diff --git a/borgmatic/borg/export_tar.py b/borgmatic/borg/export_tar.py
index 5ed494c..28a876e 100644
--- a/borgmatic/borg/export_tar.py
+++ b/borgmatic/borg/export_tar.py
@@ -47,7 +47,11 @@ def export_tar_archive(
         + (('--tar-filter', tar_filter) if tar_filter else ())
         + (('--strip-components', str(strip_components)) if strip_components else ())
         + flags.make_repository_archive_flags(
-            repository if ':' in repository else os.path.abspath(repository),
+            os.path.abspath(repository)
+            if ':' not in repository
+            else os.path.abspath(repository[7:])
+            if repository.startswith('file://')
+            else repository,
             archive,
             local_borg_version,
         )
diff --git a/borgmatic/borg/extract.py b/borgmatic/borg/extract.py
index 8ea8bbb..be3c5b7 100644
--- a/borgmatic/borg/extract.py
+++ b/borgmatic/borg/extract.py
@@ -100,7 +100,11 @@ def extract_archive(
         + (('--progress',) if progress else ())
         + (('--stdout',) if extract_to_stdout else ())
         + flags.make_repository_archive_flags(
-            repository if ':' in repository else os.path.abspath(repository),
+            os.path.abspath(repository)
+            if ':' not in repository
+            else os.path.abspath(repository[7:])
+            if repository.startswith('file://')
+            else repository,
             archive,
             local_borg_version,
         )
diff --git a/borgmatic/config/normalize.py b/borgmatic/config/normalize.py
index 574a48a..7a25014 100644
--- a/borgmatic/config/normalize.py
+++ b/borgmatic/config/normalize.py
@@ -1,4 +1,5 @@
 import logging
+import os
 
 
 def normalize(config_filename, config):
@@ -68,20 +69,23 @@ def normalize(config_filename, config):
                         )
                     )
                 )
-            if ':' in repository and not repository.startswith('ssh://'):
-                rewritten_repository = (
-                    f"ssh://{repository.replace(':~', '/~').replace(':/', '/').replace(':', '/./')}"
-                )
-                logs.append(
-                    logging.makeLogRecord(
-                        dict(
-                            levelno=logging.WARNING,
-                            levelname='WARNING',
-                            msg=f'{config_filename}: Remote repository paths without ssh:// syntax are deprecated. Interpreting "{repository}" as "{rewritten_repository}"',
+            if ':' in repository:
+                if repository.startswith('file://'):
+                    config['location']['repositories'].append(os.path.abspath(repository[7:]))
+                elif repository.startswith('ssh://'):
+                    config['location']['repositories'].append(repository)
+                else:
+                    rewritten_repository = f"ssh://{repository.replace(':~', '/~').replace(':/', '/').replace(':', '/./')}"
+                    logs.append(
+                        logging.makeLogRecord(
+                            dict(
+                                levelno=logging.WARNING,
+                                levelname='WARNING',
+                                msg=f'{config_filename}: Remote repository paths without ssh:// syntax are deprecated. Interpreting "{repository}" as "{rewritten_repository}"',
+                            )
                         )
                     )
-                )
-                config['location']['repositories'].append(rewritten_repository)
+                    config['location']['repositories'].append(rewritten_repository)
             else:
                 config['location']['repositories'].append(repository)
 
diff --git a/borgmatic/config/validate.py b/borgmatic/config/validate.py
index 3a2807f..d61f7f3 100644
--- a/borgmatic/config/validate.py
+++ b/borgmatic/config/validate.py
@@ -126,12 +126,15 @@ def normalize_repository_path(repository):
     '''
     Given a repository path, return the absolute path of it (for local repositories).
     '''
-    # A colon in the repository indicates it's a remote repository. Bail.
-    if ':' in repository:
+    # A colon in the repository could mean that it's either a file:// URL or a remote repository.
+    # If it's a remote repository, we don't want to normalize it. If it's a file:// URL, we do.
+    if ':' not in repository:
+        return os.path.abspath(repository)
+    elif repository.startswith('file://'):
+        return os.path.abspath(repository[7:])
+    else:
         return repository
 
-    return os.path.abspath(repository)
-
 
 def repositories_match(first, second):
     '''