diff --git a/xtext-gradle-builder/src/main/java/org/xtext/gradle/builder/XtextGradleBuilder.xtend b/xtext-gradle-builder/src/main/java/org/xtext/gradle/builder/XtextGradleBuilder.xtend
index 9b02d763..79597b45 100644
--- a/xtext-gradle-builder/src/main/java/org/xtext/gradle/builder/XtextGradleBuilder.xtend
+++ b/xtext-gradle-builder/src/main/java/org/xtext/gradle/builder/XtextGradleBuilder.xtend
@@ -9,7 +9,6 @@ import com.google.inject.Guice
 import java.io.Closeable
 import java.io.File
 import java.net.URLClassLoader
-import java.nio.file.Paths
 import java.util.List
 import java.util.Set
 import java.util.concurrent.ConcurrentHashMap
@@ -251,8 +250,7 @@ class XtextGradleBuilder implements IncrementalXtextBuilder {
 			gradleRequest.generatorConfigsByLanguage.mapValues[
 				outputConfigs.map[gradleOutputConfig|
 					new OutputConfiguration(gradleOutputConfig.outletName) => [
-						outputDirectory = Paths.get(gradleRequest.projectDir.absolutePath).relativize(Paths.get(
-							gradleOutputConfig.target.absolutePath)).toString
+						outputDirectory = gradleOutputConfig.target.absolutePath
 					]
 				].toSet
 			]
diff --git a/xtext-gradle-plugin/src/integTest/java/org/xtext/gradle/test/BuildingAMultiModuleXtendProject.xtend b/xtext-gradle-plugin/src/integTest/java/org/xtext/gradle/test/BuildingAMultiModuleXtendProject.xtend
index f62ac252..024851d8 100644
--- a/xtext-gradle-plugin/src/integTest/java/org/xtext/gradle/test/BuildingAMultiModuleXtendProject.xtend
+++ b/xtext-gradle-plugin/src/integTest/java/org/xtext/gradle/test/BuildingAMultiModuleXtendProject.xtend
@@ -62,40 +62,4 @@ class BuildingAMultiModuleXtendProject extends AbstractXtendIntegrationTest {
 		result.hasRunGeneratorFor(downStream)
 	}
 
-	@Test
-	def void activeAnnotationsCanGenerateFilesUsingOutputConfigurations() {
-		upStreamProject.createFile('src/main/java/com/example/Generate.xtend', '''
-			package com.example
-			import java.util.List
-			import org.eclipse.xtend.lib.macro.AbstractClassProcessor
-			import org.eclipse.xtend.lib.macro.CodeGenerationContext
-			import org.eclipse.xtend.lib.macro.declaration.ClassDeclaration
-			class GenerateProcessor extends AbstractClassProcessor {
-				override doGenerateCode(List<? extends ClassDeclaration> annotatedSourceElements, extension CodeGenerationContext context) {
-				    for (clazz : annotatedSourceElements) {
-				      val filePath = clazz.compilationUnit.filePath
-				      val folder = context.getTargetFolder(filePath)
-				      val file = folder.append("Test.info")
-				      file.contents = clazz.getSimpleName
-				    }
-				  }
-			}
-		''')
-		upStreamProject.createFile('src/main/java/com/example/GenerateProcessor.xtend', '''
-			package com.example
-			import org.eclipse.xtend.lib.macro.Active
-			@Active(GenerateProcessor)
-			annotation Generate {}
-		''')
-		downStreamProject.createFile('src/main/java/com/example/HelloWorld.xtend', '''
-			package com.example
-			@Generate
-			class HelloWorld {}
-		''')
-
-		build('build')
-
-		file('downStream/build/xtend/main/Test.info').shouldExist
-	}
-
 }
\ No newline at end of file