I realize this thread is 5 years old, but it still came up when searching 
for help with the error above and I just wanted to add my struggles.
I was getting the following error when deploying to Heroku:
<class 'psycopg2.ProgrammingError'> relation "web2py_session_3muses" 
already exists
and it was because I had "applications/*/databases" in my .gitignore file! 
I won't go in to why that was there, but if anyone makes the same silly 
mistake as me I hope this comment helps them. 

-- 
Resources:
- http://web2py.com
- http://web2py.com/book (Documentation)
- http://github.com/web2py/web2py (Source code)
- https://code.google.com/p/web2py/issues/list (Report Issues)
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