> Postgres has the ability to do passwords, so do I just put a password in my 
> program source? Set Postgres to only accept local connections, and hope for 
> the best? 

The config-management systems do this with encryption: take a look at Chef 
(encrypted data bags) and Ansible (ansible-vault). I've used each of these, and 
I've also rolled my own with files stored under cryptsetup and TrueCrypt.

You /can/ store the passwords/keys with your code but not in plain text. Keep 
your encryption keys in a place separate from your code, and protect them with 
2-factor auth (a keyfile and a memorized passphrase, read up on ssh-keygen for 
a simple example of what I mean).

If you're really paranoid, also add Google Authenticator on top of that.

Just remember: keep those plain-text passwords off the network and out of your 
code base.

-rich
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