diff --git a/README.md b/README.md
index 4d4e017..d4942cc 100644
--- a/README.md
+++ b/README.md
@@ -325,6 +325,9 @@ Override the locale during creation of the database. Defaults to the default def
 ####`grant`
 Grant permissions during creation. Defaults to `ALL`.
 
+####`istemplate`
+Define database as a template. Defaults to `false`.
+
 ###Resource: postgresql::database
 This defined type can be used to create a database with no users and no permissions, which is a rare use case.
 
@@ -343,6 +346,9 @@ Override the character set during creation of the database. Defaults to the defa
 ####`locale`
 Override the locale during creation of the database. Defaults to the default defined during installation.
 
+####`istemplate`
+Define database as a template. Defaults to `false`.
+
 ###Resource: postgresql::database\_grant
 This defined type manages grant based access privileges for users. Consult the PostgreSQL documentation for `grant` for more information.
 
diff --git a/manifests/database.pp b/manifests/database.pp
index f3c90f7..fd272f4 100644
--- a/manifests/database.pp
+++ b/manifests/database.pp
@@ -24,7 +24,8 @@ define postgresql::database(
   $owner = $postgresql::params::user,
   $tablespace = undef,
   $charset  = $postgresql::params::charset,
-  $locale   = $postgresql::params::locale
+  $locale   = $postgresql::params::locale,
+  $istemplate = false
 ) {
   include postgresql::params
 
@@ -76,4 +77,9 @@ define postgresql::database(
     refreshonly => true,
   }
 
+  Exec [ $createdb_command ] ->
+
+  postgresql_psql {"UPDATE pg_database SET datistemplate = ${istemplate} WHERE datname = '${dbname}'":
+    unless => "SELECT datname FROM pg_database WHERE datname = '${dbname}' AND datistemplate = ${istemplate}",
+  }
 }
diff --git a/manifests/db.pp b/manifests/db.pp
index f6531c5..0ea3c6d 100644
--- a/manifests/db.pp
+++ b/manifests/db.pp
@@ -36,21 +36,23 @@
 define postgresql::db (
   $user,
   $password,
-  $charset     = $postgresql::params::charset,
-  $locale      = $postgresql::params::locale,
-  $grant       = 'ALL',
-  $tablespace = undef
+  $charset    = $postgresql::params::charset,
+  $locale     = $postgresql::params::locale,
+  $grant      = 'ALL',
+  $tablespace = undef,
+  $istemplate = false
 ) {
   include postgresql::params
 
   postgresql::database { $name:
     # TODO: ensure is not yet supported
-    #ensure     => present,
-    charset     => $charset,
-    tablespace  => $tablespace,
-    #provider   => 'postgresql',
-    require     => Class['postgresql::server'],
-    locale      => $locale,
+    #ensure    => present,
+    charset    => $charset,
+    tablespace => $tablespace,
+    #provider  => 'postgresql',
+    require    => Class['postgresql::server'],
+    locale     => $locale,
+    istemplate => $istemplate,
   }
 
   if ! defined(Postgresql::Database_user[$user]) {
diff --git a/spec/system/install_spec.rb b/spec/system/install_spec.rb
index 9c37037..974ff3b 100644
--- a/spec/system/install_spec.rb
+++ b/spec/system/install_spec.rb
@@ -95,6 +95,74 @@ describe 'install:' do
         psql('--command="drop database test1" postgres')
       end
     end
+
+    it 'should take an istemplate parameter' do
+      begin
+        pp = <<-EOS
+          $db = 'template2'
+          include postgresql::server
+
+          postgresql::db { $db:
+            user        => $db,
+            password    => postgresql_password($db, $db),
+            istemplate  => true,
+          }
+        EOS
+
+        puppet_apply(pp) do |r|
+          r.exit_code.should_not == 1
+        end
+
+        puppet_apply(pp) do |r|
+          r.exit_code.should == 0
+        end
+
+        psql('--command="select datname from pg_database" template2') do |r|
+          r.stdout.should =~ /template2/
+          r.stderr.should be_empty
+          r.exit_code.should == 0
+        end
+      ensure
+        psql('--command="drop database template2" postgres') do |r|
+          r.stdout.should be_empty
+          r.stderr.should =~ /cannot drop a template database/
+          r.exit_code.should_not == 0
+        end
+      end
+    end
+
+    it 'should update istemplate parameter' do
+      begin
+        pp = <<-EOS
+          $db = 'template2'
+          include postgresql::server
+
+          postgresql::db { $db:
+            user        => $db,
+            password    => postgresql_password($db, $db),
+            istemplate  => false,
+          }
+        EOS
+
+        puppet_apply(pp) do |r|
+          r.exit_code.should_not == 1
+        end
+
+        puppet_apply(pp) do |r|
+          r.exit_code.should == 0
+        end
+
+        psql('--command="select datname from pg_database" template2') do |r|
+          r.stdout.should =~ /template2/
+          r.stderr.should be_empty
+          r.exit_code.should == 0
+        end
+      ensure
+        psql('--command="drop database template2" postgres') do |r|
+          r.exit_code.should == 0
+        end
+      end
+    end
   end
 
   describe 'postgresql::psql' do