diff --git a/build/update.xml b/build/update.xml
index c8fe7a45bd31..2521eeec04dd 100644
--- a/build/update.xml
+++ b/build/update.xml
@@ -17,7 +17,6 @@
   <dirname property="build" file="${ant.file}"/>
   <property name="project.home" value="${build}/../"/>
   <property name="gant.home" value="${project.home}/build/lib/gant"/>
-  <property name="modules.output" value="${project.home}/out"/>
 
   <macrodef name="run">
     <attribute name="script"/>
@@ -36,7 +35,6 @@
       <java failonerror="true" classname="org.apache.tools.ant.Main" fork="true">
         <jvmarg line="-Xms64m -Xmx512m"/>
         <jvmarg line="&quot;-Ddeploy=@{deploy}&quot;"/>
-        <jvmarg line="&quot;-Dmodules.output=${modules.output}&quot;"/>
         <jvmarg line="&quot;-Dgant.script=@{script}&quot;"/>
         <jvmarg line="&quot;-Dgant.target=@{target}&quot;"/>
 
diff --git a/jps/antLayout/src/jetbrains/antlayout/datatypes/IdeaModuleBase.java b/jps/antLayout/src/jetbrains/antlayout/datatypes/IdeaModuleBase.java
index c9d8c564338f..9e05ccb5d157 100644
--- a/jps/antLayout/src/jetbrains/antlayout/datatypes/IdeaModuleBase.java
+++ b/jps/antLayout/src/jetbrains/antlayout/datatypes/IdeaModuleBase.java
@@ -45,11 +45,6 @@ public abstract class IdeaModuleBase extends LayoutFileSet {
   }
 
   protected File getOutputDir() {
-    String common = getProject().getProperty("modules.output");
-    if (common != null) {
-      return new File(new File(common), getKind() + "/" + getName());
-    }
-
     String adhoc = getProject().getProperty(getOutputDirProperty());
     return adhoc != null ? new File(adhoc) : null;
   }
@@ -60,11 +55,11 @@ public abstract class IdeaModuleBase extends LayoutFileSet {
     }
 
     File outputDir = getOutputDir();
-
-    if (outputDir == null || !outputDir.exists()) {
-      throw new BuildException("No " + getKind() + " output found for module " + name +
-          ". Either modules.output property references project output that doesn't contain this module or " +
-          getOutputDirProperty() + " is not defined or references non-existing directory.");
+    if (outputDir == null) {
+      throw new BuildException("Cannot find " + getKind() + " output for module " + name + ": '" + getOutputDirProperty() + "' property isn't defined");
+    }
+    if (!outputDir.exists()) {
+      throw new BuildException("No " + getKind() + " output found for module " + name + ": " + outputDir + " doesn't exist");
     }
   }