--- configure.ac
+++ configure.ac
@@ -198,6 +198,24 @@
 
 AC_SUBST(LT_LDFLAGS)
 
+AC_ARG_ENABLE(local-library-preloading,
+  AS_HELP_STRING([--disable-local-library-preloading], 
+                 [Disable preloading of locally built libraries in locally built executables]),
+  [
+  if test "$enableval" != "no"; then
+    TRANSFORM_LIBTOOL_SCRIPTS="transform-libtool-scripts"
+  else
+    TRANSFORM_LIBTOOL_SCRIPTS=""
+  fi
+  ], [
+  if test "`uname`" != "Darwin"; then
+    TRANSFORM_LIBTOOL_SCRIPTS="transform-libtool-scripts"
+  else
+    TRANSFORM_LIBTOOL_SCRIPTS=""
+  fi
+])
+AC_SUBST(TRANSFORM_LIBTOOL_SCRIPTS)
+
 dnl Check if -no-undefined is needed for the platform.
 dnl It should always work but with libtool 1.4.3 on OS X it breaks the build.
 dnl So we only turn it on for platforms where we know we really need it.
--- Makefile.in
+++ Makefile.in
@@ -309,7 +309,10 @@
 
 @INCLUDE_OUTPUTS@
 
-local-all: @BUILD_RULES@
+local-all: @BUILD_RULES@ @TRANSFORM_LIBTOOL_SCRIPTS@
+
+transform-libtool-scripts: @BUILD_RULES@
+	@$(top_srcdir)/build/transform_libtool_scripts.sh
 
 locale-gnu-pot:
 	cd $(abs_srcdir) && XGETTEXT="$(XGETTEXT)" MSGMERGE="$(MSGMERGE)" \
--- build/transform_libtool_scripts.sh
+++ build/transform_libtool_scripts.sh
@@ -0,0 +1,100 @@
+#!/bin/sh
+
+# Dependencies of libraries
+subr="subr"
+auth_gnome_keyring="auth_gnome_keyring $subr"
+auth_kwallet="auth_kwallet $subr"
+delta="delta $subr"
+diff="diff $subr"
+fs_util="fs_util $subr"
+fs_base="fs_base $delta $fs_util $subr"
+fs_fs="fs_fs $delta $fs_util $subr"
+fs="fs $fs_base $fs_fs $fs_util $subr"
+repos="repos $delta $fs $fs_util $subr"
+ra_local="ra_local $delta $fs $fs_util $repos $subr"
+ra_neon="ra_neon $delta $subr"
+ra_serf="ra_serf $delta $subr"
+ra_svn="ra_svn $delta $subr"
+ra="ra $delta $ra_local $ra_neon $ra_serf $ra_svn $subr"
+wc="wc $delta $diff $subr"
+client="client $delta $diff $ra $subr $wc"
+
+# Variable 'libraries' containing names of variables corresponding to libraries
+libraries="auth_gnome_keyring auth_kwallet client delta diff fs fs_base fs_fs fs_util ra ra_local ra_neon ra_serf ra_svn repos subr wc"
+
+for library in $libraries; do
+  # Delete duplicates in dependencies of libraries
+  library_dependencies="$(echo -n $(for x in $(eval echo "\$$library"); do echo $x; done | sort -u))"
+  eval "$library=\$library_dependencies"
+done
+
+# Dependencies of executables
+svn="$auth_gnome_keyring $auth_kwallet $client $delta $diff $ra $subr $wc"
+svnadmin="$delta $fs $repos $subr"
+svndumpfilter="$delta $fs $repos $subr"
+svnlook="$delta $diff $fs $repos $subr"
+svnserve="$delta $fs $ra_svn $repos $subr"
+svnsync="$auth_gnome_keyring $auth_kwallet $delta $ra $subr"
+svnversion="$subr $wc"
+entries_dump="$subr $wc"
+
+# Variable 'executables' containing names of variables corresponding to executables
+executables="svn svnadmin svndumpfilter svnlook svnserve svnsync svnversion entries_dump"
+
+for executable in $executables; do
+  # Set variables containing paths of executables
+  if [ "$executable" != entries_dump ]; then
+    eval "${executable}_path=subversion/$executable/$executable"
+  else
+    eval "${executable}_path=subversion/tests/cmdline/entries-dump"
+  fi
+  # Delete duplicates in dependencies of executables
+  executable_dependencies="$(echo -n $(for x in $(eval echo "\$$executable"); do echo $x; done | sort -u))"
+  eval "$executable=\$executable_dependencies"
+done
+
+test_paths="$(find subversion/tests -mindepth 2 -maxdepth 2 -name '*-test' ! -path '*/.libs/*' | sort)"
+for test in $test_paths; do
+  test_path="$test"
+  # Dependencies of tests are based on names of directories containing tests
+  test_library="$(echo $test | sed -e 's:^subversion/tests/libsvn_\([^/]*\)/.*:\1:')"
+  test_dependencies="$(eval echo "\$$test_library")"
+  # Set variables corresponding to tests and containing dependencies of tests
+  test="$(echo $test | sed -e 's:^subversion/tests/libsvn_[^/]*/\(.*\):\1:' -e 's/-/_/g')"
+  eval "$test=\$test_dependencies"
+  # Set variables containing paths of tests
+  eval "${test}_path=\$test_path"
+  # Set variable 'tests' containing names of variables corresponding to tests
+  tests="$tests $test"
+done
+
+# auth-test dynamically loads libsvn_auth_gnome_keyring and libsvn_auth_kwallet libraries
+auth_test="auth_gnome_keyring auth_kwallet $auth_test"
+
+# Usage: sed_append LINE_NUMBER TEXT FILE
+sed_append()
+{
+  sed -e "$1a\\
+$2" "$3" > "$3.new"
+  mv -f "$3.new" "$3"
+}
+
+current_directory="$(pwd)"
+for libtool_script in $executables $tests; do
+  eval "libtool_script_path=\$${libtool_script}_path"
+  if [ -f "$libtool_script_path" ]; then
+    if { grep LD_LIBRARY_PATH "$libtool_script_path" && ! grep LD_PRELOAD "$libtool_script_path"; } > /dev/null; then
+      echo "Transforming $libtool_script_path"
+      libtool_script_dependencies="$(eval echo "\$$libtool_script")"
+      for libtool_script_dependency in $libtool_script_dependencies; do
+        libtool_script_library="$current_directory/subversion/libsvn_$libtool_script_dependency/.libs/libsvn_$libtool_script_dependency-1.so"
+        [ -f "$libtool_script_library" ] && libtool_script_libraries="$libtool_script_libraries $libtool_script_library"
+      done
+      libtool_script_libraries="${libtool_script_libraries# *}"
+      # Append definitions of LD_PRELOAD to libtool scripts
+      sed_append 4 "LD_PRELOAD=\"$libtool_script_libraries\"" "$libtool_script_path"
+      sed_append 5 "export LD_PRELOAD" "$libtool_script_path"
+      chmod +x "$libtool_script_path"
+    fi
+  fi
+done