diff --git a/Makefile.decl b/Makefile.decl
index e02ae13fd..cbc0da121 100644
--- a/Makefile.decl
+++ b/Makefile.decl
@@ -7,14 +7,13 @@ GTESTER_REPORT = $(top_builddir)/glib/gtester-report	# for the GLIB package
 # initialize variables for unconditional += appending
 EXTRA_DIST =
 TEST_PROGS =
-TESTS_ENVIRONMENT =
 
 ### testing rules
 
 # test: run all tests in cwd and subdirs
 test:	${TEST_PROGS}
 if OS_UNIX
-	@test -z "${TEST_PROGS}" || env ${TESTS_ENVIRONMENT} ${GTESTER} --verbose ${TEST_PROGS}
+	@test -z "${TEST_PROGS}" || ${GTESTER} --verbose ${TEST_PROGS}
 	@ for subdir in $(SUBDIRS) . ; do \
 	    test "$$subdir" = "." -o "$$subdir" = "po" || \
 	    ( cd $$subdir && $(MAKE) $(AM_MAKEFLAGS) $@ ) || exit $? ; \
diff --git a/gio/tests/Makefile.am b/gio/tests/Makefile.am
index 731b2ff0a..cdb52c273 100644
--- a/gio/tests/Makefile.am
+++ b/gio/tests/Makefile.am
@@ -16,7 +16,6 @@ progs_ldadd     = 					\
 	$(top_builddir)/gobject/libgobject-2.0.la	\
 	$(top_builddir)/gio/libgio-2.0.la
 
-TESTS_ENVIRONMENT += GSETTINGS_SCHEMA_DIR=. GSETTINGS_MEMORY_BACKEND_STORE=./store
 TEST_PROGS +=	 		\
 	memory-input-stream 	\
 	memory-output-stream 	\
@@ -137,6 +136,8 @@ contexts_LDADD		  = $(progs_ldadd) \
 gsettings_SOURCES	  = gsettings.c gschemas.compiled
 gsettings_LDADD		  = $(progs_ldadd)
 
+EXTRA_DIST = org.gtk.test.gschema
+
 BUILT_SOURCES = gschemas.compiled
 
 gschemas.compiled: *.gschema