Multiple gradle projects and dependencies


I would like to have to following setup, but as far as I can tell gradle does not really support it, am I missing something, or is this practically impossible?

The setup:

project1/ module1 module2 build.gradle settings.gradle

project2/ module1 module2 build.gradle settings.gradle

I would like to have two entirely separate gradle projects, with their own settings.gradle, so they can be build independently, and live in their own source control systems, but I would also like to set dependencies between them if they are both checked out, so I can do active development on both projects and have the dependencies be up to date all the time, instead of a cumbersome “release project1 snapshot / compile project2 again from gradle to fetch dependency”.

Is there really no support for this at all? As far as I can tell the only thing I can do right now is add the modules from project1 in project2’s settings.gradle, but then I lose the allprojects and subprojects configurations that is set in project1, and instead get them from project2, meaning over time project1 may not even compile on its own.