I just installed the heroku PSQL app (v1.0) and i'm having trouble being able to connect my rails apps using the gem pg "0.1.4". I already added the path PATH="/Applications/Postgres.app/Contents/MacOS/bin:$PATH" to my .profile and my .bashrc files, but nothing seems to allow me to run psql simply by calling "psql". I had success using "psql -h localhost". When i go for "psql" i get: 

Is the server running locally and accepting
connections on Unix domain socket "/var/pgsql_socket/.s.PGSQL.5432"?

I'm using mountain lion.

ruby-on-rails postgresql heroku osx-mountain-lion pg
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