diff --git a/lib/src/repo.rs b/lib/src/repo.rs
index 31b5e86e4..5f1777991 100644
--- a/lib/src/repo.rs
+++ b/lib/src/repo.rs
@@ -114,18 +114,19 @@ impl ReadonlyRepo {
         user_settings: &UserSettings,
         repo_path: &Path,
         backend_factory: impl FnOnce(&Path) -> Box<dyn Backend>,
-    ) -> Arc<ReadonlyRepo> {
-        let repo_path = repo_path.canonicalize().unwrap();
+    ) -> Result<Arc<ReadonlyRepo>, PathError> {
+        let repo_path = repo_path.canonicalize().context(repo_path)?;
 
         let store_path = repo_path.join("store");
-        fs::create_dir(&store_path).unwrap();
+        fs::create_dir(&store_path).context(&store_path)?;
         let backend = backend_factory(&store_path);
-        fs::write(&store_path.join("backend"), backend.name()).unwrap();
+        let backend_path = store_path.join("backend");
+        fs::write(&backend_path, backend.name()).context(&backend_path)?;
         let store = Store::new(backend);
         let repo_settings = user_settings.with_repo(&repo_path).unwrap();
 
         let op_store_path = repo_path.join("op_store");
-        fs::create_dir(&op_store_path).unwrap();
+        fs::create_dir(&op_store_path).context(&op_store_path)?;
         let op_store: Arc<dyn OpStore> = Arc::new(SimpleOpStore::init(op_store_path));
         let mut root_view = op_store::View::default();
         root_view.head_ids.insert(store.root_commit_id().clone());
@@ -134,16 +135,16 @@ impl ReadonlyRepo {
             .insert(store.root_commit_id().clone());
 
         let op_heads_path = repo_path.join("op_heads");
-        fs::create_dir(&op_heads_path).unwrap();
+        fs::create_dir(&op_heads_path).context(&op_heads_path)?;
         let (op_heads_store, init_op) = OpHeadsStore::init(op_heads_path, &op_store, &root_view);
         let op_heads_store = Arc::new(op_heads_store);
 
         let index_path = repo_path.join("index");
-        fs::create_dir(&index_path).unwrap();
+        fs::create_dir(&index_path).context(&index_path)?;
         let index_store = Arc::new(IndexStore::init(index_path));
 
         let view = View::new(root_view);
-        Arc::new(ReadonlyRepo {
+        Ok(Arc::new(ReadonlyRepo {
             repo_path,
             store,
             op_store,
@@ -153,7 +154,7 @@ impl ReadonlyRepo {
             index_store,
             index: Mutex::new(None),
             view,
-        })
+        }))
     }
 
     pub fn load_at_head(
diff --git a/lib/src/testutils.rs b/lib/src/testutils.rs
index 543fe05bb..77a647e39 100644
--- a/lib/src/testutils.rs
+++ b/lib/src/testutils.rs
@@ -96,10 +96,12 @@ impl TestRepo {
             ReadonlyRepo::init(&settings, &repo_dir, |store_path| {
                 Box::new(GitBackend::init_external(store_path, &git_path))
             })
+            .unwrap()
         } else {
             ReadonlyRepo::init(&settings, &repo_dir, |store_path| {
                 Box::new(LocalBackend::init(store_path))
             })
+            .unwrap()
         };
 
         Self {
diff --git a/lib/src/workspace.rs b/lib/src/workspace.rs
index 304daf359..2865e9481 100644
--- a/lib/src/workspace.rs
+++ b/lib/src/workspace.rs
@@ -148,7 +148,7 @@ impl Workspace {
         let jj_dir = create_jj_dir(workspace_root)?;
         let repo_dir = jj_dir.join("repo");
         std::fs::create_dir(&repo_dir).context(&repo_dir)?;
-        let repo = ReadonlyRepo::init(user_settings, &repo_dir, backend_factory);
+        let repo = ReadonlyRepo::init(user_settings, &repo_dir, backend_factory)?;
         let (working_copy, repo) = init_working_copy(
             user_settings,
             &repo,
diff --git a/lib/tests/test_git.rs b/lib/tests/test_git.rs
index 3cb771eb3..61d6f79bd 100644
--- a/lib/tests/test_git.rs
+++ b/lib/tests/test_git.rs
@@ -287,7 +287,8 @@ impl GitRepoData {
         std::fs::create_dir(&jj_repo_dir).unwrap();
         let repo = ReadonlyRepo::init(&settings, &jj_repo_dir, |store_path| {
             Box::new(GitBackend::init_external(store_path, &git_repo_dir))
-        });
+        })
+        .unwrap();
         Self {
             settings,
             _temp_dir: temp_dir,
@@ -525,7 +526,8 @@ fn test_init() {
     std::fs::create_dir(&jj_repo_dir).unwrap();
     let repo = ReadonlyRepo::init(&settings, &jj_repo_dir, |store_path| {
         Box::new(GitBackend::init_external(store_path, &git_repo_dir))
-    });
+    })
+    .unwrap();
     // The refs were *not* imported -- it's the caller's responsibility to import
     // any refs they care about.
     assert!(!repo.view().heads().contains(&initial_commit_id));
@@ -689,7 +691,8 @@ fn set_up_push_repos(settings: &UserSettings, temp_dir: &TempDir) -> PushTestSet
     std::fs::create_dir(&jj_repo_dir).unwrap();
     let jj_repo = ReadonlyRepo::init(settings, &jj_repo_dir, |store_path| {
         Box::new(GitBackend::init_external(store_path, &clone_repo_dir))
-    });
+    })
+    .unwrap();
     let mut tx = jj_repo.start_transaction("test");
     let new_commit = testutils::create_random_commit(settings, &jj_repo)
         .set_parents(vec![initial_commit_id])