diff --git a/rhodecode/websetup.py b/rhodecode/websetup.py
--- a/rhodecode/websetup.py
+++ b/rhodecode/websetup.py
@@ -1,23 +1,51 @@
-"""Setup the rhodecode application"""
+# -*- coding: utf-8 -*-
+"""
+    rhodecode.websetup
+    ~~~~~~~~~~~~~~~~~~
+
+    Weboperations and setup for rhodecode
+    
+    :created_on: Dec 11, 2010
+    :author: marcink
+    :copyright: (C) 2009-2010 Marcin Kuzminski <marcin@python-works.com>    
+    :license: GPLv3, see COPYING for more details.
+"""
+# This program is free software; you can redistribute it and/or
+# modify it under the terms of the GNU General Public License
+# as published by the Free Software Foundation; version 2
+# of the License or (at your opinion) any later version of the license.
+# 
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+# 
+# You should have received a copy of the GNU General Public License
+# along with this program; if not, write to the Free Software
+# Foundation, Inc., 51 Franklin Street, Fifth Floor, Boston,
+# MA  02110-1301, USA.
+
+import os
+import logging
+
 from rhodecode.config.environment import load_environment
 from rhodecode.lib.db_manage import DbManage
-import logging
-import os
+
 
 log = logging.getLogger(__name__)
 
 def setup_app(command, conf, vars):
     """Place any commands to setup rhodecode here"""
-    dbname = os.path.split(conf['sqlalchemy.db1.url'])[-1] 
-    dbmanage = DbManage(log_sql=True, dbname=dbname, root=conf['here'],
-                         tests=False)
+    dbconf = conf['sqlalchemy.db1.url']
+    dbmanage = DbManage(log_sql=True, dbconf=dbconf, root=conf['here'], tests=False)
     dbmanage.create_tables(override=True)
+    dbmanage.set_db_version()
     dbmanage.config_prompt(None)
     dbmanage.create_default_user()
     dbmanage.admin_prompt()
     dbmanage.create_permissions()
     dbmanage.populate_default_permissions()
-           
+
     load_environment(conf.global_conf, conf.local_conf, initial=True)