diff -r de7bf242644e -r 63d6bc874dea mercurial/filemerge.py
--- a/mercurial/filemerge.py	Thu Nov 19 10:50:02 2015 -0800
+++ b/mercurial/filemerge.py	Wed Nov 18 15:40:28 2015 -0800
@@ -237,7 +237,7 @@
 @internaltool('local', nomerge)
 def _ilocal(repo, mynode, orig, fcd, fco, fca, toolconf):
     """Uses the local version of files as the merged version."""
-    return 0, False
+    return 0, fcd.isabsent()
 
 @internaltool('other', nomerge)
 def _iother(repo, mynode, orig, fcd, fco, fca, toolconf):