diff --git a/plexus-compiler-test/pom.xml b/plexus-compiler-test/pom.xml
index 3dcab953..e57b9015 100644
--- a/plexus-compiler-test/pom.xml
+++ b/plexus-compiler-test/pom.xml
@@ -57,6 +57,10 @@
       <groupId>org.codehaus.plexus</groupId>
       <artifactId>plexus-utils</artifactId>
     </dependency>
+    <dependency>
+      <groupId>org.codehaus.plexus</groupId>
+      <artifactId>plexus-interpolation</artifactId>
+    </dependency>
     <dependency>
       <groupId>org.codehaus.plexus</groupId>
       <artifactId>plexus-xml</artifactId>
diff --git a/plexus-compiler-test/src/main/java/org/codehaus/plexus/compiler/AbstractCompilerTest.java b/plexus-compiler-test/src/main/java/org/codehaus/plexus/compiler/AbstractCompilerTest.java
index 977ffbd1..cd79a06f 100644
--- a/plexus-compiler-test/src/main/java/org/codehaus/plexus/compiler/AbstractCompilerTest.java
+++ b/plexus-compiler-test/src/main/java/org/codehaus/plexus/compiler/AbstractCompilerTest.java
@@ -26,12 +26,7 @@
 import javax.inject.Inject;
 
 import java.io.File;
-import java.util.ArrayList;
-import java.util.Collection;
-import java.util.Collections;
-import java.util.Iterator;
-import java.util.List;
-import java.util.Map;
+import java.util.*;
 import java.util.stream.Collectors;
 
 import org.apache.maven.artifact.Artifact;
@@ -43,6 +38,7 @@
 import org.apache.maven.artifact.versioning.VersionRange;
 import org.apache.maven.settings.Settings;
 import org.apache.maven.settings.io.xpp3.SettingsXpp3Reader;
+import org.codehaus.plexus.interpolation.*;
 import org.codehaus.plexus.testing.PlexusTest;
 import org.codehaus.plexus.util.FileUtils;
 import org.codehaus.plexus.util.ReaderFactory;
@@ -85,6 +81,13 @@ final void setUpLocalRepo() throws Exception {
             if (settingsFile.exists()) {
                 Settings settings = new SettingsXpp3Reader().read(ReaderFactory.newXmlReader(settingsFile));
                 localRepo = settings.getLocalRepository();
+                if (localRepo != null && localRepo.contains("${") && localRepo.contains("}")) {
+                    Interpolator interpolator = new StringSearchInterpolator();
+                    interpolator.addValueSource(new PropertiesBasedValueSource(System.getProperties()));
+                    interpolator.addValueSource(
+                            new PrefixedValueSourceWrapper(new MapBasedValueSource(System.getenv()), "env"));
+                    localRepo = interpolator.interpolate(localRepo);
+                }
             }
         }
         if (localRepo == null) {
diff --git a/pom.xml b/pom.xml
index 13171985..309ff11b 100644
--- a/pom.xml
+++ b/pom.xml
@@ -133,6 +133,11 @@
         <artifactId>plexus-utils</artifactId>
         <version>4.0.0</version>
       </dependency>
+      <dependency>
+        <groupId>org.codehaus.plexus</groupId>
+        <artifactId>plexus-interpolation</artifactId>
+        <version>1.26</version>
+      </dependency>
       <dependency>
         <groupId>org.codehaus.plexus</groupId>
         <artifactId>plexus-xml</artifactId>