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I ask because in Rails (config/database.yml) you can specify a pool size.

What does Postgres do with that?

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That pool size is for the connection pool built into Rails postgresql does not ship with connection pooling. If you need an external connection pool search for pgbouncer or pgpool II

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Remember that RoR doesn't work correctly with pgpool/pgbouncer in transaction pooling mode - https://github.com/rails/rails/issues/1627

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