diff --git a/README.md b/README.md
index eadadfaa..14b708c1 100644
--- a/README.md
+++ b/README.md
@@ -45,6 +45,14 @@ turn it back off when you're done running reports, use the `coverageOff` command
 
 Sample project with scoverage in both sbt and maven - [the scoverage samples project](https://github.com/scoverage/sbt-scoverage-samples).
 
+### Disabling recording of coverage data at run-time
+
+Coverage instrumentation assumes the code will be run on the same machine
+where it was compiled: absolute destination directories are compiled into the class files. 
+To run the code on a file system where those directories do not exist, for example when
+testing in a VM, you may either recompile without coverage or disable the recording by
+setting the JVM property `scoverage.recording.enabled` to `false`.
+
 ## Notes on upgrading to version 1.3.0
 
 * The object containing the keys has changed from nested to top level so you might need to adjust the import. It's also an auto plugin now, so you might not need the import at all.
diff --git a/src/main/scala/scoverage/ScoverageSbtPlugin.scala b/src/main/scala/scoverage/ScoverageSbtPlugin.scala
index b0e6feea..a61043f9 100644
--- a/src/main/scala/scoverage/ScoverageSbtPlugin.scala
+++ b/src/main/scala/scoverage/ScoverageSbtPlugin.scala
@@ -13,6 +13,7 @@ object ScoverageSbtPlugin extends AutoPlugin {
   // this should match the version defined in build.sbt
   val DefaultScoverageVersion = "1.2.0-SNAPSHOT"
   val autoImport = ScoverageKeys
+  lazy val ScoveragePluginConfig = config("scoveragePlugin").hide
 
   import autoImport._
 
@@ -28,6 +29,13 @@ object ScoverageSbtPlugin extends AutoPlugin {
     commands += Command.command("coverageOff", "disable compiled code with instrumentation", "")(toggleCoverage(false)),
     coverageReport <<= coverageReport0,
     coverageAggregate <<= coverageAggregate0,
+    ivyConfigurations := ivyConfigurations.value :+ ScoveragePluginConfig,
+    libraryDependencies ++= {
+      if (coverageEnabled.value) Seq(
+        OrgScoverage % (ScalacRuntimeArtifact + "_" + scalaBinaryVersion.value) % DefaultScoverageVersion,
+        OrgScoverage % (ScalacPluginArtifact + "_" + scalaBinaryVersion.value) % DefaultScoverageVersion % "scoveragePlugin->default(compile)"
+      ) else Nil
+    },
     scalacOptions in(Compile, compile) ++= scoverageScalacOptions.value,
     aggregate in coverageAggregate := false,
     coverageExcludedPackages := "",
@@ -49,17 +57,8 @@ object ScoverageSbtPlugin extends AutoPlugin {
     */
   private def toggleCoverage(status: Boolean): State => State = { state =>
     val extracted = Project.extract(state)
-    val newSettings = extracted.structure.allProjectRefs flatMap { proj =>
-      Seq(
-        coverageEnabled in proj := status,
-        libraryDependencies in proj ++= {
-          if (status) Seq(
-            OrgScoverage % (ScalacRuntimeArtifact + "_" + scalaBinaryVersion.value) % DefaultScoverageVersion % "provided" intransitive(),
-            OrgScoverage % (ScalacPluginArtifact + "_" + scalaBinaryVersion.value) % DefaultScoverageVersion % "provided" intransitive()
-          ) else Nil
-        }
-      )
-    }
+    val newSettings = extracted.structure.allProjectRefs.flatMap(proj =>
+      Seq(coverageEnabled in proj := status))
     extracted.append(newSettings, state)
   }
 
@@ -118,17 +117,16 @@ object ScoverageSbtPlugin extends AutoPlugin {
   }
 
   private lazy val scoverageScalacOptions = Def.task {
-    val scoverageDeps: Seq[File] = update.value matching configurationFilter("provided")
-    scoverageDeps.find(_.getAbsolutePath.contains(ScalacPluginArtifact)) match {
-      case None => throw new Exception(s"Fatal: $ScalacPluginArtifact not in libraryDependencies")
-      case Some(pluginPath) =>
+    update.value
+      .matching(configurationFilter(ScoveragePluginConfig.name))
+      .find(_.getAbsolutePath.contains(ScalacPluginArtifact))
+      .fold[Seq[String]](Nil)(pluginPath =>
         scalaArgs(coverageEnabled.value,
           pluginPath,
           crossTarget.value,
           coverageExcludedPackages.value,
           coverageExcludedFiles.value,
-          coverageHighlighting.value)
-    }
+          coverageHighlighting.value))
   }
 
   private def scalaArgs(coverageEnabled: Boolean,