diff --git a/mercurial/hgweb/hgweb_mod.py b/mercurial/hgweb/hgweb_mod.py
--- a/mercurial/hgweb/hgweb_mod.py
+++ b/mercurial/hgweb/hgweb_mod.py
@@ -182,20 +182,20 @@ class hgweb(object):
                 content = getattr(webcommands, cmd)(self, req, tmpl)
                 req.respond(HTTP_OK, ctype)
 
-            return ''.join(content),
+            return content
 
         except revlog.LookupError, err:
             req.respond(HTTP_NOT_FOUND, ctype)
             msg = str(err)
             if 'manifest' not in msg:
                 msg = 'revision not found: %s' % err.name
-            return ''.join(tmpl('error', error=msg)),
+            return tmpl('error', error=msg)
         except (RepoError, revlog.RevlogError), inst:
             req.respond(HTTP_SERVER_ERROR, ctype)
-            return ''.join(tmpl('error', error=str(inst))),
+            return tmpl('error', error=str(inst))
         except ErrorResponse, inst:
             req.respond(inst.code, ctype)
-            return ''.join(tmpl('error', error=inst.message)),
+            return tmpl('error', error=inst.message)
 
     def templater(self, req):
 
diff --git a/mercurial/hgweb/hgwebdir_mod.py b/mercurial/hgweb/hgwebdir_mod.py
--- a/mercurial/hgweb/hgwebdir_mod.py
+++ b/mercurial/hgweb/hgwebdir_mod.py
@@ -116,7 +116,7 @@ class hgwebdir(object):
                 # top-level index
                 elif not virtual:
                     req.respond(HTTP_OK, ctype)
-                    return ''.join(self.makeindex(req, tmpl)),
+                    return self.makeindex(req, tmpl)
 
                 # nested indexes and hgwebs
 
@@ -138,7 +138,7 @@ class hgwebdir(object):
                     subdir = virtual + '/'
                     if [r for r in repos if r.startswith(subdir)]:
                         req.respond(HTTP_OK, ctype)
-                        return ''.join(self.makeindex(req, tmpl, subdir)),
+                        return self.makeindex(req, tmpl, subdir)
 
                     up = virtual.rfind('/')
                     if up < 0:
@@ -147,11 +147,11 @@ class hgwebdir(object):
 
                 # prefixes not found
                 req.respond(HTTP_NOT_FOUND, ctype)
-                return ''.join(tmpl("notfound", repo=virtual)),
+                return tmpl("notfound", repo=virtual)
 
             except ErrorResponse, err:
                 req.respond(err.code, ctype)
-                return ''.join(tmpl('error', error=err.message or '')),
+                return tmpl('error', error=err.message or '')
         finally:
             tmpl = None
 
diff --git a/mercurial/templater.py b/mercurial/templater.py
--- a/mercurial/templater.py
+++ b/mercurial/templater.py
@@ -44,7 +44,8 @@ class templater(object):
     template_re = re.compile(r"(?:(?:#(?=[\w\|%]+#))|(?:{(?=[\w\|%]+})))"
                              r"(\w+)(?:(?:%(\w+))|((?:\|\w+)*))[#}]")
 
-    def __init__(self, mapfile, filters={}, defaults={}, cache={}):
+    def __init__(self, mapfile, filters={}, defaults={}, cache={},
+                 minchunk=1024, maxchunk=65536):
         '''set up template engine.
         mapfile is name of file to read map definitions from.
         filters is dict of functions. each transforms a value into another.
@@ -55,6 +56,7 @@ class templater(object):
         self.base = (mapfile and os.path.dirname(mapfile)) or ''
         self.filters = filters
         self.defaults = defaults
+        self.minchunk, self.maxchunk = minchunk, maxchunk
 
         if not mapfile:
             return
@@ -130,6 +132,13 @@ class templater(object):
                 yield v
 
     def __call__(self, t, **map):
+        stream = self.expand(t, **map)
+        if self.minchunk:
+            stream = util.increasingchunks(stream, min=self.minchunk,
+                                           max=self.maxchunk)
+        return stream
+        
+    def expand(self, t, **map):
         '''Perform expansion. t is name of map element to expand. map contains
         added elements for use during expansion. Is a generator.'''
         tmpl = self._template(t)
diff --git a/mercurial/util.py b/mercurial/util.py
--- a/mercurial/util.py
+++ b/mercurial/util.py
@@ -290,6 +290,37 @@ def sort(l):
     l.sort()
     return l
 
+def increasingchunks(source, min=1024, max=65536):
+    '''return no less than min bytes per chunk while data remains,
+    doubling min after each chunk until it reaches max'''
+    def log2(x):
+        if not x:
+            return 0
+        i = 0
+        while x:
+            x >>= 1
+            i += 1
+        return i - 1
+
+    buf = []
+    blen = 0
+    for chunk in source:
+        buf.append(chunk)
+        blen += len(chunk)
+        if blen >= min:
+            if min < max:
+                min = min << 1
+                nmin = 1 << log2(blen)
+                if nmin > min:
+                    min = nmin
+                if min > max:
+                    min = max
+            yield ''.join(buf)
+            blen = 0
+            buf = []
+    if buf:
+        yield ''.join(buf)
+
 class Abort(Exception):
     """Raised if a command needs to print an error and exit."""