diff --git a/ivy/src/main/scala/sbt/Resolver.scala b/ivy/src/main/scala/sbt/Resolver.scala
index 91368abfc..9ba5d56ce 100644
--- a/ivy/src/main/scala/sbt/Resolver.scala
+++ b/ivy/src/main/scala/sbt/Resolver.scala
@@ -300,18 +300,19 @@ object Resolver {
   def localBasePattern = "[organisation]/[module]/" + PluginPattern + "[revision]/[type]s/[artifact](-[classifier]).[ext]"
   def defaultRetrievePattern = "[type]s/[organisation]/[module]/" + PluginPattern + "[artifact](-[revision])(-[classifier]).[ext]"
   final val PluginPattern = "(scala_[scalaVersion]/)(sbt_[sbtVersion]/)"
-  private[this] def mavenLocalDir: File =
-    {
-      val homeConfig = XML.loadFile(new File(Path.userHome, ".m2/settings.xml"))
-      homeConfig \ "settings" \ "localRepository" match {
-        case scala.xml.Text(x) => new File(x)
-        case _ =>
-          val globalConfig = XML.loadFile(new File(Path.fileProperty("M2_HOME"), "conf/settings.xml"))
-          globalConfig \ "settings" \ "localRepository" match {
-            case scala.xml.Text(x) => new File(x)
-            case _                 => new File(Path.userHome, ".m2/repository/")
-          }
+  private[this] def mavenLocalDir: File = {
+    def loadHomeFromSettings(f: () => File): Option[File] =
+      try {
+        XML.loadFile(f()) \ "settings" \ "localRepository" match {
+          case scala.xml.Text(loc) => Some(new File(loc))
+          case _                   => None
+        }
+      } catch {
+        case _: Throwable => None
       }
+    loadHomeFromSettings(() => new File(Path.userHome, ".m2/settings.xml")) orElse
+      loadHomeFromSettings(() => new File(Path.fileProperty("M2_HOME"), "conf/settings.xml")) getOrElse
+      new File(Path.userHome, ".m2/repository")
     }
   def publishMavenLocal = Resolver.file("publish-m2-local", mavenLocalDir)
   def mavenLocal = MavenRepository("Maven2 Local", mavenLocalDir.toURI.toString)