diff --git a/tests/Makefile.am b/tests/Makefile.am
index f29b68a53..d26ef9df1 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -29,7 +29,7 @@ SUBDIRS = gpgscm openpgp cms migrations gpgme pkits $(tpm2dtests) .
 GPGSM = ../sm/gpgsm
 
 
-EXTRA_DIST = run-tests.scm \
+EXTRA_DIST = run-tests.scm gpgconf.ctl.in      \
              fake-pinentries/README.txt        \
              fake-pinentries/fake-pinentry.php \
              fake-pinentries/fake-pinentry.pl  \
@@ -44,3 +44,31 @@ noinst_PROGRAMS = asschk
 endif
 
 asschk_SOURCES = asschk.c
+
+TESTINST_DIRS = bin sbin libexec share etc
+
+clean-local: clean-local-testinst
+
+# We do a cd ../tests here so that we make sure tha the bin dir etc
+# are under our tests dir.  This is failsafe thingy in case this
+# Makefile rule is accidently run /.
+clean-local-testinst:
+	-(cd ../tests && rm -rf $(TESTINST_DIRS))
+
+# Before we can run any tests we need to make sure that we have a
+# proper test installation with this dir (tests) as root dir.  It is
+# too hard to track the built files here thus we do the install step
+# always.
+check-recursive: bin/gpgconf.ctl
+
+bin/gpgconf.ctl: FORCE
+	@echo '==== Installing into a test root ======'
+	@-mkdir bin 2>/dev/null
+	@cat $(srcdir)/gpgconf.ctl.in > bin/gpgconf.ctl.tmp
+	cd .. && \
+          $(MAKE) $(AM_MAKEFLAGS) install prefix=$(abs_top_builddir)/tests
+	@mv bin/gpgconf.ctl.tmp bin/gpgconf.ctl
+	@echo '==== Finished installing into a test root ======'
+
+
+.PHONY: FORCE clean-local-testinst
diff --git a/tests/cms/Makefile.am b/tests/cms/Makefile.am
index bc86acba2..2ad29351e 100644
--- a/tests/cms/Makefile.am
+++ b/tests/cms/Makefile.am
@@ -32,6 +32,7 @@ AM_CFLAGS =
 # if the shell used for inittests would uses an internal version of
 # pwd which handles symlinks differently.
 OLD_TESTS_ENVIRONMENT = GNUPGHOME=`/bin/pwd` GPG_AGENT_INFO= LC_ALL=C \
+                        GNUPG_BUILD_ROOT="$(abs_top_builddir)/tests" \
 	                GPGSM="$(GPGSM)" "$(srcdir)/runtest"
 
 TESTS_ENVIRONMENT = LC_ALL=C \
@@ -39,6 +40,7 @@ TESTS_ENVIRONMENT = LC_ALL=C \
 	PATH="../gpgscm:$(PATH)" \
 	abs_top_srcdir="$(abs_top_srcdir)" \
 	objdir="$(abs_top_builddir)" \
+        GNUPG_BUILD_ROOT="$(abs_top_builddir)/tests" \
 	GPGSCM_PATH="$(abs_top_srcdir)/tests/gpgscm"
 
 XTESTS = \
diff --git a/tests/gpgconf.ctl.in b/tests/gpgconf.ctl.in
new file mode 100644
index 000000000..9bde62484
--- /dev/null
+++ b/tests/gpgconf.ctl.in
@@ -0,0 +1,15 @@
+# gpgconf.ctl.in - copied to bin during tests.
+#
+# This file is used to change the directories where the gpg components
+# are installed.  It does not change the configuration directories.
+# The file is expected in the same directory as gpgconf.  The physical
+# installation directories are evaluated and no symlinks.  Blank lines
+# and lines starting with pound signed are ignored.  No errors are
+# printed for unknown keywords or commands.  The only defined key for
+# now is "rootdir" which must be followed by one optional space, an
+# equal sign, and the value for the root directory.  Environment
+# variables are substituted in standard shell manner, the final value
+# must start with a slash, trailing slashed are stripped.
+
+sysconfdir = $GNUPG_BUILD_ROOT/etc
+rootdir = $GNUPG_BUILD_ROOT/
diff --git a/tests/gpgme/Makefile.am b/tests/gpgme/Makefile.am
index 60fb01df9..aa41940ca 100644
--- a/tests/gpgme/Makefile.am
+++ b/tests/gpgme/Makefile.am
@@ -33,6 +33,7 @@ TESTS_ENVIRONMENT = LC_ALL=C \
 	PATH="../gpgscm:$(PATH)" \
 	abs_top_srcdir=$(abs_top_srcdir) \
 	objdir=$(abs_top_builddir) \
+        GNUPG_BUILD_ROOT="$(abs_top_builddir)/tests" \
 	GPGSCM_PATH=$(abs_top_srcdir)/tests/gpgscm
 
 # XXX: Currently, one cannot override automake's 'check' target.  As a
diff --git a/tests/migrations/Makefile.am b/tests/migrations/Makefile.am
index 6d2d2e8a6..f38d26e19 100644
--- a/tests/migrations/Makefile.am
+++ b/tests/migrations/Makefile.am
@@ -33,6 +33,7 @@ TESTS_ENVIRONMENT = GPG_AGENT_INFO= LC_ALL=C \
 	PATH="../gpgscm:$(PATH)" \
 	abs_top_srcdir="$(abs_top_srcdir)" \
 	objdir="$(abs_top_builddir)" \
+        GNUPG_BUILD_ROOT="$(abs_top_builddir)/tests" \
 	GPGSCM_PATH="$(abs_top_srcdir)/tests/gpgscm"
 
 XTESTS = from-classic.scm \
diff --git a/tests/openpgp/Makefile.am b/tests/openpgp/Makefile.am
index 106e49cdf..cecbde8cb 100644
--- a/tests/openpgp/Makefile.am
+++ b/tests/openpgp/Makefile.am
@@ -38,6 +38,7 @@ TESTS_ENVIRONMENT = LC_ALL=C \
 	PATH="../gpgscm:$(PATH)" \
 	abs_top_srcdir="$(abs_top_srcdir)" \
 	objdir="$(abs_top_builddir)" \
+        GNUPG_BUILD_ROOT="$(abs_top_builddir)/tests" \
 	GPGSCM_PATH="$(abs_top_srcdir)/tests/gpgscm"
 
 XTESTS = \
diff --git a/tests/pkits/Makefile.am b/tests/pkits/Makefile.am
index 3dc2f16d6..b85e110b5 100644
--- a/tests/pkits/Makefile.am
+++ b/tests/pkits/Makefile.am
@@ -21,6 +21,7 @@
 GPGSM = ../../sm/gpgsm
 
 TESTS_ENVIRONMENT = GNUPGHOME=`/bin/pwd` GPG_AGENT_INFO= LC_ALL=C \
+                    GNUPG_BUILD_ROOT="$(abs_top_builddir)/tests" \
                     GPGSM=$(GPGSM) silent=yes
 
 
@@ -71,5 +72,3 @@ run-all-tests: inittests.stamp
            elif test $$? -eq 77; then echo "- SKIP $$tst"; \
 	   fi; \
          done
-
-
diff --git a/tests/tpm2dtests/Makefile.am b/tests/tpm2dtests/Makefile.am
index eeae39906..f0afa2a37 100644
--- a/tests/tpm2dtests/Makefile.am
+++ b/tests/tpm2dtests/Makefile.am
@@ -37,6 +37,7 @@ TESTS_ENVIRONMENT = LC_ALL=C \
 	TPMSERVER="$(TPMSERVER)" \
 	SWTPM="$(SWTPM)" \
 	SWTPM_IOCTL="$(SWTPM_IOCTL)" \
+        GNUPG_BUILD_ROOT="$(abs_top_builddir)/tests" \
 	GPGSCM_PATH="$(abs_top_srcdir)/tests/gpgscm"
 
 XTESTS = \