I was wondering if the following theorem still holds if one only requires $\tau$ to be a homeomorphism and not a diffeomorphism: "Let M be a smooth manifold and $\tau:M\to M$ a differentiable function such that $\tau(\tau(x))=x$ and $\tau(x)\neq x$. Then the quotient space $M/\tau$ is a smooth manifold."
I don't see where the "differentiable" part is used in the proof. The Theorem can e.g. be found in "Jänich, Vektoranalysis" and if needed I can also give you the proof.
Thanks in advance for any help!