diff --git a/src/main/java/net/fabricmc/loom/api/fabricapi/GameTestSettings.java b/src/main/java/net/fabricmc/loom/api/fabricapi/GameTestSettings.java
index 40082b5d8..5675484ab 100644
--- a/src/main/java/net/fabricmc/loom/api/fabricapi/GameTestSettings.java
+++ b/src/main/java/net/fabricmc/loom/api/fabricapi/GameTestSettings.java
@@ -40,11 +40,6 @@ public interface GameTestSettings {
 	 */
 	Property<Boolean> getCreateSourceSet();
 
-	/**
-	 * Contains a boolean indicating whether a run configuration should be created for the tests.
-	 */
-	Property<Boolean> getCreateRunConfigurations();
-
 	/**
 	 * Contains a string property representing the mod ID associated with the tests.
 	 *
@@ -70,9 +65,18 @@ public interface GameTestSettings {
 	/**
 	 * Contains a boolean property indicating whether the eula has been accepted. By enabling this you agree to the Minecraft EULA located at <a href="https://aka.ms/MinecraftEULA">https://aka.ms/MinecraftEULA</a>.
 	 *
-	 * <p>This only works when {@link #getCreateRunConfigurations()} is enabled.
+	 * <p>This only works when {@link #getEnableClientGameTests()} is enabled.
 	 *
 	 * <p>Default: false
 	 */
 	Property<Boolean> getEula();
+
+	/**
+	 * Contains a boolean property indicating whether the run directories should be cleared before running the tests.
+	 *
+	 * <p>This only works when {@link #getEnableClientGameTests()} is enabled.
+	 *
+	 * <p>Default: true
+	 */
+	Property<Boolean> getClearRunDirectory();
 }
diff --git a/src/main/java/net/fabricmc/loom/configuration/fabricapi/FabricApiTesting.java b/src/main/java/net/fabricmc/loom/configuration/fabricapi/FabricApiTesting.java
index 9411a388f..c3585db33 100644
--- a/src/main/java/net/fabricmc/loom/configuration/fabricapi/FabricApiTesting.java
+++ b/src/main/java/net/fabricmc/loom/configuration/fabricapi/FabricApiTesting.java
@@ -34,6 +34,7 @@
 import org.gradle.api.Action;
 import org.gradle.api.Project;
 import org.gradle.api.file.RegularFileProperty;
+import org.gradle.api.tasks.Delete;
 import org.gradle.api.tasks.OutputFile;
 import org.gradle.api.tasks.TaskAction;
 import org.gradle.api.tasks.TaskContainer;
@@ -42,6 +43,8 @@
 import net.fabricmc.loom.api.fabricapi.GameTestSettings;
 import net.fabricmc.loom.configuration.ide.RunConfigSettings;
 import net.fabricmc.loom.task.AbstractLoomTask;
+import net.fabricmc.loom.task.LoomTasks;
+import net.fabricmc.loom.util.Constants;
 
 public abstract class FabricApiTesting extends FabricApiAbstractSourceSet {
 	@Inject
@@ -62,10 +65,10 @@ void configureTests(Action<GameTestSettings> action) {
 
 		GameTestSettings settings = getProject().getObjects().newInstance(GameTestSettings.class);
 		settings.getCreateSourceSet().convention(false);
-		settings.getCreateRunConfigurations().convention(true);
 		settings.getEnableGameTests().convention(true);
 		settings.getEnableClientGameTests().convention(true);
 		settings.getEula().convention(false);
+		settings.getClearRunDirectory().convention(true);
 
 		action.execute(settings);
 
@@ -73,30 +76,48 @@ void configureTests(Action<GameTestSettings> action) {
 			configureSourceSet(settings.getModId(), true);
 		}
 
-		if (settings.getCreateRunConfigurations().get()) {
-			Consumer<RunConfigSettings> configureBase = run -> {
-				if (settings.getCreateSourceSet().get()) {
-					run.source(getSourceSetName());
-				}
-
-				run.runDir("build/gametest");
-			};
+		Consumer<RunConfigSettings> configureBase = run -> {
+			if (settings.getCreateSourceSet().get()) {
+				run.source(getSourceSetName());
+			}
+		};
 
-			extension.getRunConfigs().create("gameTest", run -> {
+		if (settings.getEnableGameTests().get()) {
+			RunConfigSettings gameTest = extension.getRunConfigs().create("gameTest", run -> {
 				run.inherit(extension.getRunConfigs().getByName("server"));
 				run.property("fabric-api.gametest");
+				run.runDir("build/run/gameTest");
 				configureBase.accept(run);
 			});
 
-			RunConfigSettings runConfigSettings = extension.getRunConfigs().create("clientGameTest", run -> {
+			tasks.named("test", task -> task.dependsOn(LoomTasks.getRunConfigTaskName(gameTest)));
+		}
+
+		if (settings.getEnableClientGameTests().get()) {
+			RunConfigSettings clientGameTest = extension.getRunConfigs().create("clientGameTest", run -> {
 				run.inherit(extension.getRunConfigs().getByName("client"));
 				run.property("fabric.client.gametest");
+				run.runDir("build/run/clientGameTest");
 				configureBase.accept(run);
 			});
 
+			if (settings.getClearRunDirectory().get()) {
+				var deleteGameTestRunDir = tasks.register("deleteGameTestRunDir", Delete.class, task -> {
+					task.setGroup(Constants.TaskGroup.FABRIC);
+					task.delete(clientGameTest.getRunDir());
+				});
+
+				tasks.named(LoomTasks.getRunConfigTaskName(clientGameTest), task -> task.dependsOn(deleteGameTestRunDir));
+			}
+
 			if (settings.getEula().get()) {
 				var acceptEula = tasks.register("acceptGameTestEula", AcceptEulaTask.class, task -> {
-					task.getEulaFile().set(getProject().file(runConfigSettings.getRunDir() + "/eula.txt"));
+					task.getEulaFile().set(getProject().file(clientGameTest.getRunDir() + "/eula.txt"));
+
+					if (settings.getClearRunDirectory().get()) {
+						// Ensure that the eula is accepted after the run directory is cleared
+						task.dependsOn(tasks.named("deleteGameTestRunDir"));
+					}
 				});
 
 				tasks.named("configureLaunch", task -> task.dependsOn(acceptEula));
diff --git a/src/main/java/net/fabricmc/loom/task/LoomTasks.java b/src/main/java/net/fabricmc/loom/task/LoomTasks.java
index 44d1b5f64..27ddf5912 100644
--- a/src/main/java/net/fabricmc/loom/task/LoomTasks.java
+++ b/src/main/java/net/fabricmc/loom/task/LoomTasks.java
@@ -126,7 +126,7 @@ private void registerIDETasks() {
 		});
 	}
 
-	private static String getRunConfigTaskName(RunConfigSettings config) {
+	public static String getRunConfigTaskName(RunConfigSettings config) {
 		String configName = config.getName();
 		return "run" + configName.substring(0, 1).toUpperCase() + configName.substring(1);
 	}
diff --git a/src/test/groovy/net/fabricmc/loom/test/integration/DataGenerationTest.groovy b/src/test/groovy/net/fabricmc/loom/test/integration/DataGenerationTest.groovy
index ce01529cc..9f80f5add 100644
--- a/src/test/groovy/net/fabricmc/loom/test/integration/DataGenerationTest.groovy
+++ b/src/test/groovy/net/fabricmc/loom/test/integration/DataGenerationTest.groovy
@@ -243,7 +243,7 @@ class DataGenerationTest extends Specification implements GradleProjectTestTrait
             ''' + DEPENDENCIES
 		when:
 		def result = gradle.run(task: "runClientGameTest")
-		def eula = new File(gradle.projectDir, "build/gametest/eula.txt")
+		def eula = new File(gradle.projectDir, "build/run/clientGameTest/eula.txt")
 
 		then:
 		result.task(":runClientGameTest").outcome == SUCCESS