diff --git a/mercurial/localrepo.py b/mercurial/localrepo.py
--- a/mercurial/localrepo.py
+++ b/mercurial/localrepo.py
@@ -402,12 +402,14 @@ class localrepository(object):
                 if inst.errno != errno.ENOENT:
                     raise
 
+        cachepath = self.vfs.join('cache')
         self.sharedpath = self.path
         try:
             sharedpath = self.vfs.read("sharedpath").rstrip('\n')
             if 'relshared' in self.requirements:
                 sharedpath = self.vfs.join(sharedpath)
             vfs = vfsmod.vfs(sharedpath, realpath=True)
+            cachepath = vfs.join('cache')
             s = vfs.base
             if not vfs.exists():
                 raise error.RepoError(
@@ -423,7 +425,7 @@ class localrepository(object):
         self.svfs = self.store.vfs
         self.sjoin = self.store.join
         self.vfs.createmode = self.store.createmode
-        self.cachevfs = vfsmod.vfs(self.vfs.join('cache'))
+        self.cachevfs = vfsmod.vfs(cachepath)
         self.cachevfs.createmode = self.store.createmode
         if (self.ui.configbool('devel', 'all-warnings') or
             self.ui.configbool('devel', 'check-locks')):
diff --git a/tests/test-share.t b/tests/test-share.t
--- a/tests/test-share.t
+++ b/tests/test-share.t
@@ -24,6 +24,20 @@ share shouldn't have a store dir
   $ test -d .hg/store
   [1]
 
+share shouldn't have a cache dir, original repo should
+
+  $ hg branches
+  default                        0:d3873e73d99e
+  $ hg tags
+  tip                                0:d3873e73d99e
+  $ test -d .hg/cache
+  [1]
+  $ ls -1 ../repo1/.hg/cache
+  branch2-served
+  rbc-names-v1
+  rbc-revs-v1
+  tags2-visible
+
 Some sed versions appends newline, some don't, and some just fails
 
   $ cat .hg/sharedpath; echo