diff --git a/Source/cmCTest.cxx b/Source/cmCTest.cxx
index 3697aa4b2..403a45937 100644
--- a/Source/cmCTest.cxx
+++ b/Source/cmCTest.cxx
@@ -332,9 +332,9 @@ cmCTest::cmCTest()
   this->ComputedCompressMemCheckOutput = false;
   this->RepeatTests = 1; // default to run each test once
   this->RepeatUntilFail = false;
-  if(cmSystemTools::GetEnv("CTEST_OUTPUT_ON_FAILURE"))
+  if(const char* outOnFail = cmSystemTools::GetEnv("CTEST_OUTPUT_ON_FAILURE"))
     {
-    this->OutputTestOutputOnTestFailure = true;
+    this->OutputTestOutputOnTestFailure = !cmSystemTools::IsOff(outOnFail);
     }
   this->InitStreams();
 
diff --git a/Tests/RunCMake/CTestCommandLine/RunCMakeTest.cmake b/Tests/RunCMake/CTestCommandLine/RunCMakeTest.cmake
index 2e5156cd6..22a8d20f9 100644
--- a/Tests/RunCMake/CTestCommandLine/RunCMakeTest.cmake
+++ b/Tests/RunCMake/CTestCommandLine/RunCMakeTest.cmake
@@ -1,5 +1,8 @@
 include(RunCMake)
 
+unset(ENV{CTEST_PARALLEL_LEVEL})
+unset(ENV{CTEST_OUTPUT_ON_FAILURE})
+
 run_cmake_command(repeat-until-fail-bad1
   ${CMAKE_CTEST_COMMAND} --repeat-until-fail
   )