diff --git a/mercurial/util.py b/mercurial/util.py
--- a/mercurial/util.py
+++ b/mercurial/util.py
@@ -530,7 +530,8 @@ class path_auditor(object):
                 if p in lparts[1:]:
                     pos = lparts.index(p)
                     base = os.path.join(*parts[:pos])
-                    raise Abort(_('path %r is inside repo %r') % (path, base))
+                    raise Abort(_('path %r is inside nested repo %r')
+                                % (path, base))
         def check(prefix):
             curpath = os.path.join(self.root, prefix)
             try:
@@ -547,7 +548,7 @@ class path_auditor(object):
                 elif (stat.S_ISDIR(st.st_mode) and
                       os.path.isdir(os.path.join(curpath, '.hg'))):
                     if not self.callback or not self.callback(curpath):
-                        raise Abort(_('path %r is inside repo %r') %
+                        raise Abort(_('path %r is inside nested repo %r') %
                                     (path, prefix))
         parts.pop()
         prefixes = []
diff --git a/tests/test-audit-path.t b/tests/test-audit-path.t
--- a/tests/test-audit-path.t
+++ b/tests/test-audit-path.t
@@ -53,7 +53,7 @@ attack foo/.hg/test
   $ hg manifest -r1
   foo/.hg/test
   $ hg update -Cr1
-  abort: path 'foo/.hg/test' is inside repo 'foo'
+  abort: path 'foo/.hg/test' is inside nested repo 'foo'
   [255]
 
 attack back/test where back symlinks to ..
diff --git a/tests/test-nested-repo.t b/tests/test-nested-repo.t
--- a/tests/test-nested-repo.t
+++ b/tests/test-nested-repo.t
@@ -11,16 +11,16 @@ Should print nothing:
 Should fail:
 
   $ hg st b/x
-  abort: path 'b/x' is inside repo 'b'
+  abort: path 'b/x' is inside nested repo 'b'
   [255]
   $ hg add b/x
-  abort: path 'b/x' is inside repo 'b'
+  abort: path 'b/x' is inside nested repo 'b'
   [255]
 
 Should fail:
 
   $ hg add b b/x
-  abort: path 'b/x' is inside repo 'b'
+  abort: path 'b/x' is inside nested repo 'b'
   [255]
   $ hg st
 
@@ -34,7 +34,7 @@ Should arguably print nothing:
 Should fail:
 
   $ hg mv a b
-  abort: path 'b/a' is inside repo 'b'
+  abort: path 'b/a' is inside nested repo 'b'
   [255]
   $ hg st
 
diff --git a/tests/test-walk.t b/tests/test-walk.t
--- a/tests/test-walk.t
+++ b/tests/test-walk.t
@@ -159,7 +159,7 @@
   f  mammals/Procyonidae/raccoon     Procyonidae/raccoon
   f  mammals/skunk                   skunk
   $ hg debugwalk .hg
-  abort: path 'mammals/.hg' is inside repo 'mammals'
+  abort: path 'mammals/.hg' is inside nested repo 'mammals'
   [255]
   $ hg debugwalk ../.hg
   abort: path contains illegal component: .hg
@@ -203,7 +203,7 @@
   abort: path contains illegal component: .hg/data
   [255]
   $ hg debugwalk beans/.hg
-  abort: path 'beans/.hg' is inside repo 'beans'
+  abort: path 'beans/.hg' is inside nested repo 'beans'
   [255]
 
 Test absolute paths: