diff --git a/lib/liquid/i18n.rb b/lib/liquid/i18n.rb
index 39e623e..7e0687c 100644
--- a/lib/liquid/i18n.rb
+++ b/lib/liquid/i18n.rb
@@ -2,10 +2,14 @@ require 'yaml'
 
 module Liquid
   class I18n
+    DEFAULT_LOCALE = File.join(File.expand_path(File.dirname(__FILE__)), "locales", "en.yml")
+
     class TranslationError < StandardError
     end
+    
+    attr_reader :path
 
-    def initialize(path)
+    def initialize(path = DEFAULT_LOCALE)
       @path = path
     end
 
@@ -14,15 +18,8 @@ module Liquid
     end
     alias_method :t, :translate
 
-    class << self
-      def translate(name, vars = {})
-        @@global.translate(name, vars)
-      end
-      alias_method :t, :translate
-
-      def global=(translator)
-        @@global = translator
-      end
+    def locale
+      @locale ||= YAML.load_file(@path)
     end
 
     private
@@ -37,9 +34,5 @@ module Liquid
         level[cur] or raise TranslationError, translate("errors.i18n.unknown_translation", :name => name)
       end
     end
-
-    def locale
-      @locale ||= YAML.load_file(@path)
-    end
   end
 end
diff --git a/lib/liquid/template.rb b/lib/liquid/template.rb
index aaf7ca2..1a6dc01 100644
--- a/lib/liquid/template.rb
+++ b/lib/liquid/template.rb
@@ -61,7 +61,8 @@ module Liquid
     end
 
     # creates a new <tt>Template</tt> from an array of tokens. Use <tt>Template.parse</tt> instead
-    def initialize
+    def initialize(options = {})
+      registers[:locale] = I18n.new(options[:locale]) || I18n.new
       @resource_limits = {}
     end
 
@@ -119,7 +120,7 @@ module Liquid
       when nil
         Context.new(assigns, instance_assigns, registers, @rethrow_errors, @resource_limits)
       else
-        raise ArgumentError, I18n.translate("errors.template.argument_hash_or_context")
+        raise ArgumentError, registers[:locale].translate("errors.template.argument_hash_or_context")
       end
 
       case args.last
diff --git a/test/liquid/i18n_test.rb b/test/liquid/i18n_test.rb
index afdda27..e6e0d7a 100644
--- a/test/liquid/i18n_test.rb
+++ b/test/liquid/i18n_test.rb
@@ -30,4 +30,8 @@ class I18nTest < Test::Unit::TestCase
       @i18n.translate("doesnt_exist")
     end
   end
+
+  def test_sets_default_path_to_en
+    assert_equal I18n::DEFAULT_LOCALE, I18n.new.path
+  end
 end
diff --git a/test/liquid/template_test.rb b/test/liquid/template_test.rb
index 04f1e50..40ee971 100644
--- a/test/liquid/template_test.rb
+++ b/test/liquid/template_test.rb
@@ -143,4 +143,18 @@ class TemplateTest < Test::Unit::TestCase
     assert_equal 'bar', t.parse('{{bar}}').render(drop)
     assert_equal 'haha', t.parse("{{baz}}").render(drop)
   end
-end # TemplateTest
+
+  def test_sets_default_localization_in_context
+    t = Template.new(:locale => fixture("en_locale.yml"))
+
+    assert_instance_of I18n, t.registers[:locale]
+    assert_equal fixture("en_locale.yml"), t.registers[:locale].path
+  end
+
+  def test_sets_default_localization_in_context_with_quick_initialization
+    t = Template.parse('{{foo}}', :locale => fixture("en_locale.yml"))
+
+    assert_instance_of I18n, t.registers[:locale]
+    assert_equal fixture("en_locale.yml"), t.registers[:locale].path
+  end
+end