diff --git a/railties/CHANGELOG b/railties/CHANGELOG
index d61a3b31352f3ebe102ab887ff97aa3f80cfc424..2a722cf97a8d4a373840a66b894a4c3cccb80e03 100644
--- a/railties/CHANGELOG
+++ b/railties/CHANGELOG
@@ -1,5 +1,7 @@
 *SVN*
 
+* Allow unit tests to run on a remote server for PostgreSQL #781 [adamm@galacticasoftware.com]
+
 * Added web_service generator (run ./script/generate web_service for help) #776 [Leon Bredt]
 
 * Added app/apis and components to code statistics report #729 [Scott Barron]
diff --git a/railties/fresh_rakefile b/railties/fresh_rakefile
index 394e0c3d2a68f7f2115534fdb45a58d8037b543a..fa9abbff66d3b3e97df666373b5ad5fd24f9b26a 100755
--- a/railties/fresh_rakefile
+++ b/railties/fresh_rakefile
@@ -120,7 +120,7 @@ task :clone_structure_to_test => [ :db_structure_dump, :purge_test_database ] do
         ActiveRecord::Base.connection.execute(table)
       end
     when  "postgresql"
-      `psql -U #{abcs["test"]["username"]} -f db/#{RAILS_ENV}_structure.sql #{abcs["test"]["database"]}`
+      `psql -U #{abcs["test"]["username"]} -h #{abcs["test"]["host"]} -f db/#{RAILS_ENV}_structure.sql #{abcs["test"]["database"]}`
     when "sqlite", "sqlite3"
       `#{abcs[RAILS_ENV]["adapter"]} #{abcs["test"]["dbfile"]} < db/#{RAILS_ENV}_structure.sql`
     else 
@@ -136,7 +136,7 @@ task :db_structure_dump => :environment do
       ActiveRecord::Base.establish_connection(abcs[RAILS_ENV])
       File.open("db/#{RAILS_ENV}_structure.sql", "w+") { |f| f << ActiveRecord::Base.connection.structure_dump }
     when  "postgresql"
-      `pg_dump -U #{abcs[RAILS_ENV]["username"]} -s -f db/#{RAILS_ENV}_structure.sql #{abcs[RAILS_ENV]["database"]}`
+      `pg_dump -U #{abcs[RAILS_ENV]["username"]} -h #{abcs[RAILS_ENV]["host"]} -s -f db/#{RAILS_ENV}_structure.sql #{abcs[RAILS_ENV]["database"]}`
     when "sqlite", "sqlite3"
       `#{abcs[RAILS_ENV]["adapter"]} #{abcs[RAILS_ENV]["dbfile"]} .schema > db/#{RAILS_ENV}_structure.sql`
     else 
@@ -152,8 +152,8 @@ task :purge_test_database => :environment do
       ActiveRecord::Base.establish_connection(abcs[RAILS_ENV])
       ActiveRecord::Base.connection.recreate_database(abcs["test"]["database"])
     when "postgresql"
-      `dropdb -U #{abcs["test"]["username"]} #{abcs["test"]["database"]}`
-      `createdb -U #{abcs["test"]["username"]}  #{abcs["test"]["database"]}`
+      `dropdb -U #{abcs["test"]["username"]} -h #{abcs[RAILS_ENV]["host"]} #{abcs["test"]["database"]}`
+      `createdb -U #{abcs["test"]["username"]} -h #{abcs[RAILS_ENV]["host"]} #{abcs["test"]["database"]}`
     when "sqlite","sqlite3"
       File.delete(abcs["test"]["dbfile"]) if File.exist?(abcs["test"]["dbfile"])
     else