diff --git a/java/compiler/impl/src/com/intellij/openapi/roots/impl/ExcludeCompilerOutputPolicy.java b/java/compiler/impl/src/com/intellij/openapi/roots/impl/ExcludeCompilerOutputPolicy.java
index f56135c26347..f1e48fd4cf67 100644
--- a/java/compiler/impl/src/com/intellij/openapi/roots/impl/ExcludeCompilerOutputPolicy.java
+++ b/java/compiler/impl/src/com/intellij/openapi/roots/impl/ExcludeCompilerOutputPolicy.java
@@ -40,6 +40,7 @@ final class ExcludeCompilerOutputPolicy implements DirectoryIndexExcludePolicy {
     if (extension.isCompilerOutputPathInherited()) {
       CompilerProjectExtension projectExtension = CompilerProjectExtension.getInstance(myProject);
       if (projectExtension != null) {
+        // usage of the obsolete method will be fixed by IJPL-16028
         ContainerUtil.addIfNotNull(result, projectExtension.getCompilerOutputPointer());
       }
     }
diff --git a/java/idea-ui/src/com/intellij/openapi/roots/ui/configuration/ProjectConfigurable.java b/java/idea-ui/src/com/intellij/openapi/roots/ui/configuration/ProjectConfigurable.java
index 67ab573b126d..49c054ce1963 100644
--- a/java/idea-ui/src/com/intellij/openapi/roots/ui/configuration/ProjectConfigurable.java
+++ b/java/idea-ui/src/com/intellij/openapi/roots/ui/configuration/ProjectConfigurable.java
@@ -137,7 +137,7 @@ public class ProjectConfigurable extends ProjectStructureElementConfigurable<Pro
         compilerProjectExtension.setCompilerOutputUrl(VfsUtilCore.pathToUrl(canonicalPath));
       }
       else {
-        compilerProjectExtension.setCompilerOutputPointer(null);
+        compilerProjectExtension.setCompilerOutputUrl(null);
       }
 
       LanguageLevelProjectExtension extension = LanguageLevelProjectExtension.getInstance(myProject);
diff --git a/java/java-impl/src/com/intellij/openapi/roots/impl/CompilerProjectExtensionImpl.java b/java/java-impl/src/com/intellij/openapi/roots/impl/CompilerProjectExtensionImpl.java
index 765064ca5b85..57eb17e7e9b3 100644
--- a/java/java-impl/src/com/intellij/openapi/roots/impl/CompilerProjectExtensionImpl.java
+++ b/java/java-impl/src/com/intellij/openapi/roots/impl/CompilerProjectExtensionImpl.java
@@ -17,6 +17,7 @@ import com.intellij.openapi.vfs.pointers.VirtualFilePointer;
 import com.intellij.openapi.vfs.pointers.VirtualFilePointerManager;
 import org.jdom.Element;
 import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
 
 import java.util.HashSet;
 import java.util.Objects;
@@ -71,21 +72,28 @@ final class CompilerProjectExtensionImpl extends CompilerProjectExtension implem
   }
 
   @Override
-  public VirtualFilePointer getCompilerOutputPointer() {
+  public @Nullable VirtualFilePointer getCompilerOutputPointer() {
     return myCompilerOutput;
   }
 
   @Override
-  public void setCompilerOutputPointer(VirtualFilePointer pointer) {
+  public void setCompilerOutputPointer(@Nullable VirtualFilePointer pointer) {
     myCompilerOutput = pointer;
   }
 
   @Override
-  public void setCompilerOutputUrl(String compilerOutputUrl) {
-    VirtualFilePointer pointer = VirtualFilePointerManager.getInstance().create(compilerOutputUrl, this, null);
-    setCompilerOutputPointer(pointer);
-    String path = VfsUtilCore.urlToPath(compilerOutputUrl);
-    myCompilerOutputWatchRequest = LocalFileSystem.getInstance().replaceWatchedRoot(myCompilerOutputWatchRequest, path, true);
+  public void setCompilerOutputUrl(@Nullable String compilerOutputUrl) {
+    if (compilerOutputUrl == null) {
+      setCompilerOutputPointer(null);
+    }
+    else {
+      // TODO ANK (Maybe): maybe we should remove old compilerOutputUrl from watched roots? (keep in mind that there might be
+      //  some other code which has added exactly the same root to the watch roots)
+      VirtualFilePointer pointer = VirtualFilePointerManager.getInstance().create(compilerOutputUrl, this, null);
+      setCompilerOutputPointer(pointer);
+      String path = VfsUtilCore.urlToPath(compilerOutputUrl);
+      myCompilerOutputWatchRequest = LocalFileSystem.getInstance().replaceWatchedRoot(myCompilerOutputWatchRequest, path, true);
+    }
   }
 
   private static Set<String> getRootsToWatch(Project project) {
diff --git a/platform/lang-api/src/com/intellij/openapi/roots/CompilerProjectExtension.java b/platform/lang-api/src/com/intellij/openapi/roots/CompilerProjectExtension.java
index 7ee93a770f91..bc6d5beee158 100644
--- a/platform/lang-api/src/com/intellij/openapi/roots/CompilerProjectExtension.java
+++ b/platform/lang-api/src/com/intellij/openapi/roots/CompilerProjectExtension.java
@@ -19,9 +19,17 @@ public abstract class CompilerProjectExtension {
 
   public abstract @Nullable String getCompilerOutputUrl();
 
-  public abstract VirtualFilePointer getCompilerOutputPointer();
+  /**
+   * @deprecated Consider using {@link CompilerProjectExtension#getCompilerOutputUrl()} or {@link CompilerProjectExtension#getCompilerOutput()}
+   */
+  @Deprecated
+  public abstract @Nullable VirtualFilePointer getCompilerOutputPointer();
 
-  public abstract void setCompilerOutputPointer(VirtualFilePointer pointer);
+  /**
+   * @deprecated Consider using {@link CompilerProjectExtension#setCompilerOutputUrl(String)}
+   */
+  @Deprecated
+  public abstract void setCompilerOutputPointer(@Nullable VirtualFilePointer pointer);
 
-  public abstract void setCompilerOutputUrl(String compilerOutputUrl);
+  public abstract void setCompilerOutputUrl(@Nullable String compilerOutputUrl);
 }
\ No newline at end of file