diff -r 79a86a95f325 -r dfb836a31b61 mercurial/localrepo.py
--- a/mercurial/localrepo.py	Thu Dec 03 10:40:19 2015 -0800
+++ b/mercurial/localrepo.py	Thu Dec 03 13:22:36 2015 -0800
@@ -214,6 +214,8 @@
         self.path = self.wvfs.join(".hg")
         self.origroot = path
         self.auditor = pathutil.pathauditor(self.root, self._checknested)
+        self.nofsauditor = pathutil.pathauditor(self.root, self._checknested,
+                                                realfs=False)
         self.vfs = scmutil.vfs(self.path)
         self.opener = self.vfs
         self.baseui = baseui