diff --git a/README.md b/README.md
index 210a783..bf2269f 100644
--- a/README.md
+++ b/README.md
@@ -38,6 +38,17 @@ ape compile
 
 The byte-code and ABI for your contracts should now exist in a `__local__.json` file in a `.build/` directory.
 
+### Solidity Versioning
+
+By default, `ape-solidity` tries to use the best versions of Solidity by looking at all the source files' pragma specifications.
+However, it is often better to specify a version directly.
+If you know the best version to use, set it in your `ape-config.yaml`, like this:
+
+```yaml
+solidity:
+  version: 0.8.14
+```
+
 ### Dependency Mapping
 
 To configure import remapping, use your project's `ape-config.yaml` file:
diff --git a/ape_solidity/compiler.py b/ape_solidity/compiler.py
index b92fa38..68e8333 100644
--- a/ape_solidity/compiler.py
+++ b/ape_solidity/compiler.py
@@ -224,9 +224,7 @@ def _add_dependencies(
             cached_source.parent.mkdir(parents=True, exist_ok=True)
             if src.content:
                 cached_source.touch()
-                cached_source.write_text(
-                    src.content if isinstance(src.content, str) else str(src.content)
-                )
+                cached_source.write_text(str(src.content))
 
         # Add dependency remapping that may be needed.
         for compiler in manifest.compilers or []:
@@ -264,21 +262,36 @@ def _add_dependencies(
 
                         break
 
-            if version is None:
-                raise CompilerError(f"Unable to discern dependency type '{uri_str}'.")
-
             # Find matching package
             for package in packages_dir.iterdir():
                 if package.name.replace("_", "-").lower() == dependency_name:
                     dependency_name = str(package.name)
                     break
 
-            dependency_path = (
-                self.config_manager.packages_folder
-                / Path(dependency_name)
-                / version
-                / f"{dependency_name}.json"
-            )
+            dependency_root_path = self.config_manager.packages_folder / Path(dependency_name)
+
+            if version is None:
+                version_dirs = [
+                    d
+                    for d in list(dependency_root_path.iterdir())
+                    if d.is_dir() and not d.name.startswith(".")
+                ]
+                if len(version_dirs) == 1:
+                    # Use the only existing version.
+                    version = version_dirs[0].name
+
+                elif (dependency_root_path / "local").is_dir():
+                    # If not specified, and local exists, use local by default.
+                    version = "local"
+
+                else:
+                    options = ", ".join([x.name for x in dependency_root_path.iterdir()])
+                    raise CompilerError(
+                        f"Ambiguous dependency version. "
+                        f"Please specify. Available versions: '{options}'."
+                    )
+
+            dependency_path = dependency_root_path / version / f"{dependency_name}.json"
             if dependency_path.is_file():
                 sub_manifest = PackageManifest.parse_file(dependency_path)
                 dep_id = Path(dependency_name) / version
diff --git a/setup.py b/setup.py
index 848d459..4fb919f 100644
--- a/setup.py
+++ b/setup.py
@@ -21,6 +21,7 @@
         "mdformat>=0.7.16",  # Auto-formatter for markdown
         "mdformat-gfm>=0.3.5",  # Needed for formatting GitHub-flavored markdown
         "mdformat-frontmatter>=0.4.1",  # Needed for frontmatters-style headers in issue templates
+        "pydantic<2.0",  # Needed for successful type check. TODO: Remove after full v2 support.
     ],
     "doc": [
         "Sphinx>=3.4.3,<4",  # Documentation generator
diff --git a/tests/conftest.py b/tests/conftest.py
index 22ee7f6..d40004b 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -105,8 +105,13 @@ def project(data_folder, config):
 
 
 @pytest.fixture
-def compiler():
-    return ape.compilers.registered_compilers[Extension.SOL.value]
+def compiler_manager():
+    return ape.compilers
+
+
+@pytest.fixture
+def compiler(compiler_manager):
+    return compiler_manager.registered_compilers[Extension.SOL.value]
 
 
 @pytest.fixture