diff --git a/rclpy/CMakeLists.txt b/rclpy/CMakeLists.txt
index de713387f..c52b7c0ba 100644
--- a/rclpy/CMakeLists.txt
+++ b/rclpy/CMakeLists.txt
@@ -26,19 +26,16 @@ if(WIN32 AND CMAKE_BUILD_TYPE STREQUAL "Debug")
   set(PYTHON_EXECUTABLE "${PYTHON_EXECUTABLE_DEBUG}")
 endif()
 
-# enables using the Python package from the source space
-# This creates a folder in ${CMAKE_CURRENT_BINARY_DIR}/rclpy which has all the
-# as well as the compiled modules from the build space
-# necessary Python code and C Python extensions for running tests.
-configure_file("__init__.py.in" "rclpy/__init__.py" @ONLY)
+# enables using the Python extensions from the build space for testing
+file(WRITE "${CMAKE_CURRENT_BINARY_DIR}/test_rclpy/__init__.py" "")
 
 ament_python_install_package(${PROJECT_NAME})
 
 function(set_properties _targetname _build_type)
   set_target_properties(${_targetname} PROPERTIES
     PREFIX ""
-    LIBRARY_OUTPUT_DIRECTORY${_build_type} "${CMAKE_CURRENT_BINARY_DIR}/${PROJECT_NAME}"
-    RUNTIME_OUTPUT_DIRECTORY${_build_type} "${CMAKE_CURRENT_BINARY_DIR}/${PROJECT_NAME}"
+    LIBRARY_OUTPUT_DIRECTORY${_build_type} "${CMAKE_CURRENT_BINARY_DIR}/test_${PROJECT_NAME}"
+    RUNTIME_OUTPUT_DIRECTORY${_build_type} "${CMAKE_CURRENT_BINARY_DIR}/test_${PROJECT_NAME}"
     OUTPUT_NAME "_${_targetname}${PythonExtra_EXTENSION_SUFFIX}"
     SUFFIX "${PythonExtra_EXTENSION_EXTENSION}")
 endfunction()
@@ -109,9 +106,9 @@ if(BUILD_TESTING)
   endif()
   if(NOT _typesupport_impls STREQUAL "")
     ament_add_pytest_test(rclpytests test
-      WORKING_DIRECTORY "${CMAKE_CURRENT_BINARY_DIR}"
       PYTHON_EXECUTABLE "${PYTHON_EXECUTABLE}"
       APPEND_ENV AMENT_PREFIX_PATH=${ament_index_build_path}
+        PYTHONPATH=${CMAKE_CURRENT_BINARY_DIR}
       TIMEOUT 90
     )
   endif()
diff --git a/rclpy/__init__.py.in b/rclpy/__init__.py.in
deleted file mode 100644
index e64ea1ba7..000000000
--- a/rclpy/__init__.py.in
+++ /dev/null
@@ -1,35 +0,0 @@
-# -*- coding: utf-8 -*-
-# generated from rclpy/__init__.py.in
-# keep symbol table as clean as possible by deleting all unnecessary symbols
-
-from os import path as os_path
-from pkgutil import extend_path
-from sys import path as sys_path
-
-source_path = '@CMAKE_CURRENT_SOURCE_DIR@'
-sys_path.insert(0, source_path)
-del sys_path
-
-__path__ = extend_path(__path__, __name__)
-del extend_path
-
-__execfiles = []
-src_init_file = os_path.join(source_path, __name__ + '.py')
-if os_path.isfile(src_init_file):
-    __execfiles.append(src_init_file)
-else:
-    src_init_file = os_path.join(source_path, __name__, '__init__.py')
-    if os_path.isfile(src_init_file):
-        __execfiles.append(src_init_file)
-del os_path
-del src_init_file
-del source_path
-
-for __execfile in __execfiles:
-    with open(__execfile, 'r') as __fh:
-        __code_object = compile(__fh.read(), __execfile, 'exec')
-        exec(__code_object)
-        del __code_object
-    del __fh
-    del __execfile
-del __execfiles
diff --git a/rclpy/rclpy/__init__.py b/rclpy/rclpy/__init__.py
index 9b05ecba6..0569e8228 100644
--- a/rclpy/rclpy/__init__.py
+++ b/rclpy/rclpy/__init__.py
@@ -14,9 +14,6 @@
 
 import sys
 
-from rclpy.executors import SingleThreadedExecutor as _SingleThreadedExecutor
-from rclpy.impl.implementation_singleton import rclpy_implementation as _rclpy
-from rclpy.node import Node
 from rclpy.utilities import get_rmw_implementation_identifier  # noqa
 from rclpy.utilities import ok
 from rclpy.utilities import shutdown  # noqa
@@ -24,15 +21,22 @@
 
 
 def init(*, args=None):
-    return _rclpy.rclpy_init(args if args is not None else sys.argv)
+    # imported locally to avoid loading extensions on module import
+    from rclpy.impl.implementation_singleton import rclpy_implementation
+    return rclpy_implementation.rclpy_init(
+        args if args is not None else sys.argv)
 
 
 def create_node(node_name, *, namespace=None):
+    # imported locally to avoid loading extensions on module import
+    from rclpy.node import Node
     return Node(node_name, namespace=namespace)
 
 
 def spin_once(node, *, timeout_sec=None):
-    executor = _SingleThreadedExecutor()
+    # imported locally to avoid loading extensions on module import
+    from rclpy.executors import SingleThreadedExecutor
+    executor = SingleThreadedExecutor()
     try:
         executor.add_node(node)
         executor.spin_once(timeout_sec=timeout_sec)
@@ -41,7 +45,9 @@ def spin_once(node, *, timeout_sec=None):
 
 
 def spin(node):
-    executor = _SingleThreadedExecutor()
+    # imported locally to avoid loading extensions on module import
+    from rclpy.executors import SingleThreadedExecutor
+    executor = SingleThreadedExecutor()
     try:
         executor.add_node(node)
         while ok():
diff --git a/rclpy/rclpy/impl/__init__.py b/rclpy/rclpy/impl/__init__.py
index e69de29bb..da56aee2f 100644
--- a/rclpy/rclpy/impl/__init__.py
+++ b/rclpy/rclpy/impl/__init__.py
@@ -0,0 +1,28 @@
+# Copyright 2016-2017 Open Source Robotics Foundation, Inc.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+import importlib
+import os
+
+
+def _import(name):
+    try:
+        return importlib.import_module(name, package='rclpy')
+    except ImportError as e:
+        if e.path is not None and os.path.isfile(e.path):
+            e.msg += \
+                "\nThe C extension '%s' failed to be imported while being present on the system." \
+                " Please refer to '%s' for possible solutions" % \
+                (e.path, 'https://github.com/ros2/ros2/wiki/Rclpy-Import-error-hint')
+        raise
diff --git a/rclpy/rclpy/impl/implementation_singleton.py b/rclpy/rclpy/impl/implementation_singleton.py
index 6551d0b22..1f984bd66 100644
--- a/rclpy/rclpy/impl/implementation_singleton.py
+++ b/rclpy/rclpy/impl/implementation_singleton.py
@@ -26,16 +26,7 @@
         # ...
 """
 
-import importlib
-import os
+from rclpy.impl import _import
 
-try:
-    rclpy_implementation = importlib.import_module('._rclpy', package='rclpy')
-    rclpy_logging_implementation = importlib.import_module('._rclpy_logging', package='rclpy')
-except ImportError as e:
-    if e.path is not None and os.path.isfile(e.path):
-        e.msg += \
-            "\nThe C extension '%s' failed to be imported while being present on the system." \
-            " Please refer to '%s' for possible solutions" % \
-            (e.path, 'https://github.com/ros2/ros2/wiki/Rclpy-Import-error-hint')
-    raise
+rclpy_implementation = _import('._rclpy')
+rclpy_logging_implementation = _import('._rclpy_logging')
diff --git a/rclpy/rclpy/utilities.py b/rclpy/rclpy/utilities.py
index 00de43212..58141481e 100644
--- a/rclpy/rclpy/utilities.py
+++ b/rclpy/rclpy/utilities.py
@@ -14,27 +14,33 @@
 
 import threading
 
-from rclpy.impl.implementation_singleton import rclpy_implementation as _rclpy
-
 g_shutdown_lock = threading.Lock()
 
 
 def ok():
+    # imported locally to avoid loading extensions on module import
+    from rclpy.impl.implementation_singleton import rclpy_implementation
     with g_shutdown_lock:
-        return _rclpy.rclpy_ok()
+        return rclpy_implementation.rclpy_ok()
 
 
 def shutdown():
+    # imported locally to avoid loading extensions on module import
+    from rclpy.impl.implementation_singleton import rclpy_implementation
     with g_shutdown_lock:
-        return _rclpy.rclpy_shutdown()
+        return rclpy_implementation.rclpy_shutdown()
 
 
 def try_shutdown():
     """Shutdown rclpy if not already shutdown."""
+    # imported locally to avoid loading extensions on module import
+    from rclpy.impl.implementation_singleton import rclpy_implementation
     with g_shutdown_lock:
-        if _rclpy.rclpy_ok():
-            return _rclpy.rclpy_shutdown()
+        if rclpy_implementation.rclpy_ok():
+            return rclpy_implementation.rclpy_shutdown()
 
 
 def get_rmw_implementation_identifier():
-    return _rclpy.rclpy_get_rmw_implementation_identifier()
+    # imported locally to avoid loading extensions on module import
+    from rclpy.impl.implementation_singleton import rclpy_implementation
+    return rclpy_implementation.rclpy_get_rmw_implementation_identifier()
diff --git a/rclpy/test/__init__.py b/rclpy/test/__init__.py
index 22c381697..8f1a3098a 100644
--- a/rclpy/test/__init__.py
+++ b/rclpy/test/__init__.py
@@ -1,4 +1,4 @@
-# Copyright 2016 Open Source Robotics Foundation, Inc.
+# Copyright 2016-2017 Open Source Robotics Foundation, Inc.
 #
 # Licensed under the Apache License, Version 2.0 (the "License");
 # you may not use this file except in compliance with the License.
@@ -12,11 +12,18 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-import os
+import importlib
 import sys
 
 assert 'rclpy' not in sys.modules, 'rclpy should not have been imported before running tests'
-sys.path.insert(0, os.getcwd())
 
-import rclpy  # noqa
-assert rclpy  # silence pyflakes
+# this will make the extensions load from the build folder
+import rclpy.impl  # noqa
+import test_rclpy  # noqa
+
+
+def _custom_import(name):
+    return importlib.import_module(name, package='test_rclpy')
+
+
+rclpy.impl._import = _custom_import