Gradle subproject dependency is not resolvable by project that needs it

I have the following project strucuture:

example
├── build.gradle
├── module1
│   ├── build.gradle
│   └── main
│       ├── java
│       │   ├── module-info.java
│       │   └── com.example.module1
│       │       └── Example.java
│       └── resources
│           └── application.yml
└── module2
    ├── build.gradle
    ├── main
    │   ├── java
    │   │   ├── module-info.java
    │   │   └── com.example.module2
    │   │       └── Example2.java
    └── test

module1 build.gradle

repositories {
    maven {
        url 'http://download.osgeo.org/webdav/geotools/'
        name 'Open Source Geospatial Foundation Repository'
    }

    maven {
        url 'https://repo.boundlessgeo.com/main/'
        name 'Boundless Maven Repository'
    }

    maven {
        url 'http://repo.boundlessgeo.com/snapshot'
        name 'Geotools SNAPSHOT repository'
        mavenContent {
            snapshotsOnly()
        }
    }

    mavenCentral()
    jcenter()
}

dependencies {
    implementation "org.geotools:gt-main:$geotoolsVersion"
}

module2 build.gradle (depends on module1)

repositories {
    mavenCentral()
    jcenter()
}

dependencies {
    implementation project(':module1')
}

The problem is that when resolving the dependencies for module2, it is unable to find the transitive dependencies of module1, and so I get the following error:

FAILURE: Build failed with an exception.

* What went wrong:
A problem occurred configuring project ':module2'.
> Could not resolve all files for configuration ':module2:runtimeClasspath'.
   > Could not find org.geotools:gt-main:21.2.
     Searched in the following locations:
       - https://repo.maven.apache.org/maven2/org/geotools/gt-main/21.2/gt-main-21.2.pom
       - https://repo.maven.apache.org/maven2/org/geotools/gt-main/21.2/gt-main-21.2.jar
       - https://jcenter.bintray.com/org/geotools/gt-main/21.2/gt-main-21.2.pom
       - https://jcenter.bintray.com/org/geotools/gt-main/21.2/gt-main-21.2.jar
     Required by:
         project :module2 > project :module1

It looks like it is only searching for the transitive deps of module1 using the repositories declared in module2 instead of in module1.

Interestingly, if I change the dependency in module2 to:

dependencies {
    compileClasspath project(':module1')
}

The dependencies are resolved. However this means that at runtime, module1 is not part of the classpath, so running the application still fails.

How can I fix this?

The problem is that project dependencies do not leak their repository locations when depended on.

The fix is to move the repositories into the root build.gradle. Something like:

subprojects {
  repositories {
    //https://docs.geotools.org/latest/userguide/build/maven/repositories.html
    maven {
      url 'http://download.osgeo.org/webdav/geotools/'
      name 'Open Source Geospatial Foundation Repository'
    }

    maven {
      url 'https://repo.boundlessgeo.com/main/'
      name 'Boundless Maven Repository'
    }
  }
}

See the following github issues:

https://github.com/gradle/gradle/issues/4106

https://github.com/gradle/gradle/issues/8811