diff --git a/lib/index.js b/lib/index.js
index f05ec152..6dab1339 100644
--- a/lib/index.js
+++ b/lib/index.js
@@ -2,26 +2,26 @@ var EventEmitter = require('events').EventEmitter;
 var util = require('util');
 var Client = require(__dirname+'/client');
 var defaults =  require(__dirname + '/defaults');
-
-//external genericPool module
-var genericPool = require('generic-pool');
-
-//cache of existing client pools
-var pools = {};
+var pool = require(__dirname + '/pool');
+var types = require(__dirname + '/types');
+var Connection = require(__dirname + '/connection');
 
 var PG = function(clientConstructor) {
   EventEmitter.call(this);
-  this.Client = clientConstructor;
-  this.Connection = require(__dirname + '/connection');
-  this.Query = clientConstructor.Query;
   this.defaults = defaults;
+  this.Client = pool.Client = clientConstructor;
+  this.Query = this.Client.Query;
+  this.pools = pool;
+  this.types = types;
+  this.Connection = Connection;
 };
 
 util.inherits(PG, EventEmitter);
 
 PG.prototype.end = function() {
-  Object.keys(pools).forEach(function(name) {
-    var pool = pools[name];
+  var self = this;
+  Object.keys(self.pools.all).forEach(function(key) {
+    var pool = self.pools.all[key];
     pool.drain(function() {
       pool.destroyAllNow();
     });
@@ -29,51 +29,16 @@ PG.prototype.end = function() {
 };
 
 PG.prototype.connect = function(config, callback) {
-  var self = this;
-  var c = config;
-  var cb = callback;
-  //allow for no config to be passed
-  if(typeof c === 'function') {
-    cb = c;
-    c = defaults;
+  if(typeof config == "function") {
+    callback = config;
+    config = null;
+  }
+  var pool = this.pools.getOrCreate(config);
+  pool.connect(callback);
+  if(!pool.listeners('error').length) {
+    //propagate errors up to pg object
+    pool.on('error', this.emit.bind(this, 'error'));
   }
-
-  //get unique pool name even if object was used as config
-  var poolName = typeof(c) === 'string' ? c : c.user+c.host+c.port+c.database;
-  var pool = pools[poolName];
-
-  if(pool) { return pool.acquire(cb); }
-
-  pool = pools[poolName] = genericPool.Pool({
-    name: poolName,
-    create: function(callback) {
-      var client = new self.Client(c);
-      client.connect(function(err) {
-        if(err) { return callback(err); }
-
-        //handle connected client background errors by emitting event
-        //via the pg object and then removing errored client from the pool
-        client.on('error', function(e) {
-          self.emit('error', e, client);
-          pool.destroy(client);
-        });
-
-        callback(null, client);
-      });
-
-      client.on('drain', function() {
-        pool.release(client);
-      });
-    },
-    destroy: function(client) {
-      client.end();
-    },
-    max: defaults.poolSize,
-    idleTimeoutMillis: defaults.poolIdleTimeout,
-    reapIntervalMillis: defaults.reapIntervalMillis,
-    log: defaults.poolLog
-  });
-  return pool.acquire(cb);
 };
 
 // cancel the query runned by the given client
@@ -96,4 +61,3 @@ module.exports.__defineGetter__("native", function() {
   return module.exports.native;
 });
 
-module.exports.types = require('./types');
diff --git a/lib/pool.js b/lib/pool.js
new file mode 100644
index 00000000..15cf77ed
--- /dev/null
+++ b/lib/pool.js
@@ -0,0 +1,107 @@
+var EventEmitter = require('events').EventEmitter;
+
+var defaults = require(__dirname + '/defaults');
+var genericPool = require('generic-pool');
+
+var pools = {
+  //dictionary of all key:pool pairs
+  all: {},
+  //reference to the client constructor - can override in tests or for require('pg').native
+  Client: require(__dirname + '/client'),
+  getOrCreate: function(clientConfig) {
+    clientConfig = clientConfig || {};
+    var name = JSON.stringify(clientConfig);
+    var pool = pools.all[name];
+    if(pool) {
+      return pool;
+    }
+    pool = genericPool.Pool({
+      name: name,
+      max: defaults.poolSize,
+      idleTimeoutMillis: defaults.poolIdleTimeout,
+      reapIntervalMillis: defaults.reapIntervalMillis,
+      log: defaults.poolLog,
+      create: function(cb) {
+        var client = new pools.Client(clientConfig);
+        client.connect(function(err) {
+          if(err) return cb(err, null);
+
+          //handle connected client background errors by emitting event
+          //via the pg object and then removing errored client from the pool
+          client.on('error', function(e) {
+            pool.emit('error', e, client);
+            pool.destroy(client);
+          });
+
+          return cb(null, client);
+        });
+      },
+      destroy: function(client) {
+        client.end();
+      }
+    });
+    pools.all[name] = pool;
+    //mixin EventEmitter to pool
+    EventEmitter.call(pool);
+    for(var key in EventEmitter.prototype) {
+      if(EventEmitter.prototype.hasOwnProperty(key)) {
+        pool[key] = EventEmitter.prototype[key];
+      }
+    }
+    //monkey-patch with connect method
+    pool.connect = function(cb) {
+      pool.acquire(function(err, client) {
+        if(err)  return cb(err, null, function() {/*NOOP*/});
+        //support both 2 (old) and 3 arguments
+        (cb.length > 2 ? newConnect : oldConnect)(pool, client, cb);
+      });
+    };
+    return pool;
+  }
+};
+
+//the old connect method of the pool
+//would automatically subscribe to the 'drain'
+//event and automatically return the client to
+//the pool once 'drain' fired once.  This caused
+//a bunch of problems, but for backwards compatibility
+//we're leaving it in
+var alarmDuration = 5000;
+var errorMessage = [
+  'A client has been checked out from the pool for longer than ' + alarmDuration + ' ms.',
+  'You might have a leak!',
+  'You should use the following new way to check out clients','pg.connect(function(err, client, done)) {',
+  '  //do something',
+  '  done();  //call done() to signal you are finished with the client',
+  '}'
+].join(require('os').EOL);
+
+var oldConnect = function(pool, client, cb) {
+  var tid = setTimeout(function() {
+    console.error(errorMessage);
+  }, alarmDuration);
+  var onError = function() {
+    clearTimeout(tid);
+    client.removeListener('drain', release);
+  };
+  var release = function() {
+    clearTimeout(tid);
+    pool.release(client);
+    client.removeListener('error', onError);
+  };
+  client.once('drain', release);
+  client.once('error', onError);
+  cb(null, client);
+};
+
+var newConnect = function(pool, client, cb) {
+  cb(null, client, function(err) {
+    if(err) {
+      pool.destroy(client);
+    } else {
+      pool.release(client);
+    }
+  });
+};
+
+module.exports = pools;
diff --git a/test/integration/connection-pool/optional-config-tests.js b/test/integration/connection-pool/optional-config-tests.js
index d3ddc509..690be7f2 100644
--- a/test/integration/connection-pool/optional-config-tests.js
+++ b/test/integration/connection-pool/optional-config-tests.js
@@ -10,5 +10,11 @@ helper.pg.defaults.poolSize = 1;
 
 helper.pg.connect(assert.calls(function(err, client) {
   assert.isNull(err);
-  client.end();
+  client.query('SELECT NOW()');
+  client.once('drain', function() {
+    setTimeout(function() {
+      helper.pg.end();
+      
+    }, 10);
+  });
 }));
diff --git a/test/integration/connection-pool/test-helper.js b/test/integration/connection-pool/test-helper.js
index cc86677d..199407cd 100644
--- a/test/integration/connection-pool/test-helper.js
+++ b/test/integration/connection-pool/test-helper.js
@@ -9,7 +9,7 @@ helper.testPoolSize = function(max) {
     for(var i = 0; i < max; i++) {
       helper.pg.poolSize = 10;
       test("connection  #" + i + " executes", function() {
-        helper.pg.connect(helper.config, function(err, client) {
+        helper.pg.connect(helper.config, function(err, client, done) {
           assert.isNull(err);
           client.query("select * from person", function(err, result) {
             assert.lengthIs(result.rows, 26)
@@ -19,7 +19,8 @@ helper.testPoolSize = function(max) {
           })
           var query = client.query("SELECT * FROM NOW()")
           query.on('end',function() {
-            sink.add()
+            sink.add();
+            done();
           })
         })
       })
diff --git a/test/integration/connection-pool/unique-name-tests.js b/test/integration/connection-pool/unique-name-tests.js
deleted file mode 100644
index a92a0041..00000000
--- a/test/integration/connection-pool/unique-name-tests.js
+++ /dev/null
@@ -1,63 +0,0 @@
-var helper = require(__dirname + '/test-helper');
-
-helper.pg.defaults.poolSize = 1;
-helper.pg.defaults.user = helper.args.user;
-helper.pg.defaults.password = helper.args.password;
-helper.pg.defaults.database = helper.args.database;
-helper.pg.defaults.port = helper.args.port;
-helper.pg.defaults.host = helper.args.host;
-helper.pg.defaults.binary = helper.args.binary;
-helper.pg.defaults.poolIdleTimeout = 100;
-
-var moreArgs = {};
-for (c in helper.config) {
-  moreArgs[c] = helper.config[c];
-}
-moreArgs.zomg = true;
-
-var badArgs = {};
-for (c in helper.config) {
-  badArgs[c] = helper.config[c];
-}
-
-badArgs.user = badArgs.user + 'laksdjfl';
-badArgs.password = badArgs.password + 'asldkfjlas';
-badArgs.zomg = true;
-
-test('connecting with complete config', function() {
-
-  helper.pg.connect(helper.config, assert.calls(function(err, client) {
-    assert.isNull(err);
-    client.iGotAccessed = true;
-    client.query("SELECT NOW()")
-  }));
-
-});
-
-test('connecting with different config object', function() {
-
-  helper.pg.connect(moreArgs, assert.calls(function(err, client) {
-    assert.isNull(err);
-    assert.ok(client.iGotAccessed === true)
-    client.query("SELECT NOW()");
-  }))
-
-});
-
-test('connecting with all defaults', function() {
-
-  helper.pg.connect(assert.calls(function(err, client) {
-    assert.isNull(err);
-    assert.ok(client.iGotAccessed === true);
-    client.end();
-  }));
-
-});
-
-test('connecting with invalid config', function() {
-
-  helper.pg.connect(badArgs, assert.calls(function(err, client) {
-    assert.ok(err != null, "Expected connection error using invalid connection credentials");
-  }));
-
-});
diff --git a/test/unit/pool/basic-tests.js b/test/unit/pool/basic-tests.js
new file mode 100644
index 00000000..b96937ee
--- /dev/null
+++ b/test/unit/pool/basic-tests.js
@@ -0,0 +1,192 @@
+var util = require('util');
+var EventEmitter = require('events').EventEmitter;
+
+var libDir = __dirname + '/../../../lib';
+var defaults = require(libDir + '/defaults');
+var pools = require(libDir + '/pool');
+var poolId = 0;
+
+require(__dirname + '/../../test-helper');
+
+var FakeClient = function() {
+  EventEmitter.call(this);
+}
+
+util.inherits(FakeClient, EventEmitter);
+
+FakeClient.prototype.connect = function(cb) {
+  process.nextTick(cb);
+}
+
+FakeClient.prototype.end = function() {
+  this.endCalled = true;
+}
+
+//Hangs the event loop until 'end' is called on client
+var HangingClient = function(config) {
+  EventEmitter.call(this);
+  this.config = config;
+}
+
+util.inherits(HangingClient, EventEmitter);
+
+HangingClient.prototype.connect = function(cb) {
+  this.intervalId = setInterval(function() {
+    console.log('hung client...');
+  }, 1000);
+  process.nextTick(cb);
+}
+
+HangingClient.prototype.end = function() {
+  clearInterval(this.intervalId);
+}
+
+pools.Client = FakeClient;
+
+test('no pools exist', function() {
+  assert.empty(Object.keys(pools.all));
+});
+
+test('pool creates pool on miss', function() {
+  var p = pools.getOrCreate();
+  assert.ok(p);
+  assert.equal(Object.keys(pools.all).length, 1);
+  var p2 = pools.getOrCreate();
+  assert.equal(p, p2);
+  assert.equal(Object.keys(pools.all).length, 1);
+  var p3 = pools.getOrCreate("pg://postgres:password@localhost:5432/postgres");
+  assert.notEqual(p, p3);
+  assert.equal(Object.keys(pools.all).length, 2);
+});
+
+test('pool follows defaults', function() {
+  var p = pools.getOrCreate(poolId++);
+  for(var i = 0; i < 100; i++) {
+    p.acquire(function(err, client) {
+    });
+  }
+  assert.equal(p.getPoolSize(), defaults.poolSize);
+});
+
+test('pool#connect with 2 parameters (legacy, for backwards compat)', function() {
+  var p = pools.getOrCreate(poolId++);
+  p.connect(assert.success(function(client) {
+    assert.ok(client);
+    assert.equal(p.availableObjectsCount(), 0);
+    assert.equal(p.getPoolSize(), 1);
+    client.emit('drain');
+    assert.equal(p.availableObjectsCount(), 1);
+    assert.equal(p.getPoolSize(), 1);
+    p.destroyAllNow();
+  }));
+});
+
+test('pool#connect with 3 parameters', function() {
+  var p = pools.getOrCreate(poolId++);
+  var tid = setTimeout(function() {
+    throw new Error("Connection callback was never called");
+  }, 100);
+  p.connect(function(err, client, done) {
+    clearTimeout(tid);
+    assert.equal(err, null);
+    assert.ok(client);
+    assert.equal(p.availableObjectsCount(), 0);
+    assert.equal(p.getPoolSize(), 1);
+    client.emit('drain');
+    assert.equal(p.availableObjectsCount(), 0);
+    assert.equal(p.getPoolSize(), 1);
+    done();
+    assert.equal(p.availableObjectsCount(), 1);
+    assert.equal(p.getPoolSize(), 1);
+    p.destroyAllNow();
+  });
+});
+
+test('on client error, client is removed from pool', function() {
+  var p = pools.getOrCreate(poolId++);
+  p.connect(assert.success(function(client) {
+    assert.ok(client);
+    client.emit('drain');
+    assert.equal(p.availableObjectsCount(), 1);
+    assert.equal(p.getPoolSize(), 1);
+    //error event fires on pool BEFORE pool.destroy is called with client
+    assert.emits(p, 'error', function(err) {
+      assert.equal(err.message, 'test error');
+      assert.ok(!client.endCalled);
+      assert.equal(p.availableObjectsCount(), 1);
+      assert.equal(p.getPoolSize(), 1);
+      //after we're done in our callback, pool.destroy is called
+      process.nextTick(function() {
+        assert.ok(client.endCalled);
+        assert.equal(p.availableObjectsCount(), 0);
+        assert.equal(p.getPoolSize(), 0);
+        p.destroyAllNow();
+      });
+    });
+    client.emit('error', new Error('test error'));
+  }));
+});
+
+test('pool with connection error on connection', function() {
+  pools.Client = function() {
+    return {
+      connect: function(cb) {
+        process.nextTick(function() {
+          cb(new Error('Could not connect'));
+        });
+      }
+    };
+  }
+  test('two parameters', function() {
+    var p = pools.getOrCreate(poolId++);
+    p.connect(assert.calls(function(err, client) {
+      assert.ok(err);
+      assert.equal(client, null);
+      //client automatically removed
+      assert.equal(p.availableObjectsCount(), 0);
+      assert.equal(p.getPoolSize(), 0);
+    }));
+  });
+  test('three parameters', function() {
+    var p = pools.getOrCreate(poolId++);
+    var tid = setTimeout(function() {
+      assert.fail('Did not call connect callback');
+    }, 100);
+    p.connect(function(err, client, done) {
+      clearTimeout(tid);
+      assert.ok(err);
+      assert.equal(client, null);
+      //done does nothing
+      done(new Error('OH NOOOO'));
+      done();
+      assert.equal(p.availableObjectsCount(), 0);
+      assert.equal(p.getPoolSize(), 0);
+    });
+  });
+});
+
+test('returnning an error to done()', function() {
+  var p = pools.getOrCreate(poolId++);
+  pools.Client = FakeClient;
+  p.connect(function(err, client, done) {
+    assert.equal(err, null);
+    assert(client);
+    done(new Error("BROKEN"));
+    assert.equal(p.availableObjectsCount(), 0);
+    assert.equal(p.getPoolSize(), 0);
+  });
+});
+
+test('fetching pool by object', function() {
+  var p = pools.getOrCreate({
+    user: 'brian',
+    host: 'localhost',
+    password: 'password'
+  });
+  var p2 = pools.getOrCreate({
+    user: 'brian',
+    host: 'localhost',
+    password: 'password'
+  });
+  assert.equal(p, p2);
+});
diff --git a/test/unit/pool/timeout-tests.js b/test/unit/pool/timeout-tests.js
new file mode 100644
index 00000000..0fc96b2d
--- /dev/null
+++ b/test/unit/pool/timeout-tests.js
@@ -0,0 +1,42 @@
+var util = require('util');
+var EventEmitter = require('events').EventEmitter;
+
+var libDir = __dirname + '/../../../lib';
+var defaults = require(libDir + '/defaults');
+var pools = require(libDir + '/pool');
+var poolId = 0;
+
+require(__dirname + '/../../test-helper');
+
+var FakeClient = function() {
+  EventEmitter.call(this);
+}
+
+util.inherits(FakeClient, EventEmitter);
+
+FakeClient.prototype.connect = function(cb) {
+  process.nextTick(cb);
+}
+
+FakeClient.prototype.end = function() {
+  this.endCalled = true;
+}
+
+defaults.poolIdleTimeout = 10;
+defaults.reapIntervalMillis = 10;
+
+test('client times out from idle', function() {
+  pools.Client = FakeClient;
+  var p = pools.getOrCreate(poolId++);
+  p.connect(function(err, client, done) {
+    done();
+  });
+  process.nextTick(function() {
+    assert.equal(p.availableObjectsCount(), 1);
+    assert.equal(p.getPoolSize(), 1);
+    setTimeout(function() {
+      assert.equal(p.availableObjectsCount(), 0);
+      assert.equal(p.getPoolSize(), 0);
+    }, 50);
+  });
+});