diff --git a/ivy/IvyConfigurations.scala b/ivy/IvyConfigurations.scala
index 385eb260d..7f8ed9f3a 100644
--- a/ivy/IvyConfigurations.scala
+++ b/ivy/IvyConfigurations.scala
@@ -65,7 +65,7 @@ final class InlineConfiguration(val module: ModuleID, val dependencies: Iterable
 	val validate: Boolean) extends ModuleSettings
 {
 	def withConfigurations(configurations: Iterable[Configuration]) = 
-		new InlineConfiguration(module, dependencies, ivyXML, configurations, defaultConfiguration, None, validate)
+		new InlineConfiguration(module, dependencies, ivyXML, configurations, defaultConfiguration, ivyScala, validate)
 	def noScala = new InlineConfiguration(module, dependencies, ivyXML, configurations, defaultConfiguration, None, validate)
 }
 final class EmptyConfiguration(val module: ModuleID, val ivyScala: Option[IvyScala], val validate: Boolean) extends ModuleSettings
diff --git a/sbt/src/sbt-test/dependency-management/exclude-scala/project/build.properties b/sbt/src/sbt-test/dependency-management/exclude-scala/project/build.properties
new file mode 100644
index 000000000..2b4d7e5a1
--- /dev/null
+++ b/sbt/src/sbt-test/dependency-management/exclude-scala/project/build.properties
@@ -0,0 +1,2 @@
+project.name=Test
+project.version=1.0
\ No newline at end of file
diff --git a/sbt/src/sbt-test/dependency-management/exclude-scala/project/build/ExcludeScala.scala b/sbt/src/sbt-test/dependency-management/exclude-scala/project/build/ExcludeScala.scala
new file mode 100644
index 000000000..f7627a15d
--- /dev/null
+++ b/sbt/src/sbt-test/dependency-management/exclude-scala/project/build/ExcludeScala.scala
@@ -0,0 +1,15 @@
+import sbt._
+
+class ExcludeScala(info: ProjectInfo) extends DefaultProject(info)
+{
+	lazy val noScala = task { checkNoScala }
+
+	def checkNoScala =
+	{
+		val existing = compileClasspath.filter(isScalaLibrary _).get
+		if(existing.isEmpty) None else Some("Scala library was incorrectly retrieved: " + existing)
+	}
+	def isScalaLibrary(p: Path) = p.name contains "scala-library"
+
+	val sbinary = "org.scala-tools.sbinary" % "sbinary_2.7.7" % "0.3"
+}
\ No newline at end of file
diff --git a/sbt/src/sbt-test/dependency-management/exclude-scala/test b/sbt/src/sbt-test/dependency-management/exclude-scala/test
new file mode 100644
index 000000000..77feb1e5c
--- /dev/null
+++ b/sbt/src/sbt-test/dependency-management/exclude-scala/test
@@ -0,0 +1,3 @@
+> no-scala
+> update
+> no-scala
\ No newline at end of file