Index: subversion/libsvn_subr/io.c
===================================================================
--- subversion/libsvn_subr/io.c	(revision 10071)
+++ subversion/libsvn_subr/io.c	(working copy)
@@ -1930,10 +1930,11 @@
     if (stat (path_apr, &st) != 0)
       return svn_error_wrap_apr (APR_FROM_OS_ERROR (errno),
                                  "Can't stat new directory '%s'", path);
-    if (chmod (path_apr, (st.st_mode & ~S_IFMT) | S_ISGID) != 0)
-      return svn_error_wrap_apr (APR_FROM_OS_ERROR (errno),
-                                 "Can't set sgid bit on new directory '%s'",
-                                 path);
+    chmod (path_apr, (st.st_mode & ~S_IFMT) | S_ISGID);
+    /* No error checking is done after chmod() to prevent "svnadmin create"
+       from aborting before the repository is completely created.  This could
+       happen on a *NIX system when the repository is stored for example on a
+       Windows share.  If we didn't manage to set the sgid bit, so be it. */
   }
 #endif