Combining/Resolving Two Repository Types in Gradle

Gradle will prefer an artifact with an pom/ivy descriptor over an artifact without. I think this is why gradle continues searching after it finds a match in the flatDir repository. This may or may not solve your problem, but you could use a FileCollectionDependency instead of a ModuleDependency.

Eg:

ext {
   libs = "${rootProject.projectDir}/libs"
   testLibs = "${rootProject.projectDir}/test.libs"
}
dependencies {
   compile files("${libs}/activation.jar", "${libs}/imap.jar")
   compile files("${testLibs}/gson-2.2.4.jar")
   ...
}
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