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diff --git a/pystache/defaults.py b/pystache/defaults.py
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+# coding: utf-8
+
+"""
+This module provides a central location for defining default behavior.
+
+Throughout the package, these defaults take effect only when the user
+does not otherwise specify a value.
+
+"""
+
+import cgi
+import os
+import sys
+
+
+# How to handle encoding errors when decoding strings from str to unicode.
+#
+# This value is passed as the "errors" argument to Python's built-in
+# unicode() function:
+#
+#   http://docs.python.org/library/functions.html#unicode
+#
+DECODE_ERRORS = 'strict'
+
+# The name of the encoding to use when converting to unicode any strings of
+# type str encountered during the rendering process.
+STRING_ENCODING = sys.getdefaultencoding()
+
+# The name of the encoding to use when converting file contents to unicode.
+# This default takes precedence over the STRING_ENCODING default for
+# strings that arise from files.
+FILE_ENCODING = sys.getdefaultencoding()
+
+# The starting list of directories in which to search for templates when
+# loading a template by file name.
+SEARCH_DIRS = [os.curdir]  # i.e. ['.']
+
+# The escape function to apply to strings that require escaping when
+# rendering templates (e.g. for tags enclosed in double braces).
+# Only unicode strings will be passed to this function.
+#
+# The quote=True argument causes double quotes to be escaped,
+# but not single quotes:
+#
+#   http://docs.python.org/library/cgi.html#cgi.escape
+#
+TAG_ESCAPE = lambda u: cgi.escape(u, quote=True)
+
+# The default template extension.
+TEMPLATE_EXTENSION = 'mustache'