diff --git a/resources/setup/config/gitlabhq/database.yml b/resources/setup/config/gitlabhq/database.yml
new file mode 100644
index 00000000..6c4c8df5
--- /dev/null
+++ b/resources/setup/config/gitlabhq/database.yml
@@ -0,0 +1,10 @@
+production:
+  adapter: {{DB_ADAPTER}}
+  encoding: {{DB_ENCODING}}
+  reconnect: false
+  database: {{DB_NAME}}
+  host: {{DB_HOST}}
+  username: {{DB_USER}}
+  password: {{DB_PASS}}
+  pool: {{DB_POOL}}
+ 
diff --git a/resources/setup/install b/resources/setup/install
index 6e2d420e..ea1a5832 100755
--- a/resources/setup/install
+++ b/resources/setup/install
@@ -34,6 +34,7 @@ cd /home/git/gitlab
 # copy default configurations
 sudo -u git -H cp /gitlab/setup/config/gitlabhq/gitlab.yml config/gitlab.yml
 sudo -u git -H cp /gitlab/setup/config/gitlabhq/resque.yml config/resque.yml
+sudo -u git -H cp /gitlab/setup/config/gitlabhq/database.yml config/database.yml
 sudo -u git -H cp /gitlab/setup/config/gitlabhq/unicorn.rb config/unicorn.rb
 sudo -u git -H cp /gitlab/setup/config/gitlabhq/rack_attack.rb config/initializers/rack_attack.rb
 
@@ -65,20 +66,6 @@ else
   sudo -u git -H bundle install --deployment --without development test aws
 fi
 
-# add database.yml template
-sudo -u git -H cat > config/database.yml <<EOF
-production:
-  adapter: {{DB_ADAPTER}}
-  encoding: {{DB_ENCODING}}
-  reconnect: false
-  database: {{DB_NAME}}
-  host: {{DB_HOST}}
-  username: {{DB_USER}}
-  password: {{DB_PASS}}
-  pool: {{DB_POOL}}
-EOF
-chmod o-rwx config/database.yml
-
 sudo -u git -H cat > config/sidekiq.yml <<EOF
 :concurrency: {{SIDEKIQ_CONCURRENCY}}
 EOF