diff --git a/setup.c b/setup.c
index b4652651df..a9db1f2c23 100644
--- a/setup.c
+++ b/setup.c
@@ -1788,32 +1788,6 @@ int apply_repository_format(struct repository *repo,
 	return 0;
 }
 
-/*
- * Check the repository format version in the path found in repo_get_git_dir(repo),
- * and die if it is a version we don't understand. Generally one would
- * set_git_dir() before calling this, and use it only for "are we in a valid
- * repo?".
- *
- * If successful and fmt is not NULL, fill fmt with data.
- */
-static void check_and_apply_repository_format(struct repository *repo,
-					      struct repository_format *fmt,
-					      enum apply_repository_format_flags flags)
-{
-	struct repository_format repo_fmt = REPOSITORY_FORMAT_INIT;
-	struct strbuf err = STRBUF_INIT;
-
-	if (!fmt)
-		fmt = &repo_fmt;
-
-	check_repository_format_gently(repo_get_git_dir(repo), fmt, NULL);
-	if (apply_repository_format(repo, fmt, flags, &err) < 0)
-		die("%s", err.buf);
-	startup_info->have_repository = 1;
-
-	clear_repository_format(&repo_fmt);
-}
-
 const char *enter_repo(struct repository *repo, const char *path, unsigned flags)
 {
 	static struct strbuf validated_path = STRBUF_INIT;
@@ -1887,9 +1861,17 @@ const char *enter_repo(struct repository *repo, const char *path, unsigned flags
 	}
 
 	if (is_git_directory(".")) {
+		struct repository_format fmt = REPOSITORY_FORMAT_INIT;
+		struct strbuf err = STRBUF_INIT;
+
 		set_git_dir(repo, ".", 0);
-		check_and_apply_repository_format(repo, NULL,
-						  APPLY_REPOSITORY_FORMAT_HONOR_ENV);
+		check_repository_format_gently(".", &fmt, NULL);
+		if (apply_repository_format(repo, &fmt, APPLY_REPOSITORY_FORMAT_HONOR_ENV, &err) < 0)
+			die("%s", err.buf);
+		startup_info->have_repository = 1;
+
+		clear_repository_format(&fmt);
+		strbuf_release(&err);
 		return path;
 	}
 
@@ -2820,6 +2802,7 @@ int init_db(struct repository *repo,
 	int exist_ok = flags & INIT_DB_EXIST_OK;
 	char *original_git_dir = real_pathdup(git_dir, 1);
 	struct repository_format repo_fmt = REPOSITORY_FORMAT_INIT;
+	struct strbuf err = STRBUF_INIT;
 
 	if (real_git_dir) {
 		struct stat st;
@@ -2846,9 +2829,10 @@ int init_db(struct repository *repo,
 	 * config file, so this will not fail.  What we are catching
 	 * is an attempt to reinitialize new repository with an old tool.
 	 */
-	check_and_apply_repository_format(repo, &repo_fmt,
-					  APPLY_REPOSITORY_FORMAT_HONOR_ENV);
-
+	check_repository_format_gently(repo_get_git_dir(repo), &repo_fmt, NULL);
+	if (apply_repository_format(repo, &repo_fmt, APPLY_REPOSITORY_FORMAT_HONOR_ENV, &err) < 0)
+		die("%s", err.buf);
+	startup_info->have_repository = 1;
 	repository_format_configure(repo, &repo_fmt, hash, ref_storage_format);
 
 	/*
@@ -2904,6 +2888,7 @@ int init_db(struct repository *repo,
 	}
 
 	clear_repository_format(&repo_fmt);
+	strbuf_release(&err);
 	free(original_git_dir);
 	return 0;
 }