diff --git a/.gitignore b/.gitignore
index f1e9ca20c1..aa37e381e2 100644
--- a/.gitignore
+++ b/.gitignore
@@ -80,7 +80,6 @@ Bitcoin-Qt.app
 # Unit-tests
 Makefile.test
 bitcoin-qt_test
-src/test/buildenv.py
 
 # Resources cpp
 qrc_*.cpp
@@ -102,7 +101,6 @@ linux-coverage-build
 linux-build
 win32-build
 test/functional/config.ini
-test/util/buildenv.py
 test/cache/*
 
 !src/leveldb*/Makefile
diff --git a/Makefile.am b/Makefile.am
index 3a56eea0c0..b0ba0c8504 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -277,9 +277,6 @@ EXTRA_DIST += \
 
 CLEANFILES = $(OSX_DMG) $(BITCOIN_WIN_INSTALLER)
 
-# This file is problematic for out-of-tree builds if it exists.
-DISTCLEANFILES = test/util/buildenv.pyc
-
 .INTERMEDIATE: $(COVERAGE_INFO)
 
 DISTCHECK_CONFIGURE_FLAGS = --enable-man
diff --git a/configure.ac b/configure.ac
index 3672700488..26a9d082c6 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1160,8 +1160,7 @@ AC_SUBST(EVENT_PTHREADS_LIBS)
 AC_SUBST(ZMQ_LIBS)
 AC_SUBST(PROTOBUF_LIBS)
 AC_SUBST(QR_LIBS)
-AC_CONFIG_FILES([Makefile src/Makefile doc/man/Makefile share/setup.nsi share/qt/Info.plist test/functional/config.ini])
-AC_CONFIG_FILES([test/util/buildenv.py],[chmod +x test/util/buildenv.py])
+AC_CONFIG_FILES([Makefile src/Makefile doc/man/Makefile share/setup.nsi share/qt/Info.plist test/functional/config.ini test/util/config.ini])
 AC_CONFIG_FILES([contrib/devtools/split-debug.sh],[chmod +x contrib/devtools/split-debug.sh])
 AC_CONFIG_FILES([doc/Doxyfile])
 AC_CONFIG_LINKS([test/functional/test_runner.py:test/functional/test_runner.py])
diff --git a/test/util/bitcoin-util-test.py b/test/util/bitcoin-util-test.py
index 0c67663edb..f85bd13f93 100755
--- a/test/util/bitcoin-util-test.py
+++ b/test/util/bitcoin-util-test.py
@@ -9,6 +9,7 @@ Runs automatically during `make check`.
 
 Can also be run manually."""
 
+import configparser
 import os
 import sys
 import argparse
@@ -16,9 +17,15 @@ import logging
 
 if __name__ == '__main__':
     sys.path.append(os.path.dirname(os.path.abspath(__file__)))
-    import buildenv
     import bctest
 
+    config = configparser.ConfigParser()
+    config.read_file(open(os.path.dirname(__file__) + "/config.ini"))
+
+    buildenv = argparse.Namespace(exeext=config["environment"]["EXEEXT"],
+                                  SRCDIR=config["environment"]["SRCDIR"],
+                                  BUILDDIR=config["environment"]["BUILDDIR"])
+
     parser = argparse.ArgumentParser(description=__doc__)
     parser.add_argument('-v', '--verbose', action='store_true')
     args = parser.parse_args()
diff --git a/test/util/buildenv.py.in b/test/util/buildenv.py.in
deleted file mode 100644
index 33030b0348..0000000000
--- a/test/util/buildenv.py.in
+++ /dev/null
@@ -1,4 +0,0 @@
-#!/usr/bin/env python
-exeext="@EXEEXT@"
-SRCDIR="@abs_top_srcdir@"
-BUILDDIR="@abs_top_builddir@"
diff --git a/test/util/config.ini.in b/test/util/config.ini.in
new file mode 100644
index 0000000000..a1f8f09cec
--- /dev/null
+++ b/test/util/config.ini.in
@@ -0,0 +1,11 @@
+# Copyright (c) 2013-2017 The Bitcoin Core developers
+# Distributed under the MIT software license, see the accompanying
+# file COPYING or http://www.opensource.org/licenses/mit-license.php.
+
+# These environment variables are set by the build process and read by
+# test/util/bitcoin-util-test.py
+
+[environment]
+SRCDIR=@abs_top_srcdir@
+BUILDDIR=@abs_top_builddir@
+EXEEXT=@EXEEXT@