diff --git a/activerecord/CHANGELOG b/activerecord/CHANGELOG
index 393bca06a1f52..291b0649e1ce5 100644
--- a/activerecord/CHANGELOG
+++ b/activerecord/CHANGELOG
@@ -1,12 +1,8 @@
 *SVN*
 
-* Added new symbol-driven approach to activating observers with Base#observer [DHH]. Example:
+* Added new symbol-driven approach to activating observers with Base#observers= [DHH]. Example:
 
-    ActiveRecord::Base.observer(:cacher, :garbage_collector)
-  
-  ...which is the same as doing:
-  
-    [ Cacher.instance, GarbageCollector.instance ]
+    ActiveRecord::Base.observers = :cacher, :garbage_collector
 
 * Added AbstractAdapter#select_value and AbstractAdapter#select_values as convenience methods for selecting single values, instead of hashes, of the first column in a SELECT #2283 [solo@gatelys.com]
 
diff --git a/activerecord/lib/active_record/observer.rb b/activerecord/lib/active_record/observer.rb
index 36fcf021cd71e..1a167667e3c04 100644
--- a/activerecord/lib/active_record/observer.rb
+++ b/activerecord/lib/active_record/observer.rb
@@ -10,16 +10,15 @@ def self.append_features(base)
     module ClassMethods
       # Activates the observers assigned. Examples:
       #
-      #   # Calls PersonObserver.instance and returns the instance of that observer
-      #   ActiveRecord::Base.observer(:person_observer)
+      #   # Calls PersonObserver.instance
+      #   ActiveRecord::Base.observers = :person_observer
       #
       #   # Calls Cacher.instance and GarbageCollector.instance 
-      #   # and returns an array with instances of both
-      #   ActiveRecord::Base.observer(:cacher, :garbage_collector)
+      #   ActiveRecord::Base.observers = :cacher, :garbage_collector
       #
       #   # Same as above, just using explicit class references
-      #   ActiveRecord::Base.observer(Cacher, GarbageCollector)
-      def observer(*observers)
+      #   ActiveRecord::Base.observers = Cacher, GarbageCollector
+      def observers=(*observers)
         observers = [ observers ].flatten.collect do |observer| 
           observer.is_a?(Symbol) ? 
             observer.to_s.camelize.constantize.instance :
diff --git a/activerecord/test/lifecycle_test.rb b/activerecord/test/lifecycle_test.rb
index a373471f19032..ddac6f7c4c920 100755
--- a/activerecord/test/lifecycle_test.rb
+++ b/activerecord/test/lifecycle_test.rb
@@ -65,22 +65,22 @@ def test_before_destroy
   end
   
   def test_after_save
-    topic_observer = ActiveRecord::Base.observer(:topic_manual_observer)
+    ActiveRecord::Base.observers = :topic_manual_observer
 
     topic = Topic.find(1)
     topic.title = "hello"
     topic.save
     
-    assert topic_observer.has_been_notified?
-    assert_equal :after_save, topic_observer.callbacks.last["callback_method"]
+    assert TopicManualObserver.instance.has_been_notified?
+    assert_equal :after_save, TopicManualObserver.instance.callbacks.last["callback_method"]
   end
   
   def test_observer_update_on_save
-    topic_observer = ActiveRecord::Base.observer(TopicManualObserver)
+    ActiveRecord::Base.observers = TopicManualObserver
 
     topic = Topic.find(1)    
-    assert topic_observer.has_been_notified?
-    assert_equal :after_find, topic_observer.callbacks.first["callback_method"]
+    assert TopicManualObserver.instance.has_been_notified?
+    assert_equal :after_find, TopicManualObserver.instance.callbacks.first["callback_method"]
   end
   
   def test_auto_observer
diff --git a/railties/environments/environment.rb b/railties/environments/environment.rb
index 60d02785ed803..271dac72f93b1 100644
--- a/railties/environments/environment.rb
+++ b/railties/environments/environment.rb
@@ -27,7 +27,7 @@
   # config.action_controller.fragment_cache_store = :file_store, "#{RAILS_ROOT}/cache"
 
   # Activate observers that should always be running
-  # config.active_record.observer :cacher, :garbage_collector
+  # config.active_record.observers = :cacher, :garbage_collector
 
   # Make Active Record use UTC-base instead of local time
   # config.active_record.default_timezone = :utc