encoding UTF8 does not match locale en_US; the chosen LC_CTYPE setting requires encoding LATIN1

I combined two solutions from other sites that did the job (this answer works for Ubuntu server 12.04 and PGSQL 9.1):

• Create a file: nano /etc/profile.d/lang.sh.

• Add the following:

  export LANGUAGE="en_US.UTF-8"
  export LANG="en_US.UTF-8"
  export LC_ALL="en_US.UTF-8"
  

• Save the file

• Restart the shell or run all export commands manually in current shell instance

• Reconfigure so the encoding can be UTF8 ([got it from here][1])

  sudo su postgres
  
  psql
  
  update pg_database set datistemplate=false where datname="template1";
  drop database Template1;
  create database template1 with owner=postgres encoding='UTF-8'
  
    lc_collate="en_US.utf8" lc_ctype="en_US.utf8" template template0;
  
  update pg_database set datistemplate=true where datname="template1";
  

• Use template1 for db creation.