diff --git a/mercurial/transaction.py b/mercurial/transaction.py
--- a/mercurial/transaction.py
+++ b/mercurial/transaction.py
@@ -84,7 +84,7 @@ def _playback(journal, report, opener, v
 
 class transaction(object):
     def __init__(self, report, opener, vfsmap, journal, after=None,
-                 createmode=None, onclose=None, onabort=None):
+                 createmode=None, onabort=None):
         """Begin a new transaction
 
         Begins a new transaction that allows rolling back writes in the event of
@@ -92,8 +92,6 @@ class transaction(object):
 
         * `after`: called after the transaction has been committed
         * `createmode`: the mode of the journal file that will be created
-        * `onclose`: called as the transaction is closing, but before it is
-        closed
         * `onabort`: called as the transaction is aborting, but before any files
         have been truncated
         """
@@ -107,7 +105,6 @@ class transaction(object):
         vfsmap[''] = opener  # set default value
         self._vfsmap = vfsmap
         self.after = after
-        self.onclose = onclose
         self.onabort = onabort
         self.entries = []
         self.map = {}
@@ -375,8 +372,6 @@ class transaction(object):
             categories = sorted(self._finalizecallback)
             for cat in categories:
                 self._finalizecallback[cat](self)
-            if self.onclose is not None:
-                self.onclose()
 
         self.count -= 1
         if self.count != 0:
diff --git a/tests/test-fncache.t b/tests/test-fncache.t
--- a/tests/test-fncache.t
+++ b/tests/test-fncache.t
@@ -241,22 +241,22 @@ Aborted transactions can be recovered la
 
   $ cat > ../exceptionext.py <<EOF
   > import os
-  > from mercurial import commands, util, transaction
+  > from mercurial import commands, util, transaction, localrepo
   > from mercurial.extensions import wrapfunction
   > 
-  > def closewrapper(orig, self, *args, **kwargs):
-  >     origonclose = self.onclose
-  >     def onclose():
-  >         origonclose()
+  > def trwrapper(orig, self, *args, **kwargs):
+  >     tr = orig(self, *args, **kwargs)
+  >     def fail(tr):
   >         raise util.Abort("forced transaction failure")
-  >     self.onclose = onclose
-  >     return orig(self, *args, **kwargs)
+  >     # zzz prefix to ensure it sorted after store.write
+  >     tr.addfinalize('zzz-forcefails', fail)
+  >     return tr
   > 
   > def abortwrapper(orig, self, *args, **kwargs):
   >     raise util.Abort("forced transaction failure")
   > 
   > def uisetup(ui):
-  >     wrapfunction(transaction.transaction, 'close', closewrapper)
+  >     wrapfunction(localrepo.localrepository, 'transaction', trwrapper)
   >     wrapfunction(transaction.transaction, '_abort', abortwrapper)
   > 
   > cmdtable = {}