diff --git a/pylons_app/config/middleware.py b/pylons_app/config/middleware.py
--- a/pylons_app/config/middleware.py
+++ b/pylons_app/config/middleware.py
@@ -7,7 +7,8 @@ from paste.deploy.converters import asbo
 from pylons.middleware import ErrorHandler, StatusCodeRedirect
 from pylons.wsgiapp import PylonsApp
 from routes.middleware import RoutesMiddleware
-from pylons_app.lib.simplehg import SimpleHg
+from pylons_app.lib.middleware.simplehg import SimpleHg
+from pylons_app.lib.middleware.https_fixup import HttpsFixup
 from pylons_app.config.environment import load_environment
 
 def make_app(global_conf, full_stack=True, static_files=True, **app_conf):
@@ -41,7 +42,9 @@ def make_app(global_conf, full_stack=Tru
     app = RoutesMiddleware(app, config['routes.map'])
     app = SessionMiddleware(app, config)
     
-    # CUSTOM MIDDLEWARE HERE (filtered by error handling middlewares)    
+    # CUSTOM MIDDLEWARE HERE (filtered by error handling middlewares)
+    #set the https based on HTTP_X_URL_SCHEME
+    app = HttpsFixup(app)
     app = SimpleHg(app, config)
     
     if asbool(full_stack):
diff --git a/pylons_app/lib/hgapp.py b/pylons_app/lib/hgapp.py
deleted file mode 100644
--- a/pylons_app/lib/hgapp.py
+++ /dev/null
@@ -1,26 +0,0 @@
-import logging
-from logging import Formatter, StreamHandler
-from wsgiref.simple_server import make_server
-from mercurial.hgweb.hgwebdir_mod import hgwebdir
-from mercurial.hgweb.request import wsgiapplication
-
-log = logging.getLogger(__name__)
-log.setLevel(logging.DEBUG)
-formatter = Formatter("%(asctime)s - %(levelname)s %(message)s")
-console_handler = StreamHandler()
-console_handler.setFormatter(formatter)
-log.addHandler(console_handler)
-
-def make_web_app():
-
-    repos = "hgwebdir.config"
-    hgwebapp = hgwebdir(repos)
-    return hgwebapp
-
-port = 8000
-ip = '127.0.0.1'
-
-log.info('Starting server on %s:%s' % (ip, port))
-httpd = make_server(ip, port, wsgiapplication(make_web_app))
-httpd.serve_forever()
-
diff --git a/pylons_app/lib/middleware/__init__.py b/pylons_app/lib/middleware/__init__.py
new file mode 100644
diff --git a/pylons_app/lib/middleware/https_fixup.py b/pylons_app/lib/middleware/https_fixup.py
new file mode 100644
--- /dev/null
+++ b/pylons_app/lib/middleware/https_fixup.py
@@ -0,0 +1,21 @@
+class HttpsFixup(object):
+    def __init__(self, app):
+        self.application = app
+    
+    def __call__(self, environ, start_response):
+        self.__fixup(environ)
+        return self.application(environ, start_response)
+    
+    
+    def __fixup(self, environ):
+        """Function to fixup the environ as needed. In order to use this
+        middleware you should set this header inside your 
+        proxy ie. nginx, apache etc.
+        """
+        proto = environ.get('HTTP_X_URL_SCHEME')
+            
+        if proto == 'https':
+            environ['wsgi.url_scheme'] = proto
+        else:
+            environ['wsgi.url_scheme'] = 'http'
+        return None
diff --git a/pylons_app/lib/simplehg.py b/pylons_app/lib/middleware/simplehg.py
rename from pylons_app/lib/simplehg.py
rename to pylons_app/lib/middleware/simplehg.py
--- a/pylons_app/lib/simplehg.py
+++ b/pylons_app/lib/middleware/simplehg.py
@@ -34,8 +34,6 @@ class SimpleHg(object):
         self.authenticate = AuthBasicAuthenticator(realm, authfunc)
         
     def __call__(self, environ, start_response):
-        #dirty fix for https
-        environ['wsgi.url_scheme'] = 'https'
         if not is_mercurial(environ):
             return self.application(environ, start_response)
         else: