+Generate a new database password. Nobody ever needs to memorize it or type it, so we'll make a strong one:
+
+<notextile>
+<pre><code>~/arvados/services/api$ <span class="userinput">ruby -e 'puts rand(2**128).to_s(36)'</span>
+6gqa1vu492idd7yca9tfandj3
+</code></pre></notextile>
+
+Create a new database user with permission to create its own databases.
+
+<notextile>
+<pre><code>~/arvados/services/api$ <span class="userinput">sudo -u postgres createuser --createdb --encrypted --pwprompt arvados</span>
+[sudo] password for <b>you</b>: <span class="userinput">yourpassword</span>
+Enter password for new role: <span class="userinput">paste-password-you-generated</span>
+Enter it again: <span class="userinput">paste-password-again</span>
+Shall the new role be a superuser? (y/n) <span class="userinput">n</span>
+Shall the new role be allowed to create more new roles? (y/n) <span class="userinput">n</span>
+</code></pre></notextile>
+
+Configure API server to connect to your database by creating and updating @config/database.yml@. Replace the @xxxxxxxx@ database password placeholders with the new password you generated above.