diff --git a/mercurial/util.py b/mercurial/util.py
--- a/mercurial/util.py
+++ b/mercurial/util.py
@@ -1980,6 +1980,35 @@
             limit -= len(s)
         yield s
 
+class cappedreader(object):
+    """A file object proxy that allows reading up to N bytes.
+
+    Given a source file object, instances of this type allow reading up to
+    N bytes from that source file object. Attempts to read past the allowed
+    limit are treated as EOF.
+
+    It is assumed that I/O is not performed on the original file object
+    in addition to I/O that is performed by this instance. If there is,
+    state tracking will get out of sync and unexpected results will ensue.
+    """
+    def __init__(self, fh, limit):
+        """Allow reading up to <limit> bytes from <fh>."""
+        self._fh = fh
+        self._left = limit
+
+    def read(self, n=-1):
+        if not self._left:
+            return b''
+
+        if n < 0:
+            n = self._left
+
+        data = self._fh.read(min(n, self._left))
+        self._left -= len(data)
+        assert self._left >= 0
+
+        return data
+
 def makedate(timestamp=None):
     '''Return a unix timestamp (or the current time) as a (unixtime,
     offset) tuple based off the local timezone.'''
diff --git a/tests/test-cappedreader.py b/tests/test-cappedreader.py
new file mode 100644
--- /dev/null
+++ b/tests/test-cappedreader.py
@@ -0,0 +1,91 @@
+from __future__ import absolute_import, print_function
+
+import io
+import unittest
+
+from mercurial import (
+    util,
+)
+
+class CappedReaderTests(unittest.TestCase):
+    def testreadfull(self):
+        source = io.BytesIO(b'x' * 100)
+
+        reader = util.cappedreader(source, 10)
+        res = reader.read(10)
+        self.assertEqual(res, b'x' * 10)
+        self.assertEqual(source.tell(), 10)
+        source.seek(0)
+
+        reader = util.cappedreader(source, 15)
+        res = reader.read(16)
+        self.assertEqual(res, b'x' * 15)
+        self.assertEqual(source.tell(), 15)
+        source.seek(0)
+
+        reader = util.cappedreader(source, 100)
+        res = reader.read(100)
+        self.assertEqual(res, b'x' * 100)
+        self.assertEqual(source.tell(), 100)
+        source.seek(0)
+
+        reader = util.cappedreader(source, 50)
+        res = reader.read()
+        self.assertEqual(res, b'x' * 50)
+        self.assertEqual(source.tell(), 50)
+        source.seek(0)
+
+    def testreadnegative(self):
+        source = io.BytesIO(b'x' * 100)
+
+        reader = util.cappedreader(source, 20)
+        res = reader.read(-1)
+        self.assertEqual(res, b'x' * 20)
+        self.assertEqual(source.tell(), 20)
+        source.seek(0)
+
+        reader = util.cappedreader(source, 100)
+        res = reader.read(-1)
+        self.assertEqual(res, b'x' * 100)
+        self.assertEqual(source.tell(), 100)
+        source.seek(0)
+
+    def testreadmultiple(self):
+        source = io.BytesIO(b'x' * 100)
+
+        reader = util.cappedreader(source, 10)
+        for i in range(10):
+            res = reader.read(1)
+            self.assertEqual(res, b'x')
+            self.assertEqual(source.tell(), i + 1)
+
+        self.assertEqual(source.tell(), 10)
+        res = reader.read(1)
+        self.assertEqual(res, b'')
+        self.assertEqual(source.tell(), 10)
+        source.seek(0)
+
+        reader = util.cappedreader(source, 45)
+        for i in range(4):
+            res = reader.read(10)
+            self.assertEqual(res, b'x' * 10)
+            self.assertEqual(source.tell(), (i + 1) * 10)
+
+        res = reader.read(10)
+        self.assertEqual(res, b'x' * 5)
+        self.assertEqual(source.tell(), 45)
+
+    def readlimitpasteof(self):
+        source = io.BytesIO(b'x' * 100)
+
+        reader = util.cappedreader(source, 1024)
+        res = reader.read(1000)
+        self.assertEqual(res, b'x' * 100)
+        self.assertEqual(source.tell(), 100)
+        res = reader.read(1000)
+        self.assertEqual(res, b'')
+        self.assertEqual(source.tell(), 100)
+
+if __name__ == '__main__':
+    import silenttestrunner
+    silenttestrunner.main(__name__)