diff --git a/test/basetest/README b/test/basetest/README
index 037b22164..7fafa644b 100644
--- a/test/basetest/README
+++ b/test/basetest/README
@@ -2,4 +2,5 @@ Shell environment variables that affect how and what tests are executed:
 
 TASKW_SKIP -> Causes any test that needs Taskwarrior (task binary) to be skipped
 TASKD_SKIP -> Causes any test that needs Task Server (taskd binary) to be skipped
-USE_PATH -> Causes tests to look for "task" and "taskd" in PATH instead of the default location
+TASK_USE_PATH -> Causes tests to look for "task" in PATH instead of the default location
+TASKD_USE_PATH -> Causes tests to look for "taskd" in PATH instead of the default location
diff --git a/test/basetest/utils.py b/test/basetest/utils.py
index 1e2344cde..78c9fbf80 100644
--- a/test/basetest/utils.py
+++ b/test/basetest/utils.py
@@ -129,9 +129,9 @@ def _queue_output(arguments, pidq, outputq):
         outputq.put((
             "",
             ("Unexpected exception caught during execution of taskw: '{0}' . "
-             "If you are running out-of-tree tests set USE_PATH=1 in shell "
-             "env before execution and add the location of the task(d) binary "
-             "to the PATH".format(e)),
+             "If you are running out-of-tree tests set TASK_USE_PATH=1 or "
+             "TASKD_USE_PATH=1 in shell env before execution and add the "
+             "location of the task(d) binary to the PATH".format(e)),
             255))  # false exitcode
 
         return