diff --git a/.gitignore b/.gitignore
index c781ba0e5..d48dee372 100644
--- a/.gitignore
+++ b/.gitignore
@@ -329,6 +329,7 @@ Makefile.in
 /p2v/stamp-virt-p2v.pod
 /p2v/stamp-virt-p2v-make-disk.pod
 /p2v/stamp-virt-p2v-make-kickstart.pod
+/p2v/test-virt-p2v-pxe.authorized_keys
 /p2v/test-virt-p2v-pxe.id_rsa
 /p2v/test-virt-p2v-pxe.id_rsa.pub
 /p2v/test-virt-p2v-pxe.img
diff --git a/p2v/Makefile.am b/p2v/Makefile.am
index 0fc266e71..cb6a48705 100644
--- a/p2v/Makefile.am
+++ b/p2v/Makefile.am
@@ -41,6 +41,7 @@ CLEANFILES = \
 	stamp-virt-p2v.pod \
 	stamp-virt-p2v-make-disk.pod \
 	stamp-virt-p2v-make-kickstart.pod \
+	test-virt-p2v-pxe.authorized_keys \
 	test-virt-p2v-pxe.img \
 	test-virt-p2v-pxe.vmlinuz \
 	test-virt-p2v-pxe.initramfs \
@@ -230,6 +231,7 @@ check-slow: stamp-test-virt-p2v-pxe-data-files
 	$(MAKE) check TESTS="$(SLOW_TESTS)" SLOW=1
 
 stamp-test-virt-p2v-pxe-data-files: \
+	    test-virt-p2v-pxe.authorized_keys \
 	    test-virt-p2v-pxe.img \
 	    test-virt-p2v-pxe.vmlinuz test-virt-p2v-pxe.initramfs \
 	    test-virt-p2v-pxe.sshd_config \
@@ -272,6 +274,12 @@ test-virt-p2v-pxe.sshd_config: test-virt-p2v-pxe.sshd_config.in
 	chmod 0444 $@-t
 	mv $@-t $@
 
+test-virt-p2v-pxe.authorized_keys: test-virt-p2v-pxe.id_rsa.pub $(top_builddir)/run
+	rm -f $@ $@-t
+	$(top_builddir)/run sh -c 'echo -n environment=\"PATH=$$PATH\"\ ' > $@-t
+	cat $< >> $@-t
+	mv $@-t $@
+
 test-virt-p2v-pxe.ssh_host_rsa_key test-virt-p2v-pxe.ssh_host_rsa_key.pub: stamp-test-virt-p2v-pxe-hostkey
 
 stamp-test-virt-p2v-pxe-hostkey:
diff --git a/p2v/test-virt-p2v-pxe.sshd_config.in b/p2v/test-virt-p2v-pxe.sshd_config.in
index 0262719bf..06c6ab243 100644
--- a/p2v/test-virt-p2v-pxe.sshd_config.in
+++ b/p2v/test-virt-p2v-pxe.sshd_config.in
@@ -34,7 +34,10 @@ UsePrivilegeSeparation no
 PidFile __abs_builddir__/test-virt-p2v-pxe.sshd.pid
 HostKey __abs_builddir__/test-virt-p2v-pxe.ssh_host_rsa_key
 
-AuthorizedKeysFile __abs_builddir__/test-virt-p2v-pxe.id_rsa.pub
+AuthorizedKeysFile __abs_builddir__/test-virt-p2v-pxe.authorized_keys
 
 # Don't check file permissions.
 StrictModes no
+
+# Allow the environment to be set in the authorized_keys file above.
+PermitUserEnvironment yes