--- a/lib/python/mozilla_buildtools/test/test_util_hg.py
+++ b/lib/python/mozilla_buildtools/test/test_util_hg.py
@@ -730,33 +730,16 @@ class TestHg(unittest.TestCase):
         self.assertEquals(p, None)
 
         # cloning again should fix this up
         mercurial(self.repodir, self.wc, shareBase=shareBase)
 
         p = path(self.wc)
         self.assertEquals(p, self.repodir)
 
-    def testBustedHgrc(self):
-        # Test that we can recover from hgrc being lost
-        mercurial(self.repodir, self.wc)
-
-        # Delete .hg/hgrc
-        os.unlink(os.path.join(self.wc, '.hg', 'hgrc'))
-
-        # path is busted now
-        p = path(self.wc)
-        self.assertEquals(p, None)
-
-        # cloning again should fix this up
-        mercurial(self.repodir, self.wc)
-
-        p = path(self.wc)
-        self.assertEquals(p, self.repodir)
-
     def testInit(self):
         tmpdir = os.path.join(self.tmpdir, 'new')
         self.assertEquals(False, os.path.exists(tmpdir))
         init(tmpdir)
         self.assertEquals(True, os.path.exists(tmpdir))
         self.assertEquals(True, os.path.exists(os.path.join(tmpdir, '.hg')))
 
     def testUnbundle(self):

--- a/lib/python/util/hg.py
+++ b/lib/python/util/hg.py
@@ -500,26 +500,16 @@ def mercurial(repo, dest, branch=None, r
                 # Share extension is disabled
                 log.info("Disabling sharing since share extension doesn't seem to work (2)")
                 shareBase = None
         except subprocess.CalledProcessError:
             # The command failed, so disable sharing
             log.info("Disabling sharing since share extension doesn't seem to work (3)")
             shareBase = None
 
-    # Check that our default path is correct
-    if os.path.exists(os.path.join(dest, '.hg')):
-        hgpath = path(dest, "default")
-
-        # Make sure that our default path is correct
-        if not hgpath or _make_absolute(hgpath) != _make_absolute(repo):
-            log.info("hg path isn't correct (%s should be %s); clobbering",
-                     hgpath, _make_absolute(repo))
-            remove_path(dest)
-
     # If the working directory already exists and isn't using share we update
     # the working directory directly from the repo, ignoring the sharing
     # settings
     if os.path.exists(dest):
         if not os.path.exists(os.path.join(dest, ".hg")):
             log.warning("%s doesn't appear to be a valid hg directory; clobbering", dest)
             remove_path(dest)
         elif not os.path.exists(os.path.join(dest, ".hg", "sharedpath")):