diff --git a/jps/plugins/gwt/src/org/jetbrains/jps/gwt/GwtModuleBuilder.groovy b/jps/plugins/gwt/src/org/jetbrains/jps/gwt/GwtModuleBuilder.groovy
index bbada4c85aa1..42d369a6a509 100644
--- a/jps/plugins/gwt/src/org/jetbrains/jps/gwt/GwtModuleBuilder.groovy
+++ b/jps/plugins/gwt/src/org/jetbrains/jps/gwt/GwtModuleBuilder.groovy
@@ -4,9 +4,8 @@ import org.jetbrains.jps.ModuleBuildState
 import org.jetbrains.jps.ModuleBuilder
 import org.jetbrains.jps.ModuleChunk
 import org.jetbrains.jps.Project
-import org.jetbrains.jps.builders.BuildUtil
 
-/**
+ /**
  * @author nik
  */
 class GwtModuleBuilder implements ModuleBuilder {
@@ -41,9 +40,7 @@ class GwtModuleBuilder implements ModuleBuilder {
       return
     }
 
-    String baseDir = project.targetFolder != null ? project.targetFolder : "."
-    String dirName = BuildUtil.suggestFileName(facet.module.name)
-    String outputDir = new File(baseDir, "__temp_gwt_output_$dirName").absolutePath
+    String outputDir = project.builder.getTempDirectoryPath("GWT_Output_$facet.module.name")
     facet.tempOutputDir = outputDir
 
     def ant = project.binding.ant
diff --git a/jps/src/org/jetbrains/jps/Project.groovy b/jps/src/org/jetbrains/jps/Project.groovy
index 7fd2da29b917..608b0774cbd7 100644
--- a/jps/src/org/jetbrains/jps/Project.groovy
+++ b/jps/src/org/jetbrains/jps/Project.groovy
@@ -173,6 +173,10 @@ class Project {
     builder.clean()
   }
 
+  def deleteTempFiles() {
+    builder.deleteTempFiles()
+  }
+
   def ClasspathItem resolve(Object dep) {
     if (dep instanceof ClasspathItem) {
       return dep
diff --git a/jps/src/org/jetbrains/jps/ProjectBuilder.groovy b/jps/src/org/jetbrains/jps/ProjectBuilder.groovy
index 4fb0fbcf5b04..0e68549adc1b 100644
--- a/jps/src/org/jetbrains/jps/ProjectBuilder.groovy
+++ b/jps/src/org/jetbrains/jps/ProjectBuilder.groovy
@@ -34,9 +34,12 @@ class ProjectBuilder {
   boolean useInProcessJavac
   boolean compressJars = true
 
+  private final TempFileContainer tempFileContainer
+
   def ProjectBuilder(GantBinding binding, Project project) {
     this.project = project
     this.binding = binding
+    tempFileContainer = new TempFileContainer(project, "__build_temp__")
     sourceGeneratingBuilders << new GroovyStubGenerator(project)
     translatingBuilders << new JavacBuilder()
     translatingBuilders << new GroovycBuilder(project)
@@ -111,6 +114,14 @@ class ProjectBuilder {
     return makeModuleWithDependencies(module, true);
   }
 
+  def deleteTempFiles() {
+    tempFileContainer.clean()
+  }
+
+  String getTempDirectoryPath(String name) {
+    return tempFileContainer.getTempDirPath(name)
+  }
+
   private def makeModuleWithDependencies(Module module, boolean includeTests) {
     def chunk = chunkForModule(module, includeTests)
     Set<Module> dependencies = new HashSet<Module>()
diff --git a/jps/src/org/jetbrains/jps/TempFileContainer.groovy b/jps/src/org/jetbrains/jps/TempFileContainer.groovy
new file mode 100644
index 000000000000..69347f9a7051
--- /dev/null
+++ b/jps/src/org/jetbrains/jps/TempFileContainer.groovy
@@ -0,0 +1,49 @@
+package org.jetbrains.jps
+
+import org.jetbrains.jps.builders.BuildUtil
+
+/**
+ * @author nik
+ */
+class TempFileContainer {
+  private File baseDirectory
+  private final String tempDirectoryName
+  private final Project project
+  private final Set<String> usedNames = [] as Set
+
+  TempFileContainer(Project project, String tempDirectoryName) {
+    this.project = project
+    this.tempDirectoryName = tempDirectoryName
+  }
+
+  private File getBaseDirectory() {
+    if (baseDirectory == null) {
+      def ant = project.binding.ant
+      baseDirectory = new File(project.targetFolder != null ? project.targetFolder : ".", tempDirectoryName)
+      ant.delete(dir: baseDirectory.absolutePath)
+      ant.mkdir(dir: baseDirectory.absolutePath)
+    }
+    return baseDirectory
+  }
+
+  String getTempDirPath(String name) {
+    String baseName = BuildUtil.suggestFileName(name)
+    String dirName = baseName
+    int i = 2
+    while (usedNames.contains(dirName)) {
+      dirName = baseName + i
+      i++
+    }
+    usedNames << dirName
+    File tempDir = new File(getBaseDirectory(), dirName)
+    return tempDir.absolutePath
+  }
+
+  def clean() {
+    if (baseDirectory != null) {
+      def ant = project.binding.ant
+      ant.delete(dir: baseDirectory.absolutePath)
+    }
+
+  }
+}
diff --git a/jps/src/org/jetbrains/jps/artifacts/ArtifactBuilder.groovy b/jps/src/org/jetbrains/jps/artifacts/ArtifactBuilder.groovy
index 59d115dcb352..70bd622c5104 100644
--- a/jps/src/org/jetbrains/jps/artifacts/ArtifactBuilder.groovy
+++ b/jps/src/org/jetbrains/jps/artifacts/ArtifactBuilder.groovy
@@ -106,8 +106,7 @@ class ArtifactBuilder {
     project.stage("Building '${artifact.name}' artifact")
     output = getArtifactOutputFolder(artifact)
     if (output == null) {
-      def dirName = BuildUtil.suggestFileName(artifact.name)
-      output = new File(project.targetFolder != null ? project.targetFolder : ".", "__temp_artifact_$dirName").absolutePath
+      output = project.builder.getTempDirectoryPath(artifact.name)
       project.info("Output path for artifact '$artifact.name' is not specified so it will be built to $output")
     }
     artifactOutputs[artifact] = output
diff --git a/jps/testData/artifactWithoutOutput/artifactWithoutOutput.iml b/jps/testData/artifactWithoutOutput/artifactWithoutOutput.iml
new file mode 100644
index 000000000000..d5c074327501
--- /dev/null
+++ b/jps/testData/artifactWithoutOutput/artifactWithoutOutput.iml
@@ -0,0 +1,12 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<module type="JAVA_MODULE" version="4">
+  <component name="NewModuleRootManager" inherit-compiler-output="true">
+    <exclude-output />
+    <content url="file://$MODULE_DIR$">
+      <sourceFolder url="file://$MODULE_DIR$/src" isTestSource="false" />
+    </content>
+    <orderEntry type="inheritedJdk" />
+    <orderEntry type="sourceFolder" forTests="false" />
+  </component>
+</module>
+
diff --git a/jps/testData/artifactWithoutOutput/artifactWithoutOutput.ipr b/jps/testData/artifactWithoutOutput/artifactWithoutOutput.ipr
new file mode 100644
index 000000000000..c05b3c3683aa
--- /dev/null
+++ b/jps/testData/artifactWithoutOutput/artifactWithoutOutput.ipr
@@ -0,0 +1,31 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<project version="4">
+  <component name="ArtifactManager">
+    <artifact name="data:">
+      <root id="root">
+        <element id="file-copy" path="$PROJECT_DIR$/data.txt" />
+      </root>
+    </artifact>
+    <artifact name="data;">
+      <root id="root">
+        <element id="file-copy" path="$PROJECT_DIR$/data.txt" output-file-name="data2.txt"/>
+      </root>
+    </artifact>
+    <artifact name="main">
+      <output-path>$OUTPUT_DIR$/artifacts/main</output-path>
+      <root id="root">
+        <element id="artifact" artifact-name="data:" />
+        <element id="artifact" artifact-name="data;" />
+      </root>
+    </artifact>
+  </component>
+  <component name="ProjectModuleManager">
+    <modules>
+      <module fileurl="file://$PROJECT_DIR$/artifactWithoutOutput.iml" filepath="$PROJECT_DIR$/artifactWithoutOutput.iml" />
+    </modules>
+  </component>
+  <component name="ProjectRootManager" version="2" languageLevel="JDK_1_5" assert-keyword="true" jdk-15="true" project-jdk-name="1.6" project-jdk-type="JavaSDK">
+    <output url="file://$PROJECT_DIR$/out" />
+  </component>
+</project>
+
diff --git a/jps/testData/artifactWithoutOutput/data.txt b/jps/testData/artifactWithoutOutput/data.txt
new file mode 100644
index 000000000000..e69de29bb2d1
diff --git a/jps/testSrc/org/jetbrains/jps/ArtifactWithoutOutputTest.groovy b/jps/testSrc/org/jetbrains/jps/ArtifactWithoutOutputTest.groovy
new file mode 100644
index 000000000000..a468b45a1e2d
--- /dev/null
+++ b/jps/testSrc/org/jetbrains/jps/ArtifactWithoutOutputTest.groovy
@@ -0,0 +1,24 @@
+package org.jetbrains.jps
+
+import org.jetbrains.jps.util.FileUtil
+
+/**
+ * @author nik
+ */
+class ArtifactWithoutOutputTest extends JpsBuildTestCase {
+  public void test() throws Exception {
+    def outDir = FileUtil.createTempDirectory("output").absolutePath
+    Project project = loadProject("testData/artifactWithoutOutput/artifactWithoutOutput.ipr", ["OUTPUT_DIR":outDir])
+    project.clean()
+    project.buildArtifact("main")
+    project.deleteTempFiles()
+    assertOutput(project, outDir) {
+      dir("artifacts") {
+        dir("main") {
+          file("data.txt")
+          file("data2.txt")
+        }
+      }
+    }
+  }
+}
diff --git a/jps/testSrc/org/jetbrains/jps/JpsBuildTestCase.groovy b/jps/testSrc/org/jetbrains/jps/JpsBuildTestCase.groovy
index 64e68f32d4d4..d3ff7d1f830c 100644
--- a/jps/testSrc/org/jetbrains/jps/JpsBuildTestCase.groovy
+++ b/jps/testSrc/org/jetbrains/jps/JpsBuildTestCase.groovy
@@ -17,17 +17,17 @@ abstract class JpsBuildTestCase extends TestCase {
 
   def doTest(String projectPath, Map<String, String> pathVariables, Closure initProject, Closure expectedOutput) {
     Project project = buildAll(projectPath, pathVariables, initProject)
+    assertOutput(project, project.targetFolder, expectedOutput);
+  }
 
+  def protected assertOutput(Project project, String targetFolder, Closure expectedOutput) {
     def root = new FileSystemItem(name: "<root>")
     initFileSystemItem(root, expectedOutput)
-    root.assertDirectoryEqual(new File(project.targetFolder), "");
+    root.assertDirectoryEqual(new File(targetFolder), "")
   }
 
   def protected buildAll(String projectPath, Map<String, String> pathVariables, Closure initProject) {
-    def binding = new GantBinding()
-    binding.includeTool << Jps
-    def project = new Project(binding)
-    IdeaProjectLoader.loadFromPath(project, projectPath, pathVariables)
+    Project project = loadProject(projectPath, pathVariables)
     initProject(project)
     def target = FileUtil.createTempDirectory("targetDir")
     project.targetFolder = target.absolutePath
@@ -37,6 +37,14 @@ abstract class JpsBuildTestCase extends TestCase {
     return project
   }
 
+  protected Project loadProject(String projectPath, Map<String, String> pathVariables) {
+    def binding = new GantBinding()
+    binding.includeTool << Jps
+    def project = new Project(binding)
+    IdeaProjectLoader.loadFromPath(project, projectPath, pathVariables)
+    return project
+  }
+
   def initFileSystemItem(FileSystemItem item, Closure initializer) {
     def meta = new InitializingExpando()
     meta.dir = {String name, Closure content ->