compile(locals, view, mod) private

Among other things, this method is responsible for properly setting the encoding of the source. Until this point, we assume that the source is BINARY data. If no additional information is supplied, we assume the encoding is the same as Encoding.default_external.

The user can also specify the encoding via a comment on the first line of the template (# encoding: NAME-OF-ENCODING). This will work with any template engine, as we process out the encoding comment before passing the source on to the template engine, leaving a blank line in its stead.

If the template engine handles encodings, we send the encoded String to the engine without further processing. This allows the template engine to support additional mechanisms for specifying the encoding. For instance, ERB supports <%# encoding: %>

Otherwise, after we figure out the correct encoding, we then encode the source into Encoding.default_internal. In general, this means that templates will be UTF-8 inside of Rails, regardless of the original source encoding.

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