error creating database

I'm trying to reload a database and I'm receiving the following error:

pg_restore: [archiver (db)] Error while PROCESSING TOC:
pg_restore: [archiver (db)] Error from TOC entry 5181; 1262 45260
DATABASE nev postgres
pg_restore: [archiver (db)] could not execute query: ERROR:  encoding
LATIN1 does not match server's locale en_US.UTF-8
DETAIL:  The server's LC_CTYPE setting requires encoding UTF8.
     Command was:
CREATE DATABASE nev WITH TEMPLATE = template0 ENCODING = 'LATIN1';

This backup was created on another machine, so it must be that the
enviroment on the two machines is different.

Where do I look to fix this?

Thanks.

--
Until later, Geoffrey

"I predict future happiness for America if they can prevent
the government from wasting the labors of the people under
the pretense of taking care of them."
- Thomas Jefferson