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+= Trac Storage - The Environment =
+
+Trac uses a directory structure and a database for storing project data.
+
+== Creating an Environment ==
+
+A new Trac environment is created using [wiki:TracAdmin trac-admin]:
+{{{
+$ trac-admin /path/to/projectenv initenv
+}}}
+
+[wiki:TracAdmin trac-admin] will ask you for the name of the project, the
+database connection string (explained below), and where your subversion
+repository is located.
+
+  ''Note: The web server user will require file system write permission to
+the environment directory and all the files inside. Please remember to set
+the appropriate permissions. The same applies to the Subversion
+repository, although Trac will only require read access as long as you're
+not using the BDB file system.''
+
+== Database Connection Strings ==
+
+Since version 0.9, Trac supports both [http://sqlite.org/ SQLite] and
+[http://www.postgresql.org/ PostgreSQL] as database backends.  The default
+is to use SQLite, which is probably sufficient for most projects. The database file
+is then stored in the environment directory, and can easily be
+[wiki:TracBackup backed up] together with the rest of the environment.
+
+The connection string for an embedded SQLite database is:
+{{{
+sqlite:db/trac.db
+}}}
+
+If you want to use PostgreSQL instead, you'll have to use a different
+connection string. For example, to connect to a database on the same
+machine called `trac`, that allows access to the user `johndoe` with
+the password `letmein`, use:
+{{{
+postgres://johndoe:letmein@localhost/trac
+}}}
+
+If PostgreSQL is running on a non-standard port (for example 9342), use:
+{{{
+postgres://johndoe:letmein@localhost:9342/trac
+}}}
+
+Note that with PostgreSQL you will have to create the database before running
+`trac-admin initenv`.
+
+== Directory Structure ==
+
+An environment directory will usually consist of the following files and directories:
+
+ * `README` - Brief description of the environment.
+ * `VERSION` - Contains the environment version identifier.
+ * `attachments` - Attachments to wiki pages and tickets are stored here.
+ * `conf`
+   * `trac.ini` - Main configuration file. See TracIni.
+ * `db`
+   * `trac.db` - The SQLite database (if you're using SQLite).
+ * `plugins` - Environment-specific [wiki:TracPlugins plugins] (Python eggs)
+ * `templates` - Custom environment-specific templates.
+   * `site_css.cs` - Custom CSS rules.
+   * `site_footer.cs` - Custom page footer.
+   * `site_header.cs` - Custom page header.
+ * `wiki-macros` - Environment-specific [wiki:WikiMacros Wiki macros].
+
+----
+See also: TracAdmin, TracBackup, TracIni, TracGuide