diff --git a/docs/setup.rst b/docs/setup.rst
--- a/docs/setup.rst
+++ b/docs/setup.rst
@@ -346,7 +346,6 @@ All other LDAP settings will likely be s
 appropriately configured.
 
 
-
 Authentication by container or reverse-proxy
 --------------------------------------------
 
@@ -462,6 +461,17 @@ To add another custom hook simply fill i
 can be found at *rhodecode.lib.hooks*. 
 
 
+Changing default encoding
+-------------------------
+
+By default RhodeCode uses utf8 encoding, starting from 1.3 series this
+can be changed, simply edit default_encoding in .ini file to desired one.
+This affects many parts in rhodecode including commiters names, filenames,
+encoding of commit messages. In addition RhodeCode can detect if `chardet`
+library is installed. If `chardet` is detected RhodeCode will fallback to it
+when there are encode/decode errors.
+
+
 Setting Up Celery
 -----------------