diff --git a/src/main/scala/sbt/ManageDependencies.scala b/src/main/scala/sbt/ManageDependencies.scala
index 6d462a2cb..49c9d4b91 100644
--- a/src/main/scala/sbt/ManageDependencies.scala
+++ b/src/main/scala/sbt/ManageDependencies.scala
@@ -340,6 +340,7 @@ object ManageDependencies
 		manager.setChangingMatcher(PatternMatcher.REGEXP);
 		manager.setChangingPattern(".*-SNAPSHOT");
 		settings.setDefaultRepositoryCacheManager(manager)
+		dir.foreach(dir => settings.setDefaultResolutionCacheBasedir(dir.absolutePath))
 	}
 	/** Creates an ExcludeRule that excludes artifacts with the given module organization and name for
 	* the given configurations. */