diff -r 10d88dc7c010 -r d73490957d61 mercurial/chgserver.py
--- a/mercurial/chgserver.py	Tue Mar 28 07:57:56 2017 -0700
+++ b/mercurial/chgserver.py	Tue Mar 28 08:40:12 2017 -0700
@@ -213,8 +213,8 @@
     # stolen from tortoisehg.util.copydynamicconfig()
     for section, name, value in srcui.walkconfig():
         source = srcui.configsource(section, name)
-        if ':' in source or source == '--config':
-            # path:line or command line
+        if ':' in source or source == '--config' or source.startswith('$'):
+            # path:line or command line, or environ
             continue
         newui.setconfig(section, name, value, source)