diff --git a/rhodecode/controllers/admin/users.py b/rhodecode/controllers/admin/users.py
--- a/rhodecode/controllers/admin/users.py
+++ b/rhodecode/controllers/admin/users.py
@@ -4,10 +4,10 @@
     ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
 
     Users crud controller for pylons
-    
+
     :created_on: Apr 4, 2010
     :author: marcink
-    :copyright: (C) 2009-2010 Marcin Kuzminski <marcin@python-works.com>    
+    :copyright: (C) 2009-2011 Marcin Kuzminski <marcin@python-works.com>
     :license: GPLv3, see COPYING for more details.
 """
 # This program is free software: you can redistribute it and/or modify
@@ -28,21 +28,23 @@ import traceback
 import formencode
 
 from formencode import htmlfill
-from pylons import request, session, tmpl_context as c, url
+from pylons import request, session, tmpl_context as c, url, config
 from pylons.controllers.util import abort, redirect
 from pylons.i18n.translation import _
 
-from rhodecode.lib.exceptions import *
+from rhodecode.lib.exceptions import DefaultUserException, \
+    UserOwnsReposException
 from rhodecode.lib import helpers as h
 from rhodecode.lib.auth import LoginRequired, HasPermissionAllDecorator
 from rhodecode.lib.base import BaseController, render
 
-from rhodecode.model.db import User
+from rhodecode.model.db import User, RepoToPerm, UserToPerm, Permission
 from rhodecode.model.forms import UserForm
 from rhodecode.model.user import UserModel
 
 log = logging.getLogger(__name__)
 
+
 class UsersController(BaseController):
     """REST Controller styled on the Atom Publishing Protocol"""
     # To properly map this controller, ensure your config/routing.py
@@ -55,7 +57,7 @@ class UsersController(BaseController):
         c.admin_user = session.get('admin_user')
         c.admin_username = session.get('admin_username')
         super(UsersController, self).__before__()
-
+        c.available_permissions = config['available_permissions']
 
     def index(self, format='html'):
         """GET /users: All items in the collection"""
@@ -99,25 +101,28 @@ class UsersController(BaseController):
         # Forms posted to this method should contain a hidden field:
         #    <input type="hidden" name="_method" value="PUT" />
         # Or using helpers:
-        #    h.form(url('user', id=ID),
+        #    h.form(url('update_user', id=ID),
         #           method='put')
         # url('user', id=ID)
         user_model = UserModel()
         c.user = user_model.get(id)
 
-        _form = UserForm(edit=True, old_data={'user_id':id,
-                                              'email':c.user.email})()
+        _form = UserForm(edit=True, old_data={'user_id': id,
+                                              'email': c.user.email})()
         form_result = {}
         try:
             form_result = _form.to_python(dict(request.POST))
             user_model.update(id, form_result)
-            h.flash(_('User updated succesfully'), category='success')
+            h.flash(_('User updated successfully'), category='success')
 
         except formencode.Invalid, errors:
+            e = errors.error_dict or {}
+            perm = Permission.get_by_key('hg.create.repository')
+            e.update({'create_repo_perm': UserToPerm.has_perm(id, perm)})
             return htmlfill.render(
                 render('admin/users/user_edit.html'),
                 defaults=errors.value,
-                errors=errors.error_dict or {},
+                errors=e,
                 prefix_error=False,
                 encoding="UTF-8")
         except Exception:
@@ -132,13 +137,13 @@ class UsersController(BaseController):
         # Forms posted to this method should contain a hidden field:
         #    <input type="hidden" name="_method" value="DELETE" />
         # Or using helpers:
-        #    h.form(url('user', id=ID),
+        #    h.form(url('delete_user', id=ID),
         #           method='delete')
         # url('user', id=ID)
         user_model = UserModel()
         try:
             user_model.delete(id)
-            h.flash(_('sucessfully deleted user'), category='success')
+            h.flash(_('successfully deleted user'), category='success')
         except (UserOwnsReposException, DefaultUserException), e:
             h.flash(str(e), category='warning')
         except Exception:
@@ -150,21 +155,53 @@ class UsersController(BaseController):
         """GET /users/id: Show a specific item"""
         # url('user', id=ID)
 
-
     def edit(self, id, format='html'):
         """GET /users/id/edit: Form to edit an existing item"""
         # url('edit_user', id=ID)
-        c.user = self.sa.query(User).get(id)
+        user_model = UserModel()
+        c.user = user_model.get(id)
         if not c.user:
             return redirect(url('users'))
         if c.user.username == 'default':
             h.flash(_("You can't edit this user"), category='warning')
             return redirect(url('users'))
+        c.user.permissions = {}
+        c.granted_permissions = user_model.fill_perms(c.user)\
+            .permissions['global']
 
         defaults = c.user.get_dict()
+        perm = Permission.get_by_key('hg.create.repository')
+        defaults.update({'create_repo_perm': UserToPerm.has_perm(id, perm)})
+
         return htmlfill.render(
             render('admin/users/user_edit.html'),
             defaults=defaults,
             encoding="UTF-8",
             force_defaults=False
         )
+
+    def update_perm(self, id):
+        """PUT /users_perm/id: Update an existing item"""
+        # url('user_perm', id=ID, method='put')
+
+        grant_perm = request.POST.get('create_repo_perm', False)
+
+        if grant_perm:
+            perm = Permission.get_by_key('hg.create.none')
+            UserToPerm.revoke_perm(id, perm)
+
+            perm = Permission.get_by_key('hg.create.repository')
+            UserToPerm.grant_perm(id, perm)
+            h.flash(_("Granted 'repository create' permission to user"),
+                    category='success')
+
+        else:
+            perm = Permission.get_by_key('hg.create.repository')
+            UserToPerm.revoke_perm(id, perm)
+
+            perm = Permission.get_by_key('hg.create.none')
+            UserToPerm.grant_perm(id, perm)
+            h.flash(_("Revoked 'repository create' permission to user"),
+                    category='success')
+
+        return redirect(url('edit_user', id=id))