xcode 4 cannot create a local repository

When ticking the "Create local repository for this project" in Xcode 4, I get a dialog box that says:

"Cannot create a local repository.

The git command line tool is required. Check the SystemTools check开发者_开发百科box in the Xcode Installer to do so."

Do I need to re-install Xcode or is there a fix for this problem?

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As the error is telling you, you need to install the command line tools for Xcode 4 which includes the git binaries.

Edited to add

Also - Xcode installs and expects to find a git installation in /usr/bin/git and this causes problems if you already have Git installed, as it isn't seen. I wrote a script to to replace Xcode's git installation with symlinks to your own installation which is on github here.

Remember to edit it with the correct location of Git on your computer.