diff --git a/README.md b/README.md
index 375bcc47..6f6cf226 100644
--- a/README.md
+++ b/README.md
@@ -6,4 +6,4 @@ Experimental PostgreSQL client library for Go
 Testing
 -------
 
-To setup the test environment create a database named pgx_test.
+To setup the test environment run the test_setup.sql script as a user that can create users and databases.
diff --git a/test_setup.sql b/test_setup.sql
new file mode 100644
index 00000000..7075e39c
--- /dev/null
+++ b/test_setup.sql
@@ -0,0 +1,5 @@
+drop database if exists pgx_test;
+drop user if exists pgx;
+
+create user pgx password 'secret';
+create database pgx_test owner = pgx;