diff --git a/spring-batch-core/.settings/com.springsource.sts.config.flow.prefs b/spring-batch-core/.settings/com.springsource.sts.config.flow.prefs
index f16242a6c..2def1e000 100644
--- a/spring-batch-core/.settings/com.springsource.sts.config.flow.prefs
+++ b/spring-batch-core/.settings/com.springsource.sts.config.flow.prefs
@@ -1,4 +1,4 @@
-#Wed May 04 11:51:55 BST 2011
+#Wed May 04 14:36:34 BST 2011
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/ChunkElementLateBindingParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="886" endstart\="880" start\="510" startend\="524"/>\n<bounds height\="168" width\="77" x\="15" y\="17"/>\n</element>\n</graph>
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/JobExecutionListenerMethodAttributeParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element type\="job">\n<structure end\="995" endstart\="989" start\="511" startend\="586"/>\n<bounds height\="118" width\="77" x\="15" y\="17"/>\n</element>\n</graph>
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/JobRepositoryDefaultParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph/>
@@ -6,7 +6,8 @@
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/ParentRetryableStepFactoryBeanParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element clazz\="StepModelElement" type\="step">\n<structure end\="700" endstart\="693" start\="439" startend\="529"/>\n<bounds height\="34" width\="95" x\="106" y\="19"/>\n</element>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="955" endstart\="949" start\="703" startend\="769"/>\n<bounds height\="128" width\="77" x\="15" y\="19"/>\n</element>\n</graph>
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/ParentSkippableLateBindingStepFactoryBeanParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element clazz\="StepModelElement" type\="step">\n<structure end\="771" endstart\="764" start\="510" startend\="600"/>\n<bounds height\="34" width\="95" x\="106" y\="19"/>\n</element>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="987" endstart\="981" start\="774" startend\="788"/>\n<bounds height\="128" width\="77" x\="15" y\="19"/>\n</element>\n</graph>
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/ParentSkippableStepFactoryBeanParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element clazz\="StepModelElement" type\="step">\n<structure end\="700" endstart\="693" start\="439" startend\="529"/>\n<bounds height\="34" width\="95" x\="106" y\="19"/>\n</element>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="953" endstart\="947" start\="703" startend\="769"/>\n<bounds height\="128" width\="77" x\="15" y\="19"/>\n</element>\n</graph>
-//com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/PartitionStepParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="713" endstart\="707" start\="510" startend\="525"/>\n<bounds height\="128" width\="84" x\="15" y\="17"/>\n</element>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="884" endstart\="878" start\="716" startend\="731"/>\n<bounds height\="172" width\="84" x\="207" y\="17"/>\n</element>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="1042" endstart\="1036" start\="887" startend\="902"/>\n<bounds height\="128" width\="84" x\="111" y\="17"/>\n</element>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="1295" endstart\="1289" start\="1045" startend\="1060"/>\n<bounds height\="128" width\="84" x\="303" y\="17"/>\n</element>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="1412" endstart\="1406" start\="1298" startend\="1313"/>\n<bounds height\="128" width\="84" x\="399" y\="17"/>\n</element>\n</graph>
+//com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/PartitionStepParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="713" endstart\="707" start\="510" startend\="525"/>\n<bounds height\="128" width\="84" x\="15" y\="17"/>\n</element>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="871" endstart\="865" start\="716" startend\="731"/>\n<bounds height\="172" width\="84" x\="207" y\="17"/>\n</element>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="1011" endstart\="1005" start\="874" startend\="889"/>\n<bounds height\="128" width\="84" x\="111" y\="17"/>\n</element>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="1246" endstart\="1240" start\="1014" startend\="1029"/>\n<bounds height\="128" width\="84" x\="303" y\="17"/>\n</element>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="1363" endstart\="1357" start\="1249" startend\="1264"/>\n<bounds height\="128" width\="84" x\="399" y\="17"/>\n</element>\n</graph>
+//com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/PartitionStepWithLateBindingParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="620" endstart\="614" start\="510" startend\="525"/>\n<bounds height\="118" width\="84" x\="15" y\="17"/>\n</element>\n</graph>
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepListenerInStepParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="1832" endstart\="1826" start\="510" startend\="524"/>\n<bounds height\="268" width\="77" x\="15" y\="17"/>\n</element>\n</graph>
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepListenerMethodAttributeParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element type\="job">\n<structure end\="854" endstart\="848" start\="511" startend\="525"/>\n<bounds height\="118" width\="77" x\="15" y\="17"/>\n</element>\n</graph>
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepListenerParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="1650" endstart\="1644" start\="510" startend\="524"/>\n<bounds height\="218" width\="77" x\="15" y\="17"/>\n</element>\n</graph>
diff --git a/spring-batch-core/src/main/java/org/springframework/batch/core/configuration/xml/StepParserStepFactoryBean.java b/spring-batch-core/src/main/java/org/springframework/batch/core/configuration/xml/StepParserStepFactoryBean.java
index 83b15cd29..23802f857 100644
--- a/spring-batch-core/src/main/java/org/springframework/batch/core/configuration/xml/StepParserStepFactoryBean.java
+++ b/spring-batch-core/src/main/java/org/springframework/batch/core/configuration/xml/StepParserStepFactoryBean.java
@@ -63,7 +63,6 @@ import org.springframework.batch.retry.RetryPolicy;
 import org.springframework.batch.retry.backoff.BackOffPolicy;
 import org.springframework.batch.retry.policy.MapRetryContextCache;
 import org.springframework.batch.retry.policy.RetryContextCache;
-import org.springframework.beans.factory.BeanCreationException;
 import org.springframework.beans.factory.BeanNameAware;
 import org.springframework.beans.factory.FactoryBean;
 import org.springframework.core.task.SyncTaskExecutor;
@@ -298,23 +297,6 @@ class StepParserStepFactoryBean<I, O> implements FactoryBean, BeanNameAware {
 			ts.setPartitionHandler(partitionHandler);
 		}
 
-		// BATCH-1659
-		if (partitionHandler instanceof TaskExecutorPartitionHandler) {
-			TaskExecutorPartitionHandler taskExecutorPartitionHandler = (TaskExecutorPartitionHandler) partitionHandler;
-			if (taskExecutorPartitionHandler.getStep() == null) {
-				// Only for a local partition handler is the step required
-				Assert.state(step != null,
-						"A Step must be provided for a partition step with a TaskExecutorPartitionHandler");
-				try {
-					taskExecutorPartitionHandler.setStep(step);
-					taskExecutorPartitionHandler.afterPropertiesSet();
-				}
-				catch (Exception e) {
-					throw new BeanCreationException("Could not configure TaskExecutorPartitionHandler", e);
-				}
-			}
-		}
-
 		boolean allowStartIfComplete = this.allowStartIfComplete != null ? this.allowStartIfComplete : false;
 		String name = this.name;
 		if (step != null) {
diff --git a/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/PartitionStepParserTests.java b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/PartitionStepParserTests.java
index 1188bb12a..148ae8335 100644
--- a/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/PartitionStepParserTests.java
+++ b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/PartitionStepParserTests.java
@@ -130,10 +130,10 @@ public class PartitionStepParserTests implements ApplicationContextAware {
 		job2.execute(jobExecution);
 		assertEquals(BatchStatus.COMPLETED, jobExecution.getStatus());
 		Collections.sort(savedStepNames);
-		assertEquals("[s3, step1:partition0, step1:partition1, step1:partition2]", savedStepNames.toString());
+		assertEquals("[s2:partition0, s2:partition1, s2:partition2, s3]", savedStepNames.toString());
 		List<String> stepNames = getStepNames(jobExecution);
 		assertEquals(5, stepNames.size());
-		assertEquals("[s2, s3, step1:partition0, step1:partition1, step1:partition2]", stepNames.toString());
+		assertEquals("[s2, s2:partition0, s2:partition1, s2:partition2, s3]", stepNames.toString());
 	}
 
 	/**
@@ -150,10 +150,9 @@ public class PartitionStepParserTests implements ApplicationContextAware {
 
 		for (StepExecution se : jobExecution.getStepExecutions()) {
 			String stepExecutionName = se.getStepName();
-			if (stepExecutionName.equalsIgnoreCase("j3s1")) { // the partitioned
-																// step
+			// the partitioned step
+			if (stepExecutionName.equalsIgnoreCase("j3s1")) { 
 				PartitionStep partitionStep = (PartitionStep) this.applicationContext.getBean(stepExecutionName);
-
 				// prove that the reference in the {@link
 				// TaskExecutorPartitionHandler} is the step configured inline
 				TaskExecutorPartitionHandler taskExecutorPartitionHandler = accessPrivateField(partitionStep,
@@ -166,10 +165,10 @@ public class PartitionStepParserTests implements ApplicationContextAware {
 		}
 		assertEquals(BatchStatus.COMPLETED, jobExecution.getStatus());
 		Collections.sort(savedStepNames);
-		assertEquals("[j3s1:partition0, j3s1:partition1, j3s1:partition2]", savedStepNames.toString());
+		assertEquals("[j3s1:partition0, j3s1:partition1, j3s1:partition2, j3s1:partition3, j3s1:partition4, j3s1:partition5]", savedStepNames.toString());
 		List<String> stepNames = getStepNames(jobExecution);
-		assertEquals(4, stepNames.size());
-		assertEquals("[j3s1, j3s1:partition0, j3s1:partition1, j3s1:partition2]", stepNames.toString());
+		assertEquals(7, stepNames.size());
+		assertEquals("[j3s1, j3s1:partition0, j3s1:partition1, j3s1:partition2, j3s1:partition3, j3s1:partition4, j3s1:partition5]", stepNames.toString());
 	}
 
 	/**
@@ -204,8 +203,8 @@ public class PartitionStepParserTests implements ApplicationContextAware {
 		// Step names not saved by this one (it geosn't have that tasklet)
 		assertEquals("[]", savedStepNames.toString());
 		List<String> stepNames = getStepNames(jobExecution);
-		assertEquals(4, stepNames.size());
-		assertEquals("[j4s1, j4s1:partition0, j4s1:partition1, j4s1:partition2]", stepNames.toString());
+		assertEquals(7, stepNames.size());
+		assertEquals("[j4s1, j4s1:partition0, j4s1:partition1, j4s1:partition2, j4s1:partition3, j4s1:partition4, j4s1:partition5]", stepNames.toString());
 	}
 
 	@Test
diff --git a/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/PartitionStepParserTests-context.xml b/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/PartitionStepParserTests-context.xml
index 613040b89..259637e8b 100644
--- a/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/PartitionStepParserTests-context.xml
+++ b/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/PartitionStepParserTests-context.xml
@@ -16,14 +16,14 @@
 
 	<job id="job2">
 		<step id="s2" next="s3">
-			<partition step="step1" handler="handler" partitioner="partitioner" />
+			<partition handler="handler" partitioner="partitioner" />
 		</step>
 		<step id="s3" parent="step2" />
 	</job>
 
 	<job id="job3">
 		<step id="j3s1">
-			<partition handler="handler" partitioner="partitioner">
+			<partition partitioner="partitioner">
 				<step parent="step2" />
 			</partition>
 		</step>
@@ -31,7 +31,7 @@
 
 	<job id="job4">
 		<step id="j4s1">
-			<partition handler="handler" partitioner="partitioner">
+			<partition partitioner="partitioner">
 				<step>
 					<tasklet>
 						<chunk reader="reader" writer="writer" commit-interval="10" />
@@ -51,6 +51,7 @@
 		or a custom PartitionHandler -->
 	<bean id="handler" class="org.springframework.batch.core.partition.support.TaskExecutorPartitionHandler" xmlns="http://www.springframework.org/schema/beans">
 		<property name="gridSize" value="3" />
+		<property name="step" ref="step1"/>
 	</bean>
 
 	<beans:bean id="aggregator"