diff --git a/src/backend/postgres/.cvsignore b/src/backend/postgres/.cvsignore
index 787254170c..d85b3b92e7 100644
--- a/src/backend/postgres/.cvsignore
+++ b/src/backend/postgres/.cvsignore
@@ -12,3 +12,4 @@ kvp-autogen.c
 table-audit.c
 table-create.c
 table-drop.c
+table-version.c
diff --git a/src/backend/postgres/Makefile.am b/src/backend/postgres/Makefile.am
index b55a08ce28..8aedb2ccca 100644
--- a/src/backend/postgres/Makefile.am
+++ b/src/backend/postgres/Makefile.am
@@ -1,4 +1,4 @@
-SUBDIRS=test
+SUBDIRS = . test
 
 pkglib_LTLIBRARIES = libgncmod-backend-postgres.la 
 libgncmod_backend_postgres_la_LDFLAGS =-module -lpq -L../../engine -L../../engine/.libs -lgncmod-engine ${GLIB_LIBS}
@@ -45,6 +45,7 @@ EXTRA_DIST = \
   table-audit.sql \
   table-create.sql \
   table-drop.sql \
+  table-version.sql \
   demo.c 
 
 INCLUDES = -I.. -I../.. -I../../engine -I../../gnc-module
@@ -53,8 +54,8 @@ CFLAGS = @CFLAGS@ ${GLIB_CFLAGS}
 # Some of the required C files are built with the m4 pre-processor
 # As a result, we need to manually specify dependencies, clean targets.
 
-PostgresBackend.o: base-autogen.c table-audit.c table-create.c table-drop.c functions.c
-PostgresBackend.lo: base-autogen.c table-audit.c table-create.c table-drop.c functions.c
+PostgresBackend.o: base-autogen.c table-audit.c table-create.c table-version.c table-drop.c functions.c
+PostgresBackend.lo: base-autogen.c table-audit.c table-create.c table-version.c table-drop.c functions.c
 
 checkpoint.o: check-autogen.c
 checkpoint.lo: check-autogen.c
@@ -95,8 +96,13 @@ table-drop.c:	table-drop.sql
 	cat table-drop.sql >> table-drop.c
 	echo \" >> table-drop.c
 
+table-version.c: table-version.sql
+	echo \" > table-version.c
+	echo "-- DO NOT EDIT THIS FILE. IT IS AUTOGENERATED." >> table-version.c
+	cat table-version.sql >> table-version.c
+	echo \" >> table-version.c
 
 clean:
 	-rm -f base-autogen.c check-autogen.c kvp-autogen.c 
-	-rm -f table-drop.c table-create.c functions.c
+	-rm -f table-drop.c table-create.c table-version.c functions.c
 
diff --git a/src/backend/postgres/PostgresBackend.c b/src/backend/postgres/PostgresBackend.c
index 423535f9ee..6314d63ecd 100644
--- a/src/backend/postgres/PostgresBackend.c
+++ b/src/backend/postgres/PostgresBackend.c
@@ -215,6 +215,10 @@ static const char *table_create_str =
 #include "table-create.c"
 ;
 
+static const char *table_version_str = 
+#include "table-version.c"
+;
+
 static const char *sql_functions_str = 
 #include "functions.c"
 ;
@@ -1647,6 +1651,8 @@ pgend_session_begin (Backend *backend, GNCBook *book, const char * sessionid,
           */
          SEND_QUERY (be,table_create_str, );
          FINISH_QUERY(be->connection);
+         SEND_QUERY (be,table_version_str, );
+         FINISH_QUERY(be->connection);
          SEND_QUERY (be,table_audit_str, );
          FINISH_QUERY(be->connection);
          SEND_QUERY (be,sql_functions_str, );
diff --git a/src/backend/postgres/table-create.sql b/src/backend/postgres/table-create.sql
index 99180c8d9e..9c97f9ed00 100644
--- a/src/backend/postgres/table-create.sql
+++ b/src/backend/postgres/table-create.sql
@@ -29,8 +29,6 @@ CREATE TABLE gncVersion (
 	name	TEXT UNIQUE NOT NULL CHECK (name <> ''),
 	date	DATETIME DEFAULT 'NOW'
 );
-INSERT INTO gncVersion (major,minor,rev,name) VALUES (1,0,0,'Version Table');
-INSERT INTO gncVersion (major,minor,rev,name) VALUES (1,1,1,'iGUID in Main Tables');
 
 -- Commodity structure
 -- Store currency, security types.  Namespace includes
diff --git a/src/backend/postgres/table-version.sql b/src/backend/postgres/table-version.sql
new file mode 100644
index 0000000000..ee3e2ab352
--- /dev/null
+++ b/src/backend/postgres/table-version.sql
@@ -0,0 +1,16 @@
+--
+-- FILE:
+-- table-version.sql
+--
+-- FUNCTION:
+-- Insert the latest version information into the gncVersion table.
+--
+-- Inserting in the same query as creating the table does not
+-- work under Postgres 7.0
+--
+-- HISTORY:
+-- Copyright (C) 2001 Linux Developers Group
+--
+
+INSERT INTO gncVersion (major,minor,rev,name) VALUES (1,0,0,'Version Table');
+INSERT INTO gncVersion (major,minor,rev,name) VALUES (1,1,1,'iGUID in Main Tables');
diff --git a/src/backend/postgres/test/Makefile.am b/src/backend/postgres/test/Makefile.am
index 1c5450da2a..dc5ae2a99a 100644
--- a/src/backend/postgres/test/Makefile.am
+++ b/src/backend/postgres/test/Makefile.am
@@ -17,6 +17,7 @@ LDADD = -L${top_srcdir}/src/gnc-module -L${top_srcdir}/src/gnc-module/.libs \
         ${top_srcdir}/src/gnc-module/libgncmodule.la \
         ${top_srcdir}/src/engine/libgncmod-engine.la \
         ${top_srcdir}/src/engine/test-core/libgncmod-test-engine.la \
+	${top_srcdir}/src/backend/postgres/libgncmod-backend-postgres.la \
         -lltdl
 
 CFLAGS = ${GLIB_CFLAGS}