diff --git a/mysql-test/r/create.result b/mysql-test/r/create.result
index f9a3ef487f0..da602551249 100644
--- a/mysql-test/r/create.result
+++ b/mysql-test/r/create.result
@@ -150,5 +150,5 @@ t1	CREATE TABLE `t1` (
   KEY `b_29` (`b`),
   KEY `b_30` (`b`),
   KEY `b_31` (`b`)
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 drop table t1;
diff --git a/mysql-test/r/fulltext.result b/mysql-test/r/fulltext.result
index e6598ca9ca4..132367ee4f6 100644
--- a/mysql-test/r/fulltext.result
+++ b/mysql-test/r/fulltext.result
@@ -139,7 +139,7 @@ t2	CREATE TABLE `t2` (
   `inhalt` text character set latin1,
   KEY `tig` (`ticket`),
   FULLTEXT KEY `tix` (`inhalt`)
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 select * from t2 where MATCH inhalt AGAINST (NULL);
 ticket	inhalt
 select * from t2 where  MATCH inhalt AGAINST ('foobar');
diff --git a/mysql-test/r/innodb.result b/mysql-test/r/innodb.result
index b75248b5d5a..e98687eec36 100644
--- a/mysql-test/r/innodb.result
+++ b/mysql-test/r/innodb.result
@@ -807,7 +807,7 @@ Table	Create Table
 t1	CREATE TABLE `t1` (
   `a` char(20) character set latin1 default NULL,
   KEY `a` (`a`)
-) TYPE=InnoDB
+) TYPE=InnoDB CHARSET=latin1
 drop table t1;
 create temporary table t1 (a int not null auto_increment, primary key(a)) type=innodb;
 insert into t1 values (NULL),(NULL),(NULL);
diff --git a/mysql-test/r/merge.result b/mysql-test/r/merge.result
index 6de77f7bdaa..9349a5cdf82 100644
--- a/mysql-test/r/merge.result
+++ b/mysql-test/r/merge.result
@@ -174,7 +174,7 @@ t3	CREATE TABLE `t3` (
   `a` int(11) NOT NULL default '0',
   `b` char(20) character set latin1 default NULL,
   KEY `a` (`a`)
-) TYPE=MRG_MyISAM UNION=(t1,t2)
+) TYPE=MRG_MyISAM CHARSET=latin1 UNION=(t1,t2)
 create table t4 (a int not null, b char(10), key(a)) type=MERGE UNION=(t1,t2);
 select * from t4;
 Can't open file: 't4.MRG'. (errno: 143)
@@ -249,14 +249,14 @@ t3	CREATE TABLE `t3` (
   `incr` int(11) NOT NULL default '0',
   `othr` int(11) NOT NULL default '0',
   PRIMARY KEY  (`incr`)
-) TYPE=MRG_MyISAM UNION=(t1,t2)
+) TYPE=MRG_MyISAM CHARSET=latin1 UNION=(t1,t2)
 alter table t3 drop primary key;
 show create table t3;
 Table	Create Table
 t3	CREATE TABLE `t3` (
   `incr` int(11) NOT NULL default '0',
   `othr` int(11) NOT NULL default '0'
-) TYPE=MRG_MyISAM UNION=(t1,t2)
+) TYPE=MRG_MyISAM CHARSET=latin1 UNION=(t1,t2)
 drop table t3,t2,t1;
 create table t1 (a int not null) type=merge;
 select * from t1;
@@ -287,28 +287,28 @@ t3	CREATE TABLE `t3` (
   `a` int(11) NOT NULL default '0',
   `b` int(11) NOT NULL default '0',
   KEY `a` (`a`,`b`)
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 show create table t4;
 Table	Create Table
 t4	CREATE TABLE `t4` (
   `a` int(11) NOT NULL default '0',
   `b` int(11) NOT NULL default '0',
   KEY `a` (`a`,`b`)
-) TYPE=MRG_MyISAM UNION=(t1,t2)
+) TYPE=MRG_MyISAM CHARSET=latin1 UNION=(t1,t2)
 show create table t5;
 Table	Create Table
 t5	CREATE TABLE `t5` (
   `a` int(11) NOT NULL default '0',
   `b` int(11) NOT NULL default '0',
   KEY `a` (`a`,`b`)
-) TYPE=MRG_MyISAM INSERT_METHOD=FIRST UNION=(t1,t2)
+) TYPE=MRG_MyISAM CHARSET=latin1 INSERT_METHOD=FIRST UNION=(t1,t2)
 show create table t6;
 Table	Create Table
 t6	CREATE TABLE `t6` (
   `a` int(11) NOT NULL default '0',
   `b` int(11) NOT NULL default '0',
   KEY `a` (`a`,`b`)
-) TYPE=MRG_MyISAM INSERT_METHOD=LAST UNION=(t1,t2)
+) TYPE=MRG_MyISAM CHARSET=latin1 INSERT_METHOD=LAST UNION=(t1,t2)
 insert into t1 values (1,1),(1,2),(1,3),(1,4);
 insert into t2 values (2,1),(2,2),(2,3),(2,4);
 select * from t3 order by b,a limit 3;
@@ -373,7 +373,7 @@ t4	CREATE TABLE `t4` (
   `a` int(11) NOT NULL default '0',
   `b` int(11) NOT NULL default '0',
   KEY `a` (`a`,`b`)
-) TYPE=MRG_MyISAM UNION=(t1,t2,t3)
+) TYPE=MRG_MyISAM CHARSET=latin1 UNION=(t1,t2,t3)
 select * from t4 order by a,b;
 a	b
 1	1
@@ -399,7 +399,7 @@ t4	CREATE TABLE `t4` (
   `a` int(11) NOT NULL default '0',
   `b` int(11) NOT NULL default '0',
   KEY `a` (`a`,`b`)
-) TYPE=MRG_MyISAM INSERT_METHOD=FIRST UNION=(t1,t2,t3)
+) TYPE=MRG_MyISAM CHARSET=latin1 INSERT_METHOD=FIRST UNION=(t1,t2,t3)
 insert into t4 values (4,1),(4,2);
 select * from t1 order by a,b;
 a	b
diff --git a/mysql-test/r/show_check.result b/mysql-test/r/show_check.result
index 1f83bc61cdc..40103847a93 100644
--- a/mysql-test/r/show_check.result
+++ b/mysql-test/r/show_check.result
@@ -77,13 +77,13 @@ show create table t1;
 Table	Create Table
 t1	CREATE TEMPORARY TABLE `t1` (
   `a` int(11) NOT NULL default '0'
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 alter table t1 rename t2;
 show create table t2;
 Table	Create Table
 t2	CREATE TEMPORARY TABLE `t2` (
   `a` int(11) NOT NULL default '0'
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 drop table t2;
 create table t1 (
 test_set set( 'val1', 'val2', 'val3' ) not null default '',
@@ -96,7 +96,7 @@ t1	CREATE TABLE `t1` (
   `test_set` set('val1','val2','val3') NOT NULL default '',
   `name` char(20) character set latin1 default 'O''Brien' COMMENT 'O''Brien as default',
   `c` int(11) NOT NULL default '0' COMMENT 'int column'
-) TYPE=MyISAM COMMENT='it''s a table'
+) TYPE=MyISAM CHARSET=latin1 COMMENT='it''s a table'
 show full columns from t1;
 Field	Type	Null	Key	Default	Extra	Privileges	Comment
 test_set	set('val1','val2','val3')					select,insert,update,references	
@@ -109,7 +109,7 @@ Table	Create Table
 t1	CREATE TABLE `t1` (
   `a` int(11) NOT NULL default '0',
   UNIQUE KEY `aa` (`a`)
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 drop table t1;
 create table t1 (a int not null, primary key (a));
 show create table t1;
@@ -117,7 +117,7 @@ Table	Create Table
 t1	CREATE TABLE `t1` (
   `a` int(11) NOT NULL default '0',
   PRIMARY KEY  (`a`)
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 drop table t1;
 flush tables;
 show open tables;
@@ -135,7 +135,7 @@ t1	CREATE TABLE `t1` (
   `a` int(11) NOT NULL default '0',
   `b` char(10) character set latin1 default NULL,
   KEY `b` (`b`)
-) TYPE=MyISAM MIN_ROWS=10 MAX_ROWS=100 AVG_ROW_LENGTH=10 PACK_KEYS=1 CHECKSUM=1 DELAY_KEY_WRITE=1 ROW_FORMAT=FIXED COMMENT='test'
+) TYPE=MyISAM CHARSET=latin1 MIN_ROWS=10 MAX_ROWS=100 AVG_ROW_LENGTH=10 PACK_KEYS=1 CHECKSUM=1 DELAY_KEY_WRITE=1 ROW_FORMAT=FIXED COMMENT='test'
 alter table t1 MAX_ROWS=200 ROW_FORMAT=dynamic PACK_KEYS=0;
 show create table t1;
 Table	Create Table
@@ -143,7 +143,7 @@ t1	CREATE TABLE `t1` (
   `a` int(11) NOT NULL default '0',
   `b` varchar(10) character set latin1 default NULL,
   KEY `b` (`b`)
-) TYPE=MyISAM MIN_ROWS=10 MAX_ROWS=200 AVG_ROW_LENGTH=10 PACK_KEYS=0 CHECKSUM=1 DELAY_KEY_WRITE=1 ROW_FORMAT=DYNAMIC COMMENT='test'
+) TYPE=MyISAM CHARSET=latin1 MIN_ROWS=10 MAX_ROWS=200 AVG_ROW_LENGTH=10 PACK_KEYS=0 CHECKSUM=1 DELAY_KEY_WRITE=1 ROW_FORMAT=DYNAMIC COMMENT='test'
 ALTER TABLE t1 AVG_ROW_LENGTH=0 CHECKSUM=0 COMMENT="" MIN_ROWS=0 MAX_ROWS=0 PACK_KEYS=DEFAULT DELAY_KEY_WRITE=0 ROW_FORMAT=default;
 show create table t1;
 Table	Create Table
@@ -151,7 +151,7 @@ t1	CREATE TABLE `t1` (
   `a` int(11) NOT NULL default '0',
   `b` varchar(10) character set latin1 default NULL,
   KEY `b` (`b`)
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 drop table t1;
 create table t1 (a decimal(9,2), b decimal (9,0), e double(9,2), f double(5,0), h float(3,2), i float(3,0));
 show columns from t1;
diff --git a/mysql-test/r/symlink.result b/mysql-test/r/symlink.result
index b5b5b774ee5..1eb595eb2a9 100644
--- a/mysql-test/r/symlink.result
+++ b/mysql-test/r/symlink.result
@@ -39,7 +39,7 @@ t9	CREATE TABLE `t9` (
   `b` char(16) character set latin1 NOT NULL default '',
   `c` int(11) NOT NULL default '0',
   PRIMARY KEY  (`a`)
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 alter table t9 rename t8, add column d int not null;
 alter table t8 rename t7;
 rename table t7 to t9;
@@ -61,5 +61,5 @@ t9	CREATE TABLE `t9` (
   `c` int(11) NOT NULL default '0',
   `d` int(11) NOT NULL default '0',
   PRIMARY KEY  (`a`)
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 drop database test_mysqltest;
diff --git a/mysql-test/r/type_enum.result b/mysql-test/r/type_enum.result
index ee3bd077798..c0f0be246c9 100644
--- a/mysql-test/r/type_enum.result
+++ b/mysql-test/r/type_enum.result
@@ -1627,12 +1627,12 @@ show create table t1;
 Table	Create Table
 t1	CREATE TABLE `t1` (
   `a` enum('','a','b') NOT NULL default ''
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 drop table t1;
 create table t1 (a enum (' ','a','b ') not null default 'b ');
 show create table t1;
 Table	Create Table
 t1	CREATE TABLE `t1` (
   `a` enum('','a','b') NOT NULL default 'b'
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 drop table t1;
diff --git a/mysql-test/r/type_set.result b/mysql-test/r/type_set.result
index 858bf5f3ba2..38c7b66dcb8 100644
--- a/mysql-test/r/type_set.result
+++ b/mysql-test/r/type_set.result
@@ -3,12 +3,12 @@ show create table t1;
 Table	Create Table
 t1	CREATE TABLE `t1` (
   `a` set('','a','b') NOT NULL default ''
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 drop table t1;
 create table t1 (a set (' ','a','b ') not null default 'b ');
 show create table t1;
 Table	Create Table
 t1	CREATE TABLE `t1` (
   `a` set('','a','b') NOT NULL default 'b'
-) TYPE=MyISAM
+) TYPE=MyISAM CHARSET=latin1
 drop table t1;
diff --git a/sql/sql_yacc.yy b/sql/sql_yacc.yy
index 01894bfb7ad..7d6163fafc3 100644
--- a/sql/sql_yacc.yy
+++ b/sql/sql_yacc.yy
@@ -67,6 +67,7 @@ inline Item *or_or_concat(Item* A, Item* B)
   interval_type interval;
   LEX_USER *lex_user;
   enum Item_udftype udf_type;
+  CHARSET_INFO *charset;
 }
 
 %{
@@ -600,6 +601,11 @@ bool my_yyoverflow(short **a, YYSTYPE **b,int *yystacksize);
 
 %type <lex_user> user grant_user
 
+%type <charset> 
+	charset_name
+	charset_name_or_default
+	opt_db_default_character_set
+
 %type <NONE>
 	query verb_clause create change select do drop insert replace insert2
 	insert_values update delete truncate rename
@@ -758,6 +764,7 @@ master_def:
 create:
 	CREATE opt_table_options TABLE_SYM opt_if_not_exists table_ident
 	{
+	  THD *thd=current_thd;
 	  LEX *lex=Lex;
 	  lex->sql_command= SQLCOM_CREATE_TABLE;
 	  if (!add_table_to_list($5,
@@ -771,7 +778,7 @@ create:
 	  bzero((char*) &lex->create_info,sizeof(lex->create_info));
 	  lex->create_info.options=$2 | $4;
 	  lex->create_info.db_type= default_table_type;
-	  lex->create_info.table_charset=NULL;
+	  lex->create_info.table_charset=thd->db_charset?thd->db_charset:default_charset_info;
 	}
 	create2
 
@@ -793,13 +800,13 @@ create:
 	    lex->key_list.push_back(new Key($2,$4.str, $5, lex->col_list));
 	    lex->col_list.empty();
 	  }
-	| CREATE DATABASE opt_if_not_exists ident default_charset
+	| CREATE DATABASE opt_if_not_exists ident opt_db_default_character_set
 	  {
 	    LEX *lex=Lex;
 	    lex->sql_command=SQLCOM_CREATE_DB;
 	    lex->name=$4.str;
             lex->create_info.options=$3;
-	    lex->create_info.table_charset=lex->charset;
+	    lex->create_info.table_charset=$5;
 	  }
 	| CREATE udf_func_type UDF_SYM ident
 	  {
@@ -886,9 +893,9 @@ create_table_option:
 	    table_list->next=0;
 	    lex->create_info.used_fields|= HA_CREATE_USED_UNION;
 	  }
-	| CHARSET EQ charset_or_nocharset
+	| CHARSET EQ charset_name_or_default
 	  { 
-	    Lex->create_info.table_charset=Lex->charset;
+	    Lex->create_info.table_charset= $3;
 	    Lex->create_info.used_fields|= HA_CREATE_USED_CHARSET;
 	  }
 	| INSERT_METHOD EQ merge_insert_types   { Lex->create_info.merge_insert_method= $3; Lex->create_info.used_fields|= HA_CREATE_USED_INSERT_METHOD;}
@@ -996,7 +1003,7 @@ type:
 					  $$=FIELD_TYPE_TINY; }
 	| BOOL_SYM			{ Lex->length=(char*) "1";
 					  $$=FIELD_TYPE_TINY; }
-	| char '(' NUM ')' opt_binary { Lex->length=$3.str;
+	| char '(' NUM ')' opt_binary	{ Lex->length=$3.str;
 					  $$=FIELD_TYPE_STRING; }
 	| char opt_binary		{ Lex->length=(char*) "1";
 					  $$=FIELD_TYPE_STRING; }
@@ -1125,28 +1132,28 @@ attribute:
 	| UNIQUE_SYM KEY_SYM { Lex->type|= UNIQUE_KEY_FLAG; }
 	| COMMENT_SYM text_literal { Lex->comment= $2; };
 
-charset:
+charset_name:
 	ident	
 	{ 
-	  if (!(Lex->charset=get_charset_by_name($1.str,MYF(0))))
+	  if (!($$=get_charset_by_name($1.str,MYF(0))))
 	  {
 	    net_printf(&current_thd->net,ER_UNKNOWN_CHARACTER_SET,$1.str);
 	    YYABORT;
 	  }
 	};
 
-charset_or_nocharset:
-	charset
-	| DEFAULT {Lex->charset=NULL; }
+charset_name_or_default:
+	charset_name { $$=$1;   }
+	| DEFAULT    { $$=NULL; } ;
+
+opt_db_default_character_set:
+	/* empty */		{ $$=default_charset_info; }
+	| DEFAULT CHAR_SYM SET charset_name_or_default  { $$=$4; };
 
 opt_binary:
-	/* empty */		{ Lex->charset=NULL; }
-	| BINARY		{ Lex->type|=BINARY_FLAG; Lex->charset=NULL; }
-	| CHAR_SYM SET charset  {/* charset is already in Lex->charset */} ;
-
-default_charset:
 	/* empty */			{ Lex->charset=NULL; }
-	| DEFAULT CHAR_SYM SET charset_or_nocharset ;
+	| BINARY			{ Lex->type|=BINARY_FLAG; Lex->charset=NULL; }
+	| CHAR_SYM SET charset_name	{ Lex->charset=$3; } ;
 
 references:
 	REFERENCES table_ident
@@ -1247,6 +1254,7 @@ string_list:
 alter:
 	ALTER opt_ignore TABLE_SYM table_ident
 	{
+	  THD *thd=current_thd;
 	  LEX *lex=Lex;
 	  lex->sql_command = SQLCOM_ALTER_TABLE;
 	  lex->name=0;
@@ -1264,20 +1272,20 @@ alter:
 	  lex->select->db=lex->name=0;
     	  bzero((char*) &lex->create_info,sizeof(lex->create_info));
 	  lex->create_info.db_type= DB_TYPE_DEFAULT;
+	  lex->create_info.table_charset=thd->db_charset?thd->db_charset:default_charset_info;
 	  lex->create_info.row_type= ROW_TYPE_NOT_USED;
-	  lex->create_info.table_charset=NULL;
           lex->alter_keys_onoff=LEAVE_AS_IS;
           lex->simple_alter=1;
 	}
 	alter_list;
 
-	| ALTER DATABASE ident default_charset
+	| ALTER DATABASE ident opt_db_default_character_set
 	  {
 	    LEX *lex=Lex;
 	    lex->sql_command=SQLCOM_ALTER_DB;
 	    lex->name=$3.str;
-	    lex->create_info.table_charset=lex->charset;
-	  }
+	    lex->create_info.table_charset=$4;
+	  };
 
 
 alter_list:
@@ -1660,15 +1668,8 @@ expr_expr:
 	  { $$= new Item_date_add_interval($1,$4,$5,0); }
 	| expr '-' INTERVAL_SYM expr interval
 	  { $$= new Item_date_add_interval($1,$4,$5,1); }
-	| expr COLLATE_SYM ident 
-	  { 
-	    if (!(Lex->charset=get_charset_by_name($3.str,MYF(0))))
-	    {
-	      net_printf(&current_thd->net,ER_UNKNOWN_CHARACTER_SET,$3.str);
-	      YYABORT;
-	    }
-	    $$= new Item_func_set_collation($1,Lex->charset);
-	  };
+	| expr COLLATE_SYM charset_name
+	  { $$= new Item_func_set_collation($1,$3); };
 
 /* expressions that begin with 'expr' that do NOT follow IN_SYM */
 no_in_expr:
@@ -1783,12 +1784,10 @@ simple_expr:
 	| CASE_SYM opt_expr WHEN_SYM when_list opt_else END
 	  { $$= new Item_func_case(* $4, $2, $5 ); }
 	| CONVERT_SYM '(' expr ',' cast_type ')'  { $$= create_func_cast($3, $5); }
-	| CONVERT_SYM '(' expr USING charset ')'
-	  { $$= new Item_func_conv_charset($3,Lex->charset); }
+	| CONVERT_SYM '(' expr USING charset_name ')'
+	  { $$= new Item_func_conv_charset($3,$5); }
 	| CONVERT_SYM '(' expr ',' expr ',' expr ')'
-	  { 
-	    $$= new Item_func_conv_charset3($3,$7,$5); 
-	  }
+	  { $$= new Item_func_conv_charset3($3,$7,$5); }
 	| FUNC_ARG0 '(' ')'
 	  { $$= ((Item*(*)(void))($1.symbol->create_func))();}
 	| FUNC_ARG1 '(' expr ')'