diff --git a/mercurial/dagop.py b/mercurial/dagop.py
--- a/mercurial/dagop.py
+++ b/mercurial/dagop.py
@@ -442,12 +442,12 @@ def annotate(base, parents, linenumber=F
     """
 
     if linenumber:
-        def decorate(text, rev):
-            return ([annotateline(fctx=rev, lineno=i)
+        def decorate(text, fctx):
+            return ([annotateline(fctx=fctx, lineno=i)
                      for i in xrange(1, _countlines(text) + 1)], text)
     else:
-        def decorate(text, rev):
-            return ([annotateline(fctx=rev)] * _countlines(text), text)
+        def decorate(text, fctx):
+            return ([annotateline(fctx=fctx)] * _countlines(text), text)
 
     # This algorithm would prefer to be recursive, but Python is a
     # bit recursion-hostile. Instead we do an iterative
diff --git a/tests/test-annotate.py b/tests/test-annotate.py
--- a/tests/test-annotate.py
+++ b/tests/test-annotate.py
@@ -25,8 +25,8 @@ class AnnotateTests(unittest.TestCase):
         childdata = b'a\nb2\nc\nc2\nd\n'
         diffopts = mdiff.diffopts()
 
-        def decorate(text, rev):
-            return ([annotateline(fctx=rev, lineno=i)
+        def decorate(text, fctx):
+            return ([annotateline(fctx=fctx, lineno=i)
                      for i in range(1, text.count(b'\n') + 1)],
                     text)