diff --git a/environment.h b/environment.h
index 9eb97b3869c..ccfcf37bfb9 100644
--- a/environment.h
+++ b/environment.h
@@ -130,13 +130,6 @@ void repo_config_values_init(struct repo_config_values *cfg);
  * `the_repository`. We should eventually get rid of these and make the
  * dependency on a repository explicit:
  *
- *   - `setup_git_env()` ideally shouldn't exist as it modifies global state,
- *     namely the environment. The current process shouldn't ever access that
- *     state via envvars though, but should instead consult a `struct
- *     repository`. When spawning new processes, we would ideally also pass a
- *     `struct repository` and then set up the environment variables for the
- *     child process, only.
- *
  *   - `have_git_dir()` should not have to exist at all. Instead, we should
  *     decide on whether or not we have a `struct repository`.
  *
@@ -147,6 +140,7 @@ void repo_config_values_init(struct repo_config_values *cfg);
  * Please do not add new global config variables here.
  */
 # ifdef USE_THE_REPOSITORY_VARIABLE
+
 /*
  * Returns true iff we have a configured git repository (either via
  * setup_git_directory, or in the environment via $GIT_DIR).
diff --git a/refs.c b/refs.c
index 0f3355d2ee0..e7070eb7432 100644
--- a/refs.c
+++ b/refs.c
@@ -126,7 +126,8 @@ struct ref_namespace_info ref_namespace[] = {
 		 * points to the content of another. Unlike the other
 		 * ref namespaces, this one can be changed by the
 		 * GIT_REPLACE_REF_BASE environment variable. This
-		 * .namespace value will be overwritten in setup_git_env().
+		 * .namespace value will be overwritten during repository
+		 * setup.
 		 */
 		.ref = "refs/replace/",
 		.decoration = DECORATION_GRAFTED,
diff --git a/setup.c b/setup.c
index d723306dfe5..252b4431172 100644
--- a/setup.c
+++ b/setup.c
@@ -1074,11 +1074,6 @@ static void setup_git_env_internal(struct repository *repo,
 		fetch_if_missing = 0;
 }
 
-static void setup_git_env(struct repository *repo, const char *git_dir)
-{
-	setup_git_env_internal(repo, git_dir, false);
-}
-
 static void set_git_dir_1(struct repository *repo, const char *path, bool skip_initializing_odb)
 {
 	xsetenv(GIT_DIR_ENVIRONMENT, path, 1);
@@ -2023,7 +2018,7 @@ const char *setup_git_directory_gently(struct repository *repo, int *nongit_ok)
 			const char *gitdir = getenv(GIT_DIR_ENVIRONMENT);
 			if (!gitdir)
 				gitdir = DEFAULT_GIT_DIR_ENVIRONMENT;
-			setup_git_env(repo, gitdir);
+			setup_git_env_internal(repo, gitdir, false);
 		}
 		if (startup_info->have_repository) {
 			repo_set_hash_algo(repo, repo_fmt.hash_algo);