Index: ivy-2.3.x/src/java/org/apache/ivy/plugins/parser/xml/XmlModuleDescriptorParser.java
===================================================================
--- ivy-2.3.x/src/java/org/apache/ivy/plugins/parser/xml/XmlModuleDescriptorParser.java	(revision 1362174)
+++ ivy-2.3.x/src/java/org/apache/ivy/plugins/parser/xml/XmlModuleDescriptorParser.java	(working copy)
@@ -230,30 +230,6 @@
         public Parser(ModuleDescriptorParser parser, ParserSettings ivySettings) {
             super(parser);
             settings = ivySettings;
-            configureModuleInheritanceRepository();
-        }
-        /**
-         * Configure module inheritance repository (repository containning all path references 
-         * to parent modules). Basicaly it checks if module inheritance repository exist 
-         * in current ivy context, otherwise it will create one as a {@link URLResolver}
-         */
-        protected void configureModuleInheritanceRepository() {
-            IvySettings ivysettings = IvyContext.getContext().getSettings();
-            DependencyResolver parentModuleResolver=null;
-            //Does module-inheritance-repository exists ?
-            for (Iterator iterator = ivysettings.getResolvers().iterator(); iterator.hasNext();) {
-                DependencyResolver resolver = (DependencyResolver) iterator.next();
-                if (resolver.getName().equals(MODULE_INHERITANCE_REPOSITORY)) {
-                    parentModuleResolver=resolver;
-                    break;
-                }
-            }
-            //if does not exist create one 
-            if (parentModuleResolver == null) {
-                parentModuleResolver= new URLResolver();
-                parentModuleResolver.setName(MODULE_INHERITANCE_REPOSITORY);
-                ivysettings.addResolver(parentModuleResolver);
-            }
         }
 
         public void setInput(InputStream descriptorInput) {
@@ -428,13 +404,13 @@
 
             //check on filesystem based on location attribute (for dev ONLY)
             try {
-                checkParentModuleOnFilesystem(location);
+                checkParentModuleOnFilesystem(location, parentMrid);
             } catch (IOException e) {
                 Message.warn("Unable to parse included ivy file " + location + ": " 
                     + e.getMessage());
             }
             
-            // resolve parent from module inheritance repository
+            // Resolve parent module descriptor from module inheritance repository
             parent = resolveParentFromModuleInheritanceRepository(parentMrid);
             
             // if not found, tries to resolve using repositories
@@ -616,22 +592,30 @@
          * Check if parent module is reachable using location attribute (for dev purpose).
          * If parent module is reachable it will be registered in module inheritance repository 
          * @param location a given location 
+         * @param parentMrid 
          * @throws IOException
          * @throws ParseException 
          */
-        protected void checkParentModuleOnFilesystem(String location) throws IOException, ParseException {
-            URL url =getSettings().getRelativeUrlResolver().getURL(descriptorURL, location);
-            //is parent module reachable using location attribute ?
-            if (url.openConnection().getContentLength() >0 ) {
-                IvySettings ivysettings = IvyContext.getContext().getSettings();
-                URLResolver urlResolver= (URLResolver) ivysettings.getResolver(MODULE_INHERITANCE_REPOSITORY);
-                if (urlResolver == null) {
-                    throw new ParseException("Unable to find module inheritance repository", 0);
-                } 
-                
-                if (!urlResolver.getIvyPatterns().contains(url.toExternalForm())) {
-                    Message.debug("Registering parent module into module inheritance repository, parent module location is "+url.toExternalForm());
-                    urlResolver.addIvyPattern(url.toExternalForm());
+        protected void checkParentModuleOnFilesystem(String location, ModuleRevisionId parentMrid) throws IOException, ParseException {
+            IvyContext ivyContext = IvyContext.getContext();
+            File file = new File(location);
+            URL url = null;
+            if (file.isAbsolute()) {
+                url = getSettings().getRelativeUrlResolver().getURL(descriptorURL,
+                    file.getAbsolutePath(), location);
+            } else {
+                url = getSettings().getRelativeUrlResolver().getURL(descriptorURL, location);
+            }
+            // Is parent module reachable using location attribute?
+            if (url.openConnection().getContentLength() > 0) {
+                String urlString = url.toExternalForm();
+                if (!ivyContext.getSettings().hasResolver(getModuleInheritanceRepositoryParentResolverName(parentMrid))) {
+                    Message.debug("Registering parent module into module inheritance repository map. Parent module location: " + urlString);
+                    URLResolver parentModuleResolver = new URLResolver();
+                    parentModuleResolver.setName(getModuleInheritanceRepositoryParentResolverName(parentMrid));
+                    parentModuleResolver.addIvyPattern(url.toExternalForm());
+                    // Do we even need to be adding this resolver to the Ivy settings considering that it's being placed in the map and not being used elsewhere?
+                    ivyContext.getSettings().addResolver(parentModuleResolver);
                 }
             }
         }
@@ -665,13 +649,13 @@
         }
 
         /**
-         * Resolve parent module from module inhertance repository
+         * Resolve parent module from module inheritance repository
          * @param parentMrid a given {@link ModuleRevisionId} to find
          * @return a {@link ModuleDescriptor} if found. Return null if no {@link ModuleDescriptor} was found
          * @throws ParseException
          */
         protected ModuleDescriptor resolveParentFromModuleInheritanceRepository(ModuleRevisionId parentMrid) throws ParseException {
-            Message.debug("Trying to load included ivy file from module inheritance repository " );
+            Message.debug("Trying to resolve included ivy file from module inheritance repository " );
             DependencyDescriptor dd = new DefaultDependencyDescriptor(parentMrid, true);
             ResolveEngine engine = IvyContext.getContext().getIvy().getResolveEngine();
             ResolveOptions options = new ResolveOptions();
@@ -679,7 +663,11 @@
             options.setDownload(false);
             ResolveData data = new ResolveData(engine, options);
 
-            DependencyResolver resolver = IvyContext.getContext().getSettings().getResolver(MODULE_INHERITANCE_REPOSITORY);
+            DependencyResolver resolver = IvyContext.getContext().getSettings().getResolver(getModuleInheritanceRepositoryParentResolverName(parentMrid));
+            // The parent resolver will be null if its dev-only filesystem path hasn't been specified via the location attribute of the extends element. 
+            if (resolver == null) {
+                return null;
+            }
             dd = NameSpaceHelper.toSystem(dd, getSettings().getContextNamespace());
             ResolvedModuleRevision otherModule = resolver.getDependency(dd, data);
             if (otherModule != null) {
@@ -688,6 +676,10 @@
                 return null;
             }
         }
+        
+        private static String getModuleInheritanceRepositoryParentResolverName(ModuleRevisionId parentMrid) {
+            return MODULE_INHERITANCE_REPOSITORY + "-" + parentMrid.toString();
+        }
 
         protected void publicationsStarted(Attributes attributes) {
             state = State.PUB;
Index: ivy-2.3.x/src/java/org/apache/ivy/core/settings/IvySettings.java
===================================================================
--- ivy-2.3.x/src/java/org/apache/ivy/core/settings/IvySettings.java	(revision 1362174)
+++ ivy-2.3.x/src/java/org/apache/ivy/core/settings/IvySettings.java	(working copy)
@@ -874,6 +874,10 @@
         String resolverName = getResolverName(mrid);
         return getResolver(resolverName);
     }
+    
+    public boolean hasResolver(String resolverName) {
+        return resolversMap.containsKey(resolverName);
+    }
 
     public DependencyResolver getResolver(String resolverName) {
         if (dictatorResolver != null) {