diff --git a/v2/build/configure.jam b/v2/build/configure.jam
index 6a87157a2..14c1328af 100644
--- a/v2/build/configure.jam
+++ b/v2/build/configure.jam
@@ -17,6 +17,8 @@ import sequence ;
 import property ;
 import property-set ;
 import "class" : new ;
+import common ;
+import path ;
 
 rule log-summary ( )
 {
@@ -185,12 +187,9 @@ rule builds ( metatarget-reference : properties * : what ? : retry ? )
 # should never be called by users.
 rule set-log-file ( log-file )
 {
-    # FIXME: remove this check as soon as Boost regression tests
-    # start using trunk bjam
-    if FILE_OPEN in [ RULENAMES ]
-    {        
-        .log-fd = [ FILE_OPEN $(log-file) : "w" ] ;
-    }    
+    path.makedirs [ path.parent $(log-file) ] ;
+    
+    .log-fd = [ FILE_OPEN $(log-file) : "w" ] ;
 }
 
 # Frontend rules
diff --git a/v2/engine/builtins.c b/v2/engine/builtins.c
index 28c1b3aec..b28a484ec 100644
--- a/v2/engine/builtins.c
+++ b/v2/engine/builtins.c
@@ -399,6 +399,11 @@ void load_builtins()
           bind_builtin( "SELF_PATH", builtin_self_path, 0, args );
       }
 
+      {
+          char * args [] = { "path", 0 };
+          bind_builtin( "MAKEDIR", builtin_makedir, 0, args );
+      }
+
       /* Initialize builtin modules. */
       init_set();
       init_path();
@@ -1757,6 +1762,20 @@ LIST *builtin_self_path( PARSE *parse, FRAME *frame )
     }
 }
 
+LIST *builtin_makedir( PARSE *parse, FRAME *frame )
+{
+    LIST *path = lol_get(frame->args, 0);
+
+    if (file_mkdir(path->string) == 0)
+    {
+        LIST *result = list_new (0, newstr(path->string));
+        return result;
+    }
+    else
+    {
+        return L0;
+    }    
+}
 
 #ifdef HAVE_PYTHON
 
diff --git a/v2/engine/builtins.h b/v2/engine/builtins.h
index 9ed3e6dc9..5fed07c96 100644
--- a/v2/engine/builtins.h
+++ b/v2/engine/builtins.h
@@ -61,6 +61,7 @@ LIST *builtin_file_open( PARSE *parse, FRAME *frame );
 LIST *builtin_pad( PARSE *parse, FRAME *frame );
 LIST *builtin_precious( PARSE *parse, FRAME *frame );
 LIST *builtin_self_path( PARSE *parse, FRAME *frame );
+LIST *builtin_makedir( PARSE *parse, FRAME *frame );
 
 void backtrace( FRAME *frame );
 extern int last_update_now_status;
diff --git a/v2/engine/filemac.c b/v2/engine/filemac.c
index 06074417d..e69aa648f 100644
--- a/v2/engine/filemac.c
+++ b/v2/engine/filemac.c
@@ -157,6 +157,11 @@ int file_is_file( char * filename )
     return S_ISREG( statbuf.st_mode ) ? 1 : 0;
 }
 
+int file_mkdir(char *pathname)
+{
+    return mkdir(pathname, 0766);
+}
+
 
 /*
  * file_archscan() - scan an archive for files.
diff --git a/v2/engine/filent.c b/v2/engine/filent.c
index 0bef792b9..3d45273f9 100644
--- a/v2/engine/filent.c
+++ b/v2/engine/filent.c
@@ -32,6 +32,7 @@
 # include <io.h>
 # include <sys/stat.h>
 # include <ctype.h>
+# include <direct.h>
 
 /*
  * filent.c - scan directories and archives on NT
@@ -243,6 +244,10 @@ int file_is_file(char* filename)
     return ff->is_file;
 }
 
+int file_mkdir(char *pathname)
+{
+    return _mkdir(pathname);
+}
 
 /*
  * file_archscan() - scan an archive for files
diff --git a/v2/engine/filesys.h b/v2/engine/filesys.h
index 9281c8674..efc081d12 100644
--- a/v2/engine/filesys.h
+++ b/v2/engine/filesys.h
@@ -30,6 +30,7 @@ int file_time( char *filename, time_t *time );
 
 void file_build1(PATHNAME *f, string* file) ;
 int file_is_file(char* filename);
+int file_mkdir(char *pathname);
 
 typedef struct file_info_t file_info_t ;
 struct file_info_t
diff --git a/v2/engine/fileunix.c b/v2/engine/fileunix.c
index 51267a0ca..680c3f539 100644
--- a/v2/engine/fileunix.c
+++ b/v2/engine/fileunix.c
@@ -17,6 +17,7 @@
 # include "pathsys.h"
 # include "newstr.h"
 # include <stdio.h>
+# include <sys/stat.h>
 
 #if defined(sun) || defined(__sun) || defined(linux)
 # include <unistd.h> /* needed for read and close prototype */
@@ -253,6 +254,10 @@ int file_is_file(char* filename)
     return ff->is_file;
 }
 
+int file_mkdir(char* pathname)
+{
+    return mkdir(pathname, 0766);
+}
 
 /*
  * file_archscan() - scan an archive for files
diff --git a/v2/util/path.jam b/v2/util/path.jam
index 34b0f630c..cf48d11a2 100644
--- a/v2/util/path.jam
+++ b/v2/util/path.jam
@@ -465,6 +465,22 @@ rule programs-path ( )
     return $(result) ;
 }
 
+rule makedirs ( path )
+{
+    local result = true ;
+    if ! [ exists $(path) ]
+    {
+        if [ makedirs [ parent $(path) ] ]
+        {            
+            if ! [ MAKEDIR $(path) ]
+            {
+                errors.error "Could not create directory '$(path)'" ;
+                result = ;
+            }
+        }        
+    }    
+    return $(result) ;
+}
 
 # Converts native Windows paths into our internal canonic path representation.
 # Supports 'invalid' paths containing multiple successive path separator