diff --git a/bitcoind-tests/tests/setup/mod.rs b/bitcoind-tests/tests/setup/mod.rs
index 48c77c2b..b443fddd 100644
--- a/bitcoind-tests/tests/setup/mod.rs
+++ b/bitcoind-tests/tests/setup/mod.rs
@@ -17,14 +17,6 @@ pub mod test_util;
 // We are not using pegins right now, but it might be required in case in future
 // if we extend the tests to check pegins etc.
 pub fn setup(validate_pegin: bool) -> (ElementsD, Option<BitcoinD>, elements::BlockHash) {
-    // Lookup bitcoind binary path
-    let curr_dir = std::env::current_dir().unwrap();
-    let bitcoind_path = curr_dir.join("bin/bitcoind");
-    let elementsd_path = curr_dir.join("bin/elementsd");
-
-    std::env::set_var("BITCOIND_EXE", bitcoind_path);
-    std::env::set_var("ELEMENTSD_EXE", elementsd_path);
-
     let mut bitcoind = None;
     if validate_pegin {
         let bitcoind_exe = bitcoind::exe_path().unwrap();
diff --git a/contrib/test.sh b/contrib/test.sh
index e860f36b..9faa2840 100755
--- a/contrib/test.sh
+++ b/contrib/test.sh
@@ -23,7 +23,14 @@ fi
 
 # Test bitcoind integration tests if told to (this only works with the stable toolchain)
 if [ "$DO_BITCOIND_TESTS" = true ]; then
+
+    BITCOIND_EXE_DEFAULT="$(git rev-parse --show-toplevel)/bitcoind-tests/bin/bitcoind"
+    ELEMENTSD_EXE_DEFAULT="$(git rev-parse --show-toplevel)/bitcoind-tests/bin/elementsd"
+
     cd bitcoind-tests
+
+    BITCOIND_EXE=${BITCOIND_EXE:=${BITCOIND_EXE_DEFAULT}} \
+    ELEMENTSD_EXE=${ELEMENTSD_EXE:=${ELEMENTSD_EXE_DEFAULT}} \
     cargo test --verbose
 
     # Exit integration tests, do not run other tests.