diff --git a/mercurial/util.py b/mercurial/util.py
--- a/mercurial/util.py
+++ b/mercurial/util.py
@@ -1444,6 +1444,8 @@ class url(object):
                     path = None
                 if not self.host:
                     self.host = None
+                    # path of file:///d is /d
+                    # path of file:///d:/ is d:/, not /d:/
                     if path and not hasdriveletter(path):
                         path = '/' + path
 
@@ -1586,11 +1588,6 @@ class url(object):
                 path = self._hostport + '/' + self.path
             elif self.host is not None and self.path:
                 path = '/' + path
-            # We also need to handle the case of file:///C:/, which
-            # should return C:/, not /C:/.
-            elif hasdriveletter(path):
-                # Strip leading slash from paths with drive names
-                return path[1:]
             return path
         return self._origpath
 
diff --git a/tests/test-url.py b/tests/test-url.py
--- a/tests/test-url.py
+++ b/tests/test-url.py
@@ -204,18 +204,32 @@ def test_url():
     <url scheme: 'file', path: '/foo/bar/baz'>
     >>> str(u)
     'file:///foo/bar/baz'
+    >>> u.localpath()
+    '/foo/bar/baz'
 
     >>> u = url('file:///foo/bar/baz')
     >>> u
     <url scheme: 'file', path: '/foo/bar/baz'>
     >>> str(u)
     'file:///foo/bar/baz'
+    >>> u.localpath()
+    '/foo/bar/baz'
+
+    >>> u = url('file:///f:oo/bar/baz')
+    >>> u
+    <url scheme: 'file', path: 'f:oo/bar/baz'>
+    >>> str(u)
+    'file:f%3Aoo/bar/baz'
+    >>> u.localpath()
+    'f:oo/bar/baz'
 
     >>> u = url('file:foo/bar/baz')
     >>> u
     <url scheme: 'file', path: 'foo/bar/baz'>
     >>> str(u)
     'file:foo/bar/baz'
+    >>> u.localpath()
+    'foo/bar/baz'
     """
 
 doctest.testmod(optionflags=doctest.NORMALIZE_WHITESPACE)