diff --git a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/modules/ModuleBuilder.kt b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/modules/ModuleBuilder.kt
index dac8638d8d1..8ffaec65c4d 100644
--- a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/modules/ModuleBuilder.kt
+++ b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/modules/ModuleBuilder.kt
@@ -17,7 +17,7 @@
 package org.jetbrains.kotlin.cli.common.modules
 
 import org.jetbrains.kotlin.modules.Module
-import java.util.ArrayList
+import java.util.*
 
 public class ModuleBuilder(
         private val name: String,
@@ -53,4 +53,3 @@ public class ModuleBuilder(
     override fun getModuleName(): String = name
     override fun getModuleType(): String = type
 }
-
diff --git a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/modules/ModuleXmlParser.java b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/modules/ModuleXmlParser.java
index 7450d5e7964..c84ab2f0c5c 100644
--- a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/modules/ModuleXmlParser.java
+++ b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/modules/ModuleXmlParser.java
@@ -19,7 +19,6 @@ package org.jetbrains.kotlin.cli.common.modules;
 import com.intellij.openapi.util.io.StreamUtil;
 import com.intellij.util.SmartList;
 import org.jetbrains.annotations.NotNull;
-import org.jetbrains.jps.builders.java.JavaModuleBuildTargetType;
 import org.jetbrains.kotlin.cli.common.messages.MessageCollector;
 import org.jetbrains.kotlin.cli.common.messages.MessageCollectorUtil;
 import org.jetbrains.kotlin.cli.common.messages.OutputMessageUtil;
@@ -43,6 +42,8 @@ public class ModuleXmlParser {
     public static final String MODULE = "module";
     public static final String NAME = "name";
     public static final String TYPE = "type";
+    public static final String TYPE_PRODUCTION = "java-production";
+    public static final String TYPE_TEST = "java-test";
     public static final String OUTPUT_DIR = "outputDir";
     public static final String SOURCES = "sources";
     public static final String JAVA_SOURCE_ROOTS = "javaSourceRoots";
@@ -127,24 +128,15 @@ public class ModuleXmlParser {
                 throw createError(qName);
             }
 
+            String moduleType = getAttribute(attributes, TYPE, qName);
+            assert(TYPE_PRODUCTION.equals(moduleType) || TYPE_TEST.equals(moduleType)): "Unknown module type: " + moduleType;
             setCurrentState(new InsideModule(
                     getAttribute(attributes, NAME, qName),
                     getAttribute(attributes, OUTPUT_DIR, qName),
-                    getType(attributes, qName)
+                    moduleType
             ));
         }
 
-        @NotNull
-        private String getType(@NotNull Attributes attributes, @NotNull String tag) {
-            String value = attributes.getValue(TYPE);
-
-            assert value != null &&
-                   (JavaModuleBuildTargetType.PRODUCTION.getTypeId().equals(value) ||
-                    JavaModuleBuildTargetType.TEST.getTypeId().equals(value)): "Unknown value of module type: " + value;
-
-            return value;
-        }
-
         @Override
         public void endElement(String uri, @NotNull String localName, @NotNull String qName) throws SAXException {
             if (MODULE.equalsIgnoreCase(qName) || MODULES.equalsIgnoreCase(qName)) {
diff --git a/compiler/testData/cli/jvm/duplicateSourcesInModule.xml b/compiler/testData/cli/jvm/duplicateSourcesInModule.xml
index dc8dadb8564..ce4f16a0fdc 100644
--- a/compiler/testData/cli/jvm/duplicateSourcesInModule.xml
+++ b/compiler/testData/cli/jvm/duplicateSourcesInModule.xml
@@ -1,5 +1,5 @@
 <modules>
-    <module name="name" outputDir="whatever">
+    <module name="name" outputDir="whatever" type="java-production">
         <sources path="duplicateSourcesInModule.kt"/>
         <sources path="duplicateSourcesInModule.kt"/>
     </module>
diff --git a/compiler/testData/modules.xml/allOnce.txt b/compiler/testData/modules.xml/allOnce.txt
index 231963fc373..50aeaa64fc1 100644
--- a/compiler/testData/modules.xml/allOnce.txt
+++ b/compiler/testData/modules.xml/allOnce.txt
@@ -1,4 +1,5 @@
 name
+	type=java-production
 	outputDir=out
 	sources=[foo]
 	classpath=[bar]
diff --git a/compiler/testData/modules.xml/allOnce.xml b/compiler/testData/modules.xml/allOnce.xml
index b6a96ba2299..8398e19e9af 100644
--- a/compiler/testData/modules.xml/allOnce.xml
+++ b/compiler/testData/modules.xml/allOnce.xml
@@ -1,5 +1,5 @@
 <modules>
-  <module name="name" outputDir="out">
+  <module name="name" outputDir="out" type="java-production">
     <sources path="foo"/>
     <classpath path="bar"/>
     <externalAnnotations path="baz"/>
diff --git a/compiler/testData/modules.xml/comments.txt b/compiler/testData/modules.xml/comments.txt
index f4b4c196ffd..d543f639837 100644
--- a/compiler/testData/modules.xml/comments.txt
+++ b/compiler/testData/modules.xml/comments.txt
@@ -1,4 +1,5 @@
 name
+	type=java-production
 	outputDir=out
 	sources=[foo, foo1, foo2]
 	classpath=[bar1, bar2]
diff --git a/compiler/testData/modules.xml/comments.xml b/compiler/testData/modules.xml/comments.xml
index 22fb6f6fe59..3670646a176 100644
--- a/compiler/testData/modules.xml/comments.xml
+++ b/compiler/testData/modules.xml/comments.xml
@@ -1,5 +1,5 @@
 <modules>
-  <module name="name" outputDir="out">
+  <module name="name" outputDir="out" type="java-production">
     <sources path="foo"/>
     <sources path="foo1"/>
     <sources path="foo2"/>
diff --git a/compiler/testData/modules.xml/emptyModule.txt b/compiler/testData/modules.xml/emptyModule.txt
index b4f8d590376..cdc74a4ff43 100644
--- a/compiler/testData/modules.xml/emptyModule.txt
+++ b/compiler/testData/modules.xml/emptyModule.txt
@@ -1,4 +1,5 @@
 name
+	type=java-production
 	outputDir=out
 	sources=[]
 	classpath=[]
diff --git a/compiler/testData/modules.xml/emptyModule.xml b/compiler/testData/modules.xml/emptyModule.xml
index b51b8c22e89..228729b804a 100644
--- a/compiler/testData/modules.xml/emptyModule.xml
+++ b/compiler/testData/modules.xml/emptyModule.xml
@@ -1,3 +1,3 @@
 <modules>
-  <module name="name" outputDir="out"/>
+  <module name="name" outputDir="out" type="java-production"/>
 </modules>
\ No newline at end of file
diff --git a/compiler/testData/modules.xml/manyTimes.txt b/compiler/testData/modules.xml/manyTimes.txt
index 1ef4faf3440..93fd7b2f9bc 100644
--- a/compiler/testData/modules.xml/manyTimes.txt
+++ b/compiler/testData/modules.xml/manyTimes.txt
@@ -1,4 +1,5 @@
 name
+	type=java-production
 	outputDir=out
 	sources=[foo, foo1, foo2]
 	classpath=[bar, bar1, bar2]
diff --git a/compiler/testData/modules.xml/manyTimes.xml b/compiler/testData/modules.xml/manyTimes.xml
index 833c18fb775..755f1a5e887 100644
--- a/compiler/testData/modules.xml/manyTimes.xml
+++ b/compiler/testData/modules.xml/manyTimes.xml
@@ -1,5 +1,5 @@
 <modules>
-  <module name="name" outputDir="out">
+  <module name="name" outputDir="out" type="java-production">
     <sources path="foo"/>
     <sources path="foo1"/>
     <sources path="foo2"/>
diff --git a/compiler/testData/modules.xml/onlySources.txt b/compiler/testData/modules.xml/onlySources.txt
index f1d54734816..0e97c200e3d 100644
--- a/compiler/testData/modules.xml/onlySources.txt
+++ b/compiler/testData/modules.xml/onlySources.txt
@@ -1,4 +1,5 @@
 name
+	type=java-production
 	outputDir=out
 	sources=[foo]
 	classpath=[]
diff --git a/compiler/testData/modules.xml/onlySources.xml b/compiler/testData/modules.xml/onlySources.xml
index 4ebe1df47c8..cb78de7c412 100644
--- a/compiler/testData/modules.xml/onlySources.xml
+++ b/compiler/testData/modules.xml/onlySources.xml
@@ -1,5 +1,5 @@
 <modules>
-  <module name="name" outputDir="out">
+  <module name="name" outputDir="out" type="java-production">
     <sources path="foo"/>
   </module>
 </modules>
\ No newline at end of file
diff --git a/compiler/testData/modules.xml/twoModules.txt b/compiler/testData/modules.xml/twoModules.txt
index 0fa9e2cfff3..1716852b35e 100644
--- a/compiler/testData/modules.xml/twoModules.txt
+++ b/compiler/testData/modules.xml/twoModules.txt
@@ -1,9 +1,11 @@
 name
+	type=java-production
 	outputDir=out
 	sources=[foo, foo1, foo2]
 	classpath=[bar, bar1, bar2]
 	annotations=[baz, baz1, baz2]
 name2
+	type=java-production
 	outputDir=out2
 	sources=[2foo, 2foo1, 2foo2]
 	classpath=[2bar, 2bar1, 2bar2]
diff --git a/compiler/testData/modules.xml/twoModules.xml b/compiler/testData/modules.xml/twoModules.xml
index 9b23938c5f4..8edb5979c00 100644
--- a/compiler/testData/modules.xml/twoModules.xml
+++ b/compiler/testData/modules.xml/twoModules.xml
@@ -1,5 +1,5 @@
 <modules>
-  <module name="name" outputDir="out">
+  <module name="name" outputDir="out" type="java-production">
     <sources path="foo"/>
     <sources path="foo1"/>
     <sources path="foo2"/>
@@ -10,7 +10,7 @@
     <externalAnnotations path="baz1"/>
     <externalAnnotations path="baz2"/>
   </module>
-  <module name="name2" outputDir="out2">
+  <module name="name2" outputDir="out2" type="java-production">
     <sources path="2foo"/>
     <sources path="2foo1"/>
     <sources path="2foo2"/>
diff --git a/compiler/testData/modules.xml/typeTestModule.txt b/compiler/testData/modules.xml/typeTestModule.txt
new file mode 100644
index 00000000000..c3b7dab328a
--- /dev/null
+++ b/compiler/testData/modules.xml/typeTestModule.txt
@@ -0,0 +1,6 @@
+name
+	type=java-test
+	outputDir=out
+	sources=[]
+	classpath=[]
+	annotations=[]
diff --git a/compiler/testData/modules.xml/typeTestModule.xml b/compiler/testData/modules.xml/typeTestModule.xml
new file mode 100644
index 00000000000..f0c3ccc1573
--- /dev/null
+++ b/compiler/testData/modules.xml/typeTestModule.xml
@@ -0,0 +1,3 @@
+<modules>
+    <module name="name" outputDir="out" type="java-test"/>
+</modules>
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/kotlin/modules/xml/ModuleXmlParserTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/modules/xml/ModuleXmlParserTestGenerated.java
index ba502c2b80d..0771fc21f2f 100644
--- a/compiler/tests/org/jetbrains/kotlin/modules/xml/ModuleXmlParserTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/modules/xml/ModuleXmlParserTestGenerated.java
@@ -76,4 +76,10 @@ public class ModuleXmlParserTestGenerated extends AbstractModuleXmlParserTest {
         String fileName = JetTestUtils.navigationMetadata("compiler/testData/modules.xml/twoModules.xml");
         doTest(fileName);
     }
+
+    @TestMetadata("typeTestModule.xml")
+    public void testTypeTestModule() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("compiler/testData/modules.xml/typeTestModule.xml");
+        doTest(fileName);
+    }
 }
diff --git a/idea/testData/modules.xml/basic.xml b/idea/testData/modules.xml/basic.xml
index 3db3a06e253..792ec9e6da1 100644
--- a/idea/testData/modules.xml/basic.xml
+++ b/idea/testData/modules.xml/basic.xml
@@ -1,6 +1,6 @@
 <modules>
     <!-- Module script for production -->
-    <module name="name" outputDir="output">
+    <module name="name" type="java-production" outputDir="output">
         <sources path="s1"/>
         <sources path="s2"/>
         <!-- Java source roots -->
diff --git a/idea/testData/modules.xml/filtered.xml b/idea/testData/modules.xml/filtered.xml
index 30ba6ca4746..cd565dc28dc 100644
--- a/idea/testData/modules.xml/filtered.xml
+++ b/idea/testData/modules.xml/filtered.xml
@@ -1,6 +1,6 @@
 <modules>
     <!-- Module script for production -->
-    <module name="name" outputDir="output">
+    <module name="name" type="java-production" outputDir="output">
         <sources path="s1"/>
         <sources path="s2"/>
         <!-- Java source roots -->
diff --git a/idea/testData/modules.xml/multiple.xml b/idea/testData/modules.xml/multiple.xml
index f2097e8b7fb..3a1c0e4bc4d 100644
--- a/idea/testData/modules.xml/multiple.xml
+++ b/idea/testData/modules.xml/multiple.xml
@@ -1,6 +1,6 @@
 <modules>
     <!-- Module script for production -->
-    <module name="name" outputDir="output">
+    <module name="name" type="java-production" outputDir="output">
         <sources path="s1"/>
         <sources path="s2"/>
         <!-- Java source roots -->
@@ -12,7 +12,7 @@
         <externalAnnotations path="a2"/>
     </module>
     <!-- Module script for tests -->
-    <module name="name2" outputDir="output2">
+    <module name="name2" type="java-test" outputDir="output2">
         <sources path="s12"/>
         <sources path="s22"/>
         <!-- Java source roots -->
diff --git a/jps-plugin/test/org/jetbrains/kotlin/jps/build/KotlinJpsBuildTest.kt b/jps-plugin/test/org/jetbrains/kotlin/jps/build/KotlinJpsBuildTest.kt
index af284a9b271..6a6a749a614 100644
--- a/jps-plugin/test/org/jetbrains/kotlin/jps/build/KotlinJpsBuildTest.kt
+++ b/jps-plugin/test/org/jetbrains/kotlin/jps/build/KotlinJpsBuildTest.kt
@@ -31,7 +31,6 @@ import org.jetbrains.jps.builders.BuildResult
 import org.jetbrains.jps.builders.CompileScopeTestBuilder
 import org.jetbrains.jps.builders.JpsBuildTestCase
 import org.jetbrains.jps.builders.TestProjectBuilderLogger
-import org.jetbrains.jps.builders.impl.BuildDataPathsImpl
 import org.jetbrains.jps.builders.logging.BuildLoggingManager
 import org.jetbrains.jps.incremental.BuilderRegistry
 import org.jetbrains.jps.incremental.IncProjectBuilder
@@ -52,10 +51,7 @@ import org.jetbrains.org.objectweb.asm.MethodVisitor
 import org.jetbrains.org.objectweb.asm.Opcodes
 import org.junit.Assert
 import java.io.*
-import java.util.Arrays
-import java.util.Collections
-import java.util.HashSet
-import java.util.TreeSet
+import java.util.*
 import java.util.regex.Pattern
 import java.util.zip.ZipOutputStream
 import kotlin.test.*
@@ -539,15 +535,6 @@ public class KotlinJpsBuildTest : AbstractKotlinJpsBuildTestCase() {
         makeAll().assertSuccessful()
     }
 
-    public fun testDoNotCreateUselessKotlinIncrementalCaches() {
-        initProject()
-        makeAll().assertSuccessful()
-
-        val storageRoot = BuildDataPathsImpl(myDataStorageRoot).getDataStorageRoot()
-        assertTrue(File(storageRoot, "targets/java-test/kotlinProject/kotlin").exists())
-        assertFalse(File(storageRoot, "targets/java-production/kotlinProject/kotlin").exists())
-    }
-
     public fun testCancelLongKotlinCompilation() {
         generateLongKotlinFile("Foo.kt", "foo", "Foo")
         initProject()