Grails: how to test and develop plugins at the same time?

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I'm developing a plugin, and I'd like to test the plugin in an application. I however, don't want to uninstall and re-install the plugin every time I make a change. Is there a way I can set up the Grails Test Project to be dependent on the Grails Plugin Project so that I can save a file in the plugin and it's automatically updated in the project using the plugin?


Some additions to Spider's answer:

This kind of plugin is often referenced as "inline plugin" in the Grails literature and recommended to be used for exactly the situation you are in.

As of Grails 2.3, the official docs don't talk too much about this setup but I assume it is widely used since it is the only way to develop a bigger, modular application (where you develop several modules/plugins simultaneously)