diff -r 8cb894370514 -r e1831f06eef1 mercurial/localrepo.py
--- a/mercurial/localrepo.py	Fri Jun 30 23:02:08 2006 +0200
+++ b/mercurial/localrepo.py	Fri Jun 30 19:24:02 2006 -0700
@@ -74,6 +74,8 @@
         self.transhandle = None
 
         if create:
+	    if not os.path.exists(path):
+		os.mkdir(path)
             os.mkdir(self.path)
             os.mkdir(self.join("data"))