diff -r c24215aa7e69 -r 42ca7aef28d3 mercurial/dispatch.py
--- a/mercurial/dispatch.py	Mon Oct 04 14:26:38 2010 -0500
+++ b/mercurial/dispatch.py	Mon Oct 04 15:07:12 2010 -0500
@@ -420,12 +420,12 @@
         lui = ui
     else:
         lui = ui.copy()
-        lui.readconfig(os.path.join(path, ".hg", "hgrc"))
+        lui.readconfig(os.path.join(path, ".hg", "hgrc"), path)
 
     if rpath:
         path = lui.expandpath(rpath[-1])
         lui = ui.copy()
-        lui.readconfig(os.path.join(path, ".hg", "hgrc"))
+        lui.readconfig(os.path.join(path, ".hg", "hgrc"), path)
 
     return path, lui