diff --git a/lib/bundler/source/rubygems.rb b/lib/bundler/source/rubygems.rb
index 2e0ecb1aa6..167bea392f 100644
--- a/lib/bundler/source/rubygems.rb
+++ b/lib/bundler/source/rubygems.rb
@@ -29,6 +29,7 @@ module Bundler
       def local_only!
         @specs = nil
         @allow_local = true
+        @allow_cached = false
         @allow_remote = false
       end