diff --git a/HISTORY.txt b/HISTORY.txt
--- a/HISTORY.txt
+++ b/HISTORY.txt
@@ -1,5 +1,8 @@
+1.1.1
+~~~~~~~~~~~~~~~~~~
 
-~~~~~~~~~~~~~~~~~~
+#49 Fixed the bug due to url-stored usernames did not work (introduced
+in 1.0.0 and not completely fixed in 1.0.1).
 
 #50 Bad doc url in error message
 
diff --git a/mercurial_keyring.py b/mercurial_keyring.py
--- a/mercurial_keyring.py
+++ b/mercurial_keyring.py
@@ -310,32 +310,36 @@ class HTTPPasswordHandler(object):
         if urllib_user and urllib_pwd:
             return urllib_user, urllib_pwd, self.SRC_URLCACHE, base_url
 
+        actual_user = url_user or urllib_user
+
         # Consult configuration to normalize url to prefix, and find username
         # (and maybe password)
         auth_user, auth_pwd, keyring_url = self.get_url_config(
-            ui, parsed_url, url_user)
-        if auth_user and url_user and (url_user != auth_user):
-            raise util.Abort(_('keyring: username for %s specified both in repository path (%s) and in .hg/hgrc/[auth] (%s). Please, leave only one of those' % (base_url, url_user, auth_user)))
+            ui, parsed_url, actual_user)
+        if auth_user and actual_user and (actual_user != auth_user):
+            raise util.Abort(_('keyring: username for %s specified both in repository path (%s) and in .hg/hgrc/[auth] (%s). Please, leave only one of those' % (base_url, actual_user, auth_user)))
         if auth_user and auth_pwd:
             return auth_user, auth_pwd, self.SRC_CFGAUTH, keyring_url
 
+        actual_user = actual_user or auth_user
+
         if skip_caches:
-            return auth_user, None, None, keyring_url
+            return actual_user, None, None, keyring_url
 
         # Check memory cache (reuse )
         # Checking the memory cache (there may be many http calls per command)
-        cached_pwd = self.pwd_cache.check(realm, keyring_url, auth_user)
+        cached_pwd = self.pwd_cache.check(realm, keyring_url, actual_user)
         if cached_pwd:
-            return auth_user, cached_pwd, self.SRC_MEMCACHE, keyring_url
+            return actual_user, cached_pwd, self.SRC_MEMCACHE, keyring_url
 
         # Load from keyring.
-        if auth_user:
-            ui.debug(_("keyring: looking for password (user %s, url %s)\n") % (auth_user, keyring_url))
-            keyring_pwd = password_store.get_http_password(keyring_url, auth_user)
+        if actual_user:
+            ui.debug(_("keyring: looking for password (user %s, url %s)\n") % (actual_user, keyring_url))
+            keyring_pwd = password_store.get_http_password(keyring_url, actual_user)
             if keyring_pwd:
-                return auth_user, keyring_pwd, self.SRC_KEYRING, keyring_url
+                return actual_user, keyring_pwd, self.SRC_KEYRING, keyring_url
 
-        return auth_user, None, None, keyring_url
+        return actual_user, None, None, keyring_url
 
     @staticmethod
     def prompt_interactively(ui, user, realm, url):