diff --git a/docs/configuration.rst b/docs/configuration.rst
index 4e04e7a6..5b787075 100644
--- a/docs/configuration.rst
+++ b/docs/configuration.rst
@@ -27,7 +27,10 @@ format used can be found on `the SQLAlchemy documentation`_.
 If you're using PostgreSQL, Your client must use utf8. Unfortunately,
 PostgreSQL default is to use ASCII. Either change your client settings,
 or specify the encoding by appending ``?client_encoding=utf8`` to the
-connection string.
+connection string. This will look like::
+
+    SQLALCHEMY_DATABASE_URI = 'postgresql://myuser:mypass@localhost/dbname?client_encoding=utf8'
+
 
 `SECRET_KEY`
 ------------
diff --git a/docs/installation.rst b/docs/installation.rst
index ab8fc577..5084a32f 100644
--- a/docs/installation.rst
+++ b/docs/installation.rst
@@ -89,7 +89,14 @@ Configure database with PostgreSQL (optional)
 
     pip install psycopg2
 
-2. Configure :ref:`SQLALCHEMY_DATABASE_URI <configuration>` accordingly
+2. Create the users and tables. On the command line, this looks like::
+
+    sudo -u postgres psql
+    postgres=# create database mydb;
+    postgres=# create user myuser with encrypted password 'mypass';
+    postgres=# grant all privileges on database mydb to myuser;
+
+3. Configure :ref:`SQLALCHEMY_DATABASE_URI <configuration>` accordingly.
 
 
 Deploy it