diff --git a/pkgs/applications/version-management/mercurial/default.nix b/pkgs/applications/version-management/mercurial/default.nix
new file mode 100644
index 000000000000..253907ab4bde
--- /dev/null
+++ b/pkgs/applications/version-management/mercurial/default.nix
@@ -0,0 +1,26 @@
+{stdenv, fetchurl, python, makeWrapper}:
+
+stdenv.mkDerivation {
+  name = "mercurial-0.9.4";
+  src = fetchurl {
+    url = http://www.selenic.com/mercurial/release/mercurial-0.9.4.tar.gz;
+    sha256 = "26996df67d508e129d2f0a264e25072764e5c2d21606e1658d77c8984e6ed64a";
+  };
+
+  inherit makeWrapper;
+
+  buildInputs = [ python ];
+  addInputsHook = "source $makeWrapper";
+  makeFlags = "PREFIX=$(out)";
+  postInstall = [
+    "for i in $(cd $out/bin && ls); do"
+    "   mv $out/bin/$i $out/bin/.orig-$i;"
+    "   makeWrapper $out/bin/.orig-$i $out/bin/$i"
+    "       --set PYTHONPATH \"$(toPythonPath $out):$PYTHONPATH\";"
+    "done"
+  ];
+
+  meta = {
+    description = "a fast, lightweight SCM system for very large distributed projects";
+  };
+}
diff --git a/pkgs/top-level/all-packages.nix b/pkgs/top-level/all-packages.nix
index f0dd7295d52a..d95a447648a6 100644
--- a/pkgs/top-level/all-packages.nix
+++ b/pkgs/top-level/all-packages.nix
@@ -3090,6 +3090,10 @@ rec {
     inherit fetchurl stdenv ncurses openssl;
   };
 
+  mercurial = import ../applications/version-management/mercurial {
+    inherit fetchurl stdenv python makeWrapper;
+  };
+
   monodevelop = import ../applications/editors/monodevelop {
     inherit fetchurl stdenv file mono gtksourceviewsharp
             gtkmozembedsharp monodoc perl perlXMLParser pkgconfig;