diff --git a/tests/test-merge-local.out b/tests/test-merge-local.out
deleted file mode 100644
--- a/tests/test-merge-local.out
+++ /dev/null
@@ -1,74 +0,0 @@
-# revision 0
-adding copy
-adding move
-adding remove
-adding unchanged
-adding zzz1_merge_ok
-adding zzz2_merge_bad
-# revision 1
-# local changes to revision 0
-4 files updated, 0 files merged, 3 files removed, 0 files unresolved
---- a/zzz1_merge_ok
-+++ b/zzz1_merge_ok
-+new last line
---- a/zzz2_merge_bad
-+++ b/zzz2_merge_bad
-+another last line
-M zzz1_merge_ok
-M zzz2_merge_bad
-# local merge with bad merge tool
-merging zzz1_merge_ok
-merging zzz2_merge_bad
-merging zzz2_merge_bad failed!
-3 files updated, 1 files merged, 2 files removed, 1 files unresolved
-use 'hg resolve' to retry unresolved file merges
-merging zzz1_merge_ok
-merging zzz2_merge_bad
-warning: conflicts during merge.
-merging zzz2_merge_bad failed!
-2 files updated, 1 files merged, 3 files removed, 1 files unresolved
-use 'hg resolve' to retry unresolved file merges
---- a/zzz1_merge_ok
-+++ b/zzz1_merge_ok
-+new last line
---- a/zzz2_merge_bad
-+++ b/zzz2_merge_bad
-+another last line
-+=======
-M zzz1_merge_ok
-M zzz2_merge_bad
-? zzz2_merge_bad.orig
-# local merge with conflicts
-merging zzz1_merge_ok
-merging zzz2_merge_bad
-warning: conflicts during merge.
-merging zzz2_merge_bad failed!
-3 files updated, 1 files merged, 2 files removed, 1 files unresolved
-use 'hg resolve' to retry unresolved file merges
-merging zzz1_merge_ok
-merging zzz2_merge_bad
-warning: conflicts during merge.
-merging zzz2_merge_bad failed!
-2 files updated, 1 files merged, 3 files removed, 1 files unresolved
-use 'hg resolve' to retry unresolved file merges
---- a/zzz1_merge_ok
-+++ b/zzz1_merge_ok
-+new last line
---- a/zzz2_merge_bad
-+++ b/zzz2_merge_bad
-+another last line
-+=======
-+=======
-+new last line
-+=======
-M zzz1_merge_ok
-M zzz2_merge_bad
-? zzz2_merge_bad.orig
-# local merge without conflicts
-merging zzz1_merge_ok
-4 files updated, 1 files merged, 2 files removed, 0 files unresolved
---- a/zzz1_merge_ok
-+++ b/zzz1_merge_ok
-+new last line
-M zzz1_merge_ok
-? zzz2_merge_bad.orig
diff --git a/tests/test-merge-local b/tests/test-merge-local.t
old mode 100755
new mode 100644
rename from tests/test-merge-local
rename to tests/test-merge-local.t
--- a/tests/test-merge-local
+++ b/tests/test-merge-local.t
@@ -1,50 +1,134 @@
-#!/bin/sh
+  $ hg init
+
+Revision 0:
 
-hg init
+  $ echo "unchanged" > unchanged
+  $ echo "remove me" > remove
+  $ echo "copy me" > copy
+  $ echo "move me" > move
+  $ for i in 1 2 3 4 5 6 7 8 9; do
+  >     echo "merge ok $i" >> zzz1_merge_ok
+  > done
+  $ echo "merge bad" > zzz2_merge_bad
+  $ hg ci -Am "revision 0"
+  adding copy
+  adding move
+  adding remove
+  adding unchanged
+  adding zzz1_merge_ok
+  adding zzz2_merge_bad
+
+Revision 1:
 
-echo "# revision 0"
-echo "unchanged" > unchanged
-echo "remove me" > remove
-echo "copy me" > copy
-echo "move me" > move
-for i in 1 2 3 4 5 6 7 8 9; do
-    echo "merge ok $i" >> zzz1_merge_ok
-done
-echo "merge bad" > zzz2_merge_bad
-hg ci -Am "revision 0"
+  $ hg rm remove
+  $ hg mv move moved
+  $ hg cp copy copied
+  $ echo "added" > added
+  $ hg add added
+  $ echo "new first line" > zzz1_merge_ok
+  $ hg cat zzz1_merge_ok >> zzz1_merge_ok
+  $ echo "new last line" >> zzz2_merge_bad
+  $ hg ci -m "revision 1"
+
+Local changes to revision 0:
+
+  $ hg co 0
+  4 files updated, 0 files merged, 3 files removed, 0 files unresolved
+  $ echo "new last line" >> zzz1_merge_ok
+  $ echo "another last line" >> zzz2_merge_bad
+
+  $ hg diff --nodates | grep "^[+-][^<>]"
+  --- a/zzz1_merge_ok
+  +++ b/zzz1_merge_ok
+  +new last line
+  --- a/zzz2_merge_bad
+  +++ b/zzz2_merge_bad
+  +another last line
+
+  $ hg st
+  M zzz1_merge_ok
+  M zzz2_merge_bad
+
+Local merge with bad merge tool:
+
+  $ HGMERGE=false hg co
+  merging zzz1_merge_ok
+  merging zzz2_merge_bad
+  merging zzz2_merge_bad failed!
+  3 files updated, 1 files merged, 2 files removed, 1 files unresolved
+  use 'hg resolve' to retry unresolved file merges
 
-echo "# revision 1"
-hg rm remove
-hg mv move moved
-hg cp copy copied
-echo "added" > added
-hg add added
-echo "new first line" > zzz1_merge_ok
-hg cat zzz1_merge_ok >> zzz1_merge_ok
-echo "new last line" >> zzz2_merge_bad
-hg ci -m "revision 1"
+  $ hg co 0
+  merging zzz1_merge_ok
+  merging zzz2_merge_bad
+  warning: conflicts during merge.
+  merging zzz2_merge_bad failed!
+  2 files updated, 1 files merged, 3 files removed, 1 files unresolved
+  use 'hg resolve' to retry unresolved file merges
 
-echo "# local changes to revision 0"
-hg co 0
-echo "new last line" >> zzz1_merge_ok
-echo "another last line" >> zzz2_merge_bad
-hg diff --nodates | grep "^[+-][^<>]"
-hg st
+  $ hg diff --nodates | grep "^[+-][^<>]"
+  --- a/zzz1_merge_ok
+  +++ b/zzz1_merge_ok
+  +new last line
+  --- a/zzz2_merge_bad
+  +++ b/zzz2_merge_bad
+  +another last line
+  +=======
+
+  $ hg st
+  M zzz1_merge_ok
+  M zzz2_merge_bad
+  ? zzz2_merge_bad.orig
+
+Local merge with conflicts:
+
+  $ hg co
+  merging zzz1_merge_ok
+  merging zzz2_merge_bad
+  warning: conflicts during merge.
+  merging zzz2_merge_bad failed!
+  3 files updated, 1 files merged, 2 files removed, 1 files unresolved
+  use 'hg resolve' to retry unresolved file merges
 
-echo "# local merge with bad merge tool"
-HGMERGE=false hg co
-hg co 0
-hg diff --nodates | grep "^[+-][^<>]"
-hg st
+  $ hg co 0
+  merging zzz1_merge_ok
+  merging zzz2_merge_bad
+  warning: conflicts during merge.
+  merging zzz2_merge_bad failed!
+  2 files updated, 1 files merged, 3 files removed, 1 files unresolved
+  use 'hg resolve' to retry unresolved file merges
+
+  $ hg diff --nodates | grep "^[+-][^<>]"
+  --- a/zzz1_merge_ok
+  +++ b/zzz1_merge_ok
+  +new last line
+  --- a/zzz2_merge_bad
+  +++ b/zzz2_merge_bad
+  +another last line
+  +=======
+  +=======
+  +new last line
+  +=======
 
-echo "# local merge with conflicts"
-hg co
-hg co 0
-hg diff --nodates | grep "^[+-][^<>]"
-hg st
+  $ hg st
+  M zzz1_merge_ok
+  M zzz2_merge_bad
+  ? zzz2_merge_bad.orig
+
+Local merge without conflicts:
+
+  $ hg revert zzz2_merge_bad
 
-echo "# local merge without conflicts"
-hg revert zzz2_merge_bad
-hg co
-hg diff --nodates | grep "^[+-][^<>]"
-hg st
+  $ hg co
+  merging zzz1_merge_ok
+  4 files updated, 1 files merged, 2 files removed, 0 files unresolved
+
+  $ hg diff --nodates | grep "^[+-][^<>]"
+  --- a/zzz1_merge_ok
+  +++ b/zzz1_merge_ok
+  +new last line
+
+  $ hg st
+  M zzz1_merge_ok
+  ? zzz2_merge_bad.orig
+