diff --git a/.azure/pipelines/ci.yml b/.azure/pipelines/ci.yml
index 00d95c3a1d..48f6535fbe 100644
--- a/.azure/pipelines/ci.yml
+++ b/.azure/pipelines/ci.yml
@@ -328,7 +328,7 @@ jobs:
     agentOs: Windows
     isTestingJob: true
     buildScript: ./eng/scripts/cibuild.cmd
-    buildArgs: -test -BuildNative "/p:SkipIISBackwardsCompatibilityTests=true /p:SkipIISTests=true /p:SkipIISExpressTests=true /p:SkipIISForwardsCompatibilityTests=true /p:RunTemplateTests=false /p:BuildSiteExtensions=false"
+    buildArgs: -test -BuildNative "/p:SkipIISNewHandlerTests=true /p:SkipIISTests=true /p:SkipIISExpressTests=true /p:SkipIISNewShimTests=true /p:RunTemplateTests=false /p:BuildSiteExtensions=false"
     beforeBuild:
     - powershell: "& ./src/Servers/IIS/tools/UpdateIISExpressCertificate.ps1; & ./src/Servers/IIS/tools/update_schema.ps1"
       displayName: Setup IISExpress test certificates and schema
diff --git a/src/Servers/IIS/IIS/test/Common.FunctionalTests/Utilities/Helpers.cs b/src/Servers/IIS/IIS/test/Common.FunctionalTests/Utilities/Helpers.cs
index a790d38b26..6fbd3f6950 100644
--- a/src/Servers/IIS/IIS/test/Common.FunctionalTests/Utilities/Helpers.cs
+++ b/src/Servers/IIS/IIS/test/Common.FunctionalTests/Utilities/Helpers.cs
@@ -25,7 +25,7 @@ namespace Microsoft.AspNetCore.Server.IIS.FunctionalTests
 
         public static string GetInProcessTestSitesName()
         {
-            return DeployerSelector.IsForwardsCompatibilityTest ? "InProcessForwardsCompatWebSite" : "InProcessWebSite";
+            return DeployerSelector.IsNewShimTest ? "InProcessNewShimWebSite" : "InProcessWebSite";
         }
 
         public static async Task AssertStarts(this IISDeploymentResult deploymentResult, string path = "/HelloWorld")
diff --git a/src/Servers/IIS/IIS/test/IIS.FunctionalTests/DeployerSelector.cs b/src/Servers/IIS/IIS/test/IIS.FunctionalTests/DeployerSelector.cs
index 6f15410e55..58353613fc 100644
--- a/src/Servers/IIS/IIS/test/IIS.FunctionalTests/DeployerSelector.cs
+++ b/src/Servers/IIS/IIS/test/IIS.FunctionalTests/DeployerSelector.cs
@@ -8,7 +8,7 @@ namespace Microsoft.AspNetCore.Server.IIS.FunctionalTests
     public static class DeployerSelector
     {
         public static ServerType ServerType => ServerType.IIS;
-        public static bool IsForwardsCompatibilityTest => false;
+        public static bool IsNewShimTest => false;
         public static bool HasNewShim => true;
         public static bool HasNewHandler => true;
     }
diff --git a/src/Servers/IIS/IIS/test/IIS.FunctionalTests/IIS.FunctionalTests.csproj b/src/Servers/IIS/IIS/test/IIS.FunctionalTests/IIS.FunctionalTests.csproj
index f95e32bb3e..2ecd5ba424 100644
--- a/src/Servers/IIS/IIS/test/IIS.FunctionalTests/IIS.FunctionalTests.csproj
+++ b/src/Servers/IIS/IIS/test/IIS.FunctionalTests/IIS.FunctionalTests.csproj
@@ -12,8 +12,6 @@
 
   <ItemGroup>
     <ProjectReference Include="..\Common.Tests\Common.Tests.csproj" />
-    <ProjectReference Include="$(RepoRoot)src\Servers\IIS\IntegrationTesting.IIS\src\Microsoft.AspNetCore.Server.IntegrationTesting.IIS.csproj" />
-    <ProjectReference Include="$(RepoRoot)src\Hosting\Server.IntegrationTesting\src\Microsoft.AspNetCore.Server.IntegrationTesting.csproj" />
 
     <ProjectReference Include="..\testassets\InProcessWebSite\InProcessWebSite.csproj">
       <ReferenceOutputAssembly>False</ReferenceOutputAssembly>
diff --git a/src/Servers/IIS/IIS/test/IIS.BackwardsCompatibility.FunctionalTests/DeployerSelector.cs b/src/Servers/IIS/IIS/test/IIS.NewHandler.FunctionalTests/DeployerSelector.cs
similarity index 88%
rename from src/Servers/IIS/IIS/test/IIS.BackwardsCompatibility.FunctionalTests/DeployerSelector.cs
rename to src/Servers/IIS/IIS/test/IIS.NewHandler.FunctionalTests/DeployerSelector.cs
index bdbcad2780..41a363f6cd 100644
--- a/src/Servers/IIS/IIS/test/IIS.BackwardsCompatibility.FunctionalTests/DeployerSelector.cs
+++ b/src/Servers/IIS/IIS/test/IIS.NewHandler.FunctionalTests/DeployerSelector.cs
@@ -8,7 +8,7 @@ namespace Microsoft.AspNetCore.Server.IIS.FunctionalTests
     public static class DeployerSelector
     {
         public static ServerType ServerType => ServerType.IIS;
-        public static bool IsForwardsCompatibilityTest => false;
+        public static bool IsNewShimTest => false;
         public static bool HasNewShim => false;
         public static bool HasNewHandler => true;
     }
diff --git a/src/Servers/IIS/IIS/test/IIS.BackwardsCompatibility.FunctionalTests/IIS.BackwardsCompatibility.FunctionalTests.csproj b/src/Servers/IIS/IIS/test/IIS.NewHandler.FunctionalTests/IIS.NewHandler.FunctionalTests.csproj
similarity index 64%
rename from src/Servers/IIS/IIS/test/IIS.BackwardsCompatibility.FunctionalTests/IIS.BackwardsCompatibility.FunctionalTests.csproj
rename to src/Servers/IIS/IIS/test/IIS.NewHandler.FunctionalTests/IIS.NewHandler.FunctionalTests.csproj
index 6b92406b14..f57d292b78 100644
--- a/src/Servers/IIS/IIS/test/IIS.BackwardsCompatibility.FunctionalTests/IIS.BackwardsCompatibility.FunctionalTests.csproj
+++ b/src/Servers/IIS/IIS/test/IIS.NewHandler.FunctionalTests/IIS.NewHandler.FunctionalTests.csproj
@@ -2,9 +2,9 @@
 
   <PropertyGroup>
     <TargetFramework>netcoreapp3.0</TargetFramework>
-    <TestGroupName>IISBackwardsCompatibility.FunctionalTests</TestGroupName>
+    <TestGroupName>IISNewHandler.FunctionalTests</TestGroupName>
     <DisableFastUpToDateCheck>True</DisableFastUpToDateCheck>
-    <SkipTests Condition=" '$(SkipIISBackwardsCompatibilityTests)' == 'true' ">true</SkipTests>
+    <SkipTests Condition=" '$(SkipIISNewHandlerTests)' == 'true' ">true</SkipTests>
   </PropertyGroup>
 
   <Import Project="../FunctionalTest.props" />
@@ -16,9 +16,6 @@
 
   <ItemGroup>
     <ProjectReference Include="..\Common.Tests\Common.Tests.csproj" />
-    <ProjectReference Include="..\testassets\**\*.csproj">
-      <ReferenceOutputAssembly>False</ReferenceOutputAssembly>
-    </ProjectReference>
     <ProjectReference Include="..\testassets\InProcessWebSite\InProcessWebSite.csproj">
       <ReferenceOutputAssembly>False</ReferenceOutputAssembly>
     </ProjectReference>
@@ -39,11 +36,4 @@
     <Reference Include="System.Net.WebSockets.WebSocketProtocol" />
   </ItemGroup>
 
-  <Target Name="RemoveSourceOverride" BeforeTargets="_CopyOutOfDateSourceItemsToOutputDirectory">
-    <ItemGroup>
-      <SourceItemsToRemove Include="@(_SourceItemsToCopyToOutputDirectory)" Condition="$([System.String]::Copy(%(_SourceItemsToCopyToOutputDirectory.FullPath)).Contains('IIS\AspNetCoreModule')) == 'true'" />
-      <_SourceItemsToCopyToOutputDirectory Remove="@(SourceItemsToRemove)" />
-   </ItemGroup>
-  </Target>
-
 </Project>
diff --git a/src/Servers/IIS/IIS/test/IIS.BackwardsCompatibility.FunctionalTests/BackwardsCompatibilityTests.cs b/src/Servers/IIS/IIS/test/IIS.NewHandler.FunctionalTests/NewHandlerTests.cs
similarity index 80%
rename from src/Servers/IIS/IIS/test/IIS.BackwardsCompatibility.FunctionalTests/BackwardsCompatibilityTests.cs
rename to src/Servers/IIS/IIS/test/IIS.NewHandler.FunctionalTests/NewHandlerTests.cs
index 1aa826c128..ba2c2c7b4e 100644
--- a/src/Servers/IIS/IIS/test/IIS.BackwardsCompatibility.FunctionalTests/BackwardsCompatibilityTests.cs
+++ b/src/Servers/IIS/IIS/test/IIS.NewHandler.FunctionalTests/NewHandlerTests.cs
@@ -10,17 +10,17 @@ using Xunit.Sdk;
 namespace Microsoft.AspNetCore.Server.IIS.FunctionalTests
 {
     [Collection(IISTestSiteCollection.Name)]
-    public class BackwardsCompatibilityTests : FixtureLoggedTest
+    public class NewHandlerTests : FixtureLoggedTest
     {
         private readonly IISTestSiteFixture _fixture;
 
-        public BackwardsCompatibilityTests(IISTestSiteFixture fixture) : base(fixture)
+        public NewHandlerTests(IISTestSiteFixture fixture) : base(fixture)
         {
             _fixture = fixture;
         }
 
         [ConditionalFact]
-        public async Task CheckBackwardsCompatibilityIsUsed()
+        public async Task CheckNewHandlerIsUsed()
         {
             var response = await _fixture.Client.GetAsync("/HelloWorld");
 
@@ -31,7 +31,7 @@ namespace Microsoft.AspNetCore.Server.IIS.FunctionalTests
 
             foreach (ProcessModule handle in handles)
             {
-                if (handle.ModuleName == "aspnetcorev2.dll")
+                if (handle.ModuleName == "aspnetcorev2.dll" || handle.ModuleName == "aspnetcorev2_outofprocess.dll")
                 {
                     Assert.Equal("12.2.18316.0", handle.FileVersionInfo.FileVersion);
                     return;
diff --git a/src/Servers/IIS/IIS/test/IIS.ForwardsCompatibility.FunctionalTests/DeployerSelector.cs b/src/Servers/IIS/IIS/test/IIS.NewShim.FunctionalTests/DeployerSelector.cs
similarity index 88%
rename from src/Servers/IIS/IIS/test/IIS.ForwardsCompatibility.FunctionalTests/DeployerSelector.cs
rename to src/Servers/IIS/IIS/test/IIS.NewShim.FunctionalTests/DeployerSelector.cs
index c53da1c67f..a4f985b16d 100644
--- a/src/Servers/IIS/IIS/test/IIS.ForwardsCompatibility.FunctionalTests/DeployerSelector.cs
+++ b/src/Servers/IIS/IIS/test/IIS.NewShim.FunctionalTests/DeployerSelector.cs
@@ -8,7 +8,7 @@ namespace Microsoft.AspNetCore.Server.IIS.FunctionalTests
     public static class DeployerSelector
     {
         public static ServerType ServerType => ServerType.IIS;
-        public static bool IsForwardsCompatibilityTest => true;
+        public static bool IsNewShimTest => true;
         public static bool HasNewShim => true;
         public static bool HasNewHandler => false;
     }
diff --git a/src/Servers/IIS/IIS/test/IIS.ForwardsCompatibility.FunctionalTests/ForwardsCompatibilityTests.cs b/src/Servers/IIS/IIS/test/IIS.NewShim.FunctionalTests/ForwardsCompatibilityTests.cs
similarity index 84%
rename from src/Servers/IIS/IIS/test/IIS.ForwardsCompatibility.FunctionalTests/ForwardsCompatibilityTests.cs
rename to src/Servers/IIS/IIS/test/IIS.NewShim.FunctionalTests/ForwardsCompatibilityTests.cs
index fdb3aef561..0b18a40f9c 100644
--- a/src/Servers/IIS/IIS/test/IIS.ForwardsCompatibility.FunctionalTests/ForwardsCompatibilityTests.cs
+++ b/src/Servers/IIS/IIS/test/IIS.NewShim.FunctionalTests/ForwardsCompatibilityTests.cs
@@ -10,17 +10,17 @@ using Xunit.Sdk;
 namespace Microsoft.AspNetCore.Server.IIS.FunctionalTests
 {
     [Collection(IISTestSiteCollection.Name)]
-    public class ForwardsCompatibilityTests : FixtureLoggedTest
+    public class NewShimTests : FixtureLoggedTest
     {
         private readonly IISTestSiteFixture _fixture;
 
-        public ForwardsCompatibilityTests(IISTestSiteFixture fixture) : base(fixture)
+        public NewShimTests(IISTestSiteFixture fixture) : base(fixture)
         {
             _fixture = fixture;
         }
 
         [ConditionalFact]
-        public async Task CheckForwardsCompatibilityIsUsed()
+        public async Task CheckNewShimIsUsed()
         {
             var response = await _fixture.Client.GetAsync("/HelloWorld");
             var handles = _fixture.DeploymentResult.HostProcess.Modules;
diff --git a/src/Servers/IIS/IIS/test/IIS.ForwardsCompatibility.FunctionalTests/IIS.ForwardsCompatibility.FunctionalTests.csproj b/src/Servers/IIS/IIS/test/IIS.NewShim.FunctionalTests/IIS.NewShim.FunctionalTests.csproj
similarity index 77%
rename from src/Servers/IIS/IIS/test/IIS.ForwardsCompatibility.FunctionalTests/IIS.ForwardsCompatibility.FunctionalTests.csproj
rename to src/Servers/IIS/IIS/test/IIS.NewShim.FunctionalTests/IIS.NewShim.FunctionalTests.csproj
index e8e19b55af..c79cd88ed3 100644
--- a/src/Servers/IIS/IIS/test/IIS.ForwardsCompatibility.FunctionalTests/IIS.ForwardsCompatibility.FunctionalTests.csproj
+++ b/src/Servers/IIS/IIS/test/IIS.NewShim.FunctionalTests/IIS.NewShim.FunctionalTests.csproj
@@ -2,9 +2,9 @@
 
   <PropertyGroup>
     <TargetFramework>netcoreapp3.0</TargetFramework>
-    <TestGroupName>IISForwardsCompatibility.FunctionalTests</TestGroupName>
+    <TestGroupName>IISNewShim.FunctionalTests</TestGroupName>
     <DisableFastUpToDateCheck>True</DisableFastUpToDateCheck>
-    <SkipTests Condition=" '$(SkipIISForwardsCompatibilityTests)' == 'true' ">true</SkipTests>
+    <SkipTests Condition=" '$(SkipIISNewShimTests)' == 'true' ">true</SkipTests>
   </PropertyGroup>
 
   <Import Project="../FunctionalTest.props" />
@@ -13,7 +13,7 @@
     <ProjectReference Include="..\Common.Tests\Common.Tests.csproj" />
     <ProjectReference Include="$(RepoRoot)src\Hosting\Server.IntegrationTesting\src\Microsoft.AspNetCore.Server.IntegrationTesting.csproj" />
 
-    <ProjectReference Include="..\testassets\InProcessForwardsCompatWebSite\InProcessForwardsCompatWebSite.csproj">
+    <ProjectReference Include="..\testassets\InProcessNewShimWebSite\InProcessNewShimWebSite.csproj">
       <ReferenceOutputAssembly>False</ReferenceOutputAssembly>
     </ProjectReference>
   </ItemGroup>
diff --git a/src/Servers/IIS/IIS/test/IISExpress.FunctionalTests/DeployerSelector.cs b/src/Servers/IIS/IIS/test/IISExpress.FunctionalTests/DeployerSelector.cs
index 4150eea6bc..f9466c5aae 100644
--- a/src/Servers/IIS/IIS/test/IISExpress.FunctionalTests/DeployerSelector.cs
+++ b/src/Servers/IIS/IIS/test/IISExpress.FunctionalTests/DeployerSelector.cs
@@ -8,7 +8,7 @@ namespace Microsoft.AspNetCore.Server.IIS.FunctionalTests
     public static class DeployerSelector
     {
         public static ServerType ServerType => ServerType.IISExpress;
-        public static bool IsForwardsCompatibilityTest => false;
+        public static bool IsNewShimTest => false;
         public static bool HasNewShim => true;
         public static bool HasNewHandler => true;
     }
diff --git a/src/Servers/IIS/IIS/test/testassets/InProcessForwardsCompatWebSite/InProcessForwardsCompatWebSite.csproj b/src/Servers/IIS/IIS/test/testassets/InProcessNewShimWebSite/InProcessNewShimWebSite.csproj
similarity index 95%
rename from src/Servers/IIS/IIS/test/testassets/InProcessForwardsCompatWebSite/InProcessForwardsCompatWebSite.csproj
rename to src/Servers/IIS/IIS/test/testassets/InProcessNewShimWebSite/InProcessNewShimWebSite.csproj
index 341df1f26b..69852cbf81 100644
--- a/src/Servers/IIS/IIS/test/testassets/InProcessForwardsCompatWebSite/InProcessForwardsCompatWebSite.csproj
+++ b/src/Servers/IIS/IIS/test/testassets/InProcessNewShimWebSite/InProcessNewShimWebSite.csproj
@@ -5,7 +5,7 @@
   <PropertyGroup>
     <TargetFramework>netcoreapp3.0</TargetFramework>
     <AssemblyName>InProcessWebSite</AssemblyName>
-    <TestAssetOutputName>InProcessForwardsCompatWebSite</TestAssetOutputName>
+    <TestAssetOutputName>InProcessNewShimWebSite</TestAssetOutputName>
     <DefineConstants>FORWARDCOMPAT</DefineConstants>
   </PropertyGroup>
 
diff --git a/src/Servers/IIS/IISIntegration.sln b/src/Servers/IIS/IISIntegration.sln
index 1e41537e31..1d01090d51 100644
--- a/src/Servers/IIS/IISIntegration.sln
+++ b/src/Servers/IIS/IISIntegration.sln
@@ -63,9 +63,9 @@ Project("{9A19103F-16F7-4668-BE54-9A1E7A4F7556}") = "IIS.Tests", "IIS\test\IIS.T
 EndProject
 Project("{9A19103F-16F7-4668-BE54-9A1E7A4F7556}") = "Common.Tests", "IIS\test\Common.Tests\Common.Tests.csproj", "{D17B7B35-5361-4A50-B499-E03E5C3CC095}"
 EndProject
-Project("{9A19103F-16F7-4668-BE54-9A1E7A4F7556}") = "IIS.BackwardsCompatibility.FunctionalTests", "IIS\test\IIS.BackwardsCompatibility.FunctionalTests\IIS.BackwardsCompatibility.FunctionalTests.csproj", "{582B07BC-73F4-4689-8557-B039298BD82C}"
+Project("{9A19103F-16F7-4668-BE54-9A1E7A4F7556}") = "IIS.NewHandler.FunctionalTests", "IIS\test\IIS.NewHandler.FunctionalTests\IIS.NewHandler.FunctionalTests.csproj", "{582B07BC-73F4-4689-8557-B039298BD82C}"
 EndProject
-Project("{9A19103F-16F7-4668-BE54-9A1E7A4F7556}") = "IIS.ForwardsCompatibility.FunctionalTests", "IIS\test\IIS.ForwardsCompatibility.FunctionalTests\IIS.ForwardsCompatibility.FunctionalTests.csproj", "{D1EA5D99-28FD-4197-81DE-17098846B38B}"
+Project("{9A19103F-16F7-4668-BE54-9A1E7A4F7556}") = "IIS.NewShim.FunctionalTests", "IIS\test\IIS.NewShim.FunctionalTests\IIS.NewShim.FunctionalTests.csproj", "{D1EA5D99-28FD-4197-81DE-17098846B38B}"
 EndProject
 Project("{9A19103F-16F7-4668-BE54-9A1E7A4F7556}") = "TestTasks", "IIS\test\testassets\TestTasks\TestTasks.csproj", "{2DD1269D-131C-4531-BB0D-7BE0EF8E56D0}"
 EndProject
diff --git a/src/Servers/IIS/IntegrationTesting.IIS/src/Microsoft.AspNetCore.Server.IntegrationTesting.IIS.csproj b/src/Servers/IIS/IntegrationTesting.IIS/src/Microsoft.AspNetCore.Server.IntegrationTesting.IIS.csproj
index efd3c18b4c..cbfb23b75b 100644
--- a/src/Servers/IIS/IntegrationTesting.IIS/src/Microsoft.AspNetCore.Server.IntegrationTesting.IIS.csproj
+++ b/src/Servers/IIS/IntegrationTesting.IIS/src/Microsoft.AspNetCore.Server.IntegrationTesting.IIS.csproj
@@ -27,7 +27,7 @@
           Condition="!Exists('$(AspNetCoreModuleV2ShimDll)') OR !Exists('$(AspNetCoreModuleV2OutOfProcessHandlerDll)')" />
   </Target>
 
-  <ItemGroup Condition="'$(BuildIisNativeProjects)' == 'true' AND '$(VCTargetsPath)' != ''">
+  <ItemGroup Condition="'$(BuildIisNativeProjects)' == 'true' AND '$(VCTargetsPath)' != '' AND '$(TestGroupName)' != 'IISNewHandler.FunctionalTests'">
     <NativeProjectReference Include="$(MSBuildThisFileDirectory)..\..\AspNetCoreModuleV2\AspNetCore\AspNetCore.vcxproj" Platform="x64"/>
     <NativeProjectReference Include="$(MSBuildThisFileDirectory)..\..\AspNetCoreModuleV2\OutOfProcessRequestHandler\OutOfProcessRequestHandler.vcxproj" Platform="x64" />