--- a/contrib/pg_upgrade/test.sh
+++ b/contrib/pg_upgrade/test.sh
@@ -83,7 +83,7 @@ set -x
 
 $oldbindir/initdb -N
 $oldbindir/pg_ctl start -l "$logdir/postmaster1.log" -o "$POSTMASTER_OPTS" -w
-if "$MAKE" -C "$oldsrc" installcheck; then
+if "$MAKE" -C "$oldsrc" installcheck PSQLDIR=$bindir; then
 	pg_dumpall -f "$temp_root"/dump1.sql || pg_dumpall1_status=$?
 	if [ "$newsrc" != "$oldsrc" ]; then
 		oldpgversion=`psql -A -t -d regression -c "SHOW server_version_num"`
