Set up Rails environment

Do following steps to setup rails environment in the local system

1) CSV : Git and Subversion

sudo aptitude install subversion
 sudo apt-get install git-core
And you can also installed the suggested package 
: git-doc git-arch git-cvs git-svn git-email 
git-daemon-run git-gui gitk gitweb diff-doc.
1) Database setup:
Mysql database:  sudo aptitude install mysql-server mysql-client
 sudo apt-get install postgresql postgresql-client postgresql-contrib
 sudo apt-get install pgadmin3
 sudo apt-get install libpq-dev
refer link
3) Development IDE : Netbeans
  First download the latest version for Ruby on and install it with sh.
  You need Java to run Netbeans
from command prompt type:
sudo sh ./ (path where your netbeans exists))
1) Now lets install Ruby on Rails:
On the Terminal (Applications -> Accessories -> Terminal)
key in the following commands


#sudo su
#apt-get install build-essential
#apt-get install ruby rdoc libopenssl-ruby
#tar zxvf rubygems-1.3.7.tgz
#cd rubygems-1.3.7
#ruby setup.rb
#ln -s /usr/bin/gem1.8 /usr/local/bin/gem
#gem install rails -v 2.3.8

This should install rails 2.3.8 version.

Now we can install desired gems for the databases we use either postgres or mysql:
MySQL gem:
   sudo gem install mysql
Postgres gem:
sudo gem install postgres-pr
sudo gem install postgres
Thats it this should be able help you install rails development environment

Source: RailsCarma

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