diff -r ac9e891f2c0f -r ba51a8225a60 mercurial/localrepo.py
--- a/mercurial/localrepo.py	Fri Mar 09 20:08:13 2007 +0100
+++ b/mercurial/localrepo.py	Sat Mar 10 17:45:32 2007 -0800
@@ -31,8 +31,8 @@
                                            " here (.hg not found)"))
             path = p
 
-        self.path = os.path.join(path, ".hg")
         self.root = os.path.realpath(path)
+        self.path = os.path.join(self.root, ".hg")
         self.origroot = path
         self.opener = util.opener(self.path)
         self.wopener = util.opener(self.root)