diff --git a/development.ini b/development.ini
--- a/development.ini
+++ b/development.ini
@@ -213,7 +213,7 @@ logview.pylons.util = #eee
 sqlalchemy.db1.url = postgresql://postgres:qwe@localhost/rhodecode
 sqlalchemy.db1.echo = false
 sqlalchemy.db1.pool_recycle = 3600
-sqlalchemy.convert_unicode = true
+sqlalchemy.db1.convert_unicode = true
 
 ################################
 ### LOGGING CONFIGURATION   ####