Using IntelliJ 2016.2.
Using Gradle 2.14.1
I have 2 projects, each with their own build.gradle files and separate directory structures:
myLib (me
This answer is outdated in modern gradle and intellij, please refer to darwinbaisa's answer
Original answer
Its discussed in the article https://blog.jetbrains.com/idea/2016/10/intellij-idea-2016-3-eap-gradle-composite-builds-and-android-studio-2-2/
Basically you need to use composite builds. So View > Tool windows > Gradle > Right Click on the project using the library > Composite Build Configuration > Tick the library project you want to use the local version of.
Do a rebuild and then the local dependancy should be used