diff --git a/README.md b/README.md
index 44f8b52..4361dc8 100644
--- a/README.md
+++ b/README.md
@@ -39,11 +39,12 @@ Contents
 5. [Functions](#functions)
 6. [Identifier case handling](#identifier-case-handling)
 7. [Generated columns](#generated-columns)
-8. [Examples](#examples)
-9. [Limitations](#limitations)
-10. [TAP tests](#tap-tests)
-11. [Development roadmap](#development-roadmap)
-12. [Useful links](#useful-links)
+8. [Character set handling](#character-set-handling)
+9. [Examples](#examples)
+10. [Limitations](#limitations)
+11. [TAP tests](#tap-tests)
+12. [Development roadmap](#development-roadmap)
+13. [Useful links](#useful-links)
 
 Features
 --------
@@ -497,6 +498,20 @@ For more details on generated columns see:
 - [Generated Columns](https://www.postgresql.org/docs/current/ddl-generated-columns.html)
 - [CREATE FOREIGN TABLE](https://www.postgresql.org/docs/current/sql-createforeigntable.html)
 
+
+Character set handling
+----------------------
+
+When `firebird_fdw` connects to a Firebird database, it will set the client
+encoding to the PostgreSQL database's server encoding. As there is a broad
+overlap between PostgreSQL and Firebird character set encodings, mostly
+this will succeed, particularly with the more common encodings such as
+`UTF8` and `LATIN1`. A small subset of PostgreSQL encodings for which Firebird
+provides a corresponding encoding but no matching name or alias will be
+rewritten transparently by `firebird_fdw`. For more details see the
+file [PostgreSQL and Firebird character set encoding compatibility](doc/ENCODINGS.md).
+
+
 Examples
 --------
 
diff --git a/doc/ENCODINGS.md b/doc/ENCODINGS.md
new file mode 100644
index 0000000..b1b5913
--- /dev/null
+++ b/doc/ENCODINGS.md
@@ -0,0 +1,84 @@
+PostgreSQL and Firebird character set encoding compatibility
+============================================================
+
+Character set mappings
+----------------------
+
+The following table provides an overview of available PostgreSQL server
+character set encodings and the matching Firebird ones.
+
+Encodings marked with `-` in the Firebird column are not available in Firebird.
+
+| PostgreSQL    | Firebird  | Notes
+|---------------|-----------|--------------------------------------------
+| EUC_CN        | -         | Extended UNIX Code-CN
+| EUC_JP        | EUCJ_0208 | Compatibility likely but not tested
+| EUC_JIS_2004  | -         | Extended UNIX Code-JP, JIS X 0213
+| EUC_KR        | -         | Extended UNIX Code-KR
+| EUC_TW        | -         | Extended UNIX Code-TW
+| ISO_8859_5    | ISO8859_5 |
+| ISO_8859_6    | ISO8859_6 |
+| ISO_8859_7    | ISO8859_7 |
+| ISO_8859_8    | ISO8859_8 |
+| KOI8R         | KOI8R     |
+| KOI8U         | KOI8U     |
+| LATIN1        | LATIN1    |
+| LATIN2        | LATIN2    |
+| LATIN3        | LATIN3    |
+| LATIN4        | LATIN4    |
+| LATIN5        | LATIN5    |
+| LATIN6        | -         | ISO 8859-10 / ECMA 144 "Nordic"
+| LATIN7        | LATIN7    |
+| LATIN8        | -         | ISO 8859-14 "Celtic"
+| LATIN9        | -         | ISO 8859-15 "LATIN1 with Euro and accents"
+| LATIN10       | -         | ISO 8859-16 "Romanian"
+| MULE_INTERNAL | -         | "Multilingual Emacs"
+| SQL_ASCII     | NONE      |
+| UTF8          | UTF8      |
+| WIN866        | DOS866    |
+| WIN874        | -         | Windows CP874 "Thai"
+| WIN1250       | WIN1250   |
+| WIN1251       | WIN1251   |
+| WIN1252       | WIN1252   |
+| WIN1253       | WIN1253   |
+| WIN1254       | WIN1254   |
+| WIN1255       | WIN1255   |
+| WIN1256       | WIN1256   |
+| WIN1257       | WIN1257   |
+| WIN1258       | WIN1258   |
+
+See also:
+
+- https://www.postgresql.org/docs/current/multibyte.html#MULTIBYTE-CHARSET-SUPPORTED
+- https://firebirdsql.org/file/documentation/html/en/refdocs/fblangref40/firebird-40-language-reference.html#fblangref40-appx07-charsets
+- https://firebirdsql.org/refdocs/langrefupd25-charsets.html
+- https://firebirdsql.org/en/firebird-1-5-character-sets-collations/
+
+Databases with the Firebird "NONE" character set
+------------------------------------------------
+
+The `NONE` character set is pretty much the equivalent of PostgreSQL's
+`SQL_ASCII`, i.e. a pseudo-character set/encoding which enables the user to
+store much any data they care to input without any kind of validation.  This
+means that it's perfectly possible to insert a mix of data in (for example)
+`ISO-8859-1` and `UTF8` encoding.
+
+This does however mean that Firebird can't know what encoding the data is
+supposed to be in, so it can't convert the data to whatever encoding the client
+is requesting. Conseqeuently, when `firebird_fdw` connects to a Firebird
+database configured with the `NONE` character set, the PostgreSQL database's
+server encoding has no meaning, and the raw data will be transmitted to
+PostgreSQL.
+
+If the data happens to be in the same encoding as the PostgreSQL databases's server
+encoding, this is normally not an issue. However, if the data is in a different
+encoding, it will need to be treated as a stream of `bytea` values which need to
+be explictly converted using e.g. PostgreSQL's `convert_from()` function, e.g.:
+
+    SELECT convert_from(some_column_name, 'LATIN1')
+      FROM firebird_table
+
+where `firebird_table` is a foreign table in a PostgreSQL database with `UTF8`
+server encoding which references a table in a Firebird database with `NONE`
+pseudo-encoding containing data in `LATIN1` encoding.
+