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My deployment script was breaking using the after "deploy:update_code" hook because that step seemed to be trying to access the DB already. So I do:
before "deploy:assets:precompile", 'deploy:symlink_shared'
namespace :deploy do
task :symlink_shared do
run "ln -nfs #{shared_path}/config/database.yml #{release_path}/config/database.yml"
end
end