diff --git a/lib/connection-parameters.js b/lib/connection-parameters.js
index eef40d59..cf78661a 100644
--- a/lib/connection-parameters.js
+++ b/lib/connection-parameters.js
@@ -27,7 +27,9 @@ var parse = function(str) {
     return { host: config[0], database: config[1] };
   }
   // url parse expects spaces encoded as %20
-  if(/ |%[^a-f0-9]|%[a-f0-9][^a-f0-9]/i.test(str)) str = encodeURI(str);
+  if(/ |%[^a-f0-9]|%[a-f0-9][^a-f0-9]/i.test(str)) {
+    str = encodeURI(str).replace(/\%25(\d\d)/g, "%$1");
+  }
   var result = url.parse(str, true);
   config = {};
 
diff --git a/test/unit/connection-parameters/creation-tests.js b/test/unit/connection-parameters/creation-tests.js
index aaab1215..8ccd9886 100644
--- a/test/unit/connection-parameters/creation-tests.js
+++ b/test/unit/connection-parameters/creation-tests.js
@@ -184,17 +184,26 @@ test('libpq connection string building', function() {
     assert.equal(subject.password, sourceConfig.password);
   });
 
-  test('password contains weird characters', function() {
+  test('username or password contains weird characters', function() {
     var defaults = require('../../../lib/defaults');
     defaults.ssl = true;
-    var strang = 'postgres://my first name:is&%awesome!@localhost:9000';
+    var strang = 'pg://my f%irst name:is&%awesome!@localhost:9000';
     var subject = new ConnectionParameters(strang);
-    assert.equal(subject.user, 'my first name');
+    assert.equal(subject.user, 'my f%irst name');
     assert.equal(subject.password, 'is&%awesome!');
     assert.equal(subject.host, 'localhost');
     assert.equal(subject.ssl, true);
   });
 
+  test("url is properly encoded", function() {
+    var encoded = "pg://bi%25na%25%25ry%20:s%40f%23@localhost/%20u%2520rl";
+    var subject = new ConnectionParameters(encoded);
+    assert.equal(subject.user, "bi%na%%ry ");
+    assert.equal(subject.password, "s@f#");
+    assert.equal(subject.host, 'localhost');
+    assert.equal(subject.database, " u%20rl");
+  });
+
   test('ssl is set on client', function() {
     var Client = require('../../../lib/client')
     var defaults = require('../../../lib/defaults');