diff --git a/ant/build.gradle.kts b/ant/build.gradle.kts
index f507c495a40..924cd0611c6 100644
--- a/ant/build.gradle.kts
+++ b/ant/build.gradle.kts
@@ -11,7 +11,7 @@ dependencies {
 
 sourceSets {
     "main" { projectDefault() }
-    "test" { none() }
+    "test" {}
 }
 
 runtimeJar {
diff --git a/buildSrc/src/main/kotlin/sourceSets.kt b/buildSrc/src/main/kotlin/sourceSets.kt
index cfebd3cd3f6..c902494b365 100644
--- a/buildSrc/src/main/kotlin/sourceSets.kt
+++ b/buildSrc/src/main/kotlin/sourceSets.kt
@@ -1,83 +1,11 @@
 @file:Suppress("unused") // usages in build scripts are not tracked properly
 
 import org.gradle.api.*
-import org.gradle.api.file.SourceDirectorySet
-import org.gradle.api.internal.HasConvention
 import org.gradle.api.plugins.JavaPluginConvention
 import org.gradle.api.tasks.*
 import org.gradle.kotlin.dsl.*
-import java.io.File
 //import org.jetbrains.kotlin.gradle.plugin.KotlinSourceSet
 
-private fun Project.configureKotlinProjectSourceSet(srcs: Iterable<File>,
-                                                    sourceSetName: String,
-                                                    getSources: SourceSet.() -> SourceDirectorySet,
-                                                    configureSourceDirs: SourceDirectorySet.() -> Unit) =
-        configure<JavaPluginConvention> {
-            //            if (srcs.none()) {
-//                sourceSets.removeIf { it.name == sourceSetName }
-//            }
-//            else {
-            sourceSets.matching { it.name == sourceSetName }.forEach { it.getSources().setSrcDirs(srcs).configureSourceDirs() }
-//            }
-        }
-
-private fun Project.configureKotlinProjectSourceSet(vararg srcs: String, sourceSetName: String,
-                                                    getSources: SourceSet.() -> SourceDirectorySet,
-                                                    sourcesBaseDir: File? = null,
-                                                    configureSourceDirs: SourceDirectorySet.() -> Unit = {}) =
-        configureKotlinProjectSourceSet(srcs.map { File(sourcesBaseDir ?: projectDir, it) }, sourceSetName, getSources, configureSourceDirs)
-
-fun Project.configureKotlinProjectSources(vararg srcs: String,
-                                          sourcesBaseDir: File? = null,
-                                          configureSourceDirs: SourceDirectorySet.() -> Unit = {}) =
-        configureKotlinProjectSourceSet(*srcs, sourceSetName = "main", getSources = { this.java },
-                sourcesBaseDir = sourcesBaseDir, configureSourceDirs = configureSourceDirs)
-
-fun Project.configureKotlinProjectSources(srcs: Iterable<File>,
-                                          configureSourceDirs: SourceDirectorySet.() -> Unit = {}) =
-        configureKotlinProjectSourceSet(srcs, sourceSetName = "main", getSources = { this.java }, configureSourceDirs = configureSourceDirs)
-
-fun Project.configureKotlinProjectSourcesDefault(sourcesBaseDir: File? = null,
-                                                 configureSourceDirs: SourceDirectorySet.() -> Unit = {}) =
-        configureKotlinProjectSources("src", sourcesBaseDir = sourcesBaseDir, configureSourceDirs = configureSourceDirs)
-
-fun Project.configureKotlinProjectResources(vararg srcs: String,
-                                            sourcesBaseDir: File? = null,
-                                            configureSourceDirs: SourceDirectorySet.() -> Unit = {}) =
-        configureKotlinProjectSourceSet(*srcs, sourceSetName = "main", getSources = { this.resources },
-                sourcesBaseDir = sourcesBaseDir, configureSourceDirs = configureSourceDirs)
-
-fun Project.configureKotlinProjectResources(srcs: Iterable<File>,
-                                            configureSourceDirs: SourceDirectorySet.() -> Unit = {}) =
-        configureKotlinProjectSourceSet(srcs, sourceSetName = "main", getSources = { this.resources }, configureSourceDirs = configureSourceDirs)
-
-fun Project.configureKotlinProjectResourcesDefault(sourcesBaseDir: File? = null) {
-    configureKotlinProjectResources("resources", sourcesBaseDir = sourcesBaseDir)
-    configureKotlinProjectResources("src", sourcesBaseDir = sourcesBaseDir) { include("META-INF/**", "**/*.properties") }
-}
-
-fun Project.configureKotlinProjectNoTests() {
-    configureKotlinProjectSourceSet(sourceSetName = "test", getSources = { this.java })
-    configureKotlinProjectSourceSet(sourceSetName = "test", getSources = { this.resources })
-}
-
-fun Project.configureKotlinProjectTests(vararg srcs: String, sourcesBaseDir: File? = null,
-                                        configureSourceDirs: SourceDirectorySet.() -> Unit = {}) =
-        configureKotlinProjectSourceSet(*srcs, sourceSetName = "test", getSources = { this.java },
-                sourcesBaseDir = sourcesBaseDir, configureSourceDirs = configureSourceDirs)
-
-fun Project.configureKotlinProjectTestsDefault(sourcesBaseDir: File? = null,
-                                               configureSourceDirs: SourceDirectorySet.() -> Unit = {}) =
-        configureKotlinProjectTests("test", "tests", sourcesBaseDir = sourcesBaseDir, configureSourceDirs = configureSourceDirs)
-
-fun Project.configureKotlinProjectTestResources(vararg srcs: String,
-                                                sourcesBaseDir: File? = null,
-                                                configureSourceDirs: SourceDirectorySet.() -> Unit = {}) =
-        configureKotlinProjectSourceSet(*srcs, sourceSetName = "test", getSources = { this.resources },
-                sourcesBaseDir = sourcesBaseDir, configureSourceDirs = configureSourceDirs)
-
-
 inline fun Project.sourceSets(crossinline body: SourceSetsBuilder.() -> Unit) =
         SourceSetsBuilder(this).body()
 
@@ -88,6 +16,7 @@ class SourceSetsBuilder(val project: Project) {
         project.configure<JavaPluginConvention>
         {
             sourceSets.matching { it.name == sourceSetName }.forEach {
+                none()
                 it.body()
             }
         }
@@ -95,15 +24,15 @@ class SourceSetsBuilder(val project: Project) {
 }
 
 fun SourceSet.none() {
-    java.srcDirs()
-    resources.srcDirs()
+    java.setSrcDirs(emptyList<String>())
+    resources.setSrcDirs(emptyList<String>())
 }
 
 fun SourceSet.projectDefault() {
     when (name) {
         "main" -> {
             java.srcDirs("src")
-            resources.srcDir("resources")
+            resources.srcDir("resources").apply { include("**") }
             resources.srcDir("src").apply { include("META-INF/**", "**/*.properties") }
         }
         "test" -> {
@@ -112,7 +41,7 @@ fun SourceSet.projectDefault() {
     }
 }
 
-// TODO: adding dep to the plugin breaks the build unexpectedly, resolve and uncomment
+// TODO: adding KotlinSourceSet dep to the plugin breaks the build unexpectedly, resolve and uncomment
 //val SourceSet.kotlin: SourceDirectorySet
 //    get() =
 //        (this as HasConvention)
diff --git a/compiler.tests-common/build.gradle.kts b/compiler.tests-common/build.gradle.kts
index 8d60501098a..03dda408b8d 100644
--- a/compiler.tests-common/build.gradle.kts
+++ b/compiler.tests-common/build.gradle.kts
@@ -4,7 +4,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":core"))
     compile(project(":core::util.runtime"))
     compile(project(":compiler:util"))
@@ -30,6 +29,7 @@ dependencies {
     compile(preloadedDeps("dx", subdir = "android-5.0/lib"))
 }
 
-configureKotlinProjectSources("tests-common", sourcesBaseDir = File(rootDir, "compiler"))
-configureKotlinProjectNoTests()
-
+sourceSets {
+    "main" { java.srcDir("../compiler/tests-common") }
+    "test" {}
+}
diff --git a/compiler/android-tests/build.gradle.kts b/compiler/android-tests/build.gradle.kts
index 20aed613fcc..e05db0e4bb1 100644
--- a/compiler/android-tests/build.gradle.kts
+++ b/compiler/android-tests/build.gradle.kts
@@ -1,15 +1,7 @@
 
-apply {
-    plugin("kotlin")
-}
+apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
-    val compileOnly by configurations
-    val testCompile by configurations
-    val testCompileOnly by configurations
-    val testRuntime by configurations
-
     compile(project(":compiler:util"))
     compile(project(":compiler:cli"))
     compile(project(":compiler.tests-common"))
@@ -28,13 +20,11 @@ dependencies {
     testCompile(ideaSdkDeps("jps-builders"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectTestsDefault()
-
-
-tasks.withType<Test> {
-    workingDir = rootDir
-    systemProperty("idea.is.unit.test", "true")
-    systemProperty("NO_FS_ROOTS_ACCESS_CHECK", "true")
-    ignoreFailures = true
+sourceSets {
+    "main" { java.srcDirs() }
+    "test" { projectDefault() }
+}
+
+projectTest {
+    workingDir = rootDir
 }
diff --git a/compiler/backend-common/build.gradle.kts b/compiler/backend-common/build.gradle.kts
index 1edde2c3a5e..24f1ce52f76 100644
--- a/compiler/backend-common/build.gradle.kts
+++ b/compiler/backend-common/build.gradle.kts
@@ -2,7 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":core"))
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
@@ -10,6 +9,10 @@ dependencies {
     compile(project(":compiler:cli-common"))
 }
 
-configureKotlinProjectSources("backend-common/src", "ir/backend.common/src", sourcesBaseDir = File(rootDir, "compiler"))
-configureKotlinProjectNoTests()
-
+sourceSets {
+    "main" {
+        projectDefault()
+        java.srcDir("../ir/backend.common/src")
+    }
+    "test" {}
+}
diff --git a/compiler/backend/build.gradle.kts b/compiler/backend/build.gradle.kts
index a70f01f307b..0c940823ec3 100644
--- a/compiler/backend/build.gradle.kts
+++ b/compiler/backend/build.gradle.kts
@@ -2,7 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:backend-common"))
     compile(project(":compiler:frontend"))
@@ -12,7 +11,11 @@ dependencies {
     compile(project(":compiler:serialization"))
 }
 
-configureKotlinProjectSources("backend/src", "ir/backend.jvm/src", sourcesBaseDir = File(rootDir, "compiler"))
-configureKotlinProjectResourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" {
+        projectDefault()
+        java.srcDir("../ir/backend.jvm/src")
+    }
+    "test" {}
+}
 
diff --git a/compiler/build.gradle.kts b/compiler/build.gradle.kts
index f9102ecdbe5..a00688c1a6f 100644
--- a/compiler/build.gradle.kts
+++ b/compiler/build.gradle.kts
@@ -39,28 +39,25 @@ dependencies {
     buildVersion()
 }
 
-configureKotlinProjectSources(
-        "compiler/daemon/src",
-        "compiler/conditional-preprocessor/src",
-        sourcesBaseDir = rootDir)
-configureKotlinProjectResources("idea/src", sourcesBaseDir = rootDir) {
-    include("META-INF/extensions/common.xml",
-            "META-INF/extensions/kotlin2jvm.xml",
-            "META-INF/extensions/kotlin2js.xml")
+sourceSets {
+    "main" {
+        java.srcDirs("daemon/src",
+                     "conditional-preprocessor/src")
+        resources.srcDir("../idea/src").apply {
+            include("META-INF/extensions/common.xml",
+                    "META-INF/extensions/kotlin2jvm.xml",
+                    "META-INF/extensions/kotlin2js.xml")
+        }
+    }
+    "test" { projectDefault() }
 }
-configureKotlinProjectTests("tests")
 
 testsJar {}
 
-tasks.withType<Test> {
+projectTest {
     dependsOnTaskIfExistsRec("dist", project = rootProject)
     dependsOn(":prepare:mock-runtime-for-test:dist")
     workingDir = rootDir
-    systemProperty("idea.is.unit.test", "true")
-    environment("NO_FS_ROOTS_ACCESS_CHECK", "true")
     systemProperty("kotlin.test.script.classpath", the<JavaPluginConvention>().sourceSets.getByName("test").output.classesDirs.joinToString(File.pathSeparator))
-    jvmArgs("-ea", "-XX:+HeapDumpOnOutOfMemoryError", "-Xmx1200m", "-XX:+UseCodeCacheFlushing", "-XX:ReservedCodeCacheSize=128m", "-Djna.nosys=true")
-    maxHeapSize = "1200m"
-    ignoreFailures = true
 }
 
diff --git a/compiler/cli/build.gradle.kts b/compiler/cli/build.gradle.kts
index 56f3a1c28ae..1929bce4ae0 100644
--- a/compiler/cli/build.gradle.kts
+++ b/compiler/cli/build.gradle.kts
@@ -2,7 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:cli-common"))
     compile(project(":compiler:frontend"))
@@ -22,11 +21,12 @@ dependencies {
     compile(files("${System.getProperty("java.home")}/../lib/tools.jar"))
 }
 
-configureKotlinProjectSources("compiler/cli/src",
-                              "plugins/annotation-collector/src",
-                              "compiler/builtins-serializer/src",
-                              "compiler/javac-wrapper/src",
-                              sourcesBaseDir = rootDir)
-configureKotlinProjectResourcesDefault()
-configureKotlinProjectNoTests()
-
+sourceSets {
+    "main" {
+        projectDefault()
+        java.srcDirs("../../plugins/annotation-collector/src",
+                     "../builtins-serializer/src",
+                     "../javac-wrapper/src")
+    }
+    "test" {}
+}
diff --git a/compiler/cli/cli-common/build.gradle.kts b/compiler/cli/cli-common/build.gradle.kts
index 93aea51b28b..e96ff4abb0d 100644
--- a/compiler/cli/cli-common/build.gradle.kts
+++ b/compiler/cli/cli-common/build.gradle.kts
@@ -2,7 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":core:util.runtime"))
     compile(project(":compiler:frontend"))
     compile(project(":compiler:frontend.java"))
@@ -10,6 +9,8 @@ dependencies {
     compile(ideaSdkCoreDeps(*(rootProject.extra["ideaCoreSdkJars"] as Array<String>)))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/compiler/cli/cli-runner/build.gradle.kts b/compiler/cli/cli-runner/build.gradle.kts
index 7e20a41b541..1250f666491 100644
--- a/compiler/cli/cli-runner/build.gradle.kts
+++ b/compiler/cli/cli-runner/build.gradle.kts
@@ -11,7 +11,7 @@ dependencies {
 
 sourceSets {
     "main" { projectDefault() }
-    "test" { none() }
+    "test" {}
 }
 
 runtimeJar {
diff --git a/compiler/compiler-runner/build.gradle.kts b/compiler/compiler-runner/build.gradle.kts
index 0b497f056e8..9e16a6c41c2 100644
--- a/compiler/compiler-runner/build.gradle.kts
+++ b/compiler/compiler-runner/build.gradle.kts
@@ -2,7 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":kotlin-build-common"))
     compile(project(":compiler:cli-common"))
     compile(project(":kotlin-preloader"))
@@ -12,6 +11,8 @@ dependencies {
     compile(project(":compiler:util"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/compiler/container/build.gradle.kts b/compiler/container/build.gradle.kts
index d51cb79e6e2..4567ede8ddf 100644
--- a/compiler/container/build.gradle.kts
+++ b/compiler/container/build.gradle.kts
@@ -2,11 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
-    val compileOnly by configurations
-    val testCompile by configurations
-    val testCompileOnly by configurations
-    val testRuntime by configurations
     compile(project(":core:util.runtime"))
     compile(commonDep("javax.inject"))
     compile(ideaSdkCoreDeps("intellij-core"))
@@ -15,17 +10,15 @@ dependencies {
     testRuntime(ideaSdkCoreDeps("trove4j", "intellij-core"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectTestsDefault()
+sourceSets {
+    "main" { projectDefault() }
+    "test" { projectDefault() }
+}
 
 testsJar {}
 
-
-tasks.withType<Test> {
+projectTest {
     dependsOnTaskIfExistsRec("dist", project = rootProject)
     dependsOn(":prepare:mock-runtime-for-test:dist")
     workingDir = rootDir
-    systemProperty("idea.is.unit.test", "true")
-    environment("NO_FS_ROOTS_ACCESS_CHECK", "true")
-    ignoreFailures = true
 }
diff --git a/compiler/daemon/daemon-client/build.gradle.kts b/compiler/daemon/daemon-client/build.gradle.kts
index 33a63565f31..66000b5758a 100644
--- a/compiler/daemon/daemon-client/build.gradle.kts
+++ b/compiler/daemon/daemon-client/build.gradle.kts
@@ -14,7 +14,7 @@ dependencies {
 
 sourceSets {
     "main" { projectDefault() }
-    "test" { none() }
+    "test" {}
 }
 
 runtimeJar {
diff --git a/compiler/daemon/daemon-common/build.gradle.kts b/compiler/daemon/daemon-common/build.gradle.kts
index 9caba671fa5..81b0ed078a4 100644
--- a/compiler/daemon/daemon-common/build.gradle.kts
+++ b/compiler/daemon/daemon-common/build.gradle.kts
@@ -2,13 +2,14 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":core"))
     compile(project(":compiler:util"))
     compile(project(":compiler:cli-common"))
     compile(ideaSdkCoreDeps(*(rootProject.extra["ideaCoreSdkJars"] as Array<String>)))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/compiler/frontend.java/build.gradle.kts b/compiler/frontend.java/build.gradle.kts
index 5d67f217602..58e1cab1380 100644
--- a/compiler/frontend.java/build.gradle.kts
+++ b/compiler/frontend.java/build.gradle.kts
@@ -2,13 +2,13 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":core"))
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectResourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/compiler/frontend.script/build.gradle.kts b/compiler/frontend.script/build.gradle.kts
index 770adfbd62c..c64c03ed333 100644
--- a/compiler/frontend.script/build.gradle.kts
+++ b/compiler/frontend.script/build.gradle.kts
@@ -2,13 +2,14 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
     compile(project(":kotlin-reflect"))
     compile(preloadedDeps("kotlinx-coroutines-core"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/compiler/frontend/build.gradle.kts b/compiler/frontend/build.gradle.kts
index 6b6fc774eb5..22379e4a61e 100644
--- a/compiler/frontend/build.gradle.kts
+++ b/compiler/frontend/build.gradle.kts
@@ -2,7 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":core"))
     compile(project(":compiler:util"))
     compile(project(":compiler:container"))
@@ -11,6 +10,8 @@ dependencies {
     compile(commonDep("io.javaslang","javaslang"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/compiler/incremental-compilation-impl/build.gradle.kts b/compiler/incremental-compilation-impl/build.gradle.kts
index a530996996d..96c4c35692b 100644
--- a/compiler/incremental-compilation-impl/build.gradle.kts
+++ b/compiler/incremental-compilation-impl/build.gradle.kts
@@ -2,7 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":core"))
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
@@ -14,7 +13,9 @@ dependencies {
     testCompile(projectTests(":kotlin-build-common"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectTestsDefault()
+sourceSets {
+    "main" { projectDefault() }
+    "test" { projectDefault() }
+}
 
 testsJar()
diff --git a/compiler/ir/ir.ir2cfg/build.gradle.kts b/compiler/ir/ir.ir2cfg/build.gradle.kts
index 887febe6941..80387dbfd4c 100644
--- a/compiler/ir/ir.ir2cfg/build.gradle.kts
+++ b/compiler/ir/ir.ir2cfg/build.gradle.kts
@@ -2,12 +2,13 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
     compile(project(":compiler:ir.tree"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/compiler/ir/ir.psi2ir/build.gradle.kts b/compiler/ir/ir.psi2ir/build.gradle.kts
index d5c58caf700..abf4f19f006 100644
--- a/compiler/ir/ir.psi2ir/build.gradle.kts
+++ b/compiler/ir/ir.psi2ir/build.gradle.kts
@@ -2,13 +2,14 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
     compile(project(":compiler:backend-common"))
     compile(project(":compiler:ir.tree"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/compiler/ir/ir.tree/build.gradle.kts b/compiler/ir/ir.tree/build.gradle.kts
index 4666fa98542..633b86d484d 100644
--- a/compiler/ir/ir.tree/build.gradle.kts
+++ b/compiler/ir/ir.tree/build.gradle.kts
@@ -2,11 +2,12 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/compiler/light-classes/build.gradle.kts b/compiler/light-classes/build.gradle.kts
index 471f583b48b..a62b78ae9ed 100644
--- a/compiler/light-classes/build.gradle.kts
+++ b/compiler/light-classes/build.gradle.kts
@@ -2,13 +2,14 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:backend"))
     compile(project(":compiler:frontend"))
     compile(project(":compiler:frontend.java"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/compiler/plugin-api/build.gradle.kts b/compiler/plugin-api/build.gradle.kts
index 32c07abdc4e..07bb3aa08e4 100644
--- a/compiler/plugin-api/build.gradle.kts
+++ b/compiler/plugin-api/build.gradle.kts
@@ -2,12 +2,13 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(ideaSdkCoreDeps("intellij-core"))
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/compiler/preloader/build.gradle.kts b/compiler/preloader/build.gradle.kts
index 89256b2d732..5fb17afa3d3 100644
--- a/compiler/preloader/build.gradle.kts
+++ b/compiler/preloader/build.gradle.kts
@@ -15,7 +15,7 @@ sourceSets {
             srcDirs( "src", "instrumentation/src")
         }
     }
-    "test" { none() }
+    "test" {}
 }
 
 runtimeJar {
diff --git a/compiler/resolution/build.gradle.kts b/compiler/resolution/build.gradle.kts
index 571b3ba4008..fd01c671c0d 100644
--- a/compiler/resolution/build.gradle.kts
+++ b/compiler/resolution/build.gradle.kts
@@ -2,11 +2,12 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":core"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/compiler/serialization/build.gradle.kts b/compiler/serialization/build.gradle.kts
index 571b3ba4008..fd01c671c0d 100644
--- a/compiler/serialization/build.gradle.kts
+++ b/compiler/serialization/build.gradle.kts
@@ -2,11 +2,12 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":core"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/compiler/tests-java8/build.gradle.kts b/compiler/tests-java8/build.gradle.kts
index 3ad8e98a97d..68cd0ee39a0 100644
--- a/compiler/tests-java8/build.gradle.kts
+++ b/compiler/tests-java8/build.gradle.kts
@@ -3,11 +3,6 @@ import org.jetbrains.kotlin.gradle.tasks.KotlinCompile
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
-    val compileOnly by configurations
-    val testCompile by configurations
-    val testCompileOnly by configurations
-    val testRuntime by configurations
     testCompile(commonDep("junit:junit"))
     testCompile(project(":kotlin-test:kotlin-test-jvm"))
     testCompile(project(":kotlin-test:kotlin-test-junit"))
@@ -31,8 +26,10 @@ dependencies {
     testRuntime(ideaSdkDeps("*.jar"))
 }
 
-configureKotlinProjectSources()
-configureKotlinProjectTestsDefault()
+sourceSets {
+    "main" {}
+    "test" { projectDefault() }
+}
 
 tasks.withType<KotlinCompile> {
     kotlinOptions.jdkHome = rootProject.extra["JDK_18"]!!.toString()
@@ -41,16 +38,11 @@ tasks.withType<KotlinCompile> {
 
 testsJar {}
 
-tasks.withType<Test> {
+projectTest {
     executable = "${rootProject.extra["JDK_18"]!!}/bin/java"
     dependsOnTaskIfExistsRec("dist", project = rootProject)
     dependsOn(":prepare:mock-runtime-for-test:dist")
     workingDir = rootDir
-    systemProperty("idea.is.unit.test", "true")
-    environment("NO_FS_ROOTS_ACCESS_CHECK", "true")
     systemProperty("kotlin.test.script.classpath", the<JavaPluginConvention>().sourceSets.getByName("test").output.classesDirs.joinToString(File.pathSeparator))
-    jvmArgs("-ea", "-XX:+HeapDumpOnOutOfMemoryError", "-Xmx1200m", "-XX:+UseCodeCacheFlushing", "-XX:ReservedCodeCacheSize=128m", "-Djna.nosys=true")
-    maxHeapSize = "1200m"
-    ignoreFailures = true
 }
 
diff --git a/compiler/util/build.gradle.kts b/compiler/util/build.gradle.kts
index 6e7593e0e8d..f3efb33bdb6 100644
--- a/compiler/util/build.gradle.kts
+++ b/compiler/util/build.gradle.kts
@@ -2,13 +2,16 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":core"))
     compile(ideaSdkCoreDeps(*(rootProject.extra["ideaCoreSdkJars"] as Array<String>)))
     compile(ideaSdkDeps("jps-model.jar", subdir = "jps"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectResources("resources", sourcesBaseDir = rootDir)
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" {
+        projectDefault()
+        resources.srcDir(File(rootDir, "resources")).apply { include("**") }
+    }
+    "test" {}
+}
 
diff --git a/core/build.gradle.kts b/core/build.gradle.kts
index b5987215094..1c9811c2ffa 100644
--- a/core/build.gradle.kts
+++ b/core/build.gradle.kts
@@ -12,14 +12,16 @@ dependencies {
     compile(commonDep("javax.inject"))
 }
 
-configureKotlinProjectSources(
-        "descriptor.loader.java/src",
-        "descriptors/src",
-        "descriptors.runtime/src",
-        "deserialization/src")
-configureKotlinProjectResources(
-        "descriptor.loader.java/src", "deserialization/src") { include("META-INF/**") }
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" {
+        java.srcDirs("descriptor.loader.java/src",
+                     "descriptors/src",
+                     "descriptors.runtime/src",
+                     "deserialization/src")
+        resources.srcDirs("descriptor.loader.java/src", "deserialization/src").apply { include("META-INF/**") }
+    }
+    "test" {}
+}
 
 tasks.withType<JavaCompile> {
     dependsOn(protobufLiteTask)
diff --git a/core/builtins/build.gradle.kts b/core/builtins/build.gradle.kts
index a671b631a3d..e86de579b82 100644
--- a/core/builtins/build.gradle.kts
+++ b/core/builtins/build.gradle.kts
@@ -20,9 +20,14 @@ dependencies {
     compile(files(builtinsSerialized))
 }
 
-configureKotlinProjectSources("core/builtins/src", "core/runtime.jvm/src", sourcesBaseDir = rootDir)
-configureKotlinProjectResources(listOf(builtinsSerialized))
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" {
+        projectDefault()
+        java.srcDir("../runtime.jvm/src")
+        resources.srcDir(builtinsSerialized).apply { include("**") }
+    }
+    "test" {}
+}
 
 val serialize = task("serialize") {
     val outDir = builtinsSerialized
diff --git a/core/reflection.jvm/build.gradle.kts b/core/reflection.jvm/build.gradle.kts
index 2af9d7a3d1c..77ba0a23255 100644
--- a/core/reflection.jvm/build.gradle.kts
+++ b/core/reflection.jvm/build.gradle.kts
@@ -1,7 +1,6 @@
 
 import org.gradle.api.tasks.compile.JavaCompile
 import org.jetbrains.kotlin.gradle.tasks.KotlinCompile
-import java.io.File
 
 buildscript {
     repositories {
@@ -20,16 +19,6 @@ apply {
     plugin("com.github.johnrengelman.shadow")
 }
 
-configure<JavaPluginConvention> {
-    sourceSets.getByName("main")?.apply {
-        val srcs = listOf(File(rootDir, "core/reflection.jvm/src"))
-        java.setSrcDirs(srcs)
-    }
-    sourceSets.getByName("test").apply {
-        java.setSrcDirs(emptyList<File>())
-    }
-}
-
 dependencies {
     val compile by configurations
     compile(project(":core:builtins"))
@@ -37,6 +26,11 @@ dependencies {
     compile(protobufLite())
 }
 
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
+
 tasks.withType<JavaCompile> {
     dependsOn(protobufLiteTask)
 }
@@ -44,5 +38,3 @@ tasks.withType<JavaCompile> {
 tasks.withType<KotlinCompile> {
     dependsOn(protobufLiteTask)
 }
-
-
diff --git a/core/script.runtime/build.gradle.kts b/core/script.runtime/build.gradle.kts
index 29911d38fcf..6819454f8c3 100644
--- a/core/script.runtime/build.gradle.kts
+++ b/core/script.runtime/build.gradle.kts
@@ -10,8 +10,10 @@ dependencies {
     buildVersion()
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
 tasks.withType<Jar> {
     setupRuntimeJar("Kotlin Script Runtime")
diff --git a/core/util.runtime/build.gradle.kts b/core/util.runtime/build.gradle.kts
index 50bc2b44d20..4f81d77fa9c 100644
--- a/core/util.runtime/build.gradle.kts
+++ b/core/util.runtime/build.gradle.kts
@@ -5,11 +5,12 @@ apply {
 }
 
 dependencies {
-    val compile by configurations
     compile(project(":core:builtins"))
     compile(project(":kotlin-stdlib"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/eval4j/build.gradle.kts b/eval4j/build.gradle.kts
index 99e10e4fbd1..8aa0569e7c4 100644
--- a/eval4j/build.gradle.kts
+++ b/eval4j/build.gradle.kts
@@ -1,8 +1,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
-    val testCompile by configurations
     compile(project(":kotlin-stdlib"))
     compile(project(":kotlin-reflect"))
     compile(project(":compiler:backend"))
@@ -13,15 +11,12 @@ dependencies {
     buildVersion()
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectTestsDefault()
-
-tasks.withType<Test> {
-    dependsOnTaskIfExistsRec("dist", project = rootProject)
-    jvmArgs("-ea", "-XX:+HeapDumpOnOutOfMemoryError", "-Xmx1200m", "-XX:+UseCodeCacheFlushing", "-XX:ReservedCodeCacheSize=128m", "-Djna.nosys=true")
-    maxHeapSize = "1200m"
-    workingDir = rootDir
-    systemProperty("idea.is.unit.test", "true")
-    environment("NO_FS_ROOTS_ACCESS_CHECK", "true")
-    ignoreFailures = true
+sourceSets {
+    "main" { projectDefault() }
+    "test" { projectDefault() }
+}
+
+projectTest {
+    dependsOnTaskIfExistsRec("dist", project = rootProject)
+    workingDir = rootDir
 }
diff --git a/generators/build.gradle.kts b/generators/build.gradle.kts
index b7ff8ad51a9..664428c9ee8 100644
--- a/generators/build.gradle.kts
+++ b/generators/build.gradle.kts
@@ -1,14 +1,7 @@
 
-apply {
-    plugin("kotlin")
-}
+apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
-    val compileOnly by configurations
-    val testCompile by configurations
-    val testCompileOnly by configurations
-    val testRuntime by configurations
     compile(project(":core"))
     compile(project(":idea"))
     compile(project(":j2k"))
@@ -59,13 +52,11 @@ dependencies {
     testRuntime(ideaPluginDeps("*.jar", plugin = "android"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectTestsDefault()
-
-
-tasks.withType<Test> {
-    workingDir = rootDir
-    systemProperty("idea.is.unit.test", "true")
-    systemProperty("NO_FS_ROOTS_ACCESS_CHECK", "true")
-    ignoreFailures = true
+sourceSets {
+    "main" { projectDefault() }
+    "test" { projectDefault() }
+}
+
+projectTest {
+    workingDir = rootDir
 }
diff --git a/gradle/project-schema.json b/gradle/project-schema.json
index 7a521ca1fa7..113b2f66611 100644
--- a/gradle/project-schema.json
+++ b/gradle/project-schema.json
@@ -258,7 +258,6 @@
         "configurations": [
             "apiElements",
             "archives",
-            "build-version",
             "compile",
             "compileClasspath",
             "compileOnly",
@@ -295,7 +294,6 @@
         "configurations": [
             "apiElements",
             "archives",
-            "build-version",
             "compile",
             "compileClasspath",
             "compileOnly",
@@ -1941,7 +1939,8 @@
             "testImplementation",
             "testRuntime",
             "testRuntimeClasspath",
-            "testRuntimeOnly"
+            "testRuntimeOnly",
+            "tests-jar"
         ],
         "extensions": {
             "ext": "org.gradle.api.plugins.ExtraPropertiesExtension",
@@ -2679,7 +2678,6 @@
         "configurations": [
             "apiElements",
             "archives",
-            "build-version",
             "compile",
             "compileClasspath",
             "compileOnly",
@@ -2715,7 +2713,6 @@
         "configurations": [
             "apiElements",
             "archives",
-            "build-version",
             "compile",
             "compileClasspath",
             "compileOnly",
@@ -3569,7 +3566,6 @@
         "configurations": [
             "apiElements",
             "archives",
-            "build-version",
             "compile",
             "compileClasspath",
             "compileOnly",
diff --git a/idea/build.gradle.kts b/idea/build.gradle.kts
index 059d93a1593..97ce3110329 100644
--- a/idea/build.gradle.kts
+++ b/idea/build.gradle.kts
@@ -2,14 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
-    val compileOnly by configurations
-    val testCompile by configurations
-    val testCompileOnly by configurations
-    val testRuntime by configurations
-
-    testRuntime(ideaSdkDeps("*.jar"))
-
     compile(project(":kotlin-stdlib"))
     compile(project(":core"))
     compile(project(":compiler:backend"))
@@ -64,6 +56,8 @@ dependencies {
 
     testCompileOnly(ideaSdkDeps("groovy-all", "velocity", "gson", "jsr305"))
 
+    testRuntime(ideaSdkDeps("*.jar"))
+
     testRuntime(ideaPluginDeps("resources_en", plugin = "junit"))
     testRuntime(ideaPluginDeps("jcommander", "resources_en", plugin = "testng"))
     testRuntime(ideaPluginDeps("resources_en", plugin = "properties"))
@@ -90,41 +84,27 @@ dependencies {
     (rootProject.extra["compilerModules"] as Array<String>).forEach {
         testCompile(project(it))
     }
-
-    buildVersion()
 }
 
-configureKotlinProjectSources("src",
-                              "idea-maven/src",
-                              "idea-gradle/src",
-                              "idea-completion/src",
-                              "idea-live-templates/src",
-                              "idea-repl/src")
-configure<JavaPluginConvention> {
-    sourceSets["main"].apply {
-        resources {
-            srcDir(File(projectDir, "resources"))
-                    .include("**")
-            srcDir(File(projectDir, "src"))
-                    .include("META-INF/**",
-                             "**/*.properties")
-        }
+sourceSets {
+    "main" {
+        projectDefault()
+        java.srcDirs("idea-maven/src",
+                     "idea-gradle/src",
+                     "idea-completion/src",
+                     "idea-live-templates/src",
+                     "idea-repl/src")
+    }
+    "test" {
+        java.srcDirs("tests",
+                     "idea-maven/test",
+                     "idea-completion/tests")
     }
 }
-configureKotlinProjectTests("tests",
-                            "idea-maven/test",
-                            "idea-completion/tests")
 
-tasks.withType<Test> {
+projectTest {
     dependsOnTaskIfExistsRec("dist", project = rootProject)
-    jvmArgs("-ea", "-XX:+HeapDumpOnOutOfMemoryError", "-Xmx1200m", "-XX:+UseCodeCacheFlushing", "-XX:ReservedCodeCacheSize=128m", "-Djna.nosys=true")
-    maxHeapSize = "1200m"
     workingDir = rootDir
-    systemProperty("idea.is.unit.test", "true")
-    environment("NO_FS_ROOTS_ACCESS_CHECK", "true")
-    ignoreFailures = true
 }
 
 testsJar {}
-
-
diff --git a/idea/formatter/build.gradle.kts b/idea/formatter/build.gradle.kts
index 5f2e976dfda..00b1ab499a2 100644
--- a/idea/formatter/build.gradle.kts
+++ b/idea/formatter/build.gradle.kts
@@ -2,12 +2,13 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
     compile(ideaSdkDeps("openapi"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/idea/ide-common/build.gradle.kts b/idea/ide-common/build.gradle.kts
index 016fb56eb2f..baebf7fb4e1 100644
--- a/idea/ide-common/build.gradle.kts
+++ b/idea/ide-common/build.gradle.kts
@@ -2,7 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
     compile(project(":compiler:frontend.java"))
@@ -11,6 +10,8 @@ dependencies {
     compile(ideaSdkCoreDeps("annotations", "guava", "intellij-core"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/idea/idea-android/build.gradle.kts b/idea/idea-android/build.gradle.kts
index c9697a371f5..a740046465c 100644
--- a/idea/idea-android/build.gradle.kts
+++ b/idea/idea-android/build.gradle.kts
@@ -1,12 +1,7 @@
+
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
-    val compileOnly by configurations
-    val testCompile by configurations
-    val testCompileOnly by configurations
-    val testRuntime by configurations
-
     compile(project(":kotlin-reflect"))
     compile(project(":compiler:util"))
     compile(project(":compiler:light-classes"))
@@ -47,14 +42,13 @@ dependencies {
     testRuntime(ideaPluginDeps("*.jar", plugin = "android"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectTestsDefault()
+sourceSets {
+    "main" { projectDefault() }
+    "test" { projectDefault() }
+}
 
-tasks.withType<Test> {
+projectTest {
     workingDir = rootDir
-    systemProperty("idea.is.unit.test", "true")
-    environment("NO_FS_ROOTS_ACCESS_CHECK", "true")
-    ignoreFailures = true
 }
 
 testsJar {}
diff --git a/idea/idea-android/idea-android-output-parser/build.gradle.kts b/idea/idea-android/idea-android-output-parser/build.gradle.kts
index 27686d42a87..1fade40a837 100644
--- a/idea/idea-android/idea-android-output-parser/build.gradle.kts
+++ b/idea/idea-android/idea-android-output-parser/build.gradle.kts
@@ -2,13 +2,14 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(ideaSdkCoreDeps("intellij-core"))
     compile(ideaPluginDeps("gradle-tooling-api", plugin = "gradle"))
     compile(ideaPluginDeps("android", "android-common", "sdk-common", plugin = "android"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/idea/idea-core/build.gradle.kts b/idea/idea-core/build.gradle.kts
index 5d6dd3c352b..8ee0d7ee4f3 100644
--- a/idea/idea-core/build.gradle.kts
+++ b/idea/idea-core/build.gradle.kts
@@ -1,7 +1,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":kotlin-stdlib"))
     compile(project(":core"))
     compile(project(":compiler:frontend"))
@@ -17,13 +16,13 @@ dependencies {
     compile(ideaSdkDeps("openapi", "idea"))
     compile(ideaPluginDeps("gradle-tooling-api", "gradle", plugin = "gradle"))
     compile(preloadedDeps("kotlinx-coroutines-core", "kotlinx-coroutines-jdk8"))
-    buildVersion()
 }
 
-configureKotlinProjectSources("idea-core/src", "idea-analysis/src", sourcesBaseDir = File(rootDir, "idea"))
-configureKotlinProjectResources("idea-analysis/src", sourcesBaseDir = File(rootDir, "idea")) {
-    include("**/*.properties")
+sourceSets {
+    "main" {
+        projectDefault()
+        java.srcDir("../idea-analysis/src")
+        resources.srcDir("../idea-analysis/src").apply { include("**/*.properties") }
+    }
+    "test" {}
 }
-configureKotlinProjectNoTests()
-
-
diff --git a/idea/idea-jps-common/build.gradle.kts b/idea/idea-jps-common/build.gradle.kts
index 49962609981..ab1719ae365 100644
--- a/idea/idea-jps-common/build.gradle.kts
+++ b/idea/idea-jps-common/build.gradle.kts
@@ -2,15 +2,15 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":kotlin-stdlib"))
     compile(project(":compiler:util"))
     compile(project(":compiler:cli-common"))
     compile(project(":compiler:frontend.java"))
     compile(ideaSdkCoreDeps("intellij-core", "util"))
-    buildVersion()
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/idea/idea-test-framework/build.gradle.kts b/idea/idea-test-framework/build.gradle.kts
index 59b702542e7..62efc257f95 100644
--- a/idea/idea-test-framework/build.gradle.kts
+++ b/idea/idea-test-framework/build.gradle.kts
@@ -2,7 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:frontend"))
     compile(project(":compiler:frontend.script"))
     compile(project(":compiler.tests-common"))
@@ -12,7 +11,9 @@ dependencies {
     compile(ideaSdkDeps("openapi", "idea"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
 
diff --git a/idea/kotlin-gradle-tooling/build.gradle.kts b/idea/kotlin-gradle-tooling/build.gradle.kts
index c3e4cb5b374..d8d6c556a3e 100644
--- a/idea/kotlin-gradle-tooling/build.gradle.kts
+++ b/idea/kotlin-gradle-tooling/build.gradle.kts
@@ -16,9 +16,10 @@ dependencies {
     buildVersion()
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
-
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
 val jar: Jar by tasks
 
diff --git a/j2k/build.gradle.kts b/j2k/build.gradle.kts
index b2da11ece79..1f1262b08bd 100644
--- a/j2k/build.gradle.kts
+++ b/j2k/build.gradle.kts
@@ -6,9 +6,6 @@ apply { plugin("kotlin") }
 //}
 
 dependencies {
-    val compile by configurations
-    val testCompile by configurations
-    val testRuntime by configurations
     compile(project(":kotlin-stdlib"))
     compile(project(":compiler:frontend"))
     compile(project(":compiler:frontend.java"))
@@ -42,20 +39,16 @@ dependencies {
 //    testRuntime(ideaPluginDeps("*.jar", plugin = "java-i18n"))
 //    testRuntime(ideaPluginDeps("*.jar", plugin = "coverage"))
 //    testRuntime(ideaPluginDeps("*.jar", plugin = "java-decompiler"))
-    buildVersion()
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectTestsDefault()
+sourceSets {
+    "main" { projectDefault() }
+    "test" { projectDefault() }
+}
 
-tasks.withType<Test> {
+projectTest {
     dependsOnTaskIfExistsRec("dist", project = rootProject)
-    jvmArgs("-ea", "-XX:+HeapDumpOnOutOfMemoryError", "-Xmx1200m", "-XX:+UseCodeCacheFlushing", "-XX:ReservedCodeCacheSize=128m", "-Djna.nosys=true")
-    maxHeapSize = "1200m"
     workingDir = rootDir
-    systemProperty("idea.is.unit.test", "true")
-    environment("NO_FS_ROOTS_ACCESS_CHECK", "true")
-    ignoreFailures = true
 }
 
 testsJar()
diff --git a/js/js.ast/build.gradle.kts b/js/js.ast/build.gradle.kts
index a3522d73f87..04512bd5676 100644
--- a/js/js.ast/build.gradle.kts
+++ b/js/js.ast/build.gradle.kts
@@ -2,12 +2,13 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
     compile(ideaSdkCoreDeps("trove4j", "intellij-core"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/js/js.dce/build.gradle.kts b/js/js.dce/build.gradle.kts
index 93685ead052..ebdd7fb247e 100644
--- a/js/js.dce/build.gradle.kts
+++ b/js/js.dce/build.gradle.kts
@@ -2,13 +2,14 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":js:js.ast"))
     compile(project(":js:js.translator"))
     compile(ideaSdkCoreDeps("intellij-core"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/js/js.frontend/build.gradle.kts b/js/js.frontend/build.gradle.kts
index 82aa0639612..1b0bb713edd 100644
--- a/js/js.frontend/build.gradle.kts
+++ b/js/js.frontend/build.gradle.kts
@@ -2,7 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
     compile(project(":js:js.ast"))
@@ -11,6 +10,8 @@ dependencies {
     compile(ideaSdkCoreDeps("intellij-core"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/js/js.parser/build.gradle.kts b/js/js.parser/build.gradle.kts
index ae05bf64513..1cc9cdcaebd 100644
--- a/js/js.parser/build.gradle.kts
+++ b/js/js.parser/build.gradle.kts
@@ -2,13 +2,14 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":js:js.ast"))
     compile(ideaSdkCoreDeps("intellij-core"))
     compile(preloadedDeps("json-org"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/js/js.serializer/build.gradle.kts b/js/js.serializer/build.gradle.kts
index 638065acd2f..9549297f921 100644
--- a/js/js.serializer/build.gradle.kts
+++ b/js/js.serializer/build.gradle.kts
@@ -2,7 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
     compile(project(":compiler:serialization"))
@@ -10,6 +9,8 @@ dependencies {
     compile(ideaSdkCoreDeps("intellij-core"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/js/js.tests/build.gradle.kts b/js/js.tests/build.gradle.kts
index 6c72320a49d..70d19c15453 100644
--- a/js/js.tests/build.gradle.kts
+++ b/js/js.tests/build.gradle.kts
@@ -2,10 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val testCompile by configurations
-    val testCompileOnly by configurations
-    val testRuntime by configurations
-
     testCompile(project(":compiler.tests-common"))
     testCompile(project(":compiler:frontend"))
     testCompile(project(":compiler:cli"))
@@ -19,8 +15,10 @@ dependencies {
     testRuntime(ideaSdkDeps("*.jar"))
 }
 
-configureKotlinProjectSources()
-configureKotlinProjectTestsDefault()
+sourceSets {
+    "main" {}
+    "test" { projectDefault() }
+}
 
 val test: Test by tasks
 test.apply {
diff --git a/js/js.translator/build.gradle.kts b/js/js.translator/build.gradle.kts
index 52adfe122e7..747c9c2b55a 100644
--- a/js/js.translator/build.gradle.kts
+++ b/js/js.translator/build.gradle.kts
@@ -2,7 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":core"))
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
@@ -13,6 +12,10 @@ dependencies {
     compile(ideaSdkCoreDeps("intellij-core"))
 }
 
-configureKotlinProjectSources("js.translator/src", "js.inliner/src", sourcesBaseDir = File(rootDir, "js"))
-configureKotlinProjectNoTests()
-
+sourceSets {
+    "main" {
+        projectDefault()
+        java.srcDir("../js.inliner/src")
+    }
+    "test" {}
+}
diff --git a/libraries/examples/annotation-processor-example/build.gradle.kts b/libraries/examples/annotation-processor-example/build.gradle.kts
index 3a9e1f290f0..0c7ce281bb4 100644
--- a/libraries/examples/annotation-processor-example/build.gradle.kts
+++ b/libraries/examples/annotation-processor-example/build.gradle.kts
@@ -3,10 +3,10 @@ description = "Simple Annotation Processor for testing kapt"
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":kotlin-stdlib"))
 }
 
-configureKotlinProjectSources("src/kotlin")
-configureKotlinProjectResources("src/resources")
-configureKotlinProjectNoTests()
+sourceSets {
+    "test" {}
+}
+
diff --git a/libraries/tools/kotlin-annotation-processing/build.gradle.kts b/libraries/tools/kotlin-annotation-processing/build.gradle.kts
index 51db341ffe1..d9752a09763 100644
--- a/libraries/tools/kotlin-annotation-processing/build.gradle.kts
+++ b/libraries/tools/kotlin-annotation-processing/build.gradle.kts
@@ -1,44 +1,7 @@
-/*
- * Copyright 2010-2017 JetBrains s.r.o.
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- * http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
- */
-
-/*
- * Copyright 2010-2017 JetBrains s.r.o.
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- * http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
- */
-
 
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
-    val compileOnly by configurations
-    val testCompile by configurations
-    val testCompileOnly by configurations
-    val testRuntime by configurations
     compile(project(":plugins:kapt3"))
     compileOnly("org.jetbrains.kotlin:gradle-api:1.6")
     compileOnly("com.android.tools.build:gradle:1.1.0")
@@ -46,13 +9,12 @@ dependencies {
     testCompile(commonDep("junit:junit"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectTestsDefault()
-
-tasks.withType<Test> {
-    workingDir = projectDir
-    systemProperty("idea.is.unit.test", "true")
-    environment("NO_FS_ROOTS_ACCESS_CHECK", "true")
-    ignoreFailures = true
+sourceSets {
+    "main" { projectDefault() }
+    "test" { projectDefault() }
+}
+
+projectTest {
+    workingDir = projectDir
 }
 
diff --git a/libraries/tools/kotlin-script-util/build.gradle.kts b/libraries/tools/kotlin-script-util/build.gradle.kts
index db2d33ffd60..f18e8045996 100644
--- a/libraries/tools/kotlin-script-util/build.gradle.kts
+++ b/libraries/tools/kotlin-script-util/build.gradle.kts
@@ -18,13 +18,7 @@ dependencies {
     testRuntime("org.apache.maven:maven-core:3.0.3")
 }
 
-tasks.withType<Test> {
-    jvmArgs("-ea", "-XX:+HeapDumpOnOutOfMemoryError", "-Xmx1200m", "-XX:+UseCodeCacheFlushing", "-XX:ReservedCodeCacheSize=128m", "-Djna.nosys=true")
-    maxHeapSize = "1200m"
-    systemProperty("idea.is.unit.test", "true")
-    environment("NO_FS_ROOTS_ACCESS_CHECK", "true")
-    ignoreFailures = true
-}
+projectTest()
 
 runtimeJar()
 sourcesJar()
diff --git a/plugins/allopen/allopen-cli/build.gradle.kts b/plugins/allopen/allopen-cli/build.gradle.kts
index b8c0d1468a7..d86d8d86f4d 100644
--- a/plugins/allopen/allopen-cli/build.gradle.kts
+++ b/plugins/allopen/allopen-cli/build.gradle.kts
@@ -15,7 +15,7 @@ dependencies {
 
 sourceSets {
     "main" { projectDefault() }
-    "test" { none() }
+    "test" {}
 }
 
 val jar = runtimeJar {
diff --git a/plugins/allopen/allopen-ide/build.gradle.kts b/plugins/allopen/allopen-ide/build.gradle.kts
index 8feea1447f8..23677c7d130 100644
--- a/plugins/allopen/allopen-ide/build.gradle.kts
+++ b/plugins/allopen/allopen-ide/build.gradle.kts
@@ -17,8 +17,10 @@ dependencies {
 }
 
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
 
 val jar: Jar by tasks
diff --git a/plugins/android-extensions/android-extensions-compiler/build.gradle.kts b/plugins/android-extensions/android-extensions-compiler/build.gradle.kts
index 03bbffc04b6..b476f8a201a 100644
--- a/plugins/android-extensions/android-extensions-compiler/build.gradle.kts
+++ b/plugins/android-extensions/android-extensions-compiler/build.gradle.kts
@@ -4,7 +4,6 @@ description = "Kotlin Android Extensions Compiler"
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(ideaSdkCoreDeps("intellij-core"))
     compile(project(":compiler:util"))
     compile(project(":compiler:plugin-api"))
@@ -14,16 +13,12 @@ dependencies {
     compile(ideaPluginDeps("layoutlib", plugin = "android"))
 }
 
-configureKotlinProjectSources("android-extensions-compiler/src", "android-extensions-runtime/src", sourcesBaseDir = File(rootDir, "plugins", "android-extensions"))
-configureKotlinProjectResourcesDefault(sourcesBaseDir = File(rootDir, "plugins", "android-extensions", "android-extensions-compiler", "src"))
-configureKotlinProjectNoTests()
-
 sourceSets {
     "main" {
         projectDefault()
         java.srcDir("../android-extensions-runtime/src")
     }
-    "test" { none() }
+    "test" {}
 }
 
 runtimeJar ()
diff --git a/plugins/android-extensions/android-extensions-idea/build.gradle.kts b/plugins/android-extensions/android-extensions-idea/build.gradle.kts
index 3166080cc70..b2de849fe55 100644
--- a/plugins/android-extensions/android-extensions-idea/build.gradle.kts
+++ b/plugins/android-extensions/android-extensions-idea/build.gradle.kts
@@ -43,17 +43,15 @@ dependencies {
     testRuntime(ideaPluginDeps("*.jar", plugin = "android"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectTestsDefault()
+sourceSets {
+    "main" { projectDefault() }
+    "test" { projectDefault() }
+}
 
 testsJar {}
 
-
-tasks.withType<Test> {
+projectTest {
     workingDir = rootDir
-    systemProperty("idea.is.unit.test", "true")
-    environment("NO_FS_ROOTS_ACCESS_CHECK", "true")
-    ignoreFailures = true
 }
 
 val jar: Jar by tasks
diff --git a/plugins/android-extensions/android-extensions-jps/build.gradle.kts b/plugins/android-extensions/android-extensions-jps/build.gradle.kts
index 45acaa2554e..a12d61cc430 100644
--- a/plugins/android-extensions/android-extensions-jps/build.gradle.kts
+++ b/plugins/android-extensions/android-extensions-jps/build.gradle.kts
@@ -2,13 +2,14 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:util"))
     compile(project(":jps-plugin"))
     compile(project(":android-extensions-compiler"))
     compile(ideaPluginDeps("android-jps-plugin", plugin = "android", subdir = "lib/jps"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/plugins/annotation-based-compiler-plugins-ide-support/build.gradle.kts b/plugins/annotation-based-compiler-plugins-ide-support/build.gradle.kts
index 9c359a4661d..450c1de7c5f 100644
--- a/plugins/annotation-based-compiler-plugins-ide-support/build.gradle.kts
+++ b/plugins/annotation-based-compiler-plugins-ide-support/build.gradle.kts
@@ -2,11 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
-    val compileOnly by configurations
-    val testCompile by configurations
-    val testCompileOnly by configurations
-    val testRuntime by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:frontend"))
     compile(project(":compiler:cli-common"))
@@ -17,6 +12,8 @@ dependencies {
     compileOnly(ideaSdkDeps("openapi", "idea"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/plugins/kapt3/build.gradle.kts b/plugins/kapt3/build.gradle.kts
index 9e7d96ebe49..2342fee2429 100644
--- a/plugins/kapt3/build.gradle.kts
+++ b/plugins/kapt3/build.gradle.kts
@@ -2,11 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
-    val compileOnly by configurations
-    val testCompile by configurations
-    val testCompileOnly by configurations
-    val testRuntime by configurations
     compile(project(":compiler:util"))
     compile(project(":compiler:cli"))
     compile(project(":compiler:backend"))
@@ -17,15 +12,14 @@ dependencies {
     testCompile(commonDep("junit:junit"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectTestsDefault()
+sourceSets {
+    "main" { projectDefault() }
+    "test" { projectDefault() }
+}
 
 testsJar {}
 
-tasks.withType<Test> {
+projectTest {
     workingDir = rootDir
-    systemProperty("idea.is.unit.test", "true")
-    environment("NO_FS_ROOTS_ACCESS_CHECK", "true")
-    ignoreFailures = true
 }
 
diff --git a/plugins/lint/build.gradle.kts b/plugins/lint/build.gradle.kts
index 5e1298b9b01..9b8c6aa965e 100644
--- a/plugins/lint/build.gradle.kts
+++ b/plugins/lint/build.gradle.kts
@@ -5,7 +5,6 @@ apply {
 }
 
 dependencies {
-    val compile by configurations
     compile(project(":compiler:frontend"))
     compile(project(":idea"))
     compile(project(":idea:idea-core"))
@@ -16,9 +15,13 @@ dependencies {
     compile(ideaSdkDeps("guava"))
 }
 
-configureKotlinProjectSources("android-annotations/src",
-                              "lint-api/src",
-                              "lint-checks/src",
-                              "lint-idea/src")
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" {
+        java.srcDirs("android-annotations/src",
+                     "lint-api/src",
+                     "lint-checks/src",
+                     "lint-idea/src")
+    }
+    "test" {}
+}
 
diff --git a/plugins/noarg/noarg-cli/build.gradle.kts b/plugins/noarg/noarg-cli/build.gradle.kts
index ffcdbc4bf8e..aed5d1df32a 100644
--- a/plugins/noarg/noarg-cli/build.gradle.kts
+++ b/plugins/noarg/noarg-cli/build.gradle.kts
@@ -4,8 +4,6 @@ description = "Kotlin NoArg Compiler Plugin"
 apply { plugin("kotlin") }
 
 dependencies {
-    val compileOnly by configurations
-    val runtime by configurations
     compileOnly(project(":compiler:frontend"))
     compileOnly(project(":compiler:frontend.java"))
     compileOnly(project(":compiler:backend"))
@@ -15,8 +13,10 @@ dependencies {
     runtime(project(":kotlin-stdlib"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
 val jar = runtimeJar {
     from(fileTree("$projectDir/src")) { include("META-INF/**") }
diff --git a/plugins/noarg/noarg-ide/build.gradle.kts b/plugins/noarg/noarg-ide/build.gradle.kts
index 9c0ad526cd7..341ee5a2f73 100644
--- a/plugins/noarg/noarg-ide/build.gradle.kts
+++ b/plugins/noarg/noarg-ide/build.gradle.kts
@@ -20,9 +20,10 @@ dependencies {
 }
 
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
-
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
 val jar: Jar by tasks
 
diff --git a/plugins/plugins-tests/build.gradle.kts b/plugins/plugins-tests/build.gradle.kts
index 10fe33a30df..a93463e216a 100644
--- a/plugins/plugins-tests/build.gradle.kts
+++ b/plugins/plugins-tests/build.gradle.kts
@@ -2,11 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
-    val compileOnly by configurations
-    val testCompile by configurations
-    val testCompileOnly by configurations
-    val testRuntime by configurations
     testCompile(project(":compiler:util"))
     testCompile(project(":compiler:backend"))
     testCompile(project(":compiler:cli"))
@@ -35,8 +30,10 @@ dependencies {
     testRuntime(ideaPluginDeps("*.jar", plugin = "android"))
 }
 
-configureKotlinProjectSources()
-configureKotlinProjectTestsDefault()
+sourceSets {
+    "main" {}
+    "test" { projectDefault() }
+}
 
 testsJar {}
 
diff --git a/plugins/sam-with-receiver/sam-with-receiver-cli/build.gradle.kts b/plugins/sam-with-receiver/sam-with-receiver-cli/build.gradle.kts
index aa115c04016..c8f1180d7c7 100644
--- a/plugins/sam-with-receiver/sam-with-receiver-cli/build.gradle.kts
+++ b/plugins/sam-with-receiver/sam-with-receiver-cli/build.gradle.kts
@@ -15,7 +15,7 @@ dependencies {
 
 sourceSets {
     "main" { projectDefault() }
-    "test" { none() }
+    "test" {}
 }
 
 val jar = runtimeJar {
diff --git a/plugins/sam-with-receiver/sam-with-receiver-ide/build.gradle.kts b/plugins/sam-with-receiver/sam-with-receiver-ide/build.gradle.kts
index cc0194521e2..a2eb034c6fb 100644
--- a/plugins/sam-with-receiver/sam-with-receiver-ide/build.gradle.kts
+++ b/plugins/sam-with-receiver/sam-with-receiver-ide/build.gradle.kts
@@ -14,8 +14,10 @@ dependencies {
     compile(project(":idea"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
 
 val jar: Jar by tasks
diff --git a/plugins/uast-kotlin-idea/build.gradle.kts b/plugins/uast-kotlin-idea/build.gradle.kts
index 0d7575775e8..67d6dfe63a5 100644
--- a/plugins/uast-kotlin-idea/build.gradle.kts
+++ b/plugins/uast-kotlin-idea/build.gradle.kts
@@ -2,7 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
     compile(project(":kotlin-stdlib"))
     compile(project(":core:util.runtime"))
     compile(project(":compiler:backend"))
@@ -12,6 +11,8 @@ dependencies {
     buildVersion()
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" { projectDefault() }
+    "test" {}
+}
 
diff --git a/plugins/uast-kotlin/build.gradle.kts b/plugins/uast-kotlin/build.gradle.kts
index 51657198558..97e478a232d 100644
--- a/plugins/uast-kotlin/build.gradle.kts
+++ b/plugins/uast-kotlin/build.gradle.kts
@@ -2,11 +2,6 @@
 apply { plugin("kotlin") }
 
 dependencies {
-    val compile by configurations
-    val compileOnly by configurations
-    val testCompile by configurations
-    val testCompileOnly by configurations
-    val testRuntime by configurations
     compile(project(":kotlin-stdlib"))
     compile(project(":core:util.runtime"))
     compile(project(":compiler:backend"))
@@ -14,7 +9,6 @@ dependencies {
     compile(project(":compiler:frontend.java"))
     compile(project(":compiler:light-classes"))
     compileOnly(ideaSdkDeps("openapi", "idea"))
-    buildVersion()
     testCompile(project(":kotlin-test:kotlin-test-jvm"))
     testCompile(project(":compiler.tests-common"))
     testCompile(commonDep("junit:junit"))
@@ -25,15 +19,13 @@ dependencies {
     testRuntime(ideaSdkDeps("*.jar"))
 }
 
-configureKotlinProjectSourcesDefault()
-configureKotlinProjectTestsDefault()
+sourceSets {
+    "main" { projectDefault() }
+    "test" { projectDefault() }
+}
 
 testsJar {}
 
-
-tasks.withType<Test> {
+projectTest {
     workingDir = rootDir
-    systemProperty("idea.is.unit.test", "true")
-    environment("NO_FS_ROOTS_ACCESS_CHECK", "true")
-    ignoreFailures = true
 }
diff --git a/prepare/android-lint/build.gradle.kts b/prepare/android-lint/build.gradle.kts
index f637e328cfe..732e7cfbd9b 100644
--- a/prepare/android-lint/build.gradle.kts
+++ b/prepare/android-lint/build.gradle.kts
@@ -21,8 +21,10 @@ tasks.withType<Jar> {
     }
 }
 
-configureKotlinProjectSources() // no sources
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" {}
+    "test" {}
+}
 
 val jar: Jar by tasks
 
diff --git a/prepare/compiler-client-embeddable/build.gradle.kts b/prepare/compiler-client-embeddable/build.gradle.kts
index 06e89e3e5b5..bcb8adf3ac0 100644
--- a/prepare/compiler-client-embeddable/build.gradle.kts
+++ b/prepare/compiler-client-embeddable/build.gradle.kts
@@ -43,19 +43,18 @@ dependencies {
     testScriptRuntimeJar(project(":kotlin-script-runtime", configuration = "mainJar"))
 }
 
-configureKotlinProjectSources() // no sources
-configureKotlinProjectTests("libraries/tools/kotlin-compiler-client-embeddable-test/src", sourcesBaseDir = rootDir)
+sourceSets {
+    "main" {}
+    "test" {
+        // TODO: move closer
+        java.srcDir("../../libraries/tools/kotlin-compiler-client-embeddable-test/src")
+    }
+}
 
-tasks.withType<Test> {
+projectTest {
     dependsOnTaskIfExistsRec("dist", project = rootProject)
     workingDir = File(rootDir, "libraries/tools/kotlin-compiler-client-embeddable-test/src")
-    systemProperty("idea.is.unit.test", "true")
-    environment("NO_FS_ROOTS_ACCESS_CHECK", "true")
     systemProperty("kotlin.test.script.classpath", the<JavaPluginConvention>().sourceSets.getByName("test").output.classesDirs.joinToString(File.pathSeparator))
-    jvmArgs("-ea", "-XX:+HeapDumpOnOutOfMemoryError", "-Xmx1200m", "-XX:+UseCodeCacheFlushing", "-XX:ReservedCodeCacheSize=128m", "-Djna.nosys=true")
-    maxHeapSize = "1200m"
-    ignoreFailures = true
-    systemProperty("idea.is.unit.test", "true")
     systemProperty("compilerJar", testRuntimeCompilerJar.singleFile.canonicalPath)
     systemProperty("stdlibJar", testStdlibJar.singleFile.canonicalPath)
     systemProperty("scriptRuntimeJar", testScriptRuntimeJar.singleFile.canonicalPath)
@@ -76,73 +75,3 @@ sourcesJar()
 javadocJar()
 
 publish()
-
-// TODO: remove after finalizing publishing (now due to the problems with sam-with-receiver, the code is not fully navigable in the buildSrc)
-//tasks {
-//    "uploadArchives"(Upload::class) {
-//
-//        val preparePublication by rootProject.tasks
-//        dependsOn(preparePublication)
-//
-//        val username: String? by preparePublication.extra
-//        val password: String? by preparePublication.extra
-//
-//        repositories {
-//            withConvention(MavenRepositoryHandlerConvention::class) {
-//
-//                mavenDeployer {
-//                    withGroovyBuilder {
-//                        "repository"("url" to uri(preparePublication.extra["repoUrl"]))
-//
-//                        if (username != null && password != null) {
-//                            "authentication"("userName" to username, "password" to password)
-//                        }
-//                    }
-//
-//                    pom.project {
-//                        withGroovyBuilder {
-//                            "licenses" {
-//                                "license" {
-//                                    "name"("The Apache Software License, Version 2.0")
-//                                    "url"("http://www.apache.org/licenses/LICENSE-2.0.txt")
-//                                    "distribution"("repo")
-//                                }
-//                            }
-//                            "name"("${project.group}:${project.name}")
-//                            "packaging"("jar")
-//                            // optionally artifactId can be defined here
-//                            "description"(project.description)
-//                            "url"("https://kotlinlang.org/")
-//                            "licenses" {
-//                                "license" {
-//                                    "name"("The Apache License, Version 2.0")
-//                                    "url"("http://www.apache.org/licenses/LICENSE-2.0.txt")
-//                                }
-//                            }
-//                            "scm" {
-//                                "url"("https://github.com/JetBrains/kotlin")
-//                                "connection"("scm:git:https://github.com/JetBrains/kotlin.git")
-//                                "developerConnection"("scm:git:https://github.com/JetBrains/kotlin.git")
-//                            }
-//                            "developers" {
-//                                "developer" {
-//                                    "name"("Kotlin Team")
-//                                    "organization"("JetBrains")
-//                                    "organizationUrl"("https://www.jetbrains.com")
-//                                }
-//                            }
-//                        }
-//                    }
-//                    pom.whenConfigured {
-//                        dependencies.clear()
-////                        dependencies.removeIf {
-////                            withGroovyBuilder {
-////                                "scope"(*emptyArray()) == "test"
-////                            }
-////                        }
-//                    }
-//                }
-//            }
-//        }
-//    }
-//}
diff --git a/prepare/formatter/build.gradle.kts b/prepare/formatter/build.gradle.kts
index 6e7c5e84fe1..709d08c9b80 100644
--- a/prepare/formatter/build.gradle.kts
+++ b/prepare/formatter/build.gradle.kts
@@ -15,6 +15,8 @@ tasks.withType<Jar> {
     from(fileTree("$rootDir/idea/formatter")) { include("src/**") } // Eclipse formatter sources navigation depends on this
 }
 
-configureKotlinProjectSources() // no sources
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" {}
+    "test" {}
+}
 
diff --git a/prepare/ide-lazy-resolver/build.gradle.kts b/prepare/ide-lazy-resolver/build.gradle.kts
index 9461ce74a05..d4dd3c397ef 100644
--- a/prepare/ide-lazy-resolver/build.gradle.kts
+++ b/prepare/ide-lazy-resolver/build.gradle.kts
@@ -15,6 +15,8 @@ tasks.withType<Jar> {
     from(fileTree("$rootDir/idea/ide-common")) { include("src/**") } // Eclipse formatter sources navigation depends on this
 }
 
-configureKotlinProjectSources() // no sources
-configureKotlinProjectNoTests()
+sourceSets {
+    "main" {}
+    "test" {}
+}
 
diff --git a/prepare/mock-runtime-for-test/build.gradle.kts b/prepare/mock-runtime-for-test/build.gradle.kts
index 632ae42efae..f9e7f81494b 100644
--- a/prepare/mock-runtime-for-test/build.gradle.kts
+++ b/prepare/mock-runtime-for-test/build.gradle.kts
@@ -18,22 +18,22 @@ jar.apply {
     archiveName = "kotlin-mock-runtime-for-test.jar"
 }
 
-configure<JavaPluginConvention> {
-   sourceSets["main"].apply {
-       (this as HasConvention).convention.getPlugin<KotlinSourceSet>().kotlin.apply {
-           srcDir(File(rootDir, "core", "runtime.jvm", "src"))
-                   .include("kotlin/TypeAliases.kt",
-                            "kotlin/text/TypeAliases.kt")
-           srcDir(File(rootDir, "libraries", "stdlib", "src"))
-                   .include("kotlin/collections/TypeAliases.kt",
-                            "kotlin/jvm/JvmVersion.kt",
-                            "kotlin/util/Standard.kt",
-                            "kotlin/internal/Annotations.kt")
-       }
-   }
+sourceSets {
+    "main" {
+        java.apply {
+            srcDir(File(rootDir, "core", "runtime.jvm", "src"))
+                    .include("kotlin/TypeAliases.kt",
+                             "kotlin/text/TypeAliases.kt")
+            srcDir(File(rootDir, "libraries", "stdlib", "src"))
+                    .include("kotlin/collections/TypeAliases.kt",
+                             "kotlin/jvm/JvmVersion.kt",
+                             "kotlin/util/Standard.kt",
+                             "kotlin/internal/Annotations.kt")
+        }
+    }
+    "test" {}
 }
 
-configureKotlinProjectNoTests()
 
 tasks.withType<JavaCompile> {
     sourceCompatibility = "1.6"