diff --git a/doc/hg.1.txt b/doc/hg.1.txt
--- a/doc/hg.1.txt
+++ b/doc/hg.1.txt
@@ -273,9 +273,8 @@ paths [NAME]::
     Show definition of symbolic path name NAME. If no name is given, show
     definition of available names.
 
-    Path names are defined in the [paths] section of the $HOME/.hgrc and
-    <repo>/.hg/hgrc configuration files. If run outside a repo, 'paths'
-    queries only $HOME/.hgrc.
+    Path names are defined in the [paths] section of /etc/mercurial/hgrc
+    and $HOME/.hgrc.  If run inside a repository, .hg/hgrc is used, too.
 
 pull <repository path>::
     Pull changes from a remote repository to a local one.
@@ -589,10 +588,11 @@ FILES
     seperated by spaces) that correspond to tagged versions of the repository
     contents.
 
- $HOME/.hgrc, .hg/hgrc::
+ /etc/mercurial/hgrc, $HOME/.hgrc, .hg/hgrc::
     This file contains defaults and configuration. Values in .hg/hgrc
-    override those in .hgrc.  See hgrc(5) for details of the contents
-    and format of these files.
+    override those in $HOME/.hgrc, and these override settings made in the
+    global /etc/mercurial/hgrc configuration.  See hgrc(5) for details of
+    the contents and format of these files.
 
 BUGS
 ----