New(stream, hw, semaphores, fi, wi, idf, phc)
 	if err != nil {
 		return ierrors.Wrap(err, 0, ierrors.WithCategory(categoryConfig))
 	}
@@ -144,10 +185,6 @@ func initialize() error {
 		return err
 	}
 
-	if err := imagedata.Init(); err != nil {
-		return err
-	}
-
 	errorreport.Init()
 
 	if err := vips.Init(); err != nil {
diff --git a/processing/pipeline.go b/processing/pipeline.go
index ab9a0744..6536aa91 100644
--- a/processing/pipeline.go
+++ b/processing/pipeline.go
@@ -3,6 +3,7 @@ package processing
 import (
 	"context"
 
+	"github.com/imgproxy/imgproxy/v3/auximageprovider"
 	"github.com/imgproxy/imgproxy/v3/imagedata"
 	"github.com/imgproxy/imgproxy/v3/imagetype"
 	"github.com/imgproxy/imgproxy/v3/options"
@@ -15,6 +16,9 @@ type pipelineContext struct {
 
 	imgtype imagetype.Type
 
+	// The watermark image provider, if any watermarking is to be done.
+	watermarkProvider auximageprovider.Provider
+
 	trimmed bool
 
 	srcWidth  int
@@ -67,7 +71,13 @@ type pipelineContext struct {
 type pipelineStep func(pctx *pipelineContext, img *vips.Image, po *options.ProcessingOptions, imgdata imagedata.ImageData) error
 type pipeline []pipelineStep
 
-func (p pipeline) Run(ctx context.Context, img *vips.Image, po *options.ProcessingOptions, imgdata imagedata.ImageData) error {
+func (p pipeline) Run(
+	ctx context.Context,
+	img *vips.Image,
+	po *options.ProcessingOptions,
+	imgdata imagedata.ImageData,
+	watermark auximageprovider.Provider,
+) error {
 	pctx := pipelineContext{
 		ctx: ctx,
 
@@ -77,7 +87,8 @@ func (p pipeline) Run(ctx context.Context, img *vips.Image, po *options.Processi
 		dprScale:        1.0,
 		vectorBaseScale: 1.0,
 
-		cropGravity: po.Crop.Gravity,
+		cropGravity:       po.Crop.Gravity,
+		watermarkProvider: watermark,
 	}
 
 	if pctx.cropGravity.Type == options.GravityUnknown {
diff --git a/processing/processing.go b/processing/processing.go
index 81275bae..9bf12e58 100644
--- a/processing/processing.go
+++ b/processing/processing.go
@@ -8,6 +8,7 @@ import (
 
 	log "github.com/sirupsen/logrus"
 
+	"github.com/imgproxy/imgproxy/v3/auximageprovider"
 	"github.com/imgproxy/imgproxy/v3/config"
 	"github.com/imgproxy/imgproxy/v3/imagedata"
 	"github.com/imgproxy/imgproxy/v3/imagetype"
@@ -83,6 +84,8 @@ func ProcessImage(
 	ctx context.Context,
 	imgdata imagedata.ImageData,
 	po *options.ProcessingOptions,
+	watermarkProvider auximageprovider.Provider,
+	idf *imagedata.Factory,
 ) (*Result, error) {
 	runtime.LockOSThread()
 	defer runtime.UnlockOSThread()
@@ -136,12 +139,12 @@ func ProcessImage(
 	}
 
 	// Transform the image (resize, crop, etc)
-	if err = transformImage(ctx, img, po, imgdata, animated); err != nil {
+	if err = transformImage(ctx, img, po, imgdata, animated, watermarkProvider); err != nil {
 		return nil, err
 	}
 
 	// Finalize the image (colorspace conversion, metadata stripping, etc)
-	if err = finalizePipeline.Run(ctx, img, po, imgdata); err != nil {
+	if err = finalizePipeline.Run(ctx, img, po, imgdata, watermarkProvider); err != nil {
 		return nil, err
 	}
 
@@ -385,18 +388,20 @@ func transformImage(
 	po *options.ProcessingOptions,
 	imgdata imagedata.ImageData,
 	asAnimated bool,
+	watermark auximageprovider.Provider,
 ) error {
 	if asAnimated {
-		return transformAnimated(ctx, img, po)
+		return transformAnimated(ctx, img, po, watermark)
 	}
 
-	return mainPipeline.Run(ctx, img, po, imgdata)
+	return mainPipeline.Run(ctx, img, po, imgdata, watermark)
 }
 
 func transformAnimated(
 	ctx context.Context,
 	img *vips.Image,
 	po *options.ProcessingOptions,
+	watermark auximageprovider.Provider,
 ) error {
 	if po.Trim.Enabled {
 		log.Warning("Trim is not supported for animated images")
@@ -450,7 +455,8 @@ func transformAnimated(
 
 		// Transform the frame using the main pipeline.
 		// We don't provide imgdata here to prevent scale-on-load.
-		if err = mainPipeline.Run(ctx, frame, po, nil); err != nil {
+		// Let's skip passing watermark here since in would be applied later to all frames at once.
+		if err = mainPipeline.Run(ctx, frame, po, nil, nil); err != nil {
 			return err
 		}
 
@@ -474,7 +480,7 @@ func transformAnimated(
 
 	// Apply watermark to all frames at once if it was requested.
 	// This is much more efficient than applying watermark to individual frames.
-	if watermarkEnabled && imagedata.Watermark != nil {
+	if watermarkEnabled && watermark != nil {
 		// Get DPR scale to apply watermark correctly on HiDPI images.
 		// `imgproxy-dpr-scale` is set by the pipeline.
 		dprScale, derr := img.GetDoubleDefault("imgproxy-dpr-scale", 1.0)
@@ -483,7 +489,7 @@ func transformAnimated(
 		}
 
 		if err = applyWatermark(
-			img, imagedata.Watermark, &po.Watermark, dprScale, framesCount,
+			img, watermark, &po.Watermark, dprScale, framesCount,
 		); err != nil {
 			return err
 		}
diff --git a/processing/processing_test.go b/processing/processing_test.go
index 07903548..a23bea61 100644
--- a/processing/processing_test.go
+++ b/processing/processing_test.go
@@ -12,14 +12,17 @@ import (
 	"github.com/stretchr/testify/suite"
 
 	"github.com/imgproxy/imgproxy/v3/config"
+	"github.com/imgproxy/imgproxy/v3/fetcher"
 	"github.com/imgproxy/imgproxy/v3/ierrors"
 	"github.com/imgproxy/imgproxy/v3/imagedata"
 	"github.com/imgproxy/imgproxy/v3/options"
+	"github.com/imgproxy/imgproxy/v3/transport"
 	"github.com/imgproxy/imgproxy/v3/vips"
 )
 
 type ProcessingTestSuite struct {
 	suite.Suite
+	idf *imagedata.Factory
 }
 
 func (s *ProcessingTestSuite) SetupSuite() {
@@ -30,10 +33,19 @@ func (s *ProcessingTestSuite) SetupSuite() {
 	config.MaxAnimationFrames = 100
 	config.MaxAnimationFrameResolution = 10 * 1024 * 1024
 
-	s.Require().NoError(imagedata.Init())
 	s.Require().NoError(vips.Init())
 
 	logrus.SetOutput(io.Discard)
+
+	trc := transport.NewDefaultConfig()
+	tr, err := transport.New(trc)
+	s.Require().NoError(err)
+
+	fc := fetcher.NewDefaultConfig()
+	f, err := fetcher.New(tr, fc)
+	s.Require().NoError(err)
+
+	s.idf = imagedata.NewFactory(f)
 }
 
 func (s *ProcessingTestSuite) openFile(name string) imagedata.ImageData {
@@ -41,7 +53,7 @@ func (s *ProcessingTestSuite) openFile(name string) imagedata.ImageData {
 	s.Require().NoError(err)
 	path := filepath.Join(wd, "..", "testdata", name)
 
-	imagedata, err := imagedata.NewFromPath(path)
+	imagedata, err := s.idf.NewFromPath(path)
 	s.Require().NoError(err)
 
 	return imagedata
@@ -82,7 +94,7 @@ func (s *ProcessingTestSuite) TestResizeToFit() {
 			po.Width = tc.width
 			po.Height = tc.height
 
-			result, err := ProcessImage(context.Background(), imgdata, po)
+			result, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 			s.Require().NoError(err)
 			s.Require().NotNil(result)
 
@@ -121,7 +133,7 @@ func (s *ProcessingTestSuite) TestResizeToFitEnlarge() {
 			po.Width = tc.width
 			po.Height = tc.height
 
-			result, err := ProcessImage(context.Background(), imgdata, po)
+			result, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 			s.Require().NoError(err)
 			s.Require().NotNil(result)
 
@@ -165,7 +177,7 @@ func (s *ProcessingTestSuite) TestResizeToFitExtend() {
 			po.Width = tc.width
 			po.Height = tc.height
 
-			result, err := ProcessImage(context.Background(), imgdata, po)
+			result, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 			s.Require().NoError(err)
 			s.Require().NotNil(result)
 
@@ -209,7 +221,7 @@ func (s *ProcessingTestSuite) TestResizeToFitExtendAR() {
 			po.Width = tc.width
 			po.Height = tc.height
 
-			result, err := ProcessImage(context.Background(), imgdata, po)
+			result, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 			s.Require().NoError(err)
 			s.Require().NotNil(result)
 
@@ -247,7 +259,7 @@ func (s *ProcessingTestSuite) TestResizeToFill() {
 			po.Width = tc.width
 			po.Height = tc.height
 
-			result, err := ProcessImage(context.Background(), imgdata, po)
+			result, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 			s.Require().NoError(err)
 			s.Require().NotNil(result)
 
@@ -286,7 +298,7 @@ func (s *ProcessingTestSuite) TestResizeToFillEnlarge() {
 			po.Width = tc.width
 			po.Height = tc.height
 
-			result, err := ProcessImage(context.Background(), imgdata, po)
+			result, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 			s.Require().NoError(err)
 			s.Require().NotNil(result)
 
@@ -332,7 +344,7 @@ func (s *ProcessingTestSuite) TestResizeToFillExtend() {
 			po.Width = tc.width
 			po.Height = tc.height
 
-			result, err := ProcessImage(context.Background(), imgdata, po)
+			result, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 			s.Require().NoError(err)
 			s.Require().NotNil(result)
 
@@ -378,7 +390,7 @@ func (s *ProcessingTestSuite) TestResizeToFillExtendAR() {
 			po.Width = tc.width
 			po.Height = tc.height
 
-			result, err := ProcessImage(context.Background(), imgdata, po)
+			result, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 			s.Require().NoError(err)
 			s.Require().NotNil(result)
 
@@ -416,7 +428,7 @@ func (s *ProcessingTestSuite) TestResizeToFillDown() {
 			po.Width = tc.width
 			po.Height = tc.height
 
-			result, err := ProcessImage(context.Background(), imgdata, po)
+			result, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 			s.Require().NoError(err)
 			s.Require().NotNil(result)
 
@@ -455,7 +467,7 @@ func (s *ProcessingTestSuite) TestResizeToFillDownEnlarge() {
 			po.Width = tc.width
 			po.Height = tc.height
 
-			result, err := ProcessImage(context.Background(), imgdata, po)
+			result, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 			s.Require().NoError(err)
 			s.Require().NotNil(result)
 
@@ -501,7 +513,7 @@ func (s *ProcessingTestSuite) TestResizeToFillDownExtend() {
 			po.Width = tc.width
 			po.Height = tc.height
 
-			result, err := ProcessImage(context.Background(), imgdata, po)
+			result, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 			s.Require().NoError(err)
 			s.Require().NotNil(result)
 
@@ -545,7 +557,7 @@ func (s *ProcessingTestSuite) TestResizeToFillDownExtendAR() {
 			po.Width = tc.width
 			po.Height = tc.height
 
-			result, err := ProcessImage(context.Background(), imgdata, po)
+			result, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 			s.Require().NoError(err)
 			s.Require().NotNil(result)
 
@@ -974,7 +986,7 @@ func (s *ProcessingTestSuite) TestResultSizeLimit() {
 			po.Rotate = tc.rotate
 			po.Padding = tc.padding
 
-			result, err := ProcessImage(context.Background(), imgdata, po)
+			result, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 
 			s.Require().NoError(err)
 			s.Require().NotNil(result)
@@ -989,7 +1001,7 @@ func (s *ProcessingTestSuite) TestImageResolutionTooLarge() {
 	po.SecurityOptions.MaxSrcResolution = 1
 
 	imgdata := s.openFile("test2.jpg")
-	_, err := ProcessImage(context.Background(), imgdata, po)
+	_, err := ProcessImage(context.Background(), imgdata, po, nil, s.idf)
 
 	s.Require().Error(err)
 	s.Require().Equal(422, ierrors.Wrap(err, 0).StatusCode())
diff --git a/processing/watermark.go b/processing/watermark.go
index d6d56012..6d235edf 100644
--- a/processing/watermark.go
+++ b/processing/watermark.go
@@ -4,6 +4,7 @@ import (
 	"context"
 	"math"
 
+	"github.com/imgproxy/imgproxy/v3/auximageprovider"
 	"github.com/imgproxy/imgproxy/v3/config"
 	"github.com/imgproxy/imgproxy/v3/imagedata"
 	"github.com/imgproxy/imgproxy/v3/imath"
@@ -59,17 +60,14 @@ func prepareWatermark(wm *vips.Image, wmData imagedata.ImageData, opts *options.
 		po.Padding.Bottom = offY - po.Padding.Top
 	}
 
-	if err := watermarkPipeline.Run(context.Background(), wm, po, wmData); err != nil {
+	if err := watermarkPipeline.Run(context.Background(), wm, po, wmData, nil); err != nil {
 		return err
 	}
 
-	if opts.ShouldReplicate() || framesCount > 1 {
-		// We need to copy image if we're going to replicate.
-		// Replication requires image to be read several times, and this requires
-		// random access to pixels
-		if err := wm.CopyMemory(); err != nil {
-			return err
-		}
+	// We need to copy the image to ensure that it is in memory since we will
+	// close it after watermark processing is done.
+	if err := wm.CopyMemory(); err != nil {
+		return err
 	}
 
 	if opts.ShouldReplicate() {
@@ -82,7 +80,20 @@ func prepareWatermark(wm *vips.Image, wmData imagedata.ImageData, opts *options.
 	return wm.StripAll()
 }
 
-func applyWatermark(img *vips.Image, wmData imagedata.ImageData, opts *options.WatermarkOptions, offsetScale float64, framesCount int) error {
+func applyWatermark(img *vips.Image, watermark auximageprovider.Provider, opts *options.WatermarkOptions, offsetScale float64, framesCount int) error {
+	if watermark == nil {
+		return nil
+	}
+
+	wmData, _, err := watermark.Get(context.Background(), nil)
+	if err != nil {
+		return err
+	}
+	if wmData == nil {
+		return nil
+	}
+	defer wmData.Close()
+
 	wm := new(vips.Image)
 	defer wm.Clear()
 
@@ -164,9 +175,9 @@ func applyWatermark(img *vips.Image, wmData imagedata.ImageData, opts *options.W
 }
 
 func watermark(pctx *pipelineContext, img *vips.Image, po *options.ProcessingOptions, imgdata imagedata.ImageData) error {
-	if !po.Watermark.Enabled || imagedata.Watermark == nil {
+	if !po.Watermark.Enabled || pctx.watermarkProvider == nil {
 		return nil
 	}
 
-	return applyWatermark(img, imagedata.Watermark, &po.Watermark, pctx.dprScale, 1)
+	return applyWatermark(img, pctx.watermarkProvider, &po.Watermark, pctx.dprScale, 1)
 }
diff --git a/processing_handler_test.go b/processing_handler_test.go
index b2bd2f18..60950897 100644
--- a/processing_handler_test.go
+++ b/processing_handler_test.go
@@ -21,12 +21,14 @@ import (
 
 	"github.com/imgproxy/imgproxy/v3/config"
 	"github.com/imgproxy/imgproxy/v3/config/configurators"
+	"github.com/imgproxy/imgproxy/v3/fetcher"
 	"github.com/imgproxy/imgproxy/v3/httpheaders"
 	"github.com/imgproxy/imgproxy/v3/imagedata"
 	"github.com/imgproxy/imgproxy/v3/imagetype"
 	"github.com/imgproxy/imgproxy/v3/server"
 	"github.com/imgproxy/imgproxy/v3/svg"
 	"github.com/imgproxy/imgproxy/v3/testutil"
+	"github.com/imgproxy/imgproxy/v3/transport"
 	"github.com/imgproxy/imgproxy/v3/vips"
 )
 
@@ -63,10 +65,13 @@ func (s *ProcessingHandlerTestSuite) TeardownSuite() {
 }
 
 func (s *ProcessingHandlerTestSuite) SetupTest() {
-	// We don't need config.LocalFileSystemRoot anymore as it is used
-	// only during initialization
+	wd, err := os.Getwd()
+	s.Require().NoError(err)
+
 	config.Reset()
 	config.AllowLoopbackSourceAddresses = true
+	config.LocalFileSystemRoot = filepath.Join(wd, "/testdata")
+	config.ClientKeepAliveTimeout = 0
 }
 
 func (s *ProcessingHandlerTestSuite) send(path string, header ...http.Header) *httptest.ResponseRecorder {
@@ -99,7 +104,26 @@ func (s *ProcessingHandlerTestSuite) readTestImageData(name string) imagedata.Im
 	data, err := os.ReadFile(filepath.Join(wd, "testdata", name))
 	s.Require().NoError(err)
 
-	imgdata, err := imagedata.NewFromBytes(data)
+	// NOTE: Temporary workaround. We create imagedata.Factory here
+	// because currently configuration is changed via env vars
+	// or config. We need to pick up those config changes.
+	// This will be addressed in the next PR
+	trc, err := transport.LoadFromEnv(transport.NewDefaultConfig())
+	s.Require().NoError(err)
+
+	tr, err := transport.New(trc)
+	s.Require().NoError(err)
+
+	fc, err := fetcher.LoadFromEnv(fetcher.NewDefaultConfig())
+	s.Require().NoError(err)
+
+	f, err := fetcher.New(tr, fc)
+	s.Require().NoError(err)
+
+	idf := imagedata.NewFactory(f)
+	// end of workaround
+
+	imgdata, err := idf.NewFromBytes(data)
 	s.Require().NoError(err)
 
 	return imgdata
diff --git a/svg/svg_test.go b/svg/svg_test.go
index 0d5d326c..30d670e5 100644
--- a/svg/svg_test.go
+++ b/svg/svg_test.go
@@ -8,19 +8,29 @@ import (
 	"github.com/stretchr/testify/suite"
 
 	"github.com/imgproxy/imgproxy/v3/config"
+	"github.com/imgproxy/imgproxy/v3/fetcher"
 	"github.com/imgproxy/imgproxy/v3/imagedata"
 	"github.com/imgproxy/imgproxy/v3/testutil"
+	"github.com/imgproxy/imgproxy/v3/transport"
 )
 
 type SvgTestSuite struct {
+	idf *imagedata.Factory
 	suite.Suite
 }
 
 func (s *SvgTestSuite) SetupSuite() {
 	config.Reset()
 
-	err := imagedata.Init()
+	trc := transport.NewDefaultConfig()
+	tr, err := transport.New(trc)
 	s.Require().NoError(err)
+
+	fc := fetcher.NewDefaultConfig()
+	f, err := fetcher.New(tr, fc)
+	s.Require().NoError(err)
+
+	s.idf = imagedata.NewFactory(f)
 }
 
 func (s *SvgTestSuite) readTestFile(name string) imagedata.ImageData {
@@ -30,7 +40,7 @@ func (s *SvgTestSuite) readTestFile(name string) imagedata.ImageData {
 	data, err := os.ReadFile(filepath.Join(wd, "..", "testdata", name))
 	s.Require().NoError(err)
 
-	d, err := imagedata.NewFromBytes(data)
+	d, err := s.idf.NewFromBytes(data)
 	s.Require().NoError(err)
 
 	return d