diff --git a/src/chainparams.cpp b/src/chainparams.cpp
index 782a20324920a9..7c04fbcd60a91d 100644
--- a/src/chainparams.cpp
+++ b/src/chainparams.cpp
@@ -805,7 +805,7 @@ class CRegTestParams : public CChainParams {
         consensus.DIP0003EnforcementHeight = 500;
         consensus.DIP0003EnforcementHash = uint256();
         consensus.DIP0008Height = 1; // Always active unless overridden
-        consensus.BRRHeight = 1000; // see block_reward_reallocation_tests
+        consensus.BRRHeight = 1;     // Always active unless overridden
         consensus.DIP0020Height = 1;
         consensus.DIP0024Height = 900;
         consensus.DIP0024QuorumsHeight = 900;
@@ -1054,6 +1054,8 @@ static void MaybeUpdateHeights(const ArgsManager& args, Consensus::Params& conse
             consensus.BIP65Height = int{height};
         } else if (name == "csv") {
             consensus.CSVHeight = int{height};
+        } else if (name == "brr") {
+            consensus.BRRHeight = int{height};
         } else if (name == "dip0008") {
             consensus.DIP0008Height = int{height};
         } else if (name == "dip0020") {
diff --git a/src/chainparamsbase.cpp b/src/chainparamsbase.cpp
index 0a68563266a207..c71cadb2279150 100644
--- a/src/chainparamsbase.cpp
+++ b/src/chainparamsbase.cpp
@@ -21,7 +21,7 @@ void SetupChainParamsBaseOptions(ArgsManager& argsman)
     argsman.AddArg("-devnet=<name>", "Use devnet chain with provided name", ArgsManager::ALLOW_ANY, OptionsCategory::CHAINPARAMS);
     argsman.AddArg("-dip3params=<activation>:<enforcement>", "Override DIP3 activation and enforcement heights (regtest-only)", ArgsManager::ALLOW_ANY | ArgsManager::DEBUG_ONLY, OptionsCategory::CHAINPARAMS);
     argsman.AddArg("-dip8params=<activation>", "Override DIP8 activation height (regtest-only)", ArgsManager::ALLOW_ANY | ArgsManager::DEBUG_ONLY, OptionsCategory::CHAINPARAMS);
-    argsman.AddArg("-testactivationheight=name@height.", "Set the activation height of 'name' (bip147, bip34, dersig, cltv, csv, dip0008, dip0020). (regtest-only)", ArgsManager::ALLOW_ANY | ArgsManager::DEBUG_ONLY, OptionsCategory::DEBUG_TEST);
+    argsman.AddArg("-testactivationheight=name@height.", "Set the activation height of 'name' (bip147, bip34, dersig, cltv, csv, brr, dip0008, dip0020). (regtest-only)", ArgsManager::ALLOW_ANY | ArgsManager::DEBUG_ONLY, OptionsCategory::DEBUG_TEST);
     argsman.AddArg("-highsubsidyblocks=<n>", "The number of blocks with a higher than normal subsidy to mine at the start of a chain. Block after that height will have fixed subsidy base. (default: 0, devnet-only)", ArgsManager::ALLOW_ANY, OptionsCategory::CHAINPARAMS);
     argsman.AddArg("-highsubsidyfactor=<n>", "The factor to multiply the normal block subsidy by while in the highsubsidyblocks window of a chain (default: 1, devnet-only)", ArgsManager::ALLOW_ANY, OptionsCategory::CHAINPARAMS);
     argsman.AddArg("-llmqchainlocks=<quorum name>", "Override the default LLMQ type used for ChainLocks. Allows using ChainLocks with smaller LLMQs. (default: llmq_devnet, devnet-only)", ArgsManager::ALLOW_ANY, OptionsCategory::CHAINPARAMS);
diff --git a/src/test/block_reward_reallocation_tests.cpp b/src/test/block_reward_reallocation_tests.cpp
index c4affec2eec344..db5bf503609256 100644
--- a/src/test/block_reward_reallocation_tests.cpp
+++ b/src/test/block_reward_reallocation_tests.cpp
@@ -35,7 +35,7 @@ using SimpleUTXOMap = std::map<COutPoint, std::pair<int, CAmount>>;
 struct TestChainBRRBeforeActivationSetup : public TestChainSetup
 {
     // Force fast DIP3 activation
-    TestChainBRRBeforeActivationSetup() : TestChainSetup(497, {"-dip3params=30:50", "-vbparams=mn_rr:0:999999999999:0:20:16:12:5:1"}) {}
+    TestChainBRRBeforeActivationSetup() : TestChainSetup(497, {"-dip3params=30:50", "-testactivationheight=brr@1000", "-vbparams=mn_rr:0:999999999999:0:20:16:12:5:1"}) {}
 };
 
 static SimpleUTXOMap BuildSimpleUtxoMap(const std::vector<CTransactionRef>& txs)
diff --git a/test/functional/rpc_blockchain.py b/test/functional/rpc_blockchain.py
index c72314a9893c2b..a77f9d0033945d 100755
--- a/test/functional/rpc_blockchain.py
+++ b/test/functional/rpc_blockchain.py
@@ -152,7 +152,7 @@ def _test_getblockchaininfo(self):
             'dip0008': { 'type': 'buried', 'active': True, 'height': 1},
             'dip0020': { 'type': 'buried', 'active': True, 'height': 1},
             'dip0024': { 'type': 'buried', 'active': False, 'height': 900},
-            'realloc': { 'type': 'buried', 'active': False, 'height': 1000},
+            'realloc': { 'type': 'buried', 'active': True, 'height': 1},
             'v19': { 'type': 'buried', 'active': False, 'height': 900},
             'v20': {
                 'type': 'bip9',
diff --git a/test/functional/test_framework/blocktools.py b/test/functional/test_framework/blocktools.py
index 388fd5b5b90bbc..3142217d1bc9ce 100644
--- a/test/functional/test_framework/blocktools.py
+++ b/test/functional/test_framework/blocktools.py
@@ -255,12 +255,13 @@ def filter_tip_keys(chaintips):
     return filtered_tips
 
 # Identical to GetMasternodePayment in C++ code
+# TODO: remove it or make **proper** tests for various height
 def get_masternode_payment(nHeight, blockValue, fV20Active):
     ret = int(blockValue / 5)
 
     nMNPIBlock = 350
     nMNPIPeriod = 10
-    nReallocActivationHeight = 2500
+    nReallocActivationHeight = 1
 
     if nHeight > nMNPIBlock:
         ret += int(blockValue / 20)
@@ -285,7 +286,7 @@ def get_masternode_payment(nHeight, blockValue, fV20Active):
         # Block Reward Realocation is not activated yet, nothing to do
         return ret
 
-    nSuperblockCycle = 10
+    nSuperblockCycle = 20
     # Actual realocation starts in the cycle next to one activation happens in
     nReallocStart = nReallocActivationHeight - nReallocActivationHeight % nSuperblockCycle + nSuperblockCycle