Comment 1 for bug 681304

I just hat a quick look into the source code. It seems, that the flag whether the location is local or not is just set in case of a branch or a repository (location.py, function reopen_location).
The if...elif... construct should be extended to:

if branch:

elif repository:

else: # or check for whatever variable tells about a virtual directory
    self._local = self._root.startswith("file://")