The following bug has been logged online:

Bug reference: 2110
Logged by: Alexei
Email address: kaaos@land.ru
PostgreSQL version: 8.1.1
Operating system: Window XP SP2
Description: initdb set wrong default encoding
Details:

Good day!
I run initdb with --encoding=WIN1251 parameter, but
then 'psql -l' show that encoding of 'template{0,1}'
and 'postgres' databases is KOI8-R.

New databases created with KOI8-R encoding also,
unless specified by 'ENCODING' keyword, or '--encoding'
parameter.

During run of initdb no warning or error messages
printed.

It seems, that actually the encoding of 'template{0,1}' and 'postgres'
databases is valid (CP1251):
query "select '№'" print '№'. (№ - is a symbol
present in CP1251 at code 0x00b9 and not present in KOI8-R)

But in newly created database the same query print empty space (as in KOI8-R
database), and 'psql -l' show, that ALL databases have KOI8-R encoding.

Thank you and sorry for my English.

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