diff --git a/setup.py b/setup.py
--- a/setup.py
+++ b/setup.py
@@ -63,7 +63,7 @@ requirements = [
     "URLObject >= 2.3.4, < 2.5",
     "Routes >= 2.0, < 2.5",
     "dulwich >= 0.19.0, < 0.20",
-    "mercurial >= 5.2, < 5.4",
+    "mercurial >= 5.2, < 5.5",
     "decorator >= 4.2.1, < 4.5",
     "Paste >= 2.0.3, < 3.4",
     "bleach >= 3.0, < 3.1.4",