diff -r 87e8440964a0 -r 60338880d265 mercurial/localrepo.py
--- a/mercurial/localrepo.py	Fri Jul 06 18:45:27 2012 +0900
+++ b/mercurial/localrepo.py	Fri Jul 06 18:45:27 2012 +0900
@@ -40,7 +40,7 @@
         self.wopener = scmutil.opener(path, expand=True)
         self.wvfs = self.wopener
         self.root = self.wvfs.base
-        self.path = os.path.join(self.root, ".hg")
+        self.path = self.wvfs.join(".hg")
         self.origroot = path
         self.auditor = scmutil.pathauditor(self.root, self._checknested)
         self.opener = scmutil.opener(self.path)