diff --git a/ivy/src/main/scala/sbt/ivyint/CachedResolutionResolveEngine.scala b/ivy/src/main/scala/sbt/ivyint/CachedResolutionResolveEngine.scala
index 4b6cd3e9e..3ee26964e 100644
--- a/ivy/src/main/scala/sbt/ivyint/CachedResolutionResolveEngine.scala
+++ b/ivy/src/main/scala/sbt/ivyint/CachedResolutionResolveEngine.scala
@@ -11,7 +11,7 @@ import org.apache.ivy.core
 import core.resolve._
 import core.module.id.{ ModuleRevisionId, ModuleId => IvyModuleId }
 import core.report.{ ResolveReport, ConfigurationResolveReport, DownloadReport }
-import core.module.descriptor.{ DefaultModuleDescriptor, ModuleDescriptor, DependencyDescriptor, Configuration => IvyConfiguration }
+import core.module.descriptor.{ DefaultModuleDescriptor, ModuleDescriptor, DependencyDescriptor, Configuration => IvyConfiguration, ExcludeRule, IncludeRule }
 import core.{ IvyPatternHelper, LogOptions }
 import org.apache.ivy.util.Message
 import org.apache.ivy.plugins.latest.{ ArtifactInfo => IvyArtifactInfo }
@@ -59,11 +59,28 @@ private[sbt] class CachedResolutionResolveCache() {
     }
   def buildArtificialModuleDescriptor(dd: DependencyDescriptor, rootModuleConfigs: Vector[IvyConfiguration], prOpt: Option[ProjectResolver]): (DefaultModuleDescriptor, Boolean) =
     {
+      def excludeRuleString(rule: ExcludeRule): String =
+        s"""Exclude(${rule.getId},${rule.getConfigurations.mkString(",")},${rule.getMatcher})"""
+      def includeRuleString(rule: IncludeRule): String =
+        s"""Include(${rule.getId},${rule.getConfigurations.mkString(",")},${rule.getMatcher})"""
       val mrid = dd.getDependencyRevisionId
       val confMap = (dd.getModuleConfigurations map { conf =>
         conf + "->(" + dd.getDependencyConfigurations(conf).mkString(",") + ")"
       })
-      val depsString = mrid.toString + ";" + confMap.mkString(";")
+      val exclusions = (dd.getModuleConfigurations.toVector flatMap { conf =>
+        dd.getExcludeRules(conf).toVector match {
+          case Vector() => None
+          case rules    => Some(conf + "->(" + (rules map excludeRuleString).mkString(",") + ")")
+        }
+      })
+      val inclusions = (dd.getModuleConfigurations.toVector flatMap { conf =>
+        dd.getIncludeRules(conf).toVector match {
+          case Vector() => None
+          case rules    => Some(conf + "->(" + (rules map includeRuleString).mkString(",") + ")")
+        }
+      })
+      val depsString = s"""$mrid;${confMap.mkString(",")};isForce=${dd.isForce};isChanging=${dd.isChanging};isTransitive=${dd.isTransitive};""" +
+        s"""exclusions=${exclusions.mkString(",")};inclusions=${inclusions.mkString(",")};"""
       val sha1 = Hash.toHex(Hash(depsString))
       val md1 = new DefaultModuleDescriptor(createID(sbtOrgTemp, "temp-resolve-" + sha1, "1.0"), "release", null, false) with ArtificialModuleDescriptor {
         def targetModuleRevisionId: ModuleRevisionId = mrid
diff --git a/sbt/src/sbt-test/dependency-management/cached-resolution3/multi.sbt b/sbt/src/sbt-test/dependency-management/cached-resolution3/multi.sbt
new file mode 100644
index 000000000..3d3196156
--- /dev/null
+++ b/sbt/src/sbt-test/dependency-management/cached-resolution3/multi.sbt
@@ -0,0 +1,45 @@
+// https://github.com/sbt/sbt/issues/1649
+lazy val check = taskKey[Unit]("Runs the check")
+
+def commonSettings: Seq[Def.Setting[_]] =
+  Seq(
+    ivyPaths := new IvyPaths( (baseDirectory in ThisBuild).value, Some((baseDirectory in LocalRootProject).value / "ivy-cache")),
+    dependencyCacheDirectory := (baseDirectory in LocalRootProject).value / "dependency",
+    scalaVersion := "2.10.4",
+    resolvers += Resolver.sonatypeRepo("snapshots")
+  )
+
+def cachedResolutionSettings: Seq[Def.Setting[_]] =
+  commonSettings ++ Seq(
+   updateOptions := updateOptions.value.withCachedResolution(true)
+  )
+
+lazy val a = project.
+  settings(cachedResolutionSettings: _*).
+  settings(
+    libraryDependencies += "net.databinder" %% "unfiltered-uploads" % "0.8.0" exclude("commons-io", "commons-io")
+  )
+
+lazy val b = project.
+  settings(cachedResolutionSettings: _*).
+  settings(
+    libraryDependencies += "net.databinder" %% "unfiltered-uploads" % "0.8.0"
+  )
+
+lazy val root = (project in file(".")).
+  aggregate(a, b).
+  settings(
+    organization in ThisBuild := "org.example",
+    version in ThisBuild := "1.0",
+    check := {
+      // sys.error(dependencyCacheDirectory.value.toString)
+      val acp = (externalDependencyClasspath in Compile in a).value.sortBy {_.data.getName}
+      val bcp = (externalDependencyClasspath in Compile in b).value.sortBy {_.data.getName}
+      if (acp exists { _.data.getName contains "commons-io" }) {
+        sys.error("commons-io found when it should be excluded")
+      }
+      if (!(bcp exists { _.data.getName contains "commons-io" })) {
+        sys.error("commons-io NOT found when it should NOT be excluded")
+      }
+    }
+  )
diff --git a/sbt/src/sbt-test/dependency-management/cached-resolution3/test b/sbt/src/sbt-test/dependency-management/cached-resolution3/test
new file mode 100644
index 000000000..081d79708
--- /dev/null
+++ b/sbt/src/sbt-test/dependency-management/cached-resolution3/test
@@ -0,0 +1,5 @@
+> a/update
+
+> b/update
+
+> check