To install latest version of postgresql we first we need to add pgdg repository to list of repositories open terminal and fire following commands, you need to be root.
wget http://yum.pgsqlrpms.org/reporpms/8.4/pgdg-redhat-8.4-1.noarch.rpm
rpm -Uhv pgdg-redhat-8.4-1.noarch.rpm
Once repository is installed properly use yum to install postgresql as shown below
yum install postgresql
yum install postgresql-server
You can do above in a single line choice is yours.
Initialize the database
initdb -D /usr/local/pgsql/data
Start the database server
pg_ctl start -D /usr/local/pgsql/data
Voila your database server is setup and ready to use.
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