Configure Squid for Subversion
Next, you need to make sure the proxy server itself supports all the HTTP methods Subversion uses. Some proxy servers do not support these methods by default: PROPFIND, REPORT, MERGE, MKACTIVITY, CHECKOUT. In general, solving this depends on the particular proxy software. For Squid, the config option is
# TAG: extension_methods
# Squid only knows about standardized HTTP request methods.
# You can add up to 20 additional "extension" methods here.
#
#Default:
# none
extension_methods REPORT MERGE MKACTIVITY CHECKOUT
(Squid 2.4 and later already knows about PROPFIND.)