diff --git a/jps/jps-plugin/src/org/jetbrains/kotlin/jps/build/KotlinBuilder.kt b/jps/jps-plugin/src/org/jetbrains/kotlin/jps/build/KotlinBuilder.kt
index a738daa1641..cede5205b5c 100644
--- a/jps/jps-plugin/src/org/jetbrains/kotlin/jps/build/KotlinBuilder.kt
+++ b/jps/jps-plugin/src/org/jetbrains/kotlin/jps/build/KotlinBuilder.kt
@@ -137,18 +137,12 @@ public class KotlinBuilder : ModuleLevelBuilder(BuilderCategory.SOURCE_PROCESSOR
 
         val dataManager = projectDescriptor.dataManager
 
-        if (!IncrementalCompilation.isEnabled()) {
-            dataManager.clean()
-            dataManager.flush(true)
-        }
-        else {
-            if (chunk.targets.any { dataManager.dataPaths.getKotlinCacheVersion(it).isIncompatible() }) {
-                LOG.info("Clearing caches for " + chunk.targets.map { it.presentableName }.join())
-                val incrementalCaches = getIncrementalCaches(chunk, context)
-                incrementalCaches.values().forEach(StorageOwner::clean)
-                FSOperations.markDirtyRecursively(context, CompilationRound.NEXT, chunk)
-                return ADDITIONAL_PASS_REQUIRED
-            }
+        if (chunk.targets.any { dataManager.dataPaths.getKotlinCacheVersion(it).isIncompatible() }) {
+            LOG.info("Clearing caches for " + chunk.targets.map { it.presentableName }.join())
+            val incrementalCaches = getIncrementalCaches(chunk, context)
+            incrementalCaches.values().forEach(StorageOwner::clean)
+            FSOperations.markDirtyRecursively(context, CompilationRound.NEXT, chunk)
+            return ADDITIONAL_PASS_REQUIRED
         }
 
         if (!dirtyFilesHolder.hasDirtyFiles() && !dirtyFilesHolder.hasRemovedFiles()
diff --git a/jps/jps-plugin/src/org/jetbrains/kotlin/jps/incremental/CacheFormatVersion.kt b/jps/jps-plugin/src/org/jetbrains/kotlin/jps/incremental/CacheFormatVersion.kt
index 42233675171..7f2a402cc25 100644
--- a/jps/jps-plugin/src/org/jetbrains/kotlin/jps/incremental/CacheFormatVersion.kt
+++ b/jps/jps-plugin/src/org/jetbrains/kotlin/jps/incremental/CacheFormatVersion.kt
@@ -38,9 +38,10 @@ class CacheFormatVersion(targetDataRoot: File) {
     private val file = File(targetDataRoot, FORMAT_VERSION_FILE_PATH)
 
     fun isIncompatible(): Boolean {
-        assert(IncrementalCompilation.isEnabled()) { "Incremental compilation is not enabled" }
         if (!file.exists()) return false
 
+        if (!IncrementalCompilation.isEnabled()) return true
+
         val versionNumber = file.readText().toInt()
 
         if (versionNumber != CACHE_FORMAT_VERSION) {
diff --git a/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOff/build.log b/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOff/build.log
index d5edf8c4424..7cf680292e1 100644
--- a/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOff/build.log
+++ b/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOff/build.log
@@ -1,10 +1,26 @@
 Cleaning output files:
 out/production/module1/module1/A.class
 End of files
+Cleaning output files:
+out/production/module1/META-INF/module1.kotlin_module
+out/production/module1/module1/Module1Package.class
+out/production/module1/module1/Module1_otherKt.class
+End of files
 Compiling files:
 module1/src/module1_a.kt
 module1/src/module1_other.kt
 End of files
+Cleaning output files:
+out/production/module3/META-INF/module3.kotlin_module
+out/production/module3/module3/Module3Package.class
+out/production/module3/module3/Module3_cKt.class
+End of files
+Compiling files:
+module3/src/module3_c.kt
+End of files
+Cleaning output files:
+out/production/module2/B.class
+End of files
 Compiling files:
 module2/src/module2_B.java
 End of files
\ No newline at end of file
diff --git a/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOff/dependencies.txt b/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOff/dependencies.txt
index ec937d3cdd9..42b512b6648 100644
--- a/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOff/dependencies.txt
+++ b/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOff/dependencies.txt
@@ -1,2 +1,3 @@
 module1->
-module2->module1
\ No newline at end of file
+module2->module1
+module3->
\ No newline at end of file
diff --git a/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOff/module3_c.kt b/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOff/module3_c.kt
new file mode 100644
index 00000000000..c7cd3fc4b22
--- /dev/null
+++ b/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOff/module3_c.kt
@@ -0,0 +1,3 @@
+package module3
+
+fun c() {}
\ No newline at end of file
diff --git a/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOffOn/build.log b/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOffOn/build.log
index 74d77ecd7d8..d3894733f30 100644
--- a/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOffOn/build.log
+++ b/jps/jps-plugin/testData/incremental/lazyKotlinCaches/incrementalCompilationOffOn/build.log
@@ -1,24 +1,53 @@
 Cleaning output files:
 out/production/module1/module1/A.class
 End of files
+Cleaning output files:
+out/production/module1/META-INF/module1.kotlin_module
+out/production/module1/module1/Module1Package.class
+out/production/module1/module1/Module1_otherKt.class
+End of files
 Compiling files:
 module1/src/module1_a.kt
 module1/src/module1_other.kt
 End of files
+Cleaning output files:
+out/production/module3/META-INF/module3.kotlin_module
+out/production/module3/module3/Module3Package.class
+out/production/module3/module3/Module3_cKt.class
+End of files
 Compiling files:
 module3/src/module3_c.kt
 End of files
+Cleaning output files:
+out/production/module2/B.class
+End of files
 Compiling files:
 module2/src/module2_B.java
 End of files
 
 
+Cleaning output files:
+out/production/module1/META-INF/module1.kotlin_module
+out/production/module1/module1/A.class
+out/production/module1/module1/Module1Package.class
+out/production/module1/module1/Module1_aKt.class
+End of files
+Compiling files:
+module1/src/module1_a.kt
+End of files
+Cleaning output files:
+out/production/module1/META-INF/module1.kotlin_module
+out/production/module1/module1/A.class
+out/production/module1/module1/Module1Package.class
+out/production/module1/module1/Module1_aKt.class
+out/production/module1/module1/Module1_otherKt.class
+End of files
 Compiling files:
 module1/src/module1_a.kt
 module1/src/module1_other.kt
 End of files
-Compiling files:
-module3/src/module3_c.kt
+Cleaning output files:
+out/production/module2/B.class
 End of files
 Compiling files:
 module2/src/module2_B.java