diff --git a/packages/schematics/angular/application/files/root/tsconfig.app.json.template b/packages/schematics/angular/application/files/root/tsconfig.app.json.template
index e8911503de66..d3cef1c5aa03 100644
--- a/packages/schematics/angular/application/files/root/tsconfig.app.json.template
+++ b/packages/schematics/angular/application/files/root/tsconfig.app.json.template
@@ -6,7 +6,8 @@
   },
   "exclude": [
     "test.ts",
-    "**/*.spec.ts"
+    "**/*.spec.ts",
+    "e2e/**"
   ]<% if (enableIvy) { %>,
   "angularCompilerOptions": {
     "enableIvy": true
diff --git a/packages/schematics/angular/application/index.ts b/packages/schematics/angular/application/index.ts
index 6163f83c7ed1..bce0c4530d5e 100644
--- a/packages/schematics/angular/application/index.ts
+++ b/packages/schematics/angular/application/index.ts
@@ -345,10 +345,8 @@ export default function (options: ApplicationOptions): Rule {
     const tsLintRoot = appDir;
 
     const e2eOptions: E2eOptions = {
-      name: `${options.name}-e2e`,
       relatedAppName: options.name,
       rootSelector: appRootSelector,
-      projectRoot: newProjectRoot ? `${newProjectRoot}/${options.name}-e2e` : 'e2e',
     };
 
     const styleExt = styleToFileExtention(options.style);
diff --git a/packages/schematics/angular/e2e/files/protractor.conf.js.template b/packages/schematics/angular/e2e/files/protractor.conf.js.template
index 86776a391a5b..9748e3d2930f 100644
--- a/packages/schematics/angular/e2e/files/protractor.conf.js.template
+++ b/packages/schematics/angular/e2e/files/protractor.conf.js.template
@@ -21,7 +21,7 @@ exports.config = {
   },
   onPrepare() {
     require('ts-node').register({
-      project: require('path').join(__dirname, './tsconfig.e2e.json')
+      project: require('path').join(__dirname, './tsconfig.json')
     });
     jasmine.getEnv().addReporter(new SpecReporter({ spec: { displayStacktrace: true } }));
   }
diff --git a/packages/schematics/angular/e2e/files/tsconfig.e2e.json.template b/packages/schematics/angular/e2e/files/tsconfig.e2e.json.template
deleted file mode 100644
index a5e0455e5ff4..000000000000
--- a/packages/schematics/angular/e2e/files/tsconfig.e2e.json.template
+++ /dev/null
@@ -1,13 +0,0 @@
-{
-  "extends": "<%= appDir.split('/').map(x => '..').join('/') %>/tsconfig.json",
-  "compilerOptions": {
-    "outDir": "<%= appDir.split('/').map(x => '..').join('/') %>/out-tsc/app",
-    "module": "commonjs",
-    "target": "es5",
-    "types": [
-      "jasmine",
-      "jasminewd2",
-      "node"
-    ]
-  }
-}
\ No newline at end of file
diff --git a/packages/schematics/angular/e2e/files/tsconfig.json.template b/packages/schematics/angular/e2e/files/tsconfig.json.template
new file mode 100644
index 000000000000..5df5f432cbca
--- /dev/null
+++ b/packages/schematics/angular/e2e/files/tsconfig.json.template
@@ -0,0 +1,13 @@
+{
+  "extends": "<%= relativePathToWorkspaceRoot %>/tsconfig.json",
+  "compilerOptions": {
+    "outDir": "<%= relativePathToWorkspaceRoot %>/out-tsc/e2e",
+    "module": "commonjs",
+    "target": "es5",
+    "types": [
+      "jasmine",
+      "jasminewd2",
+      "node"
+    ]
+  }
+}
\ No newline at end of file
diff --git a/packages/schematics/angular/e2e/index.ts b/packages/schematics/angular/e2e/index.ts
index e168a9e91507..9445f2288303 100644
--- a/packages/schematics/angular/e2e/index.ts
+++ b/packages/schematics/angular/e2e/index.ts
@@ -5,7 +5,7 @@
  * Use of this source code is governed by an MIT-style license that can be
  * found in the LICENSE file at https://angular.io/license
  */
-import { strings, tags } from '@angular-devkit/core';
+import { strings } from '@angular-devkit/core';
 import {
   Rule,
   SchematicContext,
@@ -20,120 +20,73 @@ import {
 } from '@angular-devkit/schematics';
 import { getWorkspace, updateWorkspace } from '../utility/config';
 import { getProject } from '../utility/project';
-import {
-  Builders,
-   ProjectType,
-  WorkspaceProject,
-  WorkspaceSchema,
-} from '../utility/workspace-models';
+import { Builders, WorkspaceSchema } from '../utility/workspace-models';
 import { Schema as E2eOptions } from './schema';
 
-function addAppToWorkspaceFile(options: E2eOptions, workspace: WorkspaceSchema): Rule {
-  return (host: Tree, context: SchematicContext) => {
-    let projectRoot = options.projectRoot !== undefined
-      ? options.projectRoot
-      : `${workspace.newProjectRoot}/${options.name}`;
+function getE2eRoot(projectRoot: string): string {
+  const root = projectRoot.split('/').filter(x => x).join('/');
 
-    if (projectRoot !== '' && !projectRoot.endsWith('/')) {
-      projectRoot += '/';
-    }
+  return root ? root + '/e2e' : 'e2e';
+}
 
-    if (getProject(workspace, options.name)) {
-      throw new SchematicsException(`Project name "${options.name}" already exists.`);
-    }
+function AddBuilderToWorkspace(options: E2eOptions, workspace: WorkspaceSchema): Rule {
+  return (host: Tree, context: SchematicContext) => {
+    const appProject = options.relatedAppName;
+    const project = getProject(workspace, appProject);
+    const architect = project.architect;
 
-    const project: WorkspaceProject = {
-      root: projectRoot,
-      projectType: ProjectType.Application,
-      prefix: '',
-      architect: {
-        e2e: {
-          builder: Builders.Protractor,
-          options: {
-            protractorConfig: `${projectRoot}protractor.conf.js`,
-            devServerTarget: `${options.relatedAppName}:serve`,
-          },
-          configurations: {
-            production: {
-              devServerTarget: `${options.relatedAppName}:serve:production`,
-            },
-          },
+    const projectRoot = getE2eRoot(project.root);
+
+    if (architect) {
+      architect.e2e = {
+        builder: Builders.Protractor,
+        options: {
+          protractorConfig: `${projectRoot}/protractor.conf.js`,
+          devServerTarget: `${options.relatedAppName}:serve`,
         },
-        lint: {
-          builder: Builders.TsLint,
-          options: {
-            tsConfig: `${projectRoot}tsconfig.e2e.json`,
-            exclude: [
-              '**/node_modules/**',
-            ],
+        configurations: {
+          production: {
+            devServerTarget: `${options.relatedAppName}:serve:production`,
           },
         },
-      },
-    };
-
-    workspace.projects[options.name] = project;
-
-    return updateWorkspace(workspace);
-  };
-}
-const projectNameRegexp = /^[a-zA-Z][.0-9a-zA-Z]*(-[.0-9a-zA-Z]*)*$/;
-const unsupportedProjectNames = ['test', 'ember', 'ember-cli', 'vendor', 'app'];
+      };
 
-function getRegExpFailPosition(str: string): number | null {
-  const parts = str.indexOf('-') >= 0 ? str.split('-') : [str];
-  const matched: string[] = [];
+      const lintConfig = architect.lint;
+      if (lintConfig) {
+        lintConfig.options.tsConfig =
+          lintConfig.options.tsConfig.concat(`${projectRoot}/tsconfig.json`);
+      }
 
-  parts.forEach(part => {
-    if (part.match(projectNameRegexp)) {
-      matched.push(part);
+      workspace.projects[options.relatedAppName] = project;
     }
-  });
-
-  const compare = matched.join('-');
-
-  return (str !== compare) ? compare.length : null;
-}
-
-function validateProjectName(projectName: string) {
-  const errorIndex = getRegExpFailPosition(projectName);
-  if (errorIndex !== null) {
-    const firstMessage = tags.oneLine`
-      Project name "${projectName}" is not valid. New project names must
-      start with a letter, and must contain only alphanumeric characters or dashes.
-      When adding a dash the segment after the dash must also start with a letter.
-    `;
-    const msg = tags.stripIndent`
-      ${firstMessage}
-      ${projectName}
-      ${Array(errorIndex + 1).join(' ') + '^'}
-    `;
-    throw new SchematicsException(msg);
-  } else if (unsupportedProjectNames.indexOf(projectName) !== -1) {
-    throw new SchematicsException(`Project name "${projectName}" is not a supported name.`);
-  }
 
+    return updateWorkspace(workspace);
+  };
 }
 
 export default function (options: E2eOptions): Rule {
   return (host: Tree) => {
-    validateProjectName(options.name);
-
+    const appProject = options.relatedAppName;
     const workspace = getWorkspace(host);
-    const appDir = options.projectRoot !== undefined
-      ? options.projectRoot
-      : `${workspace.newProjectRoot}/${options.name}`;
+    const project = getProject(workspace, appProject);
+
+    if (!project) {
+      throw new SchematicsException(`Project name "${appProject}" doesn't not exist.`);
+    }
+
+    const root = getE2eRoot(project.root);
+    const relativePathToWorkspaceRoot = root.split('/').map(() => '..').join('/');
 
     return chain([
-      addAppToWorkspaceFile(options, workspace),
+      AddBuilderToWorkspace(options, workspace),
       mergeWith(
         apply(url('./files'), [
           applyTemplates({
             utils: strings,
             ...options,
-            'dot': '.',
-            appDir,
+            relativePathToWorkspaceRoot,
           }),
-          move(appDir),
+          move(root),
         ])),
     ]);
   };
diff --git a/packages/schematics/angular/e2e/index_spec.ts b/packages/schematics/angular/e2e/index_spec.ts
index 6ac8e78036aa..9cc765bdecb5 100644
--- a/packages/schematics/angular/e2e/index_spec.ts
+++ b/packages/schematics/angular/e2e/index_spec.ts
@@ -6,10 +6,10 @@
  * found in the LICENSE file at https://angular.io/license
  */
 import { SchematicTestRunner, UnitTestTree } from '@angular-devkit/schematics/testing';
+import { Schema as ApplicationOptions } from '../application/schema';
 import { Schema as WorkspaceOptions } from '../workspace/schema';
 import { Schema as E2eOptions } from './schema';
 
-// tslint:disable:max-line-length
 describe('Application Schematic', () => {
   const schematicRunner = new SchematicTestRunner(
     '@schematics/angular',
@@ -23,81 +23,81 @@ describe('Application Schematic', () => {
   };
 
   const defaultOptions: E2eOptions = {
+    relatedAppName: 'foo',
+  };
+
+  const defaultAppOptions: ApplicationOptions = {
     name: 'foo',
-    relatedAppName: 'app',
+    inlineStyle: true,
+    inlineTemplate: true,
+    routing: false,
+    skipPackageJson: false,
+    minimal: true,
   };
 
-  let workspaceTree: UnitTestTree;
+  let applicationTree: UnitTestTree;
+
   beforeEach(() => {
-    workspaceTree = schematicRunner.runSchematic('workspace', workspaceOptions);
+    const workspaceTree = schematicRunner.runSchematic('workspace', workspaceOptions);
+    applicationTree = schematicRunner.runSchematic('application', defaultAppOptions, workspaceTree);
   });
 
-  it('should create all files of an e2e application', () => {
-    const tree = schematicRunner.runSchematic('e2e', defaultOptions, workspaceTree);
+  it('should create all files of e2e in an application', () => {
+    const tree = schematicRunner.runSchematic('e2e', defaultOptions, applicationTree);
     const files = tree.files;
     expect(files).toEqual(jasmine.arrayContaining([
-      '/projects/foo/protractor.conf.js',
-      '/projects/foo/tsconfig.e2e.json',
-      '/projects/foo/src/app.e2e-spec.ts',
-      '/projects/foo/src/app.po.ts',
+      '/projects/foo/e2e/protractor.conf.js',
+      '/projects/foo/e2e/tsconfig.json',
+      '/projects/foo/e2e/src/app.e2e-spec.ts',
+      '/projects/foo/e2e/src/app.po.ts',
     ]));
   });
 
-  it('should create all files of an e2e application', () => {
-    const options = {...defaultOptions, projectRoot: 'e2e'};
-    const tree = schematicRunner.runSchematic('e2e', options, workspaceTree);
-    const files = tree.files;
-    expect(files).not.toContain('/projects/foo/protractor.conf.js');
-    expect(files).toContain('/e2e/protractor.conf.js');
-  });
-
   it('should set the rootSelector in the app.po.ts', () => {
-    const tree = schematicRunner.runSchematic('e2e', defaultOptions, workspaceTree);
-    const content = tree.readContent('/projects/foo/src/app.po.ts');
+    const tree = schematicRunner.runSchematic('e2e', defaultOptions, applicationTree);
+    const content = tree.readContent('/projects/foo/e2e/src/app.po.ts');
     expect(content).toMatch(/app\-root/);
   });
 
   it('should set the rootSelector in the app.po.ts from the option', () => {
     const options = {...defaultOptions, rootSelector: 't-a-c-o'};
-    const tree = schematicRunner.runSchematic('e2e', options, workspaceTree);
-    const content = tree.readContent('/projects/foo/src/app.po.ts');
+    const tree = schematicRunner.runSchematic('e2e', options, applicationTree);
+    const content = tree.readContent('/projects/foo/e2e/src/app.po.ts');
     expect(content).toMatch(/t\-a\-c\-o/);
   });
 
   it('should set the rootSelector in the app.po.ts from the option with emoji', () => {
     const options = {...defaultOptions, rootSelector: '🌮-🌯'};
-    const tree = schematicRunner.runSchematic('e2e', options, workspaceTree);
-    const content = tree.readContent('/projects/foo/src/app.po.ts');
+    const tree = schematicRunner.runSchematic('e2e', options, applicationTree);
+    const content = tree.readContent('/projects/foo/e2e/src/app.po.ts');
     expect(content).toMatch(/🌮-🌯/);
   });
 
   describe('workspace config', () => {
-    it('should create the e2e app', () => {
-      const tree = schematicRunner.runSchematic('e2e', defaultOptions, workspaceTree);
-      const workspace = JSON.parse(tree.readContent('/angular.json'));
-      expect(workspace.projects.foo).toBeDefined();
-    });
-
-    it('should set 2 targets for the app', () => {
-      const tree = schematicRunner.runSchematic('e2e', defaultOptions, workspaceTree);
+    it('should add e2e targets for the app', () => {
+      const tree = schematicRunner.runSchematic('e2e', defaultOptions, applicationTree);
       const workspace = JSON.parse(tree.readContent('/angular.json'));
       const targets = workspace.projects.foo.architect;
-      expect(Object.keys(targets)).toEqual(['e2e', 'lint']);
+      expect(targets.e2e).toBeDefined();
     });
 
     it('should set the e2e options', () => {
-      const tree = schematicRunner.runSchematic('e2e', defaultOptions, workspaceTree);
+      const tree = schematicRunner.runSchematic('e2e', defaultOptions, applicationTree);
       const workspace = JSON.parse(tree.readContent('/angular.json'));
       const e2eOptions = workspace.projects.foo.architect.e2e.options;
-      expect(e2eOptions.protractorConfig).toEqual('projects/foo/protractor.conf.js');
-      expect(e2eOptions.devServerTarget).toEqual('app:serve');
+      expect(e2eOptions.protractorConfig).toEqual('projects/foo/e2e/protractor.conf.js');
+      expect(e2eOptions.devServerTarget).toEqual('foo:serve');
     });
 
     it('should set the lint options', () => {
-      const tree = schematicRunner.runSchematic('e2e', defaultOptions, workspaceTree);
+      const tree = schematicRunner.runSchematic('e2e', defaultOptions, applicationTree);
       const workspace = JSON.parse(tree.readContent('/angular.json'));
       const lintOptions = workspace.projects.foo.architect.lint.options;
-      expect(lintOptions.tsConfig).toEqual('projects/foo/tsconfig.e2e.json');
+      expect(lintOptions.tsConfig).toEqual([
+        'projects/foo/tsconfig.app.json',
+        'projects/foo/tsconfig.spec.json',
+        'projects/foo/e2e/tsconfig.json',
+      ]);
     });
   });
 });
diff --git a/packages/schematics/angular/e2e/schema.json b/packages/schematics/angular/e2e/schema.json
index 89201ad387e9..a65ba1364f0f 100644
--- a/packages/schematics/angular/e2e/schema.json
+++ b/packages/schematics/angular/e2e/schema.json
@@ -6,20 +6,6 @@
   "description": "Generates a new, generic end-to-end test definition for the given or default project.",
   "long-description": "e2e-long.md",
   "properties": {
-    "projectRoot": {
-      "description": "The root folder for the new test app.",
-      "type": "string",
-      "visible": false
-    },
-    "name": {
-      "description": "The name of the new e2e app.",
-      "type": "string",
-      "format": "html-selector",
-      "$default": {
-        "$source": "argv",
-        "index": 0
-      }
-    },
     "rootSelector": {
       "description": "The HTML selector for the root component of the test app.",
       "type": "string",
@@ -31,7 +17,6 @@
     }
   },
   "required": [
-    "name",
     "relatedAppName"
   ]
 }
diff --git a/packages/schematics/angular/ng-new/index_spec.ts b/packages/schematics/angular/ng-new/index_spec.ts
index dfd5a3824066..772ab5b1fd39 100644
--- a/packages/schematics/angular/ng-new/index_spec.ts
+++ b/packages/schematics/angular/ng-new/index_spec.ts
@@ -37,6 +37,10 @@ describe('Ng New Schematic', () => {
       '/bar/src/tsconfig.app.json',
       '/bar/src/main.ts',
       '/bar/src/app/app.module.ts',
+      '/bar/e2e/src/app.po.ts',
+      '/bar/e2e/src/app.e2e-spec.ts',
+      '/bar/e2e/tsconfig.json',
+      '/bar/e2e/protractor.conf.js',
     ]));
   });
 
@@ -68,13 +72,11 @@ describe('Ng New Schematic', () => {
     expect(files).not.toContain('/bar/src');
   });
 
-  it('minimal=true should not create e2e project', () => {
+  it('minimal=true should not create an e2e target', () => {
     const options = { ...defaultOptions, minimal: true };
 
     const tree = schematicRunner.runSchematic('ng-new', options);
-    const files = tree.files;
-    expect(files).not.toContain('/bar/e2e');
     const confContent = JSON.parse(tree.readContent('/bar/angular.json'));
-    expect(confContent.projects['foo-e2e']).toBeUndefined();
+    expect(confContent.projects.foo.e2e).toBeUndefined();
   });
 });
diff --git a/tests/legacy-cli/e2e/tests/basic/e2e.ts b/tests/legacy-cli/e2e/tests/basic/e2e.ts
index 1051adc17996..fa3100915d46 100644
--- a/tests/legacy-cli/e2e/tests/basic/e2e.ts
+++ b/tests/legacy-cli/e2e/tests/basic/e2e.ts
@@ -19,18 +19,18 @@ export default function () {
     scripts['wd:clean'] = 'webdriver-manager clean';
   })
     .then(() => npm('run', 'wd:clean'))
-    .then(() => expectToFail(() => ng('e2e', 'test-project-e2e', '--no-webdriver-update', '--devServerTarget=')))
+    .then(() => expectToFail(() => ng('e2e', 'test-project', '--no-webdriver-update', '--devServerTarget=')))
     // Add back the pre-defined version of webdriver. This script is defined when making projects.
     .then(() => npm('run', 'webdriver-update'))
     // Should fail without serving
-    .then(() => expectToFail(() => ng('e2e', 'test-project-e2e', '--devServerTarget=')))
+    .then(() => expectToFail(() => ng('e2e', 'test-project', '--devServerTarget=')))
     // These should work.
-    .then(() => ng('e2e', 'test-project-e2e'))
-    .then(() => ng('e2e', 'test-project-e2e', '--devServerTarget=test-project:serve:production'))
+    .then(() => ng('e2e', 'test-project'))
+    .then(() => ng('e2e', 'test-project', '--devServerTarget=test-project:serve:production'))
     // Should accept different config file
     .then(() => moveFile('./e2e/protractor.conf.js',
       './e2e/renamed-protractor.conf.js'))
-    .then(() => ng('e2e', 'test-project-e2e',
+    .then(() => ng('e2e', 'test-project',
       '--protractorConfig=e2e/renamed-protractor.conf.js'))
     .then(() => moveFile('./e2e/renamed-protractor.conf.js', './e2e/protractor.conf.js'))
     // Should accept different multiple spec files
@@ -38,7 +38,7 @@ export default function () {
       './e2e/src/renamed-app.e2e-spec.ts'))
     .then(() => copyFile('./e2e/src/renamed-app.e2e-spec.ts',
       './e2e/src/another-app.e2e-spec.ts'))
-    .then(() => ng('e2e', 'test-project-e2e', '--specs', './e2e/renamed-app.e2e-spec.ts',
+    .then(() => ng('e2e', 'test-project', '--specs', './e2e/renamed-app.e2e-spec.ts',
       '--specs', './e2e/another-app.e2e-spec.ts'))
     // Rename the spec back to how it was.
     .then(() => moveFile('./e2e/src/renamed-app.e2e-spec.ts',
@@ -50,7 +50,7 @@ export default function () {
             app: './e2e/src/app.e2e-spec.ts'
           },
     `))
-    .then(() => ng('e2e', 'test-project-e2e', '--suite=app'))
+    .then(() => ng('e2e', 'test-project', '--suite=app'))
     // Remove suites block from protractor.conf.js file after testing suites
     .then(() => replaceInFile('e2e/protractor.conf.js', `allScriptsTimeout: 11000,
           suites: {
@@ -59,7 +59,7 @@ export default function () {
     `, `allScriptsTimeout: 11000,`
     ))
     // Should start up Element Explorer
-    .then(() => execAndWaitForOutputToMatch('ng', ['e2e', 'test-project-e2e', '--element-explorer'],
+    .then(() => execAndWaitForOutputToMatch('ng', ['e2e', 'test-project', '--element-explorer'],
       /Element Explorer/))
     .then(() => killAllProcesses(), (err: any) => {
       killAllProcesses();
@@ -68,7 +68,7 @@ export default function () {
     // Should run side-by-side with `ng serve`
     .then(() => execAndWaitForOutputToMatch('ng', ['serve'],
       /: Compiled successfully./))
-    .then(() => ng('e2e', 'test-project-e2e', '--devServerTarget='))
+    .then(() => ng('e2e', 'test-project', '--devServerTarget='))
     .then(() => killAllProcesses(), (err: any) => {
       killAllProcesses();
       throw err;
diff --git a/tests/legacy-cli/e2e/tests/generate/application/application-basic.ts b/tests/legacy-cli/e2e/tests/generate/application/application-basic.ts
index 340f4ac4807b..e5459bb9e185 100644
--- a/tests/legacy-cli/e2e/tests/generate/application/application-basic.ts
+++ b/tests/legacy-cli/e2e/tests/generate/application/application-basic.ts
@@ -1,5 +1,5 @@
-import {ng} from '../../../utils/process';
 import { expectFileToMatch } from '../../../utils/fs';
+import { ng } from '../../../utils/process';
 import { useCIChrome } from '../../../utils/project';
 
 
@@ -7,6 +7,5 @@ export default function() {
   return ng('generate', 'application', 'app2')
     .then(() => expectFileToMatch('angular.json', /\"app2\":/))
     .then(() => useCIChrome('projects/app2'))
-    .then(() => useCIChrome('projects/app2-e2e'))
     .then(() => ng('test', 'app2', '--watch=false', '--browsers=ChromeHeadlessCI'));
 }
diff --git a/tests/legacy-cli/e2e/tests/generate/directive/directive-prefix.ts b/tests/legacy-cli/e2e/tests/generate/directive/directive-prefix.ts
index 1f480e69cdef..127b88b18868 100644
--- a/tests/legacy-cli/e2e/tests/generate/directive/directive-prefix.ts
+++ b/tests/legacy-cli/e2e/tests/generate/directive/directive-prefix.ts
@@ -16,15 +16,16 @@ export default function() {
     .then(() => ng('generate', 'directive', 'test2-directive'))
     .then(() => expectFileToMatch(join(directiveDir, 'test2-directive.directive.ts'),
       /selector: '\[preW/))
+    .then(() => ng('generate', 'application', 'app-two', '--skip-install'))
     .then(() => updateJsonFile('angular.json', configJson => {
       configJson.projects['test-project'].schematics = {
         '@schematics/angular:directive': { prefix: 'preP' }
       };
     }))
-    .then(() => process.chdir('e2e/src'))
+    .then(() => process.chdir('projects/app-two'))
     .then(() => ng('generate', 'directive', '--skip-import', 'test3-directive'))
     .then(() => process.chdir('../..'))
-    .then(() => expectFileToMatch(join('e2e', 'src', 'test3-directive.directive.ts'),
+    .then(() => expectFileToMatch(join('projects', 'app-two', 'test3-directive.directive.ts'),
       /selector: '\[preW/))
     .then(() => process.chdir('src/app'))
     .then(() => ng('generate', 'directive', 'test-directive'))
diff --git a/tests/legacy-cli/e2e/utils/project.ts b/tests/legacy-cli/e2e/utils/project.ts
index 6d63c6792f7c..1a64118a99c4 100644
--- a/tests/legacy-cli/e2e/utils/project.ts
+++ b/tests/legacy-cli/e2e/utils/project.ts
@@ -48,7 +48,7 @@ export async function createProject(name: string, ...args: string[]) {
 }
 
 export async function prepareProjectForE2e(name) {
-  const argv: any = getGlobalVariable('argv');
+  const argv: string[] = getGlobalVariable('argv');
 
   await git('config', 'user.email', 'angular-core+e2e@google.com');
   await git('config', 'user.name', 'Angular CLI E2e');
@@ -209,9 +209,9 @@ export function useCIDefaults(projectName = 'test-project') {
     // Use the CI chrome setup in karma.
     appTargets.test.options.browsers = 'ChromeHeadlessCI';
     // Disable auto-updating webdriver in e2e.
-    const e2eProject = workspaceJson.projects[projectName + '-e2e'];
-    const e2eTargets = e2eProject.targets || e2eProject.architect;
-    e2eTargets.e2e.options.webdriverUpdate = false;
+    if (appTargets.e2e) {
+      appTargets.e2e.options.webdriverUpdate = false;
+    }
   })
   .then(() => updateJsonFile('package.json', json => {
     // Use matching versions of Chrome and Webdriver.