Android Studio – local path doesn’t exist

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I originally saw this error after upgrading from 0.2.13 to 0.3. These instructions have been updated for the release of Android Studio 0.5.2. These are the steps I completed to resolve the issue.

1.In build.gradle make sure gradle is set to 0.9.0

buildscript {
    repositories {
        mavenCentral()
    }
    dependencies {
        classpath 'com.android.tools.build:gradle:0.9.0'
    }
}

2.In gradle-wrapper.properties make sure to use gradle 1.11

#Wed Apr 10 15:27:10 PDT 2013
distributionBase=GRADLE_USER_HOME
distributionPath=wrapper/dists
zipStoreBase=GRADLE_USER_HOME
zipStorePath=wrapper/dists
distributionUrl=http\://services.gradle.org/distributions/gradle-1.11-all.zip

3.Sync project with gradle files by pressing the button to the left of the avd button

enter image description here

4.Try to build project again. If still having issues possibly try File > Invalidate Caches/Restart

NOTE: If you are using 0.9.+ and it gives Could not GET 'http://repo1.maven.org/maven2/com/android/tools/build/gradle/'. Received status code 401 from server: Unauthorized (happens sporadically) then change to 0.9.0. Also, you have to use build tools 19.0 or greater I believe so make sure you have those downloaded in sdk manager and use as buildToolsVersion in whichever gradle file holds that info.

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