How do I set up Android Studio to work completely offline?

I have very slow bandwidth, so I'm trying to keep all the required files on the local machine to work with Android Studio completely offline. When I click on "New Project" it always tries to download a file named gradle-1.6-bin.zip which I downloaded and tried to install locally via the plugin manager but it gives me an error:

fail to load plugin descriptor from file gradle-1.6-bin.zip

So what other files do I need to download and how do I install them properly to work offline with Android Studio?

Android Studio 0.4.0 now includes support for offline:

http://tools.android.com/recent/androidstudio040released

"You can now open the Compiler > Gradle options and enable Offline mode, which will tell Gradle to ignore update-to-date checks"

Updated Nov 2018: Now you can Open preferences, then search for "offline" and in the results select gradle and click "Offline work"

I'm using Android Studio 0.5.4 (Mavericks).

Preferences → Gradle → Global Gradle Settings → Offline work

Android Studio 1.3.1 has neither

Gradle > Global Gradle settings > Offline work

nor a

Compiler

menu. To access the compiler menu, go to :

File > Settings > Build, Execution & Deployment > Compiler > Compiler

and de-select Configure on demand

The above still uses data but is faster, I was able to load images and maps. However, in addition, if you want to be completely offline, you need to do the following:

 File -> Settings ->Build, Execution,Deployment -> Build Tools -> Gradle -> 

check Offline work

Click the OK button.

For Android Studio 2.0 it is the same procedure.

OK guys I finally overcame this problem. Here is the solution:

1. Download gradle-1.6-bin.zip for offline use.

2. Paste it in the C:\Users\username\.gradle directory.

3. Open Android Studio and click on the "Create New Project" option and you will not get this error any more while offline.

   You might get some other errors like this:

   

   Don't worry, just ignore it. Your project has been created.

4. So now click on "Import Project" and go to the path C:\Users\username\AndroidStudioProjects and open your project and you are done.

Android Studio Version < 3.6:

For Windows:

File -> Settings ->Build, Execution,Deployment -> Build Tools -> Gradle

For Mac OS:

Preferences ->Build, Execution,Deployment -> Build Tools -> Gradle

Check/UnCheck Offline work checkbox as per your need.

Android Studio Version >= 3.6:

follow steps in the image: