diff --git a/build-tools/build.xml b/build-tools/build.xml
index cb532063c04..3c3b740cb97 100644
--- a/build-tools/build.xml
+++ b/build-tools/build.xml
@@ -1,6 +1,7 @@
 <project name="build-tools" default="buildToolsJar">
 
-    <property name="tests-dir" location="${output}/build-tools-test"/>
+    <property name="tests-dir"   location="${output}/ant-test/build-tools-test"/>
+    <property name="kotlin-home" location="${output}/ant-test/kotlin-home"/>
 
     <taskdef resource="net/sf/antcontrib/antlib.xml">
         <classpath>
@@ -8,18 +9,36 @@
         </classpath>
     </taskdef>
 
-    <path id="dist.jars">
-        <fileset dir="${idea.sdk}"    includes="*.jar"/>
-        <fileset dir="${basedir}/lib" includes="*.jar"/>
-        <fileset dir="${output}"      includes="*.jar"/>
-    </path>
-
     <presetdef name="run-java">
-        <java classpathref  = "dist.jars" failonerror  = "true">
-            <classpath path = "${tests-dir}"/>
+        <java failonerror  = "true">
+            <classpath>
+                <pathelement path = "${tests-dir}"/>
+                <fileset     dir  = "${kotlin-home}/lib" includes = "*.jar"/>
+            </classpath>
         </java>
     </presetdef>
 
+    <!-- Re-creates ${kotlin-home} and defines <kotlin> task using its jars -->
+    <macrodef name="setup-kotlin-home">
+        <sequential>
+
+            <delete dir = "${kotlin-home}" failonerror="true"/>
+            <mkdir  dir = "${kotlin-home}"/>
+            <unzip src  = "${output}/${output.name}.zip"
+                   dest = "${kotlin-home}"/>
+            <move todir = "${kotlin-home}">
+                <fileset dir = "${kotlin-home}/kotlinc"/>
+            </move>
+            <delete dir = "${kotlin-home}/kotlinc" failonerror="true"/>
+
+            <taskdef resource    = "org/jetbrains/jet/buildtools/ant/antlib.xml">
+                <classpath>
+                    <fileset dir = "${kotlin-home}/lib" includes = "*.jar"/>
+                </classpath>
+            </taskdef>
+        </sequential>
+    </macrodef>
+
 
     <!-- Invokes <java> for compiled Hello class and verifies the output -->
     <macrodef name="hello-java">
@@ -28,8 +47,8 @@
         <attribute name="out"/>
         <sequential>
             <var name = "java-out" unset = "true"/>
-            <run-java outputproperty = "java-out" classname      = "namespace">
-                <arg  line           = "@{args}"/>
+            <run-java outputproperty = "java-out" classname = "namespace">
+                <arg line = "@{args}"/>
             </run-java>
             <if>
                 <equals arg1="${java-out}" arg2="@{out}"/>
@@ -49,27 +68,21 @@
         <attribute name="args" default=""/>
         <attribute name="out"/>
         <sequential>
-            <taskdef resource     = "org/jetbrains/jet/buildtools/ant/antlib.xml"
-                     classpathref = "dist.jars"/>
+            <delete  dir     = "${tests-dir}" includes = "**/*"/>
+            <kotlinc destdir = "${tests-dir}" file     = "@{root}/Hello.kt"/>
+            <hello-java root = "@{root}"      args     = "@{args}" out = "@{out}"/>
 
-            <delete  dir     = "${tests-dir}" verbose = "false" includes   = "**/*.class"/>
-            <kotlinc destdir = "${tests-dir}" file    = "@{root}/Hello.kt" />
-            <hello-java root = "@{root}"      args    = "@{args}" out      = "@{out}"/>
-
-            <delete  dir     = "${tests-dir}" verbose = "false" includes   = "**/*.class"/>
-            <kotlinc destdir = "${tests-dir}" srcdir  = "@{root}"      />
-            <hello-java root = "@{root}"      args    = "@{args}"     out  = "@{out}"/>
+            <delete  dir     = "${tests-dir}" includes = "**/*"/>
+            <kotlinc destdir = "${tests-dir}" srcdir   = "@{root}"/>
+            <hello-java root = "@{root}"      args     = "@{args}" out = "@{out}"/>
         </sequential>
     </macrodef>
 
     <!-- Compiles and runs with <java> web demo longer examples -->
     <macrodef name="longer-examples">
         <sequential>
-            <taskdef resource     = "org/jetbrains/jet/buildtools/ant/antlib.xml"
-                     classpathref = "dist.jars"/>
-
-            <delete  dir     = "${tests-dir}" verbose = "false" includes="**/*.class"/>
-            <kotlinc destdir = "${tests-dir}" srcdir  = "${basedir}/build-tools/test/longer-examples" />
+            <delete  dir     = "${tests-dir}" includes = "**/*"/>
+            <kotlinc destdir = "${tests-dir}" srcdir   = "${basedir}/build-tools/test/longer-examples" />
 
             <run-java classname = "bottles.namespace"/>
             <run-java classname = "maze.namespace"/>
@@ -91,18 +104,20 @@
                 </dirset>
             </src>
             <classpath>
-                <path refid="classpath.kotlin"/>
-                <fileset dir="${idea.sdk}/ant/lib" includes="*.jar"/>
+                <path refid  = "classpath.kotlin"/>
+                <fileset dir = "${idea.sdk}/ant/lib" includes="*.jar"/>
             </classpath>
         </javac>
         <jar destfile="${output}/kotlin-build-tools.jar">
-            <fileset dir="${output}/classes/buildTools"/>
-            <fileset dir="${basedir}/build-tools/ant/src" includes="**/*.xml"/>
+            <fileset dir = "${output}/classes/buildTools"/>
+            <fileset dir = "${basedir}/build-tools/ant/src" includes="**/*.xml"/>
         </jar>
     </target>
 
     <!-- Tests build tools distribution jar -->
-    <target name="buildToolsTest" depends="jarRT, jar, buildToolsJar">
+    <target name="buildToolsTest" depends="dist">
+
+        <setup-kotlin-home/>
 
         <!-- Compiles every "Hello, World!" example and verifies the output of <java> run -->
         <hello-test  root="${basedir}/build-tools/test/hello/1"                         out="Hello, world!"/>