--- a/tests/test-hgrc.t	Wed Mar 19 02:45:04 2014 +0100
+++ b/tests/test-hgrc.t	Wed Mar 19 02:45:14 2014 +0100
@@ -201,3 +201,14 @@
   --verbose: ui.verbose=False
   --debug: ui.debug=True
   --quiet: ui.quiet=False
+
+source of paths is not mangled
+
+  $ cat >> $HGRCPATH <<EOF
+  > [paths]
+  > foo = bar
+  > EOF
+  $ hg showconfig --debug paths
+  plain: True
+  read config from: $TESTTMP/hgrc
+  $TESTTMP/hgrc:17: paths.foo=$TESTTMP/bar