diff --git a/org.springframework.context/src/main/java/org/springframework/context/config/AbstractPropertyLoadingBeanDefinitionParser.java b/org.springframework.context/src/main/java/org/springframework/context/config/AbstractPropertyLoadingBeanDefinitionParser.java
index 5476b2136f..e77ac952b6 100644
--- a/org.springframework.context/src/main/java/org/springframework/context/config/AbstractPropertyLoadingBeanDefinitionParser.java
+++ b/org.springframework.context/src/main/java/org/springframework/context/config/AbstractPropertyLoadingBeanDefinitionParser.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2002-2008 the original author or authors.
+ * Copyright 2002-2011 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -53,7 +53,7 @@ abstract class AbstractPropertyLoadingBeanDefinitionParser extends AbstractSingl
 
 		String fileEncoding = element.getAttribute("file-encoding");
 		if (StringUtils.hasLength(fileEncoding)) {
-			builder.addPropertyReference("fileEncoding", fileEncoding);
+			builder.addPropertyValue("fileEncoding", fileEncoding);
 		}
 
 		String order = element.getAttribute("order");
diff --git a/org.springframework.context/src/test/resources/org/springframework/context/config/contextNamespaceHandlerTests-location.xml b/org.springframework.context/src/test/resources/org/springframework/context/config/contextNamespaceHandlerTests-location.xml
index 980835347b..1b4f07e110 100644
--- a/org.springframework.context/src/test/resources/org/springframework/context/config/contextNamespaceHandlerTests-location.xml
+++ b/org.springframework.context/src/test/resources/org/springframework/context/config/contextNamespaceHandlerTests-location.xml
@@ -7,7 +7,8 @@
 				http://www.springframework.org/schema/util http://www.springframework.org/schema/util/spring-util-2.5.xsd">
 
 	<context:property-placeholder
-		location="classpath*:/org/springframework/context/config/test-*.properties,classpath*:/org/springframework/context/config/empty-*.properties,classpath*:/org/springframework/context/config/missing-*.properties" />
+			location="classpath*:/org/springframework/context/config/test-*.properties,classpath*:/org/springframework/context/config/empty-*.properties,classpath*:/org/springframework/context/config/missing-*.properties"
+			file-encoding="ISO-8859-1"/>
 
 	<bean id="foo" class="java.lang.String">
 		<constructor-arg value="${foo}" />