diff --git a/.hgignore b/.hgignore
index 94e391ff12337..31f1b149453d8 100644
--- a/.hgignore
+++ b/.hgignore
@@ -59,6 +59,9 @@ _OPT\.OBJ/
 # Gradle cache.
 ^.gradle/
 
+# Local Gradle configuration properties.
+^local.properties$
+
 # Python stuff installed at build time.
 ^python/psutil/.*\.so
 ^python/psutil/.*\.pyd
diff --git a/settings.gradle b/settings.gradle
index f13360b226404..8e48f79ac6300 100644
--- a/settings.gradle
+++ b/settings.gradle
@@ -18,9 +18,16 @@ def slurper = new JsonSlurper()
 def json = slurper.parseText(standardOutput.toString())
 
 if (json.substs.MOZ_BUILD_APP != 'mobile/android') {
-    throw new GradleException("Building with Gradle is only supported for Fennec, i.e., MOZ_BUILD_APP == 'mobile/android'.");
+    throw new GradleException("Building with Gradle is only supported for Fennec, i.e., MOZ_BUILD_APP == 'mobile/android'.")
 }
 
+// Set the Android SDK location.  This is the *least specific* mechanism, which
+// is unfortunate: we'd prefer to use the *most specific* mechanism.  That is,
+// local.properties (first 'sdk.dir', then 'android.dir') and then the
+// environment variable ANDROID_HOME will override this.  That's unfortunate,
+// but it's hard to automatically arrange better.
+System.setProperty('android.home', json.substs.ANDROID_SDK_ROOT)
+
 include ':app'
 include ':base'
 include ':omnijar'