diff --git a/config/database.yml.default b/config/database.yml.default
deleted file mode 100644
index c3a2fa2c..00000000
--- a/config/database.yml.default
+++ /dev/null
@@ -1,27 +0,0 @@
-# SQLite version 3.x
-#   gem install sqlite3
-development:
-  adapter: postgresql
-  encoding: unicode
-  database: nztrain
-  pool: 5
-  username: www-data
-  password:
-
-# Warning: The database defined as "test" will be erased and
-# re-generated from your development database when you run "rake".
-# Do not set this db to the same as development or production.
-test:
-  adapter: postgresql
-  encoding: unicode
-  database: nztraintest
-  pool: 5
-  username: postgres
-
-production:
-  adapter: postgresql
-  encoding: unicode
-  database: nztrain
-  pool: 5
-  username: www-data
-  password:
diff --git a/config/database.yml.template b/config/database.yml.template
index 252b43f7..79d8d6e1 100644
--- a/config/database.yml.template
+++ b/config/database.yml.template
@@ -1,5 +1,3 @@
-# SQLite version 3.x
-#   gem install sqlite3
 development:
   adapter: postgresql
   encoding: unicode
diff --git a/script/install/postgresql.bash b/script/install/postgresql.bash
index e3358b5a..27f65195 100644
--- a/script/install/postgresql.bash
+++ b/script/install/postgresql.bash
@@ -4,37 +4,33 @@ cd `dirname $0`/../..
 
 source script/install.cfg
 
-min_version=8
-
-psql --version 2>/dev/null | bash script/extract_version.bash | bash script/check_version.bash $min_version || {
-  echo PostgreSQL $min_version+ required!
-  bash script/confirm.bash 'Install PostgreSQL' && {
-    cmd="sudo apt-get install postgresql"
-    echo "$ $cmd"
-    $cmd
-  } || exit 1
-
-}
-
-# required by pg gem
+# header files (required by pg gem)
 cmd="sudo apt-get install libpq-dev"
 echo "$ $cmd"
 $cmd || exit 1
 
-# setup user if required
-psql -U$DATABASE_USERNAME postgres -c '' &> /dev/null || {
-  bash script/confirm.bash "Create new PostgreSQL user $DATABASE_USERNAME" && {
-    cmd="sudo -u postgres createuser --superuser $DATABASE_USERNAME"
-    echo "$ $cmd"
-    $cmd
-  } || exit 1
+# client utilities (psql, createdb, pg_dump, etc.)
+command -v psql >/dev/null || {
+  cmd="sudo apt-get install postgresql-client"
+  echo "$ $cmd"
+  $cmd || exit 1
 }
 
-# setup database if required
-if [[ $DATABASE ]] ; then
-  psql -U$DATABASE_USERNAME $DATABASE -c '' &> /dev/null || {
-    bash script/confirm.bash "Create new PostgreSQL database $DATABASE" && {
-      cmd="sudo -u postgres createdb $DATABASE"
+if [ "${DATABASE_INSTALL:-true}" = "true" ]; then
+  # install server (not required if the server is running on another host/container)
+  id -u postgres &> /dev/null || {
+    echo "PostgreSQL server required!"
+    bash script/confirm.bash 'Install PostgreSQL server' && {
+      cmd="sudo apt-get install postgresql"
+      echo "$ $cmd"
+      $cmd
+    } || exit 1
+  }
+
+  # setup user if required
+  psql -U "$DATABASE_USERNAME" postgres -c '' &> /dev/null || {
+    bash script/confirm.bash "Create new PostgreSQL user $DATABASE_USERNAME" && {
+      cmd="sudo -u postgres createuser --superuser $DATABASE_USERNAME"
       echo "$ $cmd"
       $cmd
     } || exit 1
@@ -42,13 +38,24 @@ if [[ $DATABASE ]] ; then
 fi
 
 # setup database if required
+if [[ $DATABASE ]] ; then
+  psql -U "$DATABASE_USERNAME" "$DATABASE" -c '' &> /dev/null || {
+    bash script/confirm.bash "Create new PostgreSQL database $DATABASE" && {
+      cmd=(createdb -U "$DATABASE_USERNAME" "$DATABASE")
+      echo "$ ${cmd[@]}"
+      "${cmd[@]}"
+    } || exit 1
+  }
+fi
+
+# setup test database if required
 if [[ $TEST_DATABASE ]] ; then
-  psql -U$DATABASE_USERNAME $TEST_DATABASE -c '' &> /dev/null || {
+  psql -U "$DATABASE_USERNAME" "$TEST_DATABASE" -c '' &> /dev/null || {
     bash script/confirm.bash "Create new PostgreSQL database $TEST_DATABASE" && {
-      cmd="sudo -u postgres createdb $TEST_DATABASE"
-      echo "$ $cmd"
-      $cmd
-    } || exit
+      cmd=(createdb -U "$DATABASE_USERNAME" "$TEST_DATABASE")
+      echo "$ ${cmd[@]}"
+      "${cmd[@]}"
+    } || exit 1
   }
 fi