diff --git a/lib/.gitignore b/lib/.gitignore
index 1f5c13186b70..80b64f3a91ba 100644
--- a/lib/.gitignore
+++ b/lib/.gitignore
@@ -1 +1,2 @@
-/snapshots
\ No newline at end of file
+/snapshots
+/kotlin-snapshot
\ No newline at end of file
diff --git a/plugins/kotlin/util/project-model-updater/src/org/jetbrains/tools/model/updater/kotlincLibraries.kt b/plugins/kotlin/util/project-model-updater/src/org/jetbrains/tools/model/updater/kotlincLibraries.kt
index 1a39d70f5140..f27b49b924ed 100644
--- a/plugins/kotlin/util/project-model-updater/src/org/jetbrains/tools/model/updater/kotlincLibraries.kt
+++ b/plugins/kotlin/util/project-model-updater/src/org/jetbrains/tools/model/updater/kotlincLibraries.kt
@@ -158,7 +158,10 @@ private fun JpsLibrary.convertMavenUrlToCooperativeIfNeeded(artifactsMode: Artif
     fun convertUrl(url: JpsUrl): JpsUrl {
         return when (url.path) {
             is JpsPath.ProjectDir -> url
-            is JpsPath.MavenRepository -> JpsUrl.Jar(JpsPath.ProjectDir("../build/repo/${url.path.relativePath}", isCommunity))
+            is JpsPath.MavenRepository -> {
+                val snapshotDirectoryPath = "lib/kotlin-snapshot"
+                JpsUrl.Jar(JpsPath.ProjectDir("$snapshotDirectoryPath/${url.path.relativePath}", isCommunity))
+            }
         }
     }