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I met the similar problem when I ran python managy.py runserver with Django 1.10.
My system is: win10.
Python version: 2.7.13 (in Anacoda)
The error traceback is below:
enter image description here
I got the answer from Django project troubleshooting
Your system locale may be a default ASCII locale, like the “C” locale on UNIX-like systems (can be checked by the locale command). If it’s the case, please refer to your system documentation to learn how you can change this to a UTF-8 locale.
So in Windows 10 I changed system locale from Chinese to English refer to this question — How to change system locale in Windows 10 – The Language for – Microsoft Community.
Then I rebooted my computer, and it’s OK to run python managy.py runserver again.
May it will help someone.