I was running PostgreSQL 9.1, installed from Postgres (/Library/PostgreSQL/9.1) - ie not homebrew etc and on Mac OSX Leopard.
I upgraded to Snow Leopard and then immediately to Mountain Lion and had a mass of problems with gems failing to build etc, but got them fixed
Rails server crashed on startup with pg issues & I tried everything I could find but could not fix the prob - fixes included links etc, which may still persist (hence this background info might inform the solution)
I uninstalled postgresql 9.1 and installed Postgres App
Now on rake db:create I get the following:
rake aborted!
dlopen(/Users/mitch/.rvm/gems/ruby-1.9.2-p320@tme-3.2.11-mltest/gems/pg-0.17.0/lib/pg_ext.bundle, 9): Library not loaded: @loader_path/../lib/libpq.5.dylib
Referenced from: /Users/mitch/.rvm/gems/ruby-1.9.2-p320@tme-3.2.11-mltest/gems/pg-0.17.0/lib/pg_ext.bundle
Reason: no suitable image found. Did find:
/usr/local/lib/libpq.5.dylib: mach-o, but wrong architecture - /Users/mitch/.rvm/gems/ruby-1.9.2-p320@tme-3.2.11-mltest/gems/pg-0.17.0/lib/pg_ext.bundle
I'm running rvm (as u can see) and after the OS upgrade created a new gemset and installed Ruby
I've changed my path to reflect the advice of Postgresql App, after the OS upgrade I installed Xcode 5 and the command line tools as advised and I think my database.yaml file is ok
I suspect the problem might be connected with sym-links made earlier in the process, but I'm stuck to find the solution