If you have workspace resolution turned on for a project, it will not
use the local repo but have a dependency to the Eclipse project
instead. Pretty much how you would do it in plain Eclipse development
(bad memories).
I don't have an Eclipse instance in frt of me, but you can see this
there as the icon of the dependency is a folder-ish icon instead of
the jar (can).

But you can also turn of workspace resolution for a project.

/Anders

On Thu, Aug 30, 2012 at 5:49 PM, KARR, DAVID <[email protected]> wrote:
> Can someone clarify what Eclipse/m2e does to resolve project dependencies 
> when one or more of the dependencies is represented by another Maven project 
> in the workspace?  I'd just like to understand what happens here.
>
> If I make a change to a source file in one of the dependent projects and then 
> run a test in the referencing project, I'm pretty confident that it will use 
> the new code in the dependent project.  What internal steps happen when I 
> change that source file that results in the new code being used by the test 
> in the referencing project?
>
> For instance, does the referencing project go to the .m2/repository for the 
> dependency, or does it bypass that because it's associated with a project in 
> the workspace?
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