diff --git a/configure.ac b/configure.ac
index 09de67fd2b..32f81b320f 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1112,6 +1112,7 @@ AC_CONFIG_FILES([Makefile
                  src/bin/bindctl/Makefile
                  src/bin/bindctl/tests/Makefile
                  src/bin/cfgmgr/Makefile
+                 src/bin/cfgmgr/local_plugins/Makefile
                  src/bin/cfgmgr/plugins/Makefile
                  src/bin/cfgmgr/plugins/tests/Makefile
                  src/bin/cfgmgr/tests/Makefile
diff --git a/src/bin/cfgmgr/Makefile.am b/src/bin/cfgmgr/Makefile.am
index e9e0ccaf85..9c73f79ee6 100644
--- a/src/bin/cfgmgr/Makefile.am
+++ b/src/bin/cfgmgr/Makefile.am
@@ -1,4 +1,4 @@
-SUBDIRS = . plugins tests
+SUBDIRS = . plugins local_plugins tests
 
 pkglibexecdir = $(libexecdir)/@PACKAGE@
 
diff --git a/src/bin/cfgmgr/local_plugins/Makefile.am b/src/bin/cfgmgr/local_plugins/Makefile.am
new file mode 100644
index 0000000000..63e152d790
--- /dev/null
+++ b/src/bin/cfgmgr/local_plugins/Makefile.am
@@ -0,0 +1,10 @@
+# Nothing is installed from this directory.
+# This local_plugins directory is to override plugins when used from running
+# within source tree for testing (instead of installation prefix).
+
+noinst_DATA = datasrc.spec
+
+datasrc.spec: ../plugins/datasrc.spec.pre
+	$(SED) -e "s|@@STATIC_ZONE_FILE@@|$(abs_top_builddir)/src/lib/datasrc/static.zone|;s|@@SQLITE3_DATABASE_FILE@@|$(abs_top_builddir)/local.zone.sqlite3|" ../plugins/datasrc.spec.pre >$@
+
+CLEANFILES = datasrc.spec
diff --git a/src/bin/cfgmgr/plugins/Makefile.am b/src/bin/cfgmgr/plugins/Makefile.am
index e6ed1275c8..5967abd4ac 100644
--- a/src/bin/cfgmgr/plugins/Makefile.am
+++ b/src/bin/cfgmgr/plugins/Makefile.am
@@ -3,7 +3,7 @@ SUBDIRS = tests
 EXTRA_DIST = README logging.spec tsig_keys.spec
 
 datasrc.spec: datasrc.spec.pre
-	$(SED) -e "s|@@PKGDATADIR@@|$(pkgdatadir)|;s|@@LOCALSTATEDIR@@|$(localstatedir)|" datasrc.spec.pre >$@
+	$(SED) -e "s|@@STATIC_ZONE_FILE@@|$(pkgdatadir)/static.zone|;s|@@SQLITE3_DATABASE_FILE@@|$(localstatedir)/$(PACKAGE)/zone.sqlite3|" datasrc.spec.pre >$@
 
 config_plugindir = @prefix@/share/@PACKAGE@/config_plugins
 config_plugin_DATA = logging.spec tsig_keys.spec datasrc.spec
diff --git a/src/bin/cfgmgr/plugins/datasrc.spec.pre.in b/src/bin/cfgmgr/plugins/datasrc.spec.pre.in
index f2c6a974a2..6d5bd77e75 100644
--- a/src/bin/cfgmgr/plugins/datasrc.spec.pre.in
+++ b/src/bin/cfgmgr/plugins/datasrc.spec.pre.in
@@ -12,7 +12,7 @@
                         {
                             "type": "sqlite3",
                             "params": {
-                                "database_file": "@@LOCALSTATEDIR@@/@PACKAGE@/zone.sqlite3"
+                                "database_file": "@@SQLITE3_DATABASE_FILE@@"
                             }
                         }
                     ],
@@ -20,7 +20,7 @@
                         {
                             "type": "static",
                             "cache-enable": false,
-                            "params": "@@PKGDATADIR@@/static.zone"
+                            "params": "@@STATIC_ZONE_FILE@@"
                         }
                     ]
                 },
diff --git a/src/lib/python/bind10_config.py.in b/src/lib/python/bind10_config.py.in
index b8975cf625..c765fa29a1 100644
--- a/src/lib/python/bind10_config.py.in
+++ b/src/lib/python/bind10_config.py.in
@@ -60,6 +60,8 @@ def reload():
         else:
             DATA_PATH = os.environ["B10_FROM_SOURCE"]
         PLUGIN_PATHS = [os.environ["B10_FROM_SOURCE"] +
+                            '/src/bin/cfgmgr/local_plugins',
+                             os.environ["B10_FROM_SOURCE"] +
                             '/src/bin/cfgmgr/plugins']
         programdirs = ['auth', 'cfgmgr', 'cmdctl', 'ddns', 'dhcp6', 'msgq',
                        'resolver', 'sockcreator', 'stats', 'xfrin', 'xfrout',
diff --git a/tests/lettuce/configurations/auth/.gitignore b/tests/lettuce/configurations/auth/.gitignore
new file mode 100644
index 0000000000..07f1b7db04
--- /dev/null
+++ b/tests/lettuce/configurations/auth/.gitignore
@@ -0,0 +1 @@
+/auth_basic.config