diff --git a/mercurial/localrepo.py b/mercurial/localrepo.py
--- a/mercurial/localrepo.py
+++ b/mercurial/localrepo.py
@@ -715,18 +715,29 @@
     if not rcutil.use_repo_hgrc():
         return False
 
+    ret = False
     # first load config from shared source if we has to
     if SHARESAFE_REQUIREMENT in requirements and sharedvfs:
         try:
             ui.readconfig(sharedvfs.join(b'hgrc'), root=sharedvfs.base)
+            ret = True
         except IOError:
             pass
 
     try:
         ui.readconfig(hgvfs.join(b'hgrc'), root=wdirvfs.base)
-        return True
+        ret = True
     except IOError:
-        return False
+        pass
+
+    if sharedvfs is None:
+        try:
+            ui.readconfig(hgvfs.join(b'nonsharedrc'), root=wdirvfs.base)
+            ret = True
+        except IOError:
+            pass
+
+    return ret
 
 
 def afterhgrcload(ui, wdirvfs, hgvfs, requirements):
diff --git a/tests/test-share-safe.t b/tests/test-share-safe.t
--- a/tests/test-share-safe.t
+++ b/tests/test-share-safe.t
@@ -174,6 +174,21 @@
   date:        Thu Jan 01 00:00:00 1970 +0000
   summary:     added c
   
+
+Testing that nonsharedrc is loaded for source and not shared
+
+  $ cd ../source
+  $ touch .hg/nonsharedrc
+  $ echo "[ui]" >> .hg/nonsharedrc
+  $ echo "traceback=true" >> .hg/nonsharedrc
+
+  $ hg showconfig ui.traceback
+  true
+
+  $ cd ../shared1
+  $ hg showconfig ui.traceback
+  [1]
+
 Unsharing works
 
   $ cd ../shared1