diff --git a/rust/chg/src/locator.rs b/rust/chg/src/locator.rs
--- a/rust/chg/src/locator.rs
+++ b/rust/chg/src/locator.rs
@@ -21,10 +21,11 @@ use tokio_process::{Child, CommandExt};
 use tokio_timer;
 
 use super::clientext::ChgClientExt;
-use super::message::ServerSpec;
+use super::message::{Instruction, ServerSpec};
 use super::procutil;
 
-const REQUIRED_SERVER_CAPABILITIES: &[&str] = &["attachio", "chdir", "runcommand", "setenv"];
+const REQUIRED_SERVER_CAPABILITIES: &[&str] =
+    &["attachio", "chdir", "runcommand", "setenv", "validate"];
 
 /// Helper to connect to and spawn a server process.
 #[derive(Clone, Debug)]
@@ -35,6 +36,7 @@ pub struct Locator {
     env_vars: Vec<(OsString, OsString)>,
     process_id: u32,
     base_sock_path: PathBuf,
+    redirect_sock_path: Option<PathBuf>,
     timeout: Duration,
 }
 
@@ -51,6 +53,7 @@ impl Locator {
             env_vars: env::vars_os().collect(),
             process_id: process::id(),
             base_sock_path: prepare_server_socket_path()?,
+            redirect_sock_path: None,
             timeout: default_timeout(),
         })
     }
@@ -77,16 +80,110 @@ impl Locator {
     ///
     /// The server process will be spawned if not running.
     pub fn connect(self) -> impl Future<Item = (Self, UnixClient), Error = io::Error> {
-        self.try_connect()
+        future::loop_fn((self, 0), |(loc, cnt)| {
+            if cnt < 10 {
+                let fut = loc
+                    .try_connect()
+                    .and_then(|(loc, client)| {
+                        client
+                            .validate(&loc.hg_early_args)
+                            .map(|(client, instructions)| (loc, client, instructions))
+                    })
+                    .and_then(move |(loc, client, instructions)| {
+                        loc.run_instructions(client, instructions, cnt)
+                    });
+                Either::A(fut)
+            } else {
+                let msg = format!(
+                    concat!(
+                        "too many redirections.\n",
+                        "Please make sure {:?} is not a wrapper which ",
+                        "changes sensitive environment variables ",
+                        "before executing hg. If you have to use a ",
+                        "wrapper, wrap chg instead of hg.",
+                    ),
+                    loc.hg_command
+                );
+                Either::B(future::err(io::Error::new(io::ErrorKind::Other, msg)))
+            }
+        })
+    }
+
+    /// Runs instructions received from the server.
+    fn run_instructions(
+        mut self,
+        client: UnixClient,
+        instructions: Vec<Instruction>,
+        cnt: usize,
+    ) -> io::Result<Loop<(Self, UnixClient), (Self, usize)>> {
+        let mut reconnect = false;
+        for inst in instructions {
+            debug!("instruction: {:?}", inst);
+            match inst {
+                Instruction::Exit(_) => {
+                    // Just returns the current connection to run the
+                    // unparsable command and report the error
+                    return Ok(Loop::Break((self, client)));
+                }
+                Instruction::Reconnect => {
+                    reconnect = true;
+                }
+                Instruction::Redirect(path) => {
+                    if path.parent() != self.base_sock_path.parent() {
+                        let msg = format!(
+                            "insecure redirect instruction from server: {}",
+                            path.display()
+                        );
+                        return Err(io::Error::new(io::ErrorKind::InvalidData, msg));
+                    }
+                    self.redirect_sock_path = Some(path);
+                    reconnect = true;
+                }
+                Instruction::Unlink(path) => {
+                    if path.parent() != self.base_sock_path.parent() {
+                        let msg = format!(
+                            "insecure unlink instruction from server: {}",
+                            path.display()
+                        );
+                        return Err(io::Error::new(io::ErrorKind::InvalidData, msg));
+                    }
+                    fs::remove_file(path).unwrap_or(()); // may race
+                }
+            }
+        }
+
+        if reconnect {
+            Ok(Loop::Continue((self, cnt + 1)))
+        } else {
+            Ok(Loop::Break((self, client)))
+        }
     }
 
     /// Tries to connect to the existing server, or spawns new if not running.
     fn try_connect(self) -> impl Future<Item = (Self, UnixClient), Error = io::Error> {
-        debug!("try connect to {}", self.base_sock_path.display());
-        UnixClient::connect(self.base_sock_path.clone())
-            .then(|res| match res {
-                Ok(client) => Either::A(future::ok((self, client))),
-                Err(_) => Either::B(self.spawn_connect()),
+        let sock_path = self
+            .redirect_sock_path
+            .as_ref()
+            .unwrap_or(&self.base_sock_path)
+            .clone();
+        debug!("try connect to {}", sock_path.display());
+        UnixClient::connect(sock_path)
+            .then(|res| {
+                match res {
+                    Ok(client) => Either::A(future::ok((self, client))),
+                    Err(_) => {
+                        // Prevent us from being re-connected to the outdated
+                        // master server: We were told by the server to redirect
+                        // to redirect_sock_path, which didn't work. We do not
+                        // want to connect to the same master server again
+                        // because it would probably tell us the same thing.
+                        if self.redirect_sock_path.is_some() {
+                            fs::remove_file(&self.base_sock_path).unwrap_or(());
+                            // may race
+                        }
+                        Either::B(self.spawn_connect())
+                    }
+                }
             })
             .and_then(|(loc, client)| {
                 check_server_capabilities(client.server_spec())?;