diff --git a/test/helper.rb b/test/helper.rb
index 288ff0e3b..8c228c5cf 100644
--- a/test/helper.rb
+++ b/test/helper.rb
@@ -31,6 +31,19 @@ class TaskManager
   def setup
     ARGV.clear
 
+    test_dir = File.basename File.dirname File.expand_path __FILE__
+
+    @rake_root = if test_dir == 'test' then
+                   # rake repository
+                   File.expand_path '../../', __FILE__
+                 else
+                   # ruby repository
+                   File.expand_path '../../../', __FILE__
+                 end
+
+    @rake_exec = File.join @rake_root, 'bin', 'rake'
+    @rake_lib  = File.join @rake_root, 'lib'
+
     @orig_PWD = Dir.pwd
     @orig_APPDATA      = ENV['APPDATA']
     @orig_HOME         = ENV['HOME']
diff --git a/test/test_rake_backtrace.rb b/test/test_rake_backtrace.rb
index 4d84becf9..98f1ee664 100644
--- a/test/test_rake_backtrace.rb
+++ b/test/test_rake_backtrace.rb
@@ -4,9 +4,9 @@
 class TestRakeBacktrace < Rake::TestCase
   # TODO: factor out similar code in test_rake_functional.rb
   def rake(*args)
-    lib = File.join(@orig_PWD, "lib")
-    bin_rake = File.join(@orig_PWD, "bin", "rake")
-    Open3.popen3(RUBY, "-I", lib, bin_rake, *args) { |_, _, err, _| err.read }
+    Open3.popen3(RUBY, "-I", @rake_lib, @rake_exec, *args) { |_, _, err, _|
+      err.read
+    }
   end
 
   def invoke(task_name)
diff --git a/test/test_rake_file_task.rb b/test/test_rake_file_task.rb
index a46851bd0..0ed32e565 100644
--- a/test/test_rake_file_task.rb
+++ b/test/test_rake_file_task.rb
@@ -116,7 +116,7 @@ def ztest_file_deletes_on_failure
   end
 
   def load_phony
-    load File.join(@orig_PWD, "lib/rake/phony.rb")
+    load File.join(@rake_lib, "rake/phony.rb")
   end
 
 end
diff --git a/test/test_rake_functional.rb b/test/test_rake_functional.rb
index 2b97927e4..050a9456f 100644
--- a/test/test_rake_functional.rb
+++ b/test/test_rake_functional.rb
@@ -5,9 +5,9 @@
 class TestRakeFunctional < Rake::TestCase
 
   def setup
-    @rake_path = File.expand_path("bin/rake")
-    lib_path = File.expand_path("lib")
-    @ruby_options = ["-I#{lib_path}", "-I."]
+    super
+
+    @ruby_options = ["-I#{@rake_lib}", "-I."]
     @verbose = ENV['VERBOSE']
 
     if @verbose
@@ -17,8 +17,6 @@ def setup
       puts @__name__
       puts '-' * 80
     end
-
-    super
   end
 
   def test_rake_default
@@ -466,7 +464,7 @@ def ruby(*option_list)
   # command line ruby options are included.  Output is captured in
   # @out and @err
   def rake(*rake_options)
-    run_ruby @ruby_options + [@rake_path] + rake_options
+    run_ruby @ruby_options + [@rake_exec] + rake_options
   end
 
   # Low level ruby command runner ...
diff --git a/test/test_rake_rake_test_loader.rb b/test/test_rake_rake_test_loader.rb
index 5b5e81d06..7b5337c23 100644
--- a/test/test_rake_rake_test_loader.rb
+++ b/test/test_rake_rake_test_loader.rb
@@ -10,7 +10,7 @@ def test_pattern
 
     ARGV.replace %w[foo.rb test_*.rb -v]
 
-    load File.join(@orig_PWD, 'lib/rake/rake_test_loader.rb')
+    load File.join(@rake_lib, 'rake/rake_test_loader.rb')
 
     assert_equal %w[-v], ARGV
   ensure
diff --git a/test/test_rake_reduce_compat.rb b/test/test_rake_reduce_compat.rb
index 12872614d..cf0b9a5e5 100644
--- a/test/test_rake_reduce_compat.rb
+++ b/test/test_rake_reduce_compat.rb
@@ -4,9 +4,9 @@
 class TestRakeReduceCompat < Rake::TestCase
   # TODO: factor out similar code in test_rake_functional.rb
   def rake(*args)
-    lib = File.join(@orig_PWD, "lib")
-    bin_rake = File.join(@orig_PWD, "bin", "rake")
-    Open3.popen3(RUBY, "-I", lib, bin_rake, *args) { |_, out, _, _| out.read }
+    Open3.popen3(RUBY, "-I", @rake_lib, @rake_exec, *args) { |_, out, _, _|
+      out.read
+    }
   end
   
   def invoke_normal(task_name)