Luis,
If a project is configured to resolve dependencies from the workspace, these artifacts do not need to be present in your local repository. Assume that project-a and project-b are both in the same MyEclipse workspace, and that project-a depends on project-b . If workspace resolution is disabled, the Maven build for project-a will only succeed if project-b ‘s artifact is present in the local repository. If workspace resolution is enabled, Maven will resolve the dependency via the MyEclipse workspace.
Enabling the workspace resolution is convenient if you are working on several projects at the same time in the same workspace that have compile dependencies among each other and you don’t want to mvn install one project in order for your changes to be visible to the other project.
Hope this helps. Let us know if you have any questions.
–Swapna
MyEclipse Support