The current gradle release(1.0) does consider the local repository definition in M2_HOME/conf/settings.xml. But the settings.xml in user.home is favoured over the the global settings.xml.
The expected behavior is that the two files get merged, and entries in the per-user file override entries in the global one. Aren’t we doing this already?
I would mark this topic as fixed, as we take the M2_REPO/conf/settings.xml into account when locating the local repository.
The current way to determine the local maven repository is: 1. if no settings.xml can be found use USER_HOME/.m2/repository 2. if settings.xml in USER_HOME/.m2/settings.xml declares a localRepository use this defined repository location 3. if settings.xml in M2_HOME/conf/settings.xml declares a localRepository use this defined repository