PG::Error: ERROR: new encoding (UTF8) is incompatible
First, we need to drop template1. Templates can't be dropped, so we first modify it so t's an ordinary database: UPDATE pg_database SET datistemplate = FALSE WHERE datname = 'template1'; Now we can drop it: DROP DATABASE template1; Now its time to create database from template0, with a new default encoding: CREATE DATABASE template1 WITH TEMPLATE = template0 ENCODING = 'UNICODE'; Now modify template1 so it's actually a template: UPDATE pg_database SET datistemplate = TRUE WHERE datname = 'template1'; Now switch to template1 and VACUUM FREEZE the template: \c template1 VACUUM FREEZE; Problem should be resolved.