diff --git a/mercurial/config.py b/mercurial/config.py
--- a/mercurial/config.py
+++ b/mercurial/config.py
@@ -73,10 +73,10 @@ class config(object):
     def parse(self, src, data, sections=None, remap=None, include=None):
         sectionre = re.compile(r'\[([^\[]+)\]')
         itemre = re.compile(r'([^=\s][^=]*?)\s*=\s*(.*\S|)')
-        contre = re.compile(r'\s+(\S.*\S)')
+        contre = re.compile(r'\s+(\S|\S.*\S)\s*$')
         emptyre = re.compile(r'(;|#|\s*$)')
         unsetre = re.compile(r'%unset\s+(\S+)')
-        includere = re.compile(r'%include\s+(\S.*\S)')
+        includere = re.compile(r'%include\s+(\S|\S.*\S)\s*$')
         section = ""
         item = None
         line = 0
diff --git a/tests/test-hgrc b/tests/test-hgrc
--- a/tests/test-hgrc
+++ b/tests/test-hgrc
@@ -23,5 +23,9 @@ echo '[foo]' >> $HGRCPATH
 echo '  x = y' >> $HGRCPATH
 hg version 2>&1 | sed -e "s|$HGRCPATH|\$HGRCPATH|"
 
+python -c "print '[foo]\nbar = a\n b\n c \n  de\n fg \nbaz = bif cb \n'" \
+    > $HGRCPATH
+hg showconfig foo
+
 echo '%include /no-such-file' > $HGRCPATH
 hg version 2>&1 | sed -e "s|$HGRCPATH|\$HGRCPATH|"
diff --git a/tests/test-hgrc.out b/tests/test-hgrc.out
--- a/tests/test-hgrc.out
+++ b/tests/test-hgrc.out
@@ -11,4 +11,6 @@ defaults.tag=-d "0 0"
 paths.default=.../foo%bar
 ui.slash=True
 hg: config error at $HGRCPATH:8: '  x = y'
+foo.bar=a\nb\nc\nde\nfg
+foo.baz=bif cb
 hg: config error at $HGRCPATH:1: cannot include /no-such-file (No such file or directory)