diff --git a/spring-cloud-stream-module-launcher/src/main/java/org/springframework/cloud/stream/module/launcher/ModuleLauncher.java b/spring-cloud-stream-module-launcher/src/main/java/org/springframework/cloud/stream/module/launcher/ModuleLauncher.java
index 31f0101dc..14017e7c0 100644
--- a/spring-cloud-stream-module-launcher/src/main/java/org/springframework/cloud/stream/module/launcher/ModuleLauncher.java
+++ b/spring-cloud-stream-module-launcher/src/main/java/org/springframework/cloud/stream/module/launcher/ModuleLauncher.java
@@ -31,7 +31,6 @@ import org.springframework.cloud.stream.module.resolver.AetherModuleResolver;
 import org.springframework.cloud.stream.module.resolver.ModuleResolver;
 import org.springframework.core.io.Resource;
 import org.springframework.util.Assert;
-import org.springframework.util.FileSystemUtils;
 import org.springframework.util.StringUtils;
 
 /**
diff --git a/spring-cloud-stream-module-launcher/src/main/java/org/springframework/cloud/stream/module/resolver/AetherModuleResolver.java b/spring-cloud-stream-module-launcher/src/main/java/org/springframework/cloud/stream/module/resolver/AetherModuleResolver.java
index a2cd34d98..df642cccb 100644
--- a/spring-cloud-stream-module-launcher/src/main/java/org/springframework/cloud/stream/module/resolver/AetherModuleResolver.java
+++ b/spring-cloud-stream-module-launcher/src/main/java/org/springframework/cloud/stream/module/resolver/AetherModuleResolver.java
@@ -49,6 +49,7 @@ import org.springframework.util.CollectionUtils;
  * necessary.
  *
  * @author David Turanski
+ * @author Mark Fisher
  */
 public class AetherModuleResolver implements ModuleResolver {
 
@@ -67,7 +68,10 @@ public class AetherModuleResolver implements ModuleResolver {
 	 * may be null or empty if the local repository is off line.
 	 */
 	public AetherModuleResolver(File localRepository, Map<String, String> remoteRepositories) {
-		Assert.isTrue(localRepository.exists(), "File " + localRepository + " does not exist.");
+		if (!localRepository.exists()) {
+			Assert.isTrue(localRepository.mkdirs(),
+					"Unable to create directory for local repository: " + localRepository);
+		}
 		this.localRepository = localRepository;
 		this.remoteRepositories = new LinkedList<>();
 		if (!CollectionUtils.isEmpty(remoteRepositories)) {