diff --git a/t/test-lib.sh b/t/test-lib.sh
index a87771c58f..eb51bc2340 100644
--- a/t/test-lib.sh
+++ b/t/test-lib.sh
@@ -648,7 +648,7 @@ test_create_repo () {
 	repo="$1"
 	mkdir -p "$repo"
 	cd "$repo" || error "Cannot setup test environment"
-	"$GIT_EXEC_PATH/git-init" "--template=$TEST_DIRECTORY/../templates/blt/" >&3 2>&4 ||
+	"$GIT_EXEC_PATH/git-init" "--template=$GIT_BUILD_DIR/templates/blt/" >&3 2>&4 ||
 	error "cannot run git init -- have you built things yet?"
 	mv .git/hooks .git/hooks-disabled
 	cd "$owd"
@@ -711,6 +711,8 @@ test_done () {
 # Test the binaries we have just built.  The tests are kept in
 # t/ subdirectory and are run in 'trash directory' subdirectory.
 TEST_DIRECTORY=$(pwd)
+GIT_BUILD_DIR="$TEST_DIRECTORY"/..
+
 if test -n "$valgrind"
 then
 	make_symlink () {
@@ -737,7 +739,7 @@ then
 		test -x "$1" || return
 
 		base=$(basename "$1")
-		symlink_target=$TEST_DIRECTORY/../$base
+		symlink_target=$GIT_BUILD_DIR/$base
 		# do not override scripts
 		if test -x "$symlink_target" &&
 		    test ! -d "$symlink_target" &&
@@ -756,7 +758,7 @@ then
 	# override all git executables in TEST_DIRECTORY/..
 	GIT_VALGRIND=$TEST_DIRECTORY/valgrind
 	mkdir -p "$GIT_VALGRIND"/bin
-	for file in $TEST_DIRECTORY/../git* $TEST_DIRECTORY/../test-*
+	for file in $GIT_BUILD_DIR/git* $GIT_BUILD_DIR/test-*
 	do
 		make_valgrind_symlink $file
 	done
@@ -777,10 +779,10 @@ then
 elif test -n "$GIT_TEST_INSTALLED" ; then
 	GIT_EXEC_PATH=$($GIT_TEST_INSTALLED/git --exec-path)  ||
 	error "Cannot run git from $GIT_TEST_INSTALLED."
-	PATH=$GIT_TEST_INSTALLED:$TEST_DIRECTORY/..:$PATH
+	PATH=$GIT_TEST_INSTALLED:$GIT_BUILD_DIR:$PATH
 	GIT_EXEC_PATH=${GIT_TEST_EXEC_PATH:-$GIT_EXEC_PATH}
 else # normal case, use ../bin-wrappers only unless $with_dashes:
-	git_bin_dir="$TEST_DIRECTORY/../bin-wrappers"
+	git_bin_dir="$GIT_BUILD_DIR/bin-wrappers"
 	if ! test -x "$git_bin_dir/git" ; then
 		if test -z "$with_dashes" ; then
 			say "$git_bin_dir/git is not executable; using GIT_EXEC_PATH"
@@ -788,13 +790,12 @@ else # normal case, use ../bin-wrappers only unless $with_dashes:
 		with_dashes=t
 	fi
 	PATH="$git_bin_dir:$PATH"
-	GIT_EXEC_PATH=$TEST_DIRECTORY/..
+	GIT_EXEC_PATH=$GIT_BUILD_DIR
 	if test -n "$with_dashes" ; then
-		PATH="$TEST_DIRECTORY/..:$PATH"
+		PATH="$GIT_BUILD_DIR:$PATH"
 	fi
 fi
-GIT_BUILD_DIR="$TEST_DIRECTORY"/..
-GIT_TEMPLATE_DIR="$TEST_DIRECTORY"/../templates/blt
+GIT_TEMPLATE_DIR="$GIT_BUILD_DIR"/templates/blt
 unset GIT_CONFIG
 GIT_CONFIG_NOSYSTEM=1
 GIT_CONFIG_NOGLOBAL=1
@@ -812,22 +813,22 @@ then
 	fi
 fi
 
-GITPERLLIB="$TEST_DIRECTORY"/../perl/blib/lib:"$TEST_DIRECTORY"/../perl/blib/arch/auto/Git
+GITPERLLIB="$GIT_BUILD_DIR"/perl/blib/lib:"$GIT_BUILD_DIR"/perl/blib/arch/auto/Git
 export GITPERLLIB
-test -d "$TEST_DIRECTORY"/../templates/blt || {
+test -d "$GIT_BUILD_DIR"/templates/blt || {
 	error "You haven't built things yet, have you?"
 }
 
 if test -z "$GIT_TEST_INSTALLED" && test -z "$NO_PYTHON"
 then
-	GITPYTHONLIB="$TEST_DIRECTORY/../git_remote_helpers/build/lib"
+	GITPYTHONLIB="$GIT_BUILD_DIR/git_remote_helpers/build/lib"
 	export GITPYTHONLIB
-	test -d "$TEST_DIRECTORY"/../git_remote_helpers/build || {
+	test -d "$GIT_BUILD_DIR"/git_remote_helpers/build || {
 		error "You haven't built git_remote_helpers yet, have you?"
 	}
 fi
 
-if ! test -x "$TEST_DIRECTORY"/../test-chmtime; then
+if ! test -x "$GIT_BUILD_DIR"/test-chmtime; then
 	echo >&2 'You need to build test-chmtime:'
 	echo >&2 'Run "make test-chmtime" in the source (toplevel) directory'
 	exit 1