diff --git a/modules/simpletest/drupal_web_test_case.php b/modules/simpletest/drupal_web_test_case.php
index 16e661f15cc..1a92b177f7c 100644
--- a/modules/simpletest/drupal_web_test_case.php
+++ b/modules/simpletest/drupal_web_test_case.php
@@ -1159,6 +1159,11 @@ class DrupalWebTestCase extends DrupalTestCase {
 
     $this->preloadRegistry();
 
+    // Set path variables.
+    variable_set('file_public_path', $public_files_directory);
+    variable_set('file_private_path', $private_files_directory);
+    variable_set('file_temporary_path', $temp_files_directory);
+
     // Include the default profile.
     variable_set('install_profile', 'standard');
     $profile_details = install_profile_info('standard', 'en');
@@ -1213,11 +1218,6 @@ class DrupalWebTestCase extends DrupalTestCase {
     unset($GLOBALS['conf']['language_default']);
     $language = language_default();
 
-    // Set path variables
-    variable_set('file_public_path', $public_files_directory);
-    variable_set('file_private_path', $private_files_directory);
-    variable_set('file_temporary_path', $temp_files_directory);
-
     // Use the test mail class instead of the default mail handler class.
     variable_set('mail_system', array('default-system' => 'TestingMailSystem'));
 
diff --git a/modules/simpletest/simpletest.test b/modules/simpletest/simpletest.test
index 11bf16ef70b..8ad01657945 100644
--- a/modules/simpletest/simpletest.test
+++ b/modules/simpletest/simpletest.test
@@ -415,6 +415,26 @@ class SimpleTestMailCaptureTestCase extends DrupalWebTestCase {
   }
 }
 
+/**
+ * Test Folder creation
+ */
+class SimpleTestFolderTestCase extends DrupalWebTestCase {
+  public static function getInfo() {
+    return array(
+      'name' => 'Testing SimpleTest setUp',
+      'description' => "This test will check SimpleTest's treatment of hook_install during setUp.  Image module is used for test.",
+      'group' => 'SimpleTest',
+    );
+  }
+
+  function testFolderSetup() {
+    if (module_exists('image')) {
+      $path = file_directory_path() . '/styles';
+      $this->assertTrue(file_prepare_directory($path, FALSE), "Directory created.");
+    }
+  }
+}
+
 /**
  * Test required modules for tests.
  */