diff --git a/railties/CHANGELOG b/railties/CHANGELOG
index 2a722cf97a8d4a373840a66b894a4c3cccb80e03..8a5d3c926c805ee17a6b285330f0bb68a5d290ac 100644
--- a/railties/CHANGELOG
+++ b/railties/CHANGELOG
@@ -1,5 +1,7 @@
 *SVN*
 
+* Fixed that scaffold generator new template should use local variable instead of instance variable #778 [Dan Peterson]
+
 * Allow unit tests to run on a remote server for PostgreSQL #781 [adamm@galacticasoftware.com]
 
 * Added web_service generator (run ./script/generate web_service for help) #776 [Leon Bredt]
diff --git a/railties/lib/rails_generator/generators/components/scaffold/templates/view_new.rhtml b/railties/lib/rails_generator/generators/components/scaffold/templates/view_new.rhtml
index fcf5a3c54ba797ab31eab5e8c4f14fc0b57d99fe..54b2e49312cfa1aec05423b1f4fae184771f6dc9 100644
--- a/railties/lib/rails_generator/generators/components/scaffold/templates/view_new.rhtml
+++ b/railties/lib/rails_generator/generators/components/scaffold/templates/view_new.rhtml
@@ -1,4 +1,4 @@
-<h1>New <%= @singular_name %></h1>
+<h1>New <%= singular_name %></h1>
 
 <%%= error_messages_for '<%= singular_name %>' %>
 <%= template_for_inclusion %>