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On Unix-like systems shared by multiple users (such as a server to which people publish changes), it often makes sense to set up some global default behaviors, such as what theme to use in web interfaces.
If a file named /etc/mercurial/hgrc exists, Mercurial will read it at startup time and apply any configuration settings it finds in that file. It will also look for files ending in a .rc extension in a directory named /etc/mercurial/hgrc.d, and apply any configuration settings it finds in each of those files.
One situation in which a global hgrc can be useful is if users are pulling changes owned by other users. By default, Mercurial will not trust most of the configuration items in a .hg/hgrc file inside a repository that is owned by a different user. If we clone or pull changes from such a repository, Mercurial will print a warning stating that it does not trust their .hg/hgrc.