diff --git a/build.gradle b/build.gradle
index b50d79801c..18be140f06 100644
--- a/build.gradle
+++ b/build.gradle
@@ -70,7 +70,7 @@ libraries = [
         // testing
         junit:          'junit:junit:3.8.2',
         testng:         'org.testng:testng:5.8:jdk15',
-        jpa_modelgen:   'org.hibernate:hibernate-jpamodelgen:1.1.0.CR1',
+        jpa_modelgen:   'org.hibernate:hibernate-jpamodelgen:1.1.0.Final',
         shrinkwrap_api: 'org.jboss.shrinkwrap:shrinkwrap-api:1.0.0-alpha-6',
         shrinkwrap:     'org.jboss.shrinkwrap:shrinkwrap-impl-base:1.0.0-alpha-6'
 ]
diff --git a/hibernate-entitymanager/hibernate-entitymanager.gradle b/hibernate-entitymanager/hibernate-entitymanager.gradle
index 44c7f57ce4..b9fb474d99 100644
--- a/hibernate-entitymanager/hibernate-entitymanager.gradle
+++ b/hibernate-entitymanager/hibernate-entitymanager.gradle
@@ -21,6 +21,15 @@ dependencies {
     testRuntime( libraries.validator )
 }
 
+procTargetDirName = buildDirName + "/generated-src/jpamodelgen"
+procTargetDir = dir( procTargetDirName )
+compileTestJava {
+    configure( options ) {
+        compilerArgs = [ "-s", "$procTargetDir.dir.absolutePath" ]
+    }
+}
+compileTestJava.dependsOn procTargetDir
+
 bundlesTargetDirName = "$buildDirName/bundles"
 bundlesTargetDir = dir( bundlesTargetDirName )
 task copyBundleResources (type: Copy) {
@@ -40,6 +49,11 @@ copyBundleResources.dependsOn bundlesTargetDir
 // make sure that the bundles for the packaged test (PackagingTestCase) are copied as well
 processTestResources.dependsOn copyBundleResources
 
+ideaModule {
+    testSourceDirs.add( file( procTargetDirName ) )
+}
+
+