diff --git a/README.md b/README.md
index b07593f67..01a56d6bf 100644
--- a/README.md
+++ b/README.md
@@ -22,16 +22,14 @@ No release has been made yet, but several servers have been online for months al
 ### Dependencies
 
 * Postgresql version 9.6 or newer
-* Elixir version 1.4 or newer
+* Elixir version 1.4 or newer (you will also need erlang-dev, erlang-parsetools, erlang-xmerl packages)
 * Build-essential tools
 
 ### Configuration
 
   * Run `mix deps.get` to install elixir dependencies.
 
-  * Run `mix generate_config`. This will ask you a few questions about your instance and generate a configuration file in `config/generated_config.exs`. Check that and copy it to either `config/dev.secret.exs` or `config/prod.secret.exs`.
-
-  * Configure your database settings in `{dev,prod}.secret.exs` and either create the database with psql or run `mix ecto.create`.
+  * Run `mix generate_config`. This will ask you a few questions about your instance and generate a configuration file in `config/dev.secret.exs` and `config/prod.secret.exs`. It will also create a `config/db_setup.psql`, which you need to run as PostgreSQL superuser (i.e. `sudo su - postgre -c "psql -f config/db_setup.psql"`). It will setup a pleroma db user, database and will setup needed extensions that need to be set up once as superuser.
 
   * Run `mix ecto.migrate` to run the database migrations. You will have to do this again after certain updates.
 
diff --git a/lib/mix/tasks/generate_config.ex b/lib/mix/tasks/generate_config.ex
index b3bc14d5b..f9399b114 100644
--- a/lib/mix/tasks/generate_config.ex
+++ b/lib/mix/tasks/generate_config.ex
@@ -4,14 +4,19 @@ defmodule Mix.Tasks.GenerateConfig do
   @shortdoc "Generates a new config"
   def run(_) do
     IO.puts("Answer a few questions to generate a new config\n")
-    IO.puts("--- THIS WILL OVERWRITE YOUR config/generated_config.exs! ---\n")
+    IO.puts("--- THIS WILL OVERWRITE YOUR config/dev.secret.exs AND config/prod.secret.exs! ---\n")
     domain = IO.gets("What is your domain name? (e.g. pleroma.soykaf.com): ") |> String.trim
     name = IO.gets("What is the name of your instance? (e.g. Pleroma/Soykaf): ") |> String.trim
     email = IO.gets("What's your admin email address: ") |> String.trim
     secret =  :crypto.strong_rand_bytes(64) |> Base.encode64 |> binary_part(0, 64)
+    dbpass =  :crypto.strong_rand_bytes(64) |> Base.encode64 |> binary_part(0, 64)
 
-    result = EEx.eval_file("lib/mix/tasks/sample_config.eex", [domain: domain, email: email, name: name, secret: secret])
-    IO.puts("\nWriting config to config/generated_config.exs.\n\nCheck it and configure your database, then copy it to either config/dev.secret.exs or config/prod.secret.exs")
-    File.write("config/generated_config.exs", result)
+    resultSql = EEx.eval_file("lib/mix/tasks/sample_psql.eex", [dbpass: dbpass])
+    result = EEx.eval_file("lib/mix/tasks/sample_config.eex", [domain: domain, email: email, name: name, secret: secret, dbpass: dbpass])
+    IO.puts("\nWriting config to config/dev.secret.exs and config/prod.secret.exs")
+    IO.puts("\nWriting setup_db.psql, please run it as postgre superuser, i.e. su - postgre -c 'psql -f setup_db.psql'")
+    File.write("config/dev.secret.exs", result)
+    File.write("config/prod.secret.exs", result)
+    File.write("config/setup_db.psql", resultSql)
   end
 end
diff --git a/lib/mix/tasks/sample_config.eex b/lib/mix/tasks/sample_config.eex
index 62a9804fe..85a7c554e 100644
--- a/lib/mix/tasks/sample_config.eex
+++ b/lib/mix/tasks/sample_config.eex
@@ -13,8 +13,8 @@ config :pleroma, :instance,
 # Configure your database
 config :pleroma, Pleroma.Repo,
   adapter: Ecto.Adapters.Postgres,
-  username: "postgres",
-  password: "postgres",
+  username: "pleroma",
+  password: "<%= dbpass %>",
   database: "pleroma_dev",
   hostname: "localhost",
   pool_size: 10
diff --git a/lib/mix/tasks/sample_psql.eex b/lib/mix/tasks/sample_psql.eex
new file mode 100644
index 000000000..5353fa216
--- /dev/null
+++ b/lib/mix/tasks/sample_psql.eex
@@ -0,0 +1,6 @@
+CREATE USER pleroma WITH ENCRYPTED PASSWORD '<%= dbpass %>' CREATEDB;
+CREATE DATABASE pleroma_dev;
+ALTER DATABASE pleroma_dev OWNER TO pleroma;
+\c pleroma_dev;
+--Extensions made by ecto.migrate that need superuser access
+CREATE EXTENSION citext;