diff --git a/setup.py b/setup.py
index 4cd1b1f9..4ab6b3b1 100755
--- a/setup.py
+++ b/setup.py
@@ -397,8 +397,6 @@ class TestBaseCommand(distutils.core.Command):
         self._external_coverage = False
 
     def finalize_options(self):
-        if self.debug and "DEBUG_TESTS" not in os.environ:
-            os.environ["DEBUG_TESTS"] = "1"
         if self.only:
             # Can do --only many-devices to match on the cli testcase
             # for "virt-install-many-devices", despite the actual test
@@ -438,6 +436,9 @@ class TestBaseCommand(distutils.core.Command):
         testsmodule.utils.clistate.regenerate_output = bool(
                 self.regenerate_output)
         testsmodule.utils.clistate.use_coverage = bool(cov)
+        testsmodule.utils.clistate.debug = bool(self.debug)
+        testsmodule.setup_logging()
+        testsmodule.setup_cli_imports()
 
         # This makes the test runner report results before exiting from ctrl-c
         unittest.installHandler()
diff --git a/tests/__init__.py b/tests/__init__.py
index 0482e6f0..99bf38ad 100644
--- a/tests/__init__.py
+++ b/tests/__init__.py
@@ -38,7 +38,7 @@ virtconvert = None
 virtxml = None
 
 
-def _setup_logging():
+def setup_logging():
     rootLogger = logging.getLogger()
     for handler in rootLogger.handlers:
         rootLogger.removeHandler(handler)
@@ -46,13 +46,13 @@ def _setup_logging():
     logging.basicConfig(level=logging.DEBUG,
                         format="%(levelname)-8s %(message)s")
 
-    if utils.get_debug():
+    if utils.clistate.debug:
         rootLogger.setLevel(logging.DEBUG)
     else:
         rootLogger.setLevel(logging.ERROR)
 
 
-def _setup_cli_imports():
+def setup_cli_imports():
     _cleanup_imports = []
 
     def _cleanup_imports_cb():
@@ -73,7 +73,3 @@ def _setup_cli_imports():
     virtclone = _import("virtclone", "virt-clone")
     virtconvert = _import("virtconvert", "virt-convert")
     virtxml = _import("virtxml", "virt-xml")
-
-
-_setup_logging()
-_setup_cli_imports()
diff --git a/tests/test_urls.py b/tests/test_urls.py
index 3864f776..878fb0ad 100644
--- a/tests/test_urls.py
+++ b/tests/test_urls.py
@@ -106,7 +106,7 @@ hvmguest.os.os_type = "hvm"
 xenguest = Guest(testconn)
 xenguest.os.os_type = "xen"
 
-meter = util.make_meter(quiet=not utils.get_debug())
+meter = util.make_meter(quiet=not utils.clistate.debug)
 
 
 def _storeForDistro(fetcher, guest):
diff --git a/tests/uitests/utils.py b/tests/uitests/utils.py
index 1f7d61e8..b813f528 100644
--- a/tests/uitests/utils.py
+++ b/tests/uitests/utils.py
@@ -339,7 +339,7 @@ class VMMDogtailApp(object):
     def open(self, extra_opts=None):
         extra_opts = extra_opts or []
 
-        if tests.utils.get_debug():
+        if tests.utils.clistate.debug:
             stdout = sys.stdout
             stderr = sys.stderr
             extra_opts.append("--debug")
diff --git a/tests/utils.py b/tests/utils.py
index c97a5929..e81f19b7 100644
--- a/tests/utils.py
+++ b/tests/utils.py
@@ -33,6 +33,7 @@ class _CLIState(object):
     def __init__(self):
         self.regenerate_output = False
         self.use_coverage = False
+        self.debug = False
 clistate = _CLIState()
 
 
@@ -64,11 +65,6 @@ uri_lxc = uri_test + _capsprefix + "lxc.xml,lxc"
 uri_vz = uri_test + _capsprefix + "vz.xml,vz"
 
 
-def get_debug():
-    return ("DEBUG_TESTS" in os.environ and
-            os.environ["DEBUG_TESTS"] == "1")
-
-
 def _make_uri(base, connver=None, libver=None):
     if connver:
         base += ",connver=%s" % connver