--- a/mercurial/posix.py	Tue Dec 20 20:28:41 2016 -0800
+++ b/mercurial/posix.py	Sun Dec 18 01:34:41 2016 +0530
@@ -462,7 +462,7 @@
     if sys.platform == 'plan9':
         return findexisting(os.path.join('/bin', command))
 
-    for path in os.environ.get('PATH', '').split(pycompat.ospathsep):
+    for path in encoding.environ.get('PATH', '').split(pycompat.ospathsep):
         executable = findexisting(os.path.join(path, command))
         if executable is not None:
             return executable