diff --git a/mercurial/commandserver.py b/mercurial/commandserver.py
--- a/mercurial/commandserver.py
+++ b/mercurial/commandserver.py
@@ -132,7 +132,6 @@ class server(object):
     """
     def __init__(self, ui, repo, mode):
         self.cwd = os.getcwd()
-        self.ui = ui
 
         logpath = ui.config("cmdserver", "log", None)
         if logpath:
@@ -143,6 +142,9 @@ class server(object):
             else:
                 logfile = open(logpath, 'a')
 
+        # the ui here is really the repo ui so take its baseui so we don't end up
+        # with its local configuration
+        self.ui = repo.baseui
         self.repo = repo
         self.repoui = repo.ui
 
diff --git a/tests/test-commandserver.py b/tests/test-commandserver.py
--- a/tests/test-commandserver.py
+++ b/tests/test-commandserver.py
@@ -1,4 +1,4 @@
-import sys, os, struct, subprocess, cStringIO, re
+import sys, os, struct, subprocess, cStringIO, re, shutil
 
 def connect(path=None):
     cmdline = ['hg', 'serve', '--cmdserver', 'pipe']
@@ -131,6 +131,19 @@ def cwd(server):
     runcommand(server, ['st', 'foo/bar'])
     os.remove('foo/bar')
 
+def localhgrc(server):
+    """ check that local configs for the cached repo aren't inherited when -R
+    is used """
+    readchannel(server)
+
+    # the cached repo local hgrc contains ui.foo=bar, so showconfig should show it
+    runcommand(server, ['showconfig'])
+
+    # but not for this repo
+    runcommand(server, ['init', 'foo'])
+    runcommand(server, ['-R', 'foo', 'showconfig'])
+    shutil.rmtree('foo')
+
 if __name__ == '__main__':
     os.system('hg init')
 
@@ -140,3 +153,8 @@ if __name__ == '__main__':
     check(inputeof)
     check(serverinput)
     check(cwd)
+
+    hgrc = open('.hg/hgrc', 'a')
+    hgrc.write('[ui]\nfoo=bar\n')
+    hgrc.close()
+    check(localhgrc)
diff --git a/tests/test-commandserver.py.out b/tests/test-commandserver.py.out
--- a/tests/test-commandserver.py.out
+++ b/tests/test-commandserver.py.out
@@ -38,3 +38,14 @@ summary:     1
 
 ? bar
 ? foo/bar
+bundle.mainreporoot=$TESTTMP
+defaults.backout=-d "0 0"
+defaults.commit=-d "0 0"
+defaults.tag=-d "0 0"
+ui.slash=True
+ui.foo=bar
+bundle.mainreporoot=$TESTTMP/foo
+defaults.backout=-d "0 0"
+defaults.commit=-d "0 0"
+defaults.tag=-d "0 0"
+ui.slash=True