missing psycopg2 database

Hello,

I have recently installed this package. The installation is successful
in so far as I am able to connect to my server and a database and
extract data from it.

I was going through some tutorials and in the course of this I
encountered the following:

----------------------------------------
$ python
Python 2.6.5 (r265:79063, Oct 28 2010, 20:56:23)
[GCC 4.5.0 20100604 [gcc-4_5-branch revision 160292]] on linux2
Type "help", "copyright", "credits" or "license" for more information.

>>> help('modules keywords')

Here is a list of matching modules. Enter any module name to get more help.

keyword - Keywords (from "graminit.c")
Failed connection to test db: OperationalError FATAL: database
"psycopg2_test" does not exist

Please set env vars 'PSYCOPG2_TESTDB*' to valid values.
--------------------------------------------

My system:

----------------------------------------
$ uname -a
Linux cm2 2.6.34.7-0.7-desktop #1 SMP PREEMPT 2010-12-13 11:13:53 +0100
x86_64 x86_64 x86_64 GNU/Linux
----------------------------------------

I poked around the module but did not see any language which looked like
it would be used to create this database in my server.

Would someone tell me what I missed or where to find the instructions for creating the psycopg2_test database?

Thanks,

Bill