diff --git a/sbt/src/sbt-test/dependency-management/cache-local/cache.sbt b/sbt/src/sbt-test/dependency-management/cache-local/cache.sbt
new file mode 100644
index 000000000..adedcc1c7
--- /dev/null
+++ b/sbt/src/sbt-test/dependency-management/cache-local/cache.sbt
@@ -0,0 +1 @@
+ ivyPaths <<= (baseDirectory, target)( (dir, t) => new IvyPaths(dir, Some(t / ".ivy2")))
diff --git a/sbt/src/sbt-test/dependency-management/cache-local/changes/def.sbt b/sbt/src/sbt-test/dependency-management/cache-local/changes/def.sbt
new file mode 100644
index 000000000..3e64f64c9
--- /dev/null
+++ b/sbt/src/sbt-test/dependency-management/cache-local/changes/def.sbt
@@ -0,0 +1,7 @@
+organization := "org.example"
+
+name := "def"
+
+version := "1.0"
+
+autoScalaLibrary := false
diff --git a/sbt/src/sbt-test/dependency-management/cache-local/changes/resolver.sbt b/sbt/src/sbt-test/dependency-management/cache-local/changes/resolver.sbt
new file mode 100644
index 000000000..41e3eaa85
--- /dev/null
+++ b/sbt/src/sbt-test/dependency-management/cache-local/changes/resolver.sbt
@@ -0,0 +1,5 @@
+
+publishTo <<= baseDirectory(base => Some(Resolver.file("filesys-publish", base / "repo")) )
+
+resolvers <+= baseDirectory(base => Resolver.file("filesys", base / "repo"))
+
diff --git a/sbt/src/sbt-test/dependency-management/cache-local/changes/use.sbt b/sbt/src/sbt-test/dependency-management/cache-local/changes/use.sbt
new file mode 100644
index 000000000..d1b96f297
--- /dev/null
+++ b/sbt/src/sbt-test/dependency-management/cache-local/changes/use.sbt
@@ -0,0 +1,9 @@
+organization := "org.example"
+
+name := "use"
+
+version := "1.0"
+
+autoScalaLibrary := false
+
+libraryDependencies += "org.example" %% "def" % "1.0"
diff --git a/sbt/src/sbt-test/dependency-management/cache-local/pending b/sbt/src/sbt-test/dependency-management/cache-local/pending
new file mode 100644
index 000000000..6d4a277dc
--- /dev/null
+++ b/sbt/src/sbt-test/dependency-management/cache-local/pending
@@ -0,0 +1,18 @@
+$ copy-file changes/def.sbt build.sbt
+$ copy-file changes/resolver.sbt resolver.sbt
+> reload
+> publish-local
+> publish
+
+$ delete build.sbt
+$ delete resolver.sbt
+$ copy-file changes/use.sbt build.sbt
+> reload
+> update
+
+$ delete target/.ivy2/local
+-> update
+
+$ copy-file changes/resolver.sbt resolver.sbt
+> reload
+> update