To get PostgreSQL 8.4 and the Pg gem installed from scratch on Mac OS X Leopard, and assuming you have XCode 3.1 and MacPorts 1.600 installed:
Install PostgreSQL from MacPort
sudo port install postgresql84 postgresql84-server
Setup your database. PostgreSQL suggests the following commands:
sudo mkdir -p /opt/local/var/db/postgresql84/defaultdb
sudo chown postgres:postgres /opt/local/var/db/postgresql84/defaultdb
sudo su postgres -c '/opt/local/lib/postgresql84/bin/initdb -D /opt/local/var/db/postgresql84/defaultdb'
Add /opt/local/lib/postgresql84/bin to your PATH. This usually goes in ~/.bash_profile or ~/.profile
Install the Ruby gem
sudo gem install pg
Change the postgres user’s password
sudo su - root
passwd postgres
Create a helper script in your local bin directory
ln -s /opt/local/etc/LaunchDaemons/org.macports.postgresql84-server/postgresql84-server.wrapper ~/local/bin/pgsql.server
To start and stop Postgres
cd ~/local/bin
pgsql.server start
pgsql.server stop