diff --git a/docs/changelog.rst b/docs/changelog.rst
--- a/docs/changelog.rst
+++ b/docs/changelog.rst
@@ -30,7 +30,7 @@ fixes
   a group name. A proper message is now displayed.
 - #292 made ldap_dn in user edit readonly, to get rid of confusion that field
   doesn't work   
-
+- #316 fixes issues with web description in hgrc files 
 
 1.2.3 (**2011-11-02**)
 ======================
diff --git a/rhodecode/model/repo.py b/rhodecode/model/repo.py
--- a/rhodecode/model/repo.py
+++ b/rhodecode/model/repo.py
@@ -28,18 +28,15 @@ import logging
 import traceback
 from datetime import datetime
 
-from sqlalchemy.orm import joinedload, make_transient
-
 from vcs.utils.lazy import LazyProperty
 from vcs.backends import get_backend
 
-from rhodecode.lib import safe_str
+from rhodecode.lib import safe_str, safe_unicode
 
 from rhodecode.model import BaseModel
 from rhodecode.model.caching_query import FromCache
 from rhodecode.model.db import Repository, RepoToPerm, User, Permission, \
     Statistics, UsersGroup, UsersGroupRepoToPerm, RhodeCodeUi, Group
-from rhodecode.model.user import UserModel
 
 log = logging.getLogger(__name__)
 
@@ -236,7 +233,7 @@ class RepoModel(BaseModel):
                     k = 'group_id'
 
                 if k == 'description':
-                    v = v or repo_name
+                    v = safe_unicode(v) or repo_name
 
                 setattr(new_repo, k, v)