diff --git a/README.md b/README.md
index 3dcec7e..e795464 100644
--- a/README.md
+++ b/README.md
@@ -1,64 +1,26 @@
-Requirements
-------------
+This is a clone of sbt-idea which replaces library dependencies within a project with module dependency
+if artifact ids match. This is useful, for example, if you have a general purpose library A you depend
+on in one of your more specific projects B, and you want to improve A as you develop B.
+You can incorporate such a dependency in the B build file by using `dependsOn` between sbt projects,
+but this then requires developers of B to get sources for the general purpose library A too, and place it in the file
+system according to the build dependency.
 
-* [sbt](https://github.com/harrah/xsbt/wiki) 0.11.2 or 0.11.3. 
-* For sbt 0.12.x version of the plugin, see [branch sbt-0.12](https://github.com/mpeltonen/sbt-idea/tree/sbt-0.12#requirements)
-* For sbt 0.7.x version of the plugin, see [branch sbt-0.7](https://github.com/mpeltonen/sbt-idea/tree/sbt-0.7)
+To use it set up a "workspace" sbt project that aggregates a couple of sbt projects on your local harddisk.
+For example:
 
+```scala
+import sbt._
 
-Installation
-------------
+object Workspace extends Build {
+  lazy val root = Project("root", file(".")) aggregate(p1,p2)
+  lazy val p1 = RootProject(file("../p1"))
+  lazy val p2 = RootProject(file("../p2"))
+}
+```
 
-Add the following line to ~/.sbt/plugins/build.sbt or PROJECT_DIR/project/plugins.sbt
+Running `sbt gen-idea` in this project will create an intellij project file, as before. However, if project
+`p1` has a library dependency to the artifact of `p2` (as determined by their name, org, scala version and version
+settings), then the Intellij project will have a module dependency in module p1 to module p2, as opposed to
+a library dependency (to the library jar in the local ivy repo).
 
-    addSbtPlugin("com.github.mpeltonen" % "sbt-idea" % "1.1.0")
 
-To use the latest snapshot version, add also Sonatype snapshots repository resolver into the same file:
-
-    resolvers += "Sonatype snapshots" at "http://oss.sonatype.org/content/repositories/snapshots/"
-    
-    addSbtPlugin("com.github.mpeltonen" % "sbt-idea" % "1.2.0-SNAPSHOT")
-    
-Usage
------
-
-### Basic project
-
-Use the `gen-idea` sbt task to create Idea project files.
-
-### Project with dependencies
-
-If you have two sbt projects A and B, and A depends on B, then use the `gen-idea` sbt task on Project A to create Idea project files for both projects.
-
-The projects need to be set up in the following way:
-
-*Project A:*
-
-    import sbt._
-
-    object A extends Build {
-      lazy val A = Project("A", file(".")) aggregate(B) dependsOn(B)
-      lazy val B = RootProject(file("../B"))
-    }
-
-*Project B:*
-
-    import sbt._
-
-    object B extends Build {
-      lazy val B = Project("B", file("."))
-    }
-
-### Sources and javadocs
-
-By default, classifiers (i.e. sources and javadocs) of dependencies are loaded if found and references added to Idea project files. If you don't want to download/reference them, use command 'gen-idea no-classifiers'.
-
-Configuration settings
-----------------------
-
-TODO...
-
-License
--------
-
-Licensed under the New BSD License. See the LICENSE file for details.
diff --git a/project/Build.scala b/project/Build.scala
index 3b048ec..c9354dc 100644
--- a/project/Build.scala
+++ b/project/Build.scala
@@ -7,7 +7,7 @@ object SbtIdeaBuild extends Build {
   lazy val mainSettings: Seq[Project.Setting[_]] = Defaults.defaultSettings ++ ScriptedPlugin.scriptedSettings ++ Seq(
     sbtPlugin := true,
     organization := "com.github.mpeltonen",
-    name := "sbt-idea",
+    name := "sbt-idea-rc",
     version := "1.2.0-SNAPSHOT",
     publishTo := Some(Resolver.file("Github Pages", Path.userHome / "git" / "mpeltonen.github.com" / "maven" asFile)(Patterns(true, Resolver.mavenStyleBasePattern))),
     publishTo <<= version { (v: String) =>
diff --git a/src/main/scala/org/sbtidea/IdeaProjectDomain.scala b/src/main/scala/org/sbtidea/IdeaProjectDomain.scala
index 64cc858..1b73add 100644
--- a/src/main/scala/org/sbtidea/IdeaProjectDomain.scala
+++ b/src/main/scala/org/sbtidea/IdeaProjectDomain.scala
@@ -28,11 +28,16 @@ case class Directories(sources: Seq[File], resources: Seq[File], outDir: File) {
   def addRes (moreResources: Seq[File]): Directories = Directories(sources, resources ++ moreResources, outDir)
 }
 
+case class ArtifactId(name:String, version:String, organization:String, scalaVersion:String) {
+  def toFullName = organization + "_" + name + "_" + scalaVersion + "_" + version
+}
+
 case class SubProjectInfo(baseDir: File, name: String, dependencyProjects: List[String], classpathDeps: Seq[(File, Seq[File])], compileDirs: Directories,
                           testDirs: Directories, libraries: Seq[IdeaModuleLibRef], scalaInstance: ScalaInstance,
                           ideaGroup: Option[String], webAppPath: Option[File], basePackage: Option[String],
                           packagePrefix: Option[String],
-                          extraFacets: NodeSeq)
+                          extraFacets: NodeSeq,
+                          artifactId:ArtifactId)
 
 case class IdeaProjectInfo(baseDir: File, name: String, childProjects: List[SubProjectInfo], ideaLibs: List[IdeaLibrary])
 
diff --git a/src/main/scala/org/sbtidea/SbtIdeaPlugin.scala b/src/main/scala/org/sbtidea/SbtIdeaPlugin.scala
index c7977af..5d114f7 100644
--- a/src/main/scala/org/sbtidea/SbtIdeaPlugin.scala
+++ b/src/main/scala/org/sbtidea/SbtIdeaPlugin.scala
@@ -33,9 +33,10 @@ object SbtIdeaPlugin extends Plugin {
 
   private val NoClassifiers = "no-classifiers"
   private val SbtClassifiers = "sbt-classifiers"
+  private val ReplaceLibsByModules = "replace-libs"
   private val NoFsc = "no-fsc"
 
-  private val args = (Space ~> NoClassifiers | Space ~> SbtClassifiers | Space ~> NoFsc).*
+  private val args = (Space ~> NoClassifiers | Space ~> SbtClassifiers | Space ~> NoFsc | Space ~> ReplaceLibsByModules).*
 
   private lazy val ideaCommand = Command("gen-idea")(_ => args)(doCommand)
 
@@ -79,10 +80,15 @@ object SbtIdeaPlugin extends Plugin {
     }
 
     val allProjectIds = projectList.values.map(_.id).toSet
-    val subProjects = projectList.collect {
+    val subProjectsRaw = projectList.collect {
       case (projRef, project) if (!ignoreModule(projRef)) => projectData(projRef, project, buildStruct, state, args, allProjectIds)
     }.toList
 
+    val subProjects = if (args.contains(ReplaceLibsByModules))
+      replaceLibDependenciesWithModuleDependencies(state, subProjectsRaw)
+    else
+      subProjectsRaw
+
     val scalaInstances = subProjects.map(_.scalaInstance).distinct
     val scalaLibs = (sbtInstance :: scalaInstances).map(toIdeaLib(_))
     val ideaLibs = subProjects.flatMap(_.libraries.map(modRef => modRef.library)).toList.distinct
@@ -139,6 +145,20 @@ object SbtIdeaPlugin extends Plugin {
     state
   }
 
+  def replaceLibDependenciesWithModuleDependencies(state:State, subprojects: List[SubProjectInfo]) = {
+    val name2project = subprojects.groupBy(_.artifactId.toFullName)
+    for (sub <- subprojects) yield {
+      val libs = sub.libraries
+      val (replaceable, nonreplacable) = libs.partition(l => name2project.isDefinedAt(l.library.name))
+      val subprojectsToUseInstead = replaceable.map(l => name2project(l.library.name).head.name).toList
+      val newSubProject = sub.copy(libraries = nonreplacable, dependencyProjects = sub.dependencyProjects ++ subprojectsToUseInstead)
+      for (lib <- replaceable) {
+        logger(state).info("Replacing library %s with module %s".format(lib.library.name,name2project(lib.library.name).head.name))
+      }
+      newSubProject
+    }
+  }
+
   def projectData(projectRef: ProjectRef, project: ResolvedProject, buildStruct: BuildStructure,
                   state: State, args: Seq[String], allProjectIds: Set[String]): SubProjectInfo = {
 
@@ -163,6 +183,13 @@ object SbtIdeaPlugin extends Plugin {
     // IDEA project name. It must be consistent with the value of SubProjectInfo#dependencyProjects.
     val projectName = project.id
 
+    val artifactId = ArtifactId(
+      name = setting(Keys.artifact, "Artifact not defined").name,
+      version = setting(Keys.version, "Version not defined"),
+      organization = setting(Keys.organization, "Org not defined"),
+      scalaVersion = setting(Keys.scalaVersion, "Scala version not defined")
+    )
+
     logger(state).info("Trying to create an Idea module " + projectName)
 
     val ideaGroup = optionalSetting(ideaProjectGroup)
@@ -231,6 +258,8 @@ object SbtIdeaPlugin extends Plugin {
       }
     }
     SubProjectInfo(baseDirectory, projectName, project.uses.map(_.project).filter(isAggregate).toList, classpathDeps, compileDirectories,
-      testDirectories, librariesExtractor.allLibraries, scalaInstance, ideaGroup, None, basePackage, packagePrefix, extraFacets)
+      testDirectories, librariesExtractor.allLibraries, scalaInstance, ideaGroup, None, basePackage, packagePrefix, extraFacets,
+      artifactId
+    )
   }
 }
diff --git a/src/sbt-test/sbt-idea/dependency-with-classifier/project/plugins.sbt b/src/sbt-test/sbt-idea/dependency-with-classifier/project/plugins.sbt
index 909e410..e077d35 100644
--- a/src/sbt-test/sbt-idea/dependency-with-classifier/project/plugins.sbt
+++ b/src/sbt-test/sbt-idea/dependency-with-classifier/project/plugins.sbt
@@ -1 +1 @@
-addSbtPlugin("com.github.mpeltonen" % "sbt-idea" % "1.2.0-SNAPSHOT")
+addSbtPlugin("com.github.mpeltonen" % "sbt-idea" % "")
diff --git a/src/sbt-test/sbt-idea/external-rootproject-dependency/dependency-project/project/plugins.sbt b/src/sbt-test/sbt-idea/external-rootproject-dependency/dependency-project/project/plugins.sbt
index 909e410..e077d35 100644
--- a/src/sbt-test/sbt-idea/external-rootproject-dependency/dependency-project/project/plugins.sbt
+++ b/src/sbt-test/sbt-idea/external-rootproject-dependency/dependency-project/project/plugins.sbt
@@ -1 +1 @@
-addSbtPlugin("com.github.mpeltonen" % "sbt-idea" % "1.2.0-SNAPSHOT")
+addSbtPlugin("com.github.mpeltonen" % "sbt-idea" % "")
diff --git a/src/sbt-test/sbt-idea/external-rootproject-dependency/project/plugins.sbt b/src/sbt-test/sbt-idea/external-rootproject-dependency/project/plugins.sbt
index 909e410..e077d35 100644
--- a/src/sbt-test/sbt-idea/external-rootproject-dependency/project/plugins.sbt
+++ b/src/sbt-test/sbt-idea/external-rootproject-dependency/project/plugins.sbt
@@ -1 +1 @@
-addSbtPlugin("com.github.mpeltonen" % "sbt-idea" % "1.2.0-SNAPSHOT")
+addSbtPlugin("com.github.mpeltonen" % "sbt-idea" % "")
diff --git a/src/sbt-test/sbt-idea/simple-project/project/plugins.sbt b/src/sbt-test/sbt-idea/simple-project/project/plugins.sbt
index 909e410..e077d35 100644
--- a/src/sbt-test/sbt-idea/simple-project/project/plugins.sbt
+++ b/src/sbt-test/sbt-idea/simple-project/project/plugins.sbt
@@ -1 +1 @@
-addSbtPlugin("com.github.mpeltonen" % "sbt-idea" % "1.2.0-SNAPSHOT")
+addSbtPlugin("com.github.mpeltonen" % "sbt-idea" % "")
diff --git a/src/sbt-test/sbt-idea/with-integration-tests/project/plugins.sbt b/src/sbt-test/sbt-idea/with-integration-tests/project/plugins.sbt
index 909e410..e077d35 100644
--- a/src/sbt-test/sbt-idea/with-integration-tests/project/plugins.sbt
+++ b/src/sbt-test/sbt-idea/with-integration-tests/project/plugins.sbt
@@ -1 +1 @@
-addSbtPlugin("com.github.mpeltonen" % "sbt-idea" % "1.2.0-SNAPSHOT")
+addSbtPlugin("com.github.mpeltonen" % "sbt-idea" % "")