We give a number of equivalent definitions of hypercomplex varieties and co
nstruct a twister space for a hypercomplex variety. We prove that our defin
ition of a hypercomplex variety (used, e. g., in alg-geom 9612013) is equiv
alent to a definition proposed by Deligne and Simpson, who used twister spa
ces. This gives a way to define hypercomplex spaces (to allow nilpotents in
the structure sheaf). We give a self-contained proof of desingularization
theorem for hypercomplex varieties: a normalization of a hypercomplex varie
ty is smooth and hypercomplex.