diff --git a/build-tools/ant/src/org/jetbrains/jet/buildtools/ant/BytecodeCompilerTask.java b/build-tools/ant/src/org/jetbrains/jet/buildtools/ant/BytecodeCompilerTask.java
index 636b71fd9d6..9bfafacf94e 100644
--- a/build-tools/ant/src/org/jetbrains/jet/buildtools/ant/BytecodeCompilerTask.java
+++ b/build-tools/ant/src/org/jetbrains/jet/buildtools/ant/BytecodeCompilerTask.java
@@ -16,29 +16,31 @@ import java.io.File;
  */
 public class BytecodeCompilerTask extends Task {
 
-    private final BytecodeCompiler compiler = new BytecodeCompiler();
+    private boolean includeRuntime = true;
+    private String  stdlib;
 
     private File    module;
     private File    srcdir;
     private File    file;
     private File    destdir;
     private File    destjar;
-    private boolean includeRuntime = true;
-    private boolean excludeStdlib  = false;
 
-    public void setModule  ( File module  ) { this.module  = module;  }
-    public void setSrcdir  ( File srcdir  ) { this.srcdir  = srcdir;  }
-    public void setFile    ( File file    ) { this.file    = file;    }
-    public void setDestdir ( File destdir ) { this.destdir = destdir; }
-    public void setDestjar ( File destjar ) { this.destjar = destjar; }
+
+    public void setStdlib  ( String stdlib ) { this.stdlib  = stdlib;  }
+    public void setModule  ( File module   ) { this.module  = module;  }
+    public void setSrcdir  ( File srcdir   ) { this.srcdir  = srcdir;  }
+    public void setFile    ( File file     ) { this.file    = file;    }
+    public void setDestdir ( File destdir  ) { this.destdir = destdir; }
+    public void setDestjar ( File destjar  ) { this.destjar = destjar; }
 
     public void setIncludeRuntime ( boolean includeRuntime ) { this.includeRuntime = includeRuntime; }
-    public void setExcludeStdlib  ( boolean excludeStdlib  ) { this.excludeStdlib  = excludeStdlib;  }
 
 
     @Override
     public void execute() {
 
+        final BytecodeCompiler compiler = new BytecodeCompiler( this.stdlib );
+
         if (( this.srcdir != null ) || ( this.file != null )) {
 
             if (( this.destdir == null ) && ( this.destjar == null )) {
@@ -51,10 +53,10 @@ public class BytecodeCompilerTask extends Task {
             log( String.format( "[%s] => [%s]", src, dest ));
 
             if ( this.destdir != null ) {
-                compiler.sourcesToDir( src, dest, this.excludeStdlib );
+                compiler.sourcesToDir( src, dest );
             }
             else {
-                compiler.sourcesToJar( src, dest, this.includeRuntime, this.excludeStdlib );
+                compiler.sourcesToJar( src, dest, this.includeRuntime );
             }
         }
         else if ( this.module != null ) {
diff --git a/build-tools/build.xml b/build-tools/build.xml
index e89f0c7aaac..8e60a1f36df 100644
--- a/build-tools/build.xml
+++ b/build-tools/build.xml
@@ -43,13 +43,11 @@
                                     <antcall target="dist"/>
                                 </then>
                             </if>
-
-                            <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"/>
+                            <delete dir="${bootstrap-dir}" failonerror="true"/>
+                            <mkdir  dir="${bootstrap-dir}"/>
+                            <copy file="${output}/${output.name}.zip" todir="${bootstrap-dir}"/>
+                            <ant antfile="${basedir}/bootstrap.xml"/>
+                            <define-kotlinc/> <!-- Recursive invocation, will use bootstrapped compiler this time -->
                         </else>
                     </if>
                 </then>
@@ -60,7 +58,6 @@
                     <fileset dir = "${kotlin-home}/lib" includes = "*.jar"/>
                 </classpath>
             </taskdef>
-
         </sequential>
     </macrodef>
 
@@ -77,8 +74,11 @@
 
     <!-- Runs <kotlinc> create a *.class files in directory -->
     <macrodef name="kotlinc-dir">
-        <attribute name="file"   default=""/>
-        <attribute name="srcdir" default=""/>
+        <attribute name="file"           default=""/>
+        <attribute name="srcdir"         default=""/>
+        <attribute name="includeRuntime" default="true"/>
+        <attribute name="stdlib"         default="${kotlin-home}/lib/kotlin-runtime.jar"/>
+
         <sequential>
 
             <cleanup/>
@@ -86,10 +86,10 @@
             <if>
                 <equals arg1="@{file}" arg2=""/>
                 <then>
-                    <kotlinc srcdir = "@{srcdir}" destdir = "${tests-dir}" />
+                    <kotlinc srcdir = "@{srcdir}" destdir = "${tests-dir}" includeRuntime = "@{includeRuntime}" stdlib = "@{stdlib}"/>
                 </then>
                 <else>
-                    <kotlinc file   = "@{file}"   destdir = "${tests-dir}" />
+                    <kotlinc file   = "@{file}"   destdir = "${tests-dir}" includeRuntime = "@{includeRuntime}" stdlib = "@{stdlib}"/>
                 </else>
             </if>
         </sequential>
@@ -98,9 +98,11 @@
 
     <!-- Runs <kotlinc> to create a *.class files in a jar -->
     <macrodef name="kotlinc-jar">
-        <attribute name="file"   default=""/>
-        <attribute name="srcdir" default=""/>
-        <attribute name="module" default=""/>
+        <attribute name="file"           default=""/>
+        <attribute name="srcdir"         default=""/>
+        <attribute name="module"         default=""/>
+        <attribute name="includeRuntime" default="true"/>
+        <attribute name="stdlib"         default="${kotlin-home}/lib/kotlin-runtime.jar"/>
         <sequential>
 
             <cleanup/>
@@ -110,14 +112,14 @@
                     <equals arg1="@{file}" arg2=""/>
                 </not>
                 <then>
-                    <kotlinc file = "@{file}" destjar = "${tests-jar}"/>
+                    <kotlinc file = "@{file}" destjar = "${tests-jar}" includeRuntime = "@{includeRuntime}" stdlib = "@{stdlib}"/>
                 </then>
                 <elseif>
                     <not>
                         <equals arg1="@{srcdir}" arg2=""/>
                     </not>
                     <then>
-                        <kotlinc srcdir = "@{srcdir}" destjar = "${tests-jar}"/>
+                        <kotlinc srcdir = "@{srcdir}" destjar = "${tests-jar}" includeRuntime = "@{includeRuntime}" stdlib = "@{stdlib}"/>
                     </then>
                 </elseif>
                 <elseif>
@@ -125,7 +127,7 @@
                         <equals arg1="@{module}" arg2=""/>
                     </not>
                     <then>
-                        <kotlinc module = "@{module}" destjar = "${tests-jar}"/>
+                        <kotlinc module = "@{module}" destjar = "${tests-jar}" includeRuntime = "@{includeRuntime}" stdlib = "@{stdlib}"/>
                     </then>
                 </elseif>
                 <else>
@@ -325,15 +327,6 @@
     </target>
 
 
-    <!-- Invoked manually in a dev environment - simulates a bootstrap environment as in TeamCity build -->
-    <target name="buildToolsBootstrap">
-        <delete dir="${bootstrap-dir}" failonerror="true"/>
-        <mkdir  dir="${bootstrap-dir}"/>
-        <copy file="${output}/${output.name}.zip" todir="${bootstrap-dir}"/>
-        <ant antfile="${basedir}/bootstrap.xml"/>
-    </target>
-
-
     <!-- Tests build tools distribution jar -->
     <target name="buildToolsTest">
         <define-kotlinc/>
diff --git a/build-tools/core/src/org/jetbrains/jet/buildtools/core/BytecodeCompiler.java b/build-tools/core/src/org/jetbrains/jet/buildtools/core/BytecodeCompiler.java
index 21b28468ee2..36825119b09 100644
--- a/build-tools/core/src/org/jetbrains/jet/buildtools/core/BytecodeCompiler.java
+++ b/build-tools/core/src/org/jetbrains/jet/buildtools/core/BytecodeCompiler.java
@@ -8,19 +8,14 @@ import org.jetbrains.jet.compiler.CompileEnvironment;
  */
 public class BytecodeCompiler {
 
-    private final CompileEnvironment ENV = createCompileEnvironment();
+    private final CompileEnvironment ENV;
 
 
-    public BytecodeCompiler () {
-    }
-
-
-    /**
-     * Creates and initializes new {@link CompileEnvironment} instance.
-     * @return new {@link CompileEnvironment} instance
-     */
-    private CompileEnvironment createCompileEnvironment () {
-        return new CompileEnvironment();
+    public BytecodeCompiler ( String stdlib ) {
+        ENV = new CompileEnvironment();
+        if ( stdlib != null ) {
+            ENV.setStdlib( stdlib );
+        }
     }
 
 
@@ -39,10 +34,9 @@ public class BytecodeCompiler {
      *
      * @param source        compilation source (directory or file)
      * @param destination   compilation destination
-     * @param excludeStdlib whether Kotlin standard library is excluded in compilation
      */
-    public void sourcesToDir ( String source, String destination, boolean excludeStdlib ) {
-        boolean success = ENV.compileBunchOfSources( source, null, destination, true);
+    public void sourcesToDir ( String source, String destination ) {
+        boolean success = ENV.compileBunchOfSources( source, null, destination, true );
         if ( ! success ) {
             throw new RuntimeException( compilationError( source ));
         }
@@ -55,10 +49,9 @@ public class BytecodeCompiler {
      * @param source         compilation source (directory or file)
      * @param jar            compilation destination jar
      * @param includeRuntime whether Kotlin runtime library is included in destination jar
-     * @param excludeStdlib whether Kotlin standard library is excluded in compilation
      */
-    public void sourcesToJar ( String source, String jar, boolean includeRuntime, boolean excludeStdlib ) {
-        boolean success = ENV.compileBunchOfSources( source, jar, null, includeRuntime);
+    public void sourcesToJar ( String source, String jar, boolean includeRuntime ) {
+        boolean success = ENV.compileBunchOfSources( source, jar, null, includeRuntime );
         if ( ! success ) {
             throw new RuntimeException( compilationError( source ));
         }
diff --git a/build.xml b/build.xml
index 5e97513a96f..b10f51103ba 100644
--- a/build.xml
+++ b/build.xml
@@ -99,6 +99,7 @@
 
     <target name="clean">
         <delete dir="${output}"/>
+        <delete dir="${basedir}/bootstrap.compiler"/>
     </target>
 
     <target name="dist" depends="clean,jarRT,jarJDKHeaders,jar,buildToolsJar">