-you want to do something like this
-
-$ su
-# mysqladmin create openstreetmap
-# mysql
-> grant all privileges on openstreetmap.* to 'openstreetmap'@'localhost' identified by 'openstreetmap';
-> exit
-# exit
-$ mysql openstreetmap -u openstreetmap -p < db/create_database.sql
+Creating database
+===================
+
+OSM server uses a Postgres database with the following name:
+
+openstreetmap
+
+You may create it with your preferable client or run next (linux) command:
+
+$ createdb openstreetmap
+
+Creating functions for PgSQL
+==============================
+
+Run this command in the db/functions directory:
+
+$ make libpgosm.so
+
+You might also need to install:
+- postgresql development libraries: $ sudo apt-get install postgresql-server-dev-8.3
+- ruby development libraries: $ sudo apt-get install ruby1.8-dev
+for build to succeed.
+
+Now create the function as follows:
+
+$ psql openstreetmap
+(This may need authentication or a -u <dbowneruid>)
+
+> CREATE FUNCTION maptile_for_point(int8, int8, int4) RETURNS int4
+ AS '/path/to/rails-port/db/functions/libpgosm.so', 'maptile_for_point'
+ LANGUAGE C STRICT;
+
+Creating database skeleton tables
+===================================
+
+Run this command from the root of your rails directory:
+
+$ rake db:migrate
+
+This will create the db for you
+
+You will need to make sure the database connection is configured in database.yml in config directory
+You might start with example configuration provided:
+$ cp config/example.database.yml config/database.yml