diff --git a/Remote/Directory.hs b/Remote/Directory.hs
index c960bb1b43..6a687952a9 100644
--- a/Remote/Directory.hs
+++ b/Remote/Directory.hs
@@ -118,7 +118,7 @@ withStoredFiles = withCheckedFiles doesFileExist
 store :: FilePath -> ChunkSize -> Key -> AssociatedFile -> MeterUpdate -> Annex Bool
 store d chunksize k _f p = sendAnnex k (void $ remove d k) $ \src ->
 	metered (Just p) k $ \meterupdate -> 
-		storeHelper d chunksize k $ \dests ->
+		storeHelper d chunksize k k $ \dests ->
 			case chunksize of
 				Nothing -> do
 					let dest = Prelude.head dests
@@ -132,7 +132,7 @@ store d chunksize k _f p = sendAnnex k (void $ remove d k) $ \src ->
 storeEncrypted :: FilePath -> GpgOpts -> ChunkSize -> (Cipher, Key) -> Key -> MeterUpdate -> Annex Bool
 storeEncrypted d gpgOpts chunksize (cipher, enck) k p = sendAnnex k (void $ remove d enck) $ \src ->
 	metered (Just p) k $ \meterupdate ->
-		storeHelper d chunksize enck $ \dests ->
+		storeHelper d chunksize enck k $ \dests ->
 			encrypt gpgOpts cipher (feedFile src) $ readBytes $ \b ->
 				case chunksize of
 					Nothing -> do
@@ -173,17 +173,17 @@ storeSplit' meterupdate chunksize (d:dests) bs c = do
 				feed bytes' (sz - s) ls h
 			else return (l:ls)
 
-storeHelper :: FilePath -> ChunkSize -> Key -> ([FilePath] -> IO [FilePath]) -> Annex Bool
-storeHelper d chunksize key storer = check <&&> go
+storeHelper :: FilePath -> ChunkSize -> Key -> Key -> ([FilePath] -> IO [FilePath]) -> Annex Bool
+storeHelper d chunksize key origkey storer = check <&&> go
   where
 	tmpdir = tmpDir d key
 	destdir = storeDir d key
-	{- The size is not exactly known when encrypting the key;
-	 - this assumes that at least the size of the key is
-	 - needed as free space. -}
+	{- An encrypted key does not have a known size,
+	 - so check that the size of the original key is available as free
+	 - space. -}
 	check = do
 		liftIO $ createDirectoryIfMissing True tmpdir
-		checkDiskSpace (Just tmpdir) key 0
+		checkDiskSpace (Just tmpdir) origkey 0
 	go = liftIO $ catchBoolIO $
 		storeChunks key tmpdir destdir chunksize storer recorder finalizer
 	finalizer tmp dest = do
diff --git a/debian/changelog b/debian/changelog
index 30d7e203f6..cc5ec7d67e 100644
--- a/debian/changelog
+++ b/debian/changelog
@@ -20,6 +20,8 @@ git-annex (4.20130710) UNRELEASED; urgency=low
     or deleted before it could be scanned.
   * watcher: Partially worked around a bug in hinotify, no longer crashes
     if hinotify cannot process a directory (but can't detect changes in it)
+  * directory special remote: Fix checking that there is enough disk space
+    to hold an object, was broken when using encryption.
 
  -- Joey Hess <joeyh@debian.org>  Tue, 09 Jul 2013 19:17:13 -0400