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Hg repositories live in the same directory with the files. Unlike Subversion, Perforce, and TFS, there is no separate repository directory. Like Git, this makes it possible for you to backup the entire directory, say, with zip and not only back up your files, but also back up all the version control metadata in a single place. So first, let's create the directory. I'll call it hg1, then we'll CD to hg1, and we'll do hg init.
Like Git, Hg stores all of its metadata in a hidden directory here called .hg. If we run hg status, unlike Git, we don't see any message because there's nothing going in our repository. If you haven't properly initialized the repository and you ran hg status, you we'll get an error message telling you that no repository was found. Since we got just a blank response, we know we're all good to go. Let's move on to creating some files and checking in and checking out.
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