You may create it with your preferable client or run next (linux) command:
-$ mysqladmin -u <uid> -p create openstreetmap
+$ mysql -u <uid> -p
(change <uid> with appropriate username of administrative user eg. root )
+> create database openstreetmap default character set utf8;
+> exit
+
Creating user, password, and access rights
============================================
> flush privileges;
> exit
-Creating database skeleton tables
-===================================
+Creating functions For MySQL
+==============================
+
+Run this command in the db/functions directory:
-$ mysql openstreetmap -u openstreetmap -p < db/create_database.sql
+$ make libmyosm.so
-New server patch (RAILS)
-==========================
+Make sure the db/functions directory is on the MySQL server's library
+path and restart the MySQL server.
+
+On Linux the easiest way to do this is to create /etc/ld.so.conf.d/osm.conf, and place the path to the db/functions directory in it and then run the ldconfig command as root.
+
+On OS X: sudo ln -s /path_to_your_osm_install/sites/rails_port/db/functions/libmyosm.so /usr/local/lib/libmyosm.so
+
+Now create the functions as follows:
+
+$ mysql -u <uid> -p openstreetmap
+
+(change <uid> with appropriate username of administrative user eg. root )
+
+> create function tile_for_point returns integer soname 'libmyosm.so';
+> create function maptile_for_point returns integer soname 'libmyosm.so';
+> exit
+
+Creating functions for PgSQL
+==============================
+
+Run this command in the db/functions directory:
+
+$ make libpgosm.so
+
+Now create the function as follows:
+
+$ psql openstreetmap
+(This may need authentication or a -u <dbowneruid>)
+
+> CREATE FUNCTION maptile_for_point(int8, int8, int4) RETURNS int4
+ AS '/path/to/rails-port/db/functions/libpgosm.so', 'maptile_for_point'
+ LANGUAGE C STRICT;
+
+Creating database skeleton tables
+===================================
-Run following command to prepare tables to be OSM RAILS distribution compatible:
+Run this command from the root of your rails directory:
-$ mysql openstreetmap -u openstreetmap -p < db/migrate.sql
+$ rake db:migrate
+This will create the db for you