diff --git a/docs/api/api.rst b/docs/api/api.rst
--- a/docs/api/api.rst
+++ b/docs/api/api.rst
@@ -147,8 +147,8 @@ OUTPUT::
 create_user
 -----------
 
-Creates new user in RhodeCode. This command can be executed only using api_key
-belonging to user with admin rights.
+Creates new user or updates current one if such user exists. This command can 
+be executed only using api_key belonging to user with admin rights.
 
 INPUT::
 
diff --git a/rhodecode/controllers/api/api.py b/rhodecode/controllers/api/api.py
--- a/rhodecode/controllers/api/api.py
+++ b/rhodecode/controllers/api/api.py
@@ -134,7 +134,7 @@ class ApiController(JSONRPCController):
     def create_user(self, apiuser, username, password, firstname,
                     lastname, email, active=True, admin=False, ldap_dn=None):
         """
-        Create new user
+        Create new user or updates current one
 
         :param apiuser:
         :param username: