diff --git a/Source/cmCTest.cxx b/Source/cmCTest.cxx
index 702ba10ad..aa75453b6 100644
--- a/Source/cmCTest.cxx
+++ b/Source/cmCTest.cxx
@@ -655,10 +655,26 @@ bool cmCTest::InitializeFromCommand(cmCTestStartCommand* command)
     }
 
   cmMakefile* mf = command->GetMakefile();
-  std::string fname = src_dir;
-  fname += "/CTestConfig.cmake";
-  cmSystemTools::ConvertToUnixSlashes(fname);
-  if ( cmSystemTools::FileExists(fname.c_str()) )
+  std::string fname;
+
+  std::string src_dir_fname = src_dir;
+  src_dir_fname += "/CTestConfig.cmake";
+  cmSystemTools::ConvertToUnixSlashes(src_dir_fname);
+
+  std::string bld_dir_fname = bld_dir;
+  bld_dir_fname += "/CTestConfig.cmake";
+  cmSystemTools::ConvertToUnixSlashes(bld_dir_fname);
+
+  if ( cmSystemTools::FileExists(bld_dir_fname.c_str()) )
+    {
+    fname = bld_dir_fname;
+    }
+  else if ( cmSystemTools::FileExists(src_dir_fname.c_str()) )
+    {
+    fname = src_dir_fname;
+    }
+
+  if ( !fname.empty() )
     {
     cmCTestLog(this, OUTPUT, "   Reading ctest configuration file: "
       << fname.c_str() << std::endl);
@@ -674,8 +690,12 @@ bool cmCTest::InitializeFromCommand(cmCTestStartCommand* command)
     }
   else
     {
-    cmCTestLog(this, WARNING, "Cannot locate CTest configuration: "
-      << fname.c_str() << std::endl);
+    cmCTestLog(this, WARNING,
+      "Cannot locate CTest configuration: in BuildDirectory: "
+      << bld_dir_fname.c_str() << std::endl);
+    cmCTestLog(this, WARNING,
+      "Cannot locate CTest configuration: in SourceDirectory: "
+      << src_dir_fname.c_str() << std::endl);
     }
 
   this->SetCTestConfigurationFromCMakeVariable(mf, "NightlyStartTime",
diff --git a/Tests/CMakeLists.txt b/Tests/CMakeLists.txt
index 78db39d6f..21d1196c0 100644
--- a/Tests/CMakeLists.txt
+++ b/Tests/CMakeLists.txt
@@ -1531,6 +1531,35 @@ ${CMake_BINARY_DIR}/bin/cmake -DVERSION=master -P ${CMake_SOURCE_DIR}/Utilities/
   SET_TESTS_PROPERTIES(CTestTestUpload PROPERTIES
     PASS_REGULAR_EXPRESSION "Upload\\.xml")
 
+  CONFIGURE_FILE(
+    "${CMake_SOURCE_DIR}/Tests/CTestTestConfigFileInBuildDir/test1.cmake.in"
+    "${CMake_BINARY_DIR}/Tests/CTestTestConfigFileInBuildDir1/test1.cmake"
+    @ONLY ESCAPE_QUOTES)
+  ADD_TEST(CTestTestConfigFileInBuildDir1 ${CMAKE_CTEST_COMMAND}
+    -S "${CMake_BINARY_DIR}/Tests/CTestTestConfigFileInBuildDir1/test1.cmake" -V
+    --output-log "${CMake_BINARY_DIR}/Tests/CTestTestConfigFileInBuildDir1/testOut1.log"
+    )
+  SET_TESTS_PROPERTIES(CTestTestConfigFileInBuildDir1 PROPERTIES DEPENDS CTestTestNoBuild
+    PASS_REGULAR_EXPRESSION
+      "Reading ctest configuration file: ${CMake_SOURCE_DIR}.Tests.CTestTestConfigFileInBuildDir.CTestConfig.cmake")
+
+  CONFIGURE_FILE(
+    "${CMake_SOURCE_DIR}/Tests/CTestTestConfigFileInBuildDir/test2.cmake.in"
+    "${CMake_BINARY_DIR}/Tests/CTestTestConfigFileInBuildDir2/test2.cmake"
+    @ONLY ESCAPE_QUOTES)
+  CONFIGURE_FILE(
+    "${CMake_SOURCE_DIR}/Tests/CTestTestConfigFileInBuildDir/CTestConfig.cmake"
+    "${CMake_BINARY_DIR}/Tests/CTestTestConfigFileInBuildDir2/CTestConfig.cmake"
+    @ONLY ESCAPE_QUOTES COPYONLY)
+  ADD_TEST(CTestTestConfigFileInBuildDir2 ${CMAKE_CTEST_COMMAND}
+    -S "${CMake_BINARY_DIR}/Tests/CTestTestConfigFileInBuildDir2/test2.cmake" -V
+    --output-log "${CMake_BINARY_DIR}/Tests/CTestTestConfigFileInBuildDir2/testOut2.log"
+    )
+  SET_TESTS_PROPERTIES(CTestTestConfigFileInBuildDir2 PROPERTIES DEPENDS CTestTestNoBuild
+    REQUIRED_FILES ${CMake_BINARY_DIR}/Tests/CTestTestConfigFileInBuildDir2/CTestConfig.cmake
+    PASS_REGULAR_EXPRESSION
+      "Reading ctest configuration file: ${CMake_BINARY_DIR}.Tests.CTestTestConfigFileInBuildDir2.CTestConfig.cmake")
+
   # Use macro, not function so that build can still be driven by CMake 2.4.
   # After 2.6 is required, this could be a function without the extra 'set'
   # calls.
diff --git a/Tests/CTestTestConfigFileInBuildDir/CMakeLists.txt b/Tests/CTestTestConfigFileInBuildDir/CMakeLists.txt
new file mode 100644
index 000000000..3c53e6623
--- /dev/null
+++ b/Tests/CTestTestConfigFileInBuildDir/CMakeLists.txt
@@ -0,0 +1,3 @@
+cmake_minimum_required(VERSION 2.8)
+project(CTestTestConfigFileInBuildDir)
+include(CTest)
diff --git a/Tests/CTestTestConfigFileInBuildDir/CTestConfig.cmake b/Tests/CTestTestConfigFileInBuildDir/CTestConfig.cmake
new file mode 100644
index 000000000..d2c28f98c
--- /dev/null
+++ b/Tests/CTestTestConfigFileInBuildDir/CTestConfig.cmake
@@ -0,0 +1,7 @@
+set(CTEST_PROJECT_NAME "CTestTestConfigFileInBuildDir")
+set(CTEST_NIGHTLY_START_TIME "01:00:00 UTC")
+set(CTEST_DART_SERVER_VERSION "2")
+set(CTEST_DROP_METHOD "http")
+set(CTEST_DROP_SITE "www.cdash.org")
+set(CTEST_DROP_LOCATION "/CDash/submit.php?project=PublicDashboard")
+set(CTEST_DROP_SITE_CDASH TRUE)
diff --git a/Tests/CTestTestConfigFileInBuildDir/test1.cmake.in b/Tests/CTestTestConfigFileInBuildDir/test1.cmake.in
new file mode 100644
index 000000000..498cab280
--- /dev/null
+++ b/Tests/CTestTestConfigFileInBuildDir/test1.cmake.in
@@ -0,0 +1,17 @@
+CMAKE_MINIMUM_REQUIRED(VERSION 2.8)
+
+# Settings:
+SET(CTEST_DASHBOARD_ROOT                "@CMake_BINARY_DIR@/Tests/CTestTest")
+SET(CTEST_SITE                          "@SITE@")
+SET(CTEST_BUILD_NAME                    "CTestTest-@BUILDNAME@-ConfigFileInBuildDir1")
+
+SET(CTEST_SOURCE_DIRECTORY              "@CMake_SOURCE_DIR@/Tests/CTestTestConfigFileInBuildDir")
+SET(CTEST_BINARY_DIRECTORY              "@CMake_BINARY_DIR@/Tests/CTestTestConfigFileInBuildDir1")
+SET(CTEST_CVS_COMMAND                   "@CVSCOMMAND@")
+SET(CTEST_CMAKE_GENERATOR               "@CMAKE_TEST_GENERATOR@")
+SET(CTEST_BUILD_CONFIGURATION           "$ENV{CMAKE_CONFIG_TYPE}")
+SET(CTEST_COVERAGE_COMMAND              "@COVERAGE_COMMAND@")
+SET(CTEST_NOTES_FILES                   "${CTEST_SCRIPT_DIRECTORY}/${CTEST_SCRIPT_NAME}")
+
+CTEST_START(Experimental)
+CTEST_CONFIGURE(BUILD "${CTEST_BINARY_DIRECTORY}" RETURN_VALUE res)
diff --git a/Tests/CTestTestConfigFileInBuildDir/test2.cmake.in b/Tests/CTestTestConfigFileInBuildDir/test2.cmake.in
new file mode 100644
index 000000000..d359f2d36
--- /dev/null
+++ b/Tests/CTestTestConfigFileInBuildDir/test2.cmake.in
@@ -0,0 +1,17 @@
+CMAKE_MINIMUM_REQUIRED(VERSION 2.8)
+
+# Settings:
+SET(CTEST_DASHBOARD_ROOT                "@CMake_BINARY_DIR@/Tests/CTestTest")
+SET(CTEST_SITE                          "@SITE@")
+SET(CTEST_BUILD_NAME                    "CTestTest-@BUILDNAME@-ConfigFileInBuildDir2")
+
+SET(CTEST_SOURCE_DIRECTORY              "@CMake_SOURCE_DIR@/Tests/CTestTestConfigFileInBuildDir")
+SET(CTEST_BINARY_DIRECTORY              "@CMake_BINARY_DIR@/Tests/CTestTestConfigFileInBuildDir2")
+SET(CTEST_CVS_COMMAND                   "@CVSCOMMAND@")
+SET(CTEST_CMAKE_GENERATOR               "@CMAKE_TEST_GENERATOR@")
+SET(CTEST_BUILD_CONFIGURATION           "$ENV{CMAKE_CONFIG_TYPE}")
+SET(CTEST_COVERAGE_COMMAND              "@COVERAGE_COMMAND@")
+SET(CTEST_NOTES_FILES                   "${CTEST_SCRIPT_DIRECTORY}/${CTEST_SCRIPT_NAME}")
+
+CTEST_START(Experimental)
+CTEST_CONFIGURE(BUILD "${CTEST_BINARY_DIRECTORY}" RETURN_VALUE res)