diff --git a/build.sbt b/build.sbt
index 2bb66c9bd..af48ed518 100644
--- a/build.sbt
+++ b/build.sbt
@@ -1201,7 +1201,11 @@ def otherRootSettings =
     scriptedUnpublished := scriptedUnpublishedTask.evaluated,
     scriptedSource := (sourceDirectory in sbtProj).value / "sbt-test",
     watchTriggers in scripted += scriptedSource.value.toGlob / **,
-    scriptedLaunchOpts := List("-Xmx1500M", "-Xms512M", "-server"),
+    scriptedLaunchOpts := List("-Xmx1500M", "-Xms512M", "-server") :::
+      (sys.props.get("sbt.ivy.home") match {
+        case Some(home) => List(s"-Dsbt.ivy.home=$home")
+        case _          => Nil
+      }),
     publishAll := { val _ = (publishLocal).all(ScopeFilter(inAnyProject)).value },
     publishLocalBinAll := { val _ = (publishLocalBin).all(ScopeFilter(inAnyProject)).value },
     aggregate in bintrayRelease := false
@@ -1213,7 +1217,11 @@ def otherRootSettings =
         "-server",
         "-Dsbt.override.build.repos=true",
         s"""-Dsbt.repository.config=${scriptedSource.value / "repo.config"}"""
-      ),
+      ) :::
+        (sys.props.get("sbt.ivy.home") match {
+          case Some(home) => List(s"-Dsbt.ivy.home=$home")
+          case _          => Nil
+        }),
       scripted := scriptedTask.evaluated,
       scriptedUnpublished := scriptedUnpublishedTask.evaluated,
       scriptedSource := (sourceDirectory in sbtProj).value / "repo-override-test"
diff --git a/sbt/src/test/scala/sbt/RunFromSourceMain.scala b/sbt/src/test/scala/sbt/RunFromSourceMain.scala
index dfc694fc3..ec7b168aa 100644
--- a/sbt/src/test/scala/sbt/RunFromSourceMain.scala
+++ b/sbt/src/test/scala/sbt/RunFromSourceMain.scala
@@ -26,6 +26,10 @@ object RunFromSourceMain {
   def fork(fo0: ForkOptions, workingDirectory: File): Process = {
     val fo = fo0
       .withWorkingDirectory(workingDirectory)
+      .withRunJVMOptions(sys.props.get("sbt.ivy.home") match {
+        case Some(home) => Vector(s"-Dsbt.ivy.home=$home")
+        case _          => Vector()
+      })
     implicit val runner = new ForkRun(fo)
     val cp = {
       TestBuildInfo.test_classDirectory +: TestBuildInfo.fullClasspath
@@ -117,7 +121,10 @@ object RunFromSourceMain {
           def topLoader = new java.net.URLClassLoader(Array(), null)
           def globalLock = noGlobalLock
           def bootDirectory = RunFromSourceMain.bootDirectory
-          def ivyHome = file(sys.props("user.home")) / ".ivy2"
+          def ivyHome: File = sys.props.get("sbt.ivy.home") match {
+            case Some(home) => file(home)
+            case _          => file(sys.props("user.home")) / ".ivy2"
+          }
           case class PredefRepo(id: Predefined) extends PredefinedRepository
           import Predefined._
           def ivyRepositories = Array(PredefRepo(Local), PredefRepo(MavenCentral))
diff --git a/zinc-lm-integration/src/main/scala/sbt/internal/inc/ZincComponentCompiler.scala b/zinc-lm-integration/src/main/scala/sbt/internal/inc/ZincComponentCompiler.scala
index 4c6e16043..a6d0167a5 100644
--- a/zinc-lm-integration/src/main/scala/sbt/internal/inc/ZincComponentCompiler.scala
+++ b/zinc-lm-integration/src/main/scala/sbt/internal/inc/ZincComponentCompiler.scala
@@ -159,7 +159,13 @@ private[sbt] object ZincComponentCompiler {
   ): CompilerBridgeProvider =
     new ZincCompilerBridgeProvider(None, manager, dependencyResolution, scalaJarsTarget)
 
-  private final val LocalIvy = s"$${user.home}/.ivy2/local/${Resolver.localBasePattern}"
+  private final val LocalIvy =
+    (sys.props.get("sbt.ivy.home") match {
+      case Some(home) =>
+        if (home.endsWith("/")) home
+        else home + "/"
+      case _ => s"$${user.home}/.ivy2/"
+    }) + "local/" + Resolver.localBasePattern
 
   final val LocalResolver: Resolver = {
     val toUse = Vector(LocalIvy)