MSBuild on CI Server can't find AL.exe

As you have install the latest SDK (I'm assuming that's v7.1)

1. Go to "Microsoft Windows SDK v7.1" from the Start menu
2. Select "Windows SDK 7.1 Command Prompt" and enter

3. cd Setup

4. WindowsSdkVer -version:v7.1

This will tell msbuild to use that version of the tools without needing to do any scary registry editing.

Even though the question is quite old but it still appears in the top of google search results so I decided to post my solution as well. I have trapped into same issue while during TeamCity setup on Windows Server 2016 and Windows 10 Pro.

I have installed Microsoft Build Tools 2015 and Windows 10 SDK (Only tools for .NET 4.6.2) and got the error from question.

The missing puzzle was to set environment variable: TargetFrameworkSDKToolsDirectory=C:\Program Files (x86)\Microsoft SDKs\Windows\v10.0A\bin\NETFX 4.6.2 Tools.

After setting environment variable MSBuild was able to resolve all needed tools including AL.exe and build succeeded.

Please let me know if same can be achieved by setting values in registry, but otherwise environment variables also works very well in this case and no installation of VS is needed.

You also need to apply the following registry fix to update msbuild to point to the V7.1 sdk values.

Windows Registry Editor Version 5.00

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSBuild\ToolsVersions\4.0]
"MSBuildToolsPath"="C:\\WINDOWS\\Microsoft.NET\\Framework\\v4.0.30319\\"
"MSBuildToolsRoot"="C:\\WINDOWS\\Microsoft.NET\\Framework\\"
"FrameworkSDKRoot"="$(Registry:HKEY_LOCAL_MACHINE\\SOFTWARE\\Microsoft\\Microsoft SDKs\\Windows\\v7.1@InstallationFolder)"
"MSBuildRuntimeVersion"="4.0.30319"
"SDK40ToolsPath"="$(Registry:HKEY_LOCAL_MACHINE\\SOFTWARE\\Microsoft\\Microsoft SDKs\\Windows\\v7.1\\WinSDK-NetFx40Tools-x86@InstallationFolder)"
"SDK35ToolsPath"="$(Registry:HKEY_LOCAL_MACHINE\\SOFTWARE\\Microsoft\\Microsoft SDKs\\Windows\\v7.1\\WinSDKNetFx35Tools@InstallationFolder)"
"MSBuildToolsPath32"="$(Registry:HKEY_LOCAL_MACHINE\\SOFTWARE\\Microsoft\\MSBuild\\ToolsVersions\\4.0@MSBuildToolsPath)"