With Mercurial, Git, and Bazaar, the repository instance usually lives in a hidden directory at the top of the working copy. This means that there is a one-to-one relationship between repository instances and working copies.
As mentioned previously, Veracity supports plugins which allow repository data to be stored in a variety of different ways. For this reason, the repository instance is not stored with the working copy.
One nice benefit of this approach is the ability to have multiple working copies for one repository instance.