diff --git a/build.ps1 b/build.ps1
index c2c56fd..e6584c6 100755
--- a/build.ps1
+++ b/build.ps1
@@ -4,12 +4,9 @@
 param(
     [Alias('p')]
     [string]$Path = $PSScriptRoot,
+    [string]$ConfigFile = $null,
     [Alias('d')]
-    [string]$DotNetHome = $(`
-            if ($env:DOTNET_HOME) { $env:DOTNET_HOME } `
-            elseif ($env:USERPROFILE) { Join-Path $env:USERPROFILE '.dotnet'} `
-            elseif ($env:HOME) {Join-Path $env:HOME '.dotnet'}`
-            else { Join-Path $PSScriptRoot '.dotnet'} ),
+    [string]$DotNetHome = $null,
     [Alias('s')]
     [string]$ToolsSource = 'https://aspnetcore.blob.core.windows.net/buildtools',
     [Parameter(ValueFromRemainingArguments = $true)]
@@ -18,10 +15,21 @@ param(
 
 $ErrorActionPreference = 'Stop'
 
+if (!$DotNetHome) {
+    $DotNetHome = if ($env:DOTNET_HOME) { $env:DOTNET_HOME } `
+        elseif ($env:USERPROFILE) { Join-Path $env:USERPROFILE '.dotnet'} `
+        elseif ($env:HOME) {Join-Path $env:HOME '.dotnet'}`
+        else { Join-Path $PSScriptRoot '.dotnet'}
+}
+
+if (!($ConfigFile)) {
+    $ConfigFile = Join-Path $Path 'korebuild.json'
+}
+
 try {
     Import-Module -Force -Scope Local "$PSScriptRoot/files/KoreBuild/KoreBuild.psd1"
 
-    Set-KoreBuildSettings -ToolsSource $ToolsSource -DotNetHome $DotNetHome -RepoPath $Path
+    Set-KoreBuildSettings -ToolsSource $ToolsSource -DotNetHome $DotNetHome -RepoPath $Path -ConfigFile $ConfigFile
     Invoke-KoreBuildCommand "default-build" @Arguments
 }
 finally {
diff --git a/build.sh b/build.sh
index d7a6e31..b64a5c5 100755
--- a/build.sh
+++ b/build.sh
@@ -22,6 +22,7 @@ __usage() {
 #
 
 [ -z "${DOTNET_HOME:-}" ] && DOTNET_HOME="$HOME/.dotnet"
+config_file="$DIR/korebuild.json"
 tools_source='https://aspnetcore.blob.core.windows.net/buildtools'
 verbose=false
 while [[ $# -gt 0 ]]; do
@@ -53,6 +54,6 @@ while [[ $# -gt 0 ]]; do
     shift
 done
 
-set_korebuildsettings "$tools_source" "$DOTNET_HOME" "$DIR"
+set_korebuildsettings "$tools_source" "$DOTNET_HOME" "$DIR" "$config_file"
 
 invoke_korebuild_command "default-build" "$@"
diff --git a/build/common.props b/build/common.props
index bfae37d..a9293c6 100644
--- a/build/common.props
+++ b/build/common.props
@@ -1,6 +1,6 @@
 <Project>
   <Import Project="dependencies.props" />
-  <Import Project="..\version.xml" />
+  <Import Project="..\version.props" />
 
   <PropertyGroup>
     <!-- these imports substitute for a package reference to Internal.AspNetCore.Sdk -->
diff --git a/build/repo.props b/build/repo.props
index 7675f64..0392cdf 100644
--- a/build/repo.props
+++ b/build/repo.props
@@ -1,5 +1,5 @@
 <Project>
-  <Import Project="..\version.xml" />
+  <Import Project="..\version.props" />
 
   <PropertyGroup>
     <Version>$(VersionPrefix)</Version>
diff --git a/files/KoreBuild/KoreBuild.sh b/files/KoreBuild/KoreBuild.sh
index fd2b8bf..edd2f52 100755
--- a/files/KoreBuild/KoreBuild.sh
+++ b/files/KoreBuild/KoreBuild.sh
@@ -10,6 +10,7 @@ set_korebuildsettings() {
     tools_source=$1
     dotnet_home=$2
     repo_path=$3
+    local config_file="${4:-}" # optional. Not used yet.
 
     [ -z "${dot_net_home:-}" ] && dot_net_home="$HOME/.dotnet"
     [ -z "${tools_source:-}" ] && tools_source='https://aspnetcore.blob.core.windows.net/buildtools'
@@ -18,7 +19,7 @@ set_korebuildsettings() {
 }
 
 invoke_korebuild_command(){
-    local command=$1
+    local command="${1:-}"
     shift
 
     if [ "$command" = "default-build" ]; then
diff --git a/files/KoreBuild/scripts/KoreBuild.psm1 b/files/KoreBuild/scripts/KoreBuild.psm1
index 36f0983..8bd3a5b 100644
--- a/files/KoreBuild/scripts/KoreBuild.psm1
+++ b/files/KoreBuild/scripts/KoreBuild.psm1
@@ -248,12 +248,19 @@ The directory where tools will be stored on the local machine.
 
 .PARAMETER RepoPath
 The directory to execute the command against.
+
+.PARAMETER ConfigFile
+The korebuild.json file. (Ignored right now: may be used in the future)
 #>
 function Set-KoreBuildSettings(
+    [Parameter()]
     [string]$ToolsSource,
+    [Parameter()]
     [string]$DotNetHome,
-    [string]$RepoPath
-)
+    [Parameter()]
+    [string]$RepoPath,
+    [Parameter()]
+    [string]$ConfigFile = $null)
 {
     if (!$DotNetHome) {
         $DotNetHome = if ($env:DOTNET_HOME) { $env:DOTNET_HOME } `
diff --git a/files/KoreBuild/scripts/common.sh b/files/KoreBuild/scripts/common.sh
index 10565f5..be031e4 100644
--- a/files/KoreBuild/scripts/common.sh
+++ b/files/KoreBuild/scripts/common.sh
@@ -41,7 +41,7 @@ __exec() {
     local exit_code=$?
     set -e
     if [ $exit_code -ne 0 ]; then
-        __error "<<< $cmdname failed with exit code $exit_code"
+        __error "$cmdname failed with exit code $exit_code"
     elif [ "$__is_verbose" = true ]; then
         echo -e "${GREEN}<<< $cmdname [$exit_code]${RESET}"
     fi
diff --git a/korebuild.json b/korebuild.json
new file mode 100644
index 0000000..551cc41
--- /dev/null
+++ b/korebuild.json
@@ -0,0 +1,4 @@
+{
+  "$schema": "./tools/korebuild.schema.json",
+  "channel": "dev"
+}
diff --git a/push.ps1 b/push.ps1
index 24d9cd6..8140e2e 100644
--- a/push.ps1
+++ b/push.ps1
@@ -20,7 +20,7 @@ $artifacts = Join-Path $PSScriptRoot 'artifacts'
 
 Get-ChildItem "$artifacts/build/*.nupkg" | Push-NuGetPackage -Feed $NuGetFeed -ApiKey $env:APIKEY -WhatIf:$WhatIfPreference
 
-$settings = [xml] (Get-Content (Join-Path $PSScriptRoot 'version.xml'))
+$settings = [xml] (Get-Content (Join-Path $PSScriptRoot 'version.props'))
 $channelName = $settings.Project.PropertyGroup.KoreBuildChannel
 
 Write-Host "Pushing azure artifacts for '$channelName' channel"
diff --git a/scripts/bootstrapper/build.sh b/scripts/bootstrapper/build.sh
index 17a3da3..74c8ed4 100755
--- a/scripts/bootstrapper/build.sh
+++ b/scripts/bootstrapper/build.sh
@@ -1,5 +1,6 @@
 #!/usr/bin/env bash
 
 set -euo pipefail
-
-./run.sh default-build "$@"
+DIR="$( cd "$( dirname "${BASH_SOURCE[0]}" )" && pwd )"
+chmod +x "$DIR/run.sh"
+"$DIR/run.sh" default-build "$@"
diff --git a/scripts/bootstrapper/run.ps1 b/scripts/bootstrapper/run.ps1
old mode 100644
new mode 100755
index cbdd9ab..49c2899
--- a/scripts/bootstrapper/run.ps1
+++ b/scripts/bootstrapper/run.ps1
@@ -27,7 +27,7 @@ The base url where build tools can be downloaded. Overrides the value from the c
 Updates KoreBuild to the latest version even if a lock file is present.
 
 .PARAMETER ConfigFile
-The path to the configuration file that stores values. Defaults to version.xml.
+The path to the configuration file that stores values. Defaults to korebuild.json.
 
 .PARAMETER Arguments
 Arguments to be passed to the command
@@ -36,18 +36,17 @@ Arguments to be passed to the command
 This function will create a file $PSScriptRoot/korebuild-lock.txt. This lock file can be committed to source, but does not have to be.
 When the lockfile is not present, KoreBuild will create one using latest available version from $Channel.
 
-The $ConfigFile is expected to be an XML file. It is optional, and the configuration values in it are optional as well.
+The $ConfigFile is expected to be an JSON file. It is optional, and the configuration values in it are optional as well. Any options set
+in the file are overridden by command line parameters.
 
 .EXAMPLE
 Example config file:
-```xml
-<!-- version.xml -->
-<Project>
-  <PropertyGroup>
-    <KoreBuildChannel>dev</KoreBuildChannel>
-    <KoreBuildToolsSource>https://aspnetcore.blob.core.windows.net/buildtools</KoreBuildToolsSource>
-  </PropertyGroup>
-</Project>
+```json
+{
+  "$schema": "https://raw.githubusercontent.com/aspnet/BuildTools/dev/tools/korebuild.schema.json",
+  "channel": "dev",
+  "toolsSource": "https://aspnetcore.blob.core.windows.net/buildtools"
+}
 ```
 #>
 [CmdletBinding(PositionalBinding = $false)]
@@ -63,7 +62,7 @@ param(
     [string]$ToolsSource,
     [Alias('u')]
     [switch]$Update,
-    [string]$ConfigFile = (Join-Path $PSScriptRoot 'version.xml'),
+    [string]$ConfigFile,
     [Parameter(ValueFromRemainingArguments = $true)]
     [string[]]$Arguments
 )
@@ -152,10 +151,20 @@ function Get-RemoteFile([string]$RemotePath, [string]$LocalPath) {
 
 # Load configuration or set defaults
 
+$Path = Resolve-Path $Path
+if (!$ConfigFile) { $ConfigFile = Join-Path $Path 'korebuild.json' }
+
 if (Test-Path $ConfigFile) {
-    [xml] $config = Get-Content $ConfigFile
-    if (!($Channel)) { [string] $Channel = Select-Xml -Xml $config -XPath '/Project/PropertyGroup/KoreBuildChannel' }
-    if (!($ToolsSource)) { [string] $ToolsSource = Select-Xml -Xml $config -XPath '/Project/PropertyGroup/KoreBuildToolsSource' }
+    try {
+        $config = Get-Content -Raw -Encoding UTF8 -Path $ConfigFile | ConvertFrom-Json
+        if ($config) {
+            if (!($Channel) -and (Get-Member -Name 'channel' -InputObject $config)) { [string] $Channel = $config.channel }
+            if (!($ToolsSource) -and (Get-Member -Name 'toolsSource' -InputObject $config)) { [string] $ToolsSource = $config.toolsSource}
+        }
+    } catch {
+        Write-Warning "$ConfigFile could not be read. Its settings will be ignored."
+        Write-Warning $Error[0]
+    }
 }
 
 if (!$DotNetHome) {
@@ -174,7 +183,7 @@ $korebuildPath = Get-KoreBuild
 Import-Module -Force -Scope Local (Join-Path $korebuildPath 'KoreBuild.psd1')
 
 try {
-    Set-KoreBuildSettings -ToolsSource $ToolsSource -DotNetHome $DotNetHome -RepoPath $Path
+    Set-KoreBuildSettings -ToolsSource $ToolsSource -DotNetHome $DotNetHome -RepoPath $Path -ConfigFile $ConfigFile
     Invoke-KoreBuildCommand $Command @Arguments
 }
 finally {
diff --git a/scripts/bootstrapper/run.sh b/scripts/bootstrapper/run.sh
index 82049ac..697508a 100755
--- a/scripts/bootstrapper/run.sh
+++ b/scripts/bootstrapper/run.sh
@@ -8,10 +8,10 @@ set -euo pipefail
 
 RESET="\033[0m"
 RED="\033[0;31m"
+YELLOW="\033[0;33m"
 MAGENTA="\033[0;95m"
 DIR="$( cd "$( dirname "${BASH_SOURCE[0]}" )" && pwd )"
 [ -z "${DOTNET_HOME:-}" ] && DOTNET_HOME="$HOME/.dotnet"
-config_file="$DIR/version.xml"
 verbose=false
 update=false
 repo_path="$DIR"
@@ -31,7 +31,7 @@ __usage() {
     echo "Options:"
     echo "    --verbose                Show verbose output."
     echo "    -c|--channel <CHANNEL>   The channel of KoreBuild to download. Overrides the value from the config file.."
-    echo "    --config-file <FILE>     TThe path to the configuration file that stores values. Defaults to version.xml."
+    echo "    --config-file <FILE>     TThe path to the configuration file that stores values. Defaults to korebuild.json."
     echo "    -d|--dotnet-home <DIR>   The directory where .NET Core tools will be stored. Defaults to '\$DOTNET_HOME' or '\$HOME/.dotnet."
     echo "    --path <PATH>            The directory to build. Defaults to the directory containing the script."
     echo "    -s|--tools-source <URL>  The base url where build tools can be downloaded. Overrides the value from the config file."
@@ -83,7 +83,11 @@ get_korebuild() {
 }
 
 __error() {
-    echo -e "${RED}$*${RESET}" 1>&2
+    echo -e "${RED}error: $*${RESET}" 1>&2
+}
+
+__warn() {
+    echo -e "${YELLOW}warning: $*${RESET}"
 }
 
 __machine_has() {
@@ -118,11 +122,10 @@ __get_remote_file() {
     fi
 }
 
-__read_dom () { local IFS=\> ; read -r -d \< ENTITY CONTENT ;}
-
 #
 # main
 #
+
 command="${1:-}"
 shift
 
@@ -141,6 +144,10 @@ while [[ $# -gt 0 ]]; do
             shift
             config_file="${1:-}"
             [ -z "$config_file" ] && __usage
+            if [ ! -f "$config_file" ]; then
+                __error "Invalid value for --config-file. $config_file does not exist."
+                exit 1
+            fi
             ;;
         -d|--dotnet-home|-DotNetHome)
             shift
@@ -184,21 +191,33 @@ if ! __machine_has curl && ! __machine_has wget; then
     exit 1
 fi
 
+[ -z "${config_file:-}" ] && config_file="$repo_path/korebuild.json"
 if [ -f "$config_file" ]; then
-    comment=false
-    while __read_dom; do
-        if [ "$comment" = true ]; then [[ $CONTENT == *'-->'* ]] && comment=false ; continue; fi
-        if [[ $ENTITY == '!--'* ]]; then comment=true; continue; fi
-        if [ -z "$channel" ] && [[ $ENTITY == "KoreBuildChannel" ]]; then channel=$CONTENT; fi
-        if [ -z "$tools_source" ] && [[ $ENTITY == "KoreBuildToolsSource" ]]; then tools_source=$CONTENT; fi
-    done < "$config_file"
+    if __machine_has jq ; then
+        if jq '.' "$config_file" >/dev/null ; then
+            config_channel="$(jq -r 'select(.channel!=null) | .channel' "$config_file")"
+            config_tools_source="$(jq -r 'select(.toolsSource!=null) | .toolsSource' "$config_file")"
+        else
+            __warn "$config_file is invalid JSON. Its settings will be ignored."
+        fi
+    elif __machine_has python ; then
+        if python -c "import json,codecs;obj=json.load(codecs.open('$config_file', 'r', 'utf-8-sig'))" >/dev/null ; then
+            config_channel="$(python -c "import json,codecs;obj=json.load(codecs.open('$config_file', 'r', 'utf-8-sig'));print(obj['channel'] if 'channel' in obj else '')")"
+            config_tools_source="$(python -c "import json,codecs;obj=json.load(codecs.open('$config_file', 'r', 'utf-8-sig'));print(obj['toolsSource'] if 'toolsSource' in obj else '')")"
+        else
+            __warn "$config_file is invalid JSON. Its settings will be ignored."
+        fi
+    else
+        __warn 'Missing required command: jq or pyton. Could not parse the JSON file. Its settings will be ignored.'
+    fi
+
+    [ ! -z "${config_channel:-}" ] && channel="$config_channel"
+    [ ! -z "${config_tools_source:-}" ] && tools_source="$config_tools_source"
 fi
 
 [ -z "$channel" ] && channel='dev'
 [ -z "$tools_source" ] && tools_source='https://aspnetcore.blob.core.windows.net/buildtools'
 
 get_korebuild
-
-set_korebuildsettings "$tools_source" "$DOTNET_HOME" "$repo_path"
-
+set_korebuildsettings "$tools_source" "$DOTNET_HOME" "$repo_path" "$config_file"
 invoke_korebuild_command "$command" "$@"
diff --git a/testassets/SimpleRepo/Directory.Build.props b/testassets/SimpleRepo/Directory.Build.props
new file mode 100644
index 0000000..cc8828f
--- /dev/null
+++ b/testassets/SimpleRepo/Directory.Build.props
@@ -0,0 +1,3 @@
+<Project>
+  <Import Project="version.props" />
+</Project>
diff --git a/testassets/SimpleRepo/korebuild.json b/testassets/SimpleRepo/korebuild.json
new file mode 100644
index 0000000..bd5d51a
--- /dev/null
+++ b/testassets/SimpleRepo/korebuild.json
@@ -0,0 +1,4 @@
+{
+  "$schema": "https://raw.githubusercontent.com/aspnet/BuildTools/dev/tools/korebuild.schema.json",
+  "channel": "dev"
+}
diff --git a/testassets/SimpleRepo/src/Simple.Lib/Simple.Lib.csproj b/testassets/SimpleRepo/src/Simple.Lib/Simple.Lib.csproj
index e60491d..016221e 100644
--- a/testassets/SimpleRepo/src/Simple.Lib/Simple.Lib.csproj
+++ b/testassets/SimpleRepo/src/Simple.Lib/Simple.Lib.csproj
@@ -1,7 +1,5 @@
 <Project Sdk="Microsoft.NET.Sdk">
 
-  <Import Project="..\..\build\common.props" />
-
   <PropertyGroup>
     <TargetFrameworks>netstandard2.0;net461</TargetFrameworks>
   </PropertyGroup>
diff --git a/testassets/SimpleRepo/build/common.props b/testassets/SimpleRepo/version.props
similarity index 73%
rename from testassets/SimpleRepo/build/common.props
rename to testassets/SimpleRepo/version.props
index 0e2b84e..a970297 100644
--- a/testassets/SimpleRepo/build/common.props
+++ b/testassets/SimpleRepo/version.props
@@ -1,6 +1,6 @@
 <Project>
-  <Import Project="..\version.xml" />
   <PropertyGroup>
+    <VersionPrefix>1.0.0</VersionPrefix>
     <VersionSuffix>beta-$(BuildNumber)</VersionSuffix>
   </PropertyGroup>
 </Project>
diff --git a/testassets/SimpleRepo/version.xml b/testassets/SimpleRepo/version.xml
deleted file mode 100644
index fdf5de4..0000000
--- a/testassets/SimpleRepo/version.xml
+++ /dev/null
@@ -1,5 +0,0 @@
-<Project>
-  <PropertyGroup>
-    <KoreBuildChannel>dev</KoreBuildChannel>
-  </PropertyGroup>
-</Project>
diff --git a/tools/korebuild.schema.json b/tools/korebuild.schema.json
new file mode 100644
index 0000000..9bf3a76
--- /dev/null
+++ b/tools/korebuild.schema.json
@@ -0,0 +1,21 @@
+{
+  "title": "Config file for KoreBuild",
+  "$schema": "http://json-schema.org/draft-04/schema#",
+  "type": "object",
+  "properties": {
+    "toolsSource": {
+      "description": "The remote source used to download KoreBuild. Can be a file path.",
+      "type": "string",
+      "default": "https://aspnetcore.blob.core.windows.net/buildtools"
+    },
+    "channel": {
+      "description": "The channel of KoreBuild used to select a version when korebuild-lock.txt is not present.",
+      "type": "string",
+      "default": "dev",
+      "enum": [
+        "dev",
+        "rel/2.0.0"
+      ]
+    }
+  }
+}
diff --git a/version.xml b/version.props
similarity index 100%
rename from version.xml
rename to version.props