diff --git a/scripts/setup/create-database b/scripts/setup/create-database
new file mode 100755
index 0000000000..f9660a1869
--- /dev/null
+++ b/scripts/setup/create-database
@@ -0,0 +1,11 @@
+#!/bin/sh -xe
+
+ln -s /var/cache/postgresql/dicts/en_us.dict /usr/share/postgresql/9.1/tsearch_data/en_us.dict
+ln -s /var/cache/postgresql/dicts/en_us.affix /usr/share/postgresql/9.1/tsearch_data/en_us.affix
+
+echo "DROP SCHEMA zulip CASCADE; CREATE SCHEMA zulip;" | python manage.py dbshell
+
+python manage.py syncdb --noinput
+python manage.py migrate
+python manage.py createcachetable third_party_api_results
+python manage.py initialize_local_server_db
diff --git a/scripts/setup/install b/scripts/setup/install
index 37b9da38f7..c801a292c3 100755
--- a/scripts/setup/install
+++ b/scripts/setup/install
@@ -38,17 +38,19 @@ ln -nsf /etc/zulip/settings.py /root/zulip/zproject/local_settings.py
 
 /root/zulip/scripts/setup/configure-rabbitmq
 
-chown zulip:zulip /var/run/supervisor.sock
+/root/zulip/scripts/setup/postgres-init-db
+/root/zulip/scripts/setup/create-database
 
 deploy_path=$($(dirname $(dirname $0))/unpack-zulip "$tarball")
 ln -nsf "$deploy_path" /home/zulip/deployments/current
 chown -R zulip:zulip /home/zulip/deployments
 
+chown zulip:zulip /var/run/supervisor.sock
+supervisorctl restart all
+
 set +x
 cat <<EOF
 
  Done.
 
- Now do the next step!
-
 EOF