--- a/mercurial/localrepo.py
+++ b/mercurial/localrepo.py
@@ -47,7 +47,7 @@ class localrepository(object):
self.dirstate = dirstate.dirstate(self.opener, self.ui, self.root)
try:
- self.ui.readconfig(self.join("hgrc"))
+ self.ui.readconfig(self.join("hgrc"), self.root)
except IOError:
pass