Remote repositories and Local repositories

android {...}
...
dependencies {
    // The 'compile' configuration tells Gradle to add the dependency to the
    // compilation classpath and include it in the final package.

    // Dependency on the "mylibrary" module from this project
    compile project(":mylibrary")

    // Remote binary dependency
    compile 'com.android.support:appcompat-v7:25+'

    // Local binary dependency
    compile fileTree(dir: 'libs', include: ['*.jar'])
}

Module dependencies

The compile project(':mylibrary') line declares a local Android library module named "mylibrary" as a dependency, and requires the build system to compile and include the local module when building your app.

Remote binary dependencies

The compile 'com.android.support:appcompat-v7:25+' line declares a dependency on version 23.4.0 of the Android Support Library by specifying its JCenter coordinates. By default, Android Studio configures projects to use the JCenter Repository in the top-level build file. Gradle automatically pulls the dependency from JCenter when you sync your project with the build configuration files. Alternatively, you can download and install certain dependencies by using the SDK Manager.

Local binary dependencies

The compile fileTree(dir: 'libs', include: ['*.jar']) line tells the build system to include any JAR files inside the app/libs/ directory in the compilation classpath and in the final package of your app. If you have modules that require local binary dependencies, copy the JAR files for these dependencies into /libs inside your project.