diff --git a/tests/test-hgrc b/tests/test-hgrc
--- a/tests/test-hgrc
+++ b/tests/test-hgrc
@@ -1,24 +1,20 @@
 #!/bin/sh
 
-mkdir t
-cd t
-hg init
-echo "invalid" > .hg/hgrc
-hg status 2>&1 |sed -e "s:/.*\(/t/.*\):...\1:"
+echo "invalid" > $HGRCPATH
+hg version 2>&1 | sed -e "s|$HGRCPATH|\$HGRCPATH|"
+echo "" > $HGRCPATH
 
-#issue 1199, escaping
-
-cd ..
+# issue1199: escaping
 hg init "foo%bar"
 hg clone "foo%bar" foobar
 p=`pwd`
 cd foobar
-cat .hg/hgrc |sed -e "s:$p:...:"
-hg paths |sed -e "s:$p:...:"
-hg showconfig |sed -e "s:$p:...:"
+cat .hg/hgrc | sed -e "s:$p:...:"
+hg paths | sed -e "s:$p:...:"
+hg showconfig | sed -e "s:$p:...:"
+cd ..
 
 # issue1829: wrong indentation
-cd ..
-echo '[foo]' >> $HGRCPATH
+echo '[foo]' > $HGRCPATH
 echo '  x = y' >> $HGRCPATH
 hg version 2>&1 | sed -e "s|$HGRCPATH|\$HGRCPATH|"
diff --git a/tests/test-hgrc.out b/tests/test-hgrc.out
--- a/tests/test-hgrc.out
+++ b/tests/test-hgrc.out
@@ -1,13 +1,9 @@
-hg: config error at .../t/.hg/hgrc:1: 'invalid'
+hg: config error at $HGRCPATH:1: 'invalid'
 updating to branch default
 0 files updated, 0 files merged, 0 files removed, 0 files unresolved
 [paths]
 default = .../foo%bar
 default = .../foo%bar
 bundle.mainreporoot=.../foobar
-defaults.backout=-d "0 0"
-defaults.commit=-d "0 0"
-defaults.tag=-d "0 0"
 paths.default=.../foo%bar
-ui.slash=True
-hg: config error at $HGRCPATH:8: '  x = y'
+hg: config error at $HGRCPATH:2: '  x = y'