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Incompatible version of groovy compiler

I have grails-2.2.0 installed on Mac OS X 10.8.2 (Mountain Lion) and I am using Groovy-Grails-Tool-Suite with grails and Java installed correctly. However, when I create a new Grails project, I get a message stating that

Some projects in your workspace use Grails 2.20 

You are using the Groovy 1.8.6.xx-20120921-2000-e43RELEASE compiler.

Grails requires version range 2.0.0

Various functionality may break if you use an incompatible compiler.

Set Preferences >> Groovy >> Compiler to change the compiler version.

Has anyone else encountered this. I am using GGTS based on Eclipse 4.2 (Juno)

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Install Groovy Compiler from Dashboard / Extensions in GGTS and change compiler in Window -> Preferences -> Groovy -> Compiler up to 2.x



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