diff --git a/hgext/bookmarks.py b/hgext/bookmarks.py
--- a/hgext/bookmarks.py
+++ b/hgext/bookmarks.py
@@ -129,23 +129,6 @@ def bookmark(ui, repo, mark=None, rev=No
                         label=label)
         return
 
-def reposetup(ui, repo):
-    if not repo.local():
-        return
-
-    class bookmark_repo(repo.__class__):
-        def addchangegroup(self, *args, **kwargs):
-            result = super(bookmark_repo, self).addchangegroup(*args, **kwargs)
-            if result > 1:
-                # We have more heads than before
-                return result
-            node = self.changelog.tip()
-            parents = self.dirstate.parents()
-            bookmarks.update(self, parents, node)
-            return result
-
-    repo.__class__ = bookmark_repo
-
 def pull(oldpull, ui, repo, source="default", **opts):
     # translate bookmark args to rev args for actual pull
     if opts.get('bookmark'):
diff --git a/mercurial/localrepo.py b/mercurial/localrepo.py
--- a/mercurial/localrepo.py
+++ b/mercurial/localrepo.py
@@ -1891,6 +1891,10 @@ class localrepository(repo.repository):
                 self.hook("incoming", node=hex(cl.node(i)),
                           source=srctype, url=url)
 
+        # FIXME - why does this care about tip?
+        if newheads == oldheads:
+            bookmarks.update(self, self.dirstate.parents(), self['tip'].node())
+
         # never return 0 here:
         if newheads < oldheads:
             return newheads - oldheads - 1