diff --git a/Gulpfile.ts b/Gulpfile.ts
index 72766de0857..b2737c243c2 100644
--- a/Gulpfile.ts
+++ b/Gulpfile.ts
@@ -17,7 +17,6 @@ declare module "gulp-typescript" {
         stripInternal?: boolean;
         types?: string[];
     }
-    interface CompileStream extends NodeJS.ReadWriteStream { } // Either gulp or gulp-typescript has some odd typings which don't reflect reality, making this required
 }
 import * as insert from "gulp-insert";
 import * as sourcemaps from "gulp-sourcemaps";
@@ -380,10 +379,10 @@ gulp.task(builtLocalCompiler, false, [servicesFile], () => {
     return localCompilerProject.src()
         .pipe(newer(builtLocalCompiler))
         .pipe(sourcemaps.init())
-        .pipe(tsc(localCompilerProject))
+        .pipe(localCompilerProject())
         .pipe(prependCopyright())
         .pipe(sourcemaps.write("."))
-        .pipe(gulp.dest(builtLocalDirectory));
+        .pipe(gulp.dest("."));
 });
 
 gulp.task(servicesFile, false, ["lib", "generate-diagnostics"], () => {
@@ -391,7 +390,7 @@ gulp.task(servicesFile, false, ["lib", "generate-diagnostics"], () => {
     const {js, dts} = servicesProject.src()
         .pipe(newer(servicesFile))
         .pipe(sourcemaps.init())
-        .pipe(tsc(servicesProject));
+        .pipe(servicesProject());
     const completedJs = js.pipe(prependCopyright())
         .pipe(sourcemaps.write("."));
     const completedDts = dts.pipe(prependCopyright(/*outputCopyright*/true))
@@ -409,13 +408,13 @@ gulp.task(servicesFile, false, ["lib", "generate-diagnostics"], () => {
                 file.path = nodeDefinitionsFile;
                 return content + "\r\nexport = ts;";
             }))
-            .pipe(gulp.dest(builtLocalDirectory)),
+            .pipe(gulp.dest(".")),
         completedDts.pipe(clone())
             .pipe(insert.transform((content, file) => {
                 file.path = nodeStandaloneDefinitionsFile;
                 return content.replace(/declare (namespace|module) ts/g, 'declare module "typescript"');
             }))
-    ]).pipe(gulp.dest(builtLocalDirectory));
+    ]).pipe(gulp.dest("."));
 });
 
 // cancellationToken.js
@@ -425,7 +424,7 @@ gulp.task(cancellationTokenJs, false, [servicesFile], () => {
     return cancellationTokenProject.src()
         .pipe(newer(cancellationTokenJs))
         .pipe(sourcemaps.init())
-        .pipe(tsc(cancellationTokenProject))
+        .pipe(cancellationTokenProject())
         .pipe(prependCopyright())
         .pipe(sourcemaps.write("."))
         .pipe(gulp.dest(builtLocalDirectory));
@@ -438,10 +437,10 @@ gulp.task(typingsInstallerJs, false, [servicesFile], () => {
     return cancellationTokenProject.src()
         .pipe(newer(typingsInstallerJs))
         .pipe(sourcemaps.init())
-        .pipe(tsc(cancellationTokenProject))
+        .pipe(cancellationTokenProject())
         .pipe(prependCopyright())
         .pipe(sourcemaps.write("."))
-        .pipe(gulp.dest(builtLocalDirectory));
+        .pipe(gulp.dest("."));
 });
 
 const serverFile = path.join(builtLocalDirectory, "tsserver.js");
@@ -451,10 +450,10 @@ gulp.task(serverFile, false, [servicesFile, typingsInstallerJs, cancellationToke
     return serverProject.src()
         .pipe(newer(serverFile))
         .pipe(sourcemaps.init())
-        .pipe(tsc(serverProject))
+        .pipe(serverProject())
         .pipe(prependCopyright())
         .pipe(sourcemaps.write("."))
-        .pipe(gulp.dest(builtLocalDirectory));
+        .pipe(gulp.dest("."));
 });
 
 const tsserverLibraryFile = path.join(builtLocalDirectory, "tsserverlibrary.js");
@@ -465,14 +464,14 @@ gulp.task(tsserverLibraryFile, false, [servicesFile], (done) => {
     const {js, dts}: { js: NodeJS.ReadableStream, dts: NodeJS.ReadableStream } = serverLibraryProject.src()
         .pipe(sourcemaps.init())
         .pipe(newer(tsserverLibraryFile))
-        .pipe(tsc(serverLibraryProject));
+        .pipe(serverLibraryProject());
 
     return merge2([
         js.pipe(prependCopyright())
             .pipe(sourcemaps.write("."))
-            .pipe(gulp.dest(builtLocalDirectory)),
+            .pipe(gulp.dest(".")),
         dts.pipe(prependCopyright())
-            .pipe(gulp.dest(builtLocalDirectory))
+            .pipe(gulp.dest("."))
     ]);
 });
 
@@ -544,9 +543,9 @@ gulp.task(run, false, [servicesFile], () => {
     return testProject.src()
         .pipe(newer(run))
         .pipe(sourcemaps.init())
-        .pipe(tsc(testProject))
+        .pipe(testProject())
         .pipe(sourcemaps.write(".", { includeContent: false, sourceRoot: "../../" }))
-        .pipe(gulp.dest(builtLocalDirectory));
+        .pipe(gulp.dest("."));
 });
 
 const internalTests = "internal/";
@@ -730,7 +729,7 @@ gulp.task("browserify", "Runs browserify on run.js to produce a file suitable fo
     return testProject.src()
         .pipe(newer("built/local/bundle.js"))
         .pipe(sourcemaps.init())
-        .pipe(tsc(testProject))
+        .pipe(testProject)
         .pipe(through2.obj((file, enc, next) => {
             const originalMap = file.sourceMap;
             const prebundledContent = file.contents.toString();
diff --git a/src/server/cancellationToken/tsconfig.json b/src/server/cancellationToken/tsconfig.json
index 94c81aa644f..1245fc34fd5 100644
--- a/src/server/cancellationToken/tsconfig.json
+++ b/src/server/cancellationToken/tsconfig.json
@@ -5,7 +5,6 @@
         "removeComments": true,
         "preserveConstEnums": true,
         "pretty": true,
-        "outDir": "../../../built/local",
         "module": "commonjs",
         "sourceMap": true,
         "stripInternal": true,
diff --git a/src/server/tsconfig.json b/src/server/tsconfig.json
index bd9bb14ba41..9e65eb2b8bc 100644
--- a/src/server/tsconfig.json
+++ b/src/server/tsconfig.json
@@ -5,7 +5,7 @@
         "removeComments": true,
         "preserveConstEnums": true,
         "pretty": true,
-        "out": "../../built/local/tsserver.js",
+        "outFile": "../../built/local/tsserver.js",
         "sourceMap": true,
         "stripInternal": true,
         "types": [
diff --git a/src/server/tsconfig.library.json b/src/server/tsconfig.library.json
index 5d4656a318b..a450b591a7e 100644
--- a/src/server/tsconfig.library.json
+++ b/src/server/tsconfig.library.json
@@ -3,7 +3,7 @@
         "noImplicitAny": true,
         "removeComments": true,
         "preserveConstEnums": true,
-        "out": "../../built/local/tsserverlibrary.js",
+        "outFile": "../../built/local/tsserverlibrary.js",
         "sourceMap": true,
         "stripInternal": true,
         "declaration": true,
diff --git a/src/server/typingsInstaller/tsconfig.json b/src/server/typingsInstaller/tsconfig.json
index 20b3f5e266c..fc4b896f267 100644
--- a/src/server/typingsInstaller/tsconfig.json
+++ b/src/server/typingsInstaller/tsconfig.json
@@ -5,7 +5,7 @@
         "removeComments": true,
         "preserveConstEnums": true,
         "pretty": true,
-        "out": "../../built/local/typingsInstaller.js",
+        "outFile": "../../../built/local/typingsInstaller.js",
         "sourceMap": true,
         "stripInternal": true,
         "types": [