diff --git a/examples/postgres_db/Dockerfile b/examples/postgres_db/Dockerfile
new file mode 100644
index 00000000..97a1596b
--- /dev/null
+++ b/examples/postgres_db/Dockerfile
@@ -0,0 +1,5 @@
+FROM postgres:9.3
+RUN mkdir /docker-entrypoint-initdb.d
+COPY initdb.sh /docker-entrypoint-initdb.d/init.sh
+# Set your own password here.
+ENV JPY_PSQL_PASSWORD arglebargle
diff --git a/examples/postgres_db/README.md b/examples/postgres_db/README.md
new file mode 100644
index 00000000..e69de29b
diff --git a/examples/postgres_db/initdb.sh b/examples/postgres_db/initdb.sh
new file mode 100644
index 00000000..a8cb585d
--- /dev/null
+++ b/examples/postgres_db/initdb.sh
@@ -0,0 +1,16 @@
+#!/bin/bash
+
+# Start a postgres daemon, ignoring log output.
+
+gosu postgres pg_ctl start -w -l /dev/null
+
+gosu postgres psql -c "CREATE DATABASE jupyterhub;"
+gosu postgres psql -c "CREATE USER jupyterhub WITH ENCRYPTED PASSWORD '$JPY_PSQL_PASSWORD';"
+gosu postgres psql -c "GRANT ALL PRIVILEGES ON DATABASE jupyterhub TO jupyterhub;"
+
+# Alter pg_hba.conf to actually require passwords.
+# The default image exposes allows any user to connect without requiring a
+# password.
+sed -ri -e 's/(host all all 0.0.0.0\/0 )(trust)/\1md5/' "$PGDATA"/pg_hba.conf
+
+gosu postgres pg_ctl stop -w