diff --git a/scripts/avocado b/scripts/avocado
index f81893c1698a1f5ce1a0f4a6a912d85fb4c5bfd4..7b04c53fb07982e48cd9d266a99586530786d2a4 100755
--- a/scripts/avocado
+++ b/scripts/avocado
@@ -56,14 +56,6 @@ def handle_exception(*exc_info):
     sys.exit(-1)
 
 
-# simple magic for using scripts within a source tree
-basedir = os.path.dirname(os.path.dirname(os.path.abspath(__file__)))
-if os.path.isdir(os.path.join(basedir, 'avocado')):
-    os.environ['PATH'] += ":" + os.path.join(basedir, 'scripts')
-    os.environ['PATH'] += ":" + os.path.join(basedir, 'libexec')
-    sys.path.append(basedir)
-
-
 if __name__ == '__main__':
     sys.excepthook = handle_exception
     from avocado.core.app import AvocadoApp
diff --git a/scripts/avocado-rest-client b/scripts/avocado-rest-client
index dc02b21f3d1a75f39b8078fb52598b6a9b81f35f..01addfb328f7b00113976af3c73cd5ce58ba9b6a 100755
--- a/scripts/avocado-rest-client
+++ b/scripts/avocado-rest-client
@@ -14,14 +14,8 @@
 # Author: Cleber Rosa <cleber@redhat.com>
 
 
-import os
 import sys
 
-# simple magic for using scripts within a source tree
-basedir = os.path.dirname(os.path.dirname(os.path.abspath(__file__)))
-if os.path.isdir(os.path.join(basedir, 'avocado')):
-    sys.path.append(basedir)
-
 from avocado.core.restclient.cli.app import App
 
 if __name__ == '__main__':
diff --git a/selftests/functional/test_basic.py b/selftests/functional/test_basic.py
index 0963ec960d47e70061535d8e876425c64d2eac0a..5eef658cb2be31e425deaadf8b9582960aa1df48 100644
--- a/selftests/functional/test_basic.py
+++ b/selftests/functional/test_basic.py
@@ -763,6 +763,11 @@ class RunnerSimpleTest(unittest.TestCase):
         simplewarning.sh uses the avocado-bash-utils
         """
         os.chdir(basedir)
+        # simplewarning.sh calls "avocado" without specifying a path
+        os.environ['PATH'] += ":" + os.path.join(basedir, 'scripts')
+        # simplewarning.sh calls "avocado exec-path" which hasn't
+        # access to an installed location for the libexec scripts
+        os.environ['PATH'] += ":" + os.path.join(basedir, 'libexec')
         cmd_line = ('%s run --job-results-dir %s --sysinfo=off '
                     'examples/tests/simplewarning.sh --show-job-log'
                     % (AVOCADO, self.tmpdir))