diff --git a/lib/SQL/Translator/Parser/DBI/PostgreSQL.pm b/lib/SQL/Translator/Parser/DBI/PostgreSQL.pm
index 28017a6b9..f878af5d5 100644
--- a/lib/SQL/Translator/Parser/DBI/PostgreSQL.pm
+++ b/lib/SQL/Translator/Parser/DBI/PostgreSQL.pm
@@ -37,14 +37,31 @@ sub parse {
     my $schema = $tr->schema;
 
     my $column_select = $dbh->prepare(
-      "SELECT a.attname, format_type(t.oid, a.atttypmod) as typname, a.attnum,
-              a.atttypmod as length, a.attnotnull, a.atthasdef, ad.adsrc,
+      "SELECT a.attname, case
+          when t.oid = any ('{int,int8,int2}'::regtype[])
+          and ad.adsrc = 'nextval('''
+                || (pg_get_serial_sequence (a.attrelid::regclass::text, a.attname))::regclass
+                || '''::regclass)'
+         then case t.oid
+             when 'int8'::regtype then 'bigserial'
+             when 'int'::regtype  then 'serial'
+             when 'int2'::regtype then 'smallserial'
+         end
+         else format_type(t.oid, a.atttypmod)
+         end as typname, a.attnum,
+             case typname
+                  when 'varchar'   then a.atttypmod - 4
+                  when 'bpchar'    then a.atttypmod - 4
+                  when 'numeric'   then (a.atttypmod - 4) / 65536
+                  when 'decimal'   then (a.atttypmod - 4) / 65536
+                  else a.atttypmod
+              end as length, a.attnotnull, a.atthasdef, ad.adsrc,
               d.description
        FROM pg_type t, pg_attribute a
        LEFT JOIN pg_attrdef ad ON (ad.adrelid = a.attrelid AND a.attnum = ad.adnum)
        LEFT JOIN pg_description d ON (a.attrelid=d.objoid AND a.attnum=d.objsubid)
-       WHERE a.attrelid=? AND attnum>0
-         AND a.atttypid=t.oid
+       WHERE a.attrelid = ? AND attnum > 0
+         AND a.atttypid = t.oid
        ORDER BY a.attnum"
     );
 
diff --git a/lib/SQL/Translator/Parser/PostgreSQL.pm b/lib/SQL/Translator/Parser/PostgreSQL.pm
index ad4ec64cb..d6d8c567e 100644
--- a/lib/SQL/Translator/Parser/PostgreSQL.pm
+++ b/lib/SQL/Translator/Parser/PostgreSQL.pm
@@ -589,6 +589,15 @@ pg_data_type :
             };
         }
     |
+    /(smallserial|serial2)/i
+        {
+            $return = {
+                type              => 'integer',
+                size              => 5,
+                is_auto_increment => 1
+            };
+        }
+    |
     /(bit varying|varbit)/i
         {
             $return = { type => 'varbit' };
diff --git a/lib/SQL/Translator/Producer/PostgreSQL.pm b/lib/SQL/Translator/Producer/PostgreSQL.pm
index 455f745df..c29307cea 100644
--- a/lib/SQL/Translator/Producer/PostgreSQL.pm
+++ b/lib/SQL/Translator/Producer/PostgreSQL.pm
@@ -651,10 +651,11 @@ sub convert_datatype
         $data_type = 'character varying';
     }
     elsif ( $field->is_auto_increment ) {
-        if ( (defined $size[0] && $size[0] > 11) or $data_type eq 'bigint' ) {
+        if (11 < $size[0] || $data_type eq 'bigint') {
             $data_type = 'bigserial';
-        }
-        else {
+        } elsif (0 < $size[0] && $size[0] < 5 || $data_type eq 'smallint') {
+            $data_type = 'smallserial';
+        } else {
             $data_type = 'serial';
         }
         undef @size;
@@ -672,19 +673,10 @@ sub convert_datatype
     }
 
     if ( $data_type eq 'integer' ) {
-        if ( defined $size[0] && $size[0] > 0) {
-            if ( $size[0] > 10 ) {
-                $data_type = 'bigint';
-            }
-            elsif ( $size[0] < 5 ) {
-                $data_type = 'smallint';
-            }
-            else {
-                $data_type = 'integer';
-            }
-        }
-        else {
-            $data_type = 'integer';
+        if (10 < $size[0]) {
+            $data_type = 'bigint';
+        } elsif (0 < $size[0] && $size[0] <= 5) {
+            $data_type = 'smallint';
         }
     }
 
@@ -697,10 +689,19 @@ sub convert_datatype
         @size = ();
     }
 
-    if (defined $size[0] && $size[0] > 0 && $data_type =~ /^time/i ) {
-        $data_type =~ s/^(time.*?)( with.*)?$/$1($size[0])/;
-        $data_type .= $2 if(defined $2);
+    if ( $data_type =~ /^(time(?:[a-z]+)?)/i ) {
+        my $time_type = $1;
+        if (defined $size[0] && 0 < $size[0]) {
+            $time_type .= "($size[0])";
+        }
+        if ($data_type =~ /((?:with|without)? time zone)$/i) {
+            $time_type .= " $1";
+        } else {
+            $time_type .= ' without time zone';
+        }
+        $data_type = $time_type;
     } elsif ( defined $size[0] && $size[0] > 0 ) {
+        $data_type =~ s/\([0-9]+\)$//; # Bug fix for type(size)(size)
         $data_type .= '(' . join( ',', @size ) . ')';
     }
     if($array)
@@ -768,14 +769,44 @@ sub alter_field
 
     my $from_dt = convert_datatype($from_field);
     my $to_dt   = convert_datatype($to_field);
-    push @out, sprintf('ALTER TABLE %s ALTER COLUMN %s TYPE %s',
-                       map($generator->quote($_),
-                           $to_field->table->name,
-                           $to_field->name
-                       ),
-                       $to_dt,
-                   )
-        if($to_dt ne $from_dt);
+
+    if ($to_dt ne $from_dt) {
+        if ($to_dt =~ /(big|small)?serial/) {
+            my $table_name = $to_field->table->name;
+            my $field_name = $to_field->name;
+
+            push @out, sprintf('ALTER TABLE %s ALTER COLUMN %s TYPE %s',
+                    map($generator->quote($_),
+                       $to_field->table->name,
+                       $to_field->name),
+                       $to_dt eq 'serial' ? 'integer' : "$1int"
+                    );
+            my $seq_name = "${table_name}_${field_name}_seq";
+            my $by_name = "${table_name}.${field_name}";
+            my @args = map(
+                $generator->quote($_),
+                $seq_name,
+                $table_name,
+                $field_name,
+                $seq_name,
+                $by_name
+            );
+            push @out, sprintf(<<"__SERIAL__", @args);
+CREATE SEQUENCE %s;
+
+ALTER TABLE %s ALTER COLUMN %s SET DEFAULT nextval('${table_name}_${field_name}_seq');
+
+ALTER SEQUENCE %s OWNED BY %s;
+
+__SERIAL__
+        } else {
+            push @out, sprintf('ALTER TABLE %s ALTER COLUMN %s TYPE %s',
+                    map($generator->quote($_),
+                       $to_field->table->name,
+                       $to_field->name),
+                       $to_dt);
+        }
+    }
 
     my $old_default = $from_field->default_value;
     my $new_default = $to_field->default_value;
diff --git a/t/30sqlt-new-diff-pgsql.t b/t/30sqlt-new-diff-pgsql.t
index 5bc782038..c29dce196 100644
--- a/t/30sqlt-new-diff-pgsql.t
+++ b/t/30sqlt-new-diff-pgsql.t
@@ -72,7 +72,13 @@ DROP INDEX "u_name";
 
 ALTER TABLE "person" ADD COLUMN "is_rock_star" smallint DEFAULT 1;
 
-ALTER TABLE "person" ALTER COLUMN "person_id" TYPE serial;
+ALTER TABLE "person" ALTER COLUMN "person_id" TYPE integer;
+
+CREATE SEQUENCE "person_person_id_seq";
+
+ALTER TABLE "person" ALTER COLUMN "person_id" SET DEFAULT nextval('person_person_id_seq');
+
+ALTER SEQUENCE "person_person_id_seq" OWNED BY "person"."person_id";
 
 ALTER TABLE "person" ALTER COLUMN "name" SET NOT NULL;
 
@@ -127,7 +133,13 @@ ALTER TABLE person DROP CONSTRAINT UC_age_name;
 
 ALTER TABLE person ADD COLUMN is_rock_star smallint DEFAULT 1;
 
-ALTER TABLE person ALTER COLUMN person_id TYPE serial;
+ALTER TABLE person ALTER COLUMN person_id TYPE integer;
+
+CREATE SEQUENCE person_person_id_seq;
+
+ALTER TABLE person ALTER COLUMN person_id SET DEFAULT nextval('person_person_id_seq');
+
+ALTER SEQUENCE person_person_id_seq OWNED BY person.person_id;
 
 ALTER TABLE person ALTER COLUMN name SET NOT NULL;
 
diff --git a/t/46xml-to-pg.t b/t/46xml-to-pg.t
index d9dd3277b..b02ff368e 100644
--- a/t/46xml-to-pg.t
+++ b/t/46xml-to-pg.t
@@ -45,7 +45,7 @@ CREATE TABLE "Basic" (
   -- Hello emptytagdef
   "emptytagdef" character varying DEFAULT '',
   "another_id" integer DEFAULT 2,
-  "timest" timestamp,
+  "timest" timestamp without time zone,
   PRIMARY KEY ("id"),
   CONSTRAINT "emailuniqueindex" UNIQUE ("email"),
   CONSTRAINT "very_long_index_name_on_title_field_which_should_be_truncated_for_various_rdbms" UNIQUE ("title")
diff --git a/t/47postgres-producer.t b/t/47postgres-producer.t
index 9c50db736..dd03d048f 100644
--- a/t/47postgres-producer.t
+++ b/t/47postgres-producer.t
@@ -292,7 +292,7 @@ my $field3 = SQL::Translator::Schema::Field->new( name      => 'time_field',
 
 my $field3_sql = SQL::Translator::Producer::PostgreSQL::create_field($field3);
 
-is($field3_sql, 'time_field time NOT NULL', 'Create time field works');
+is($field3_sql, 'time_field time without time zone NOT NULL', 'Create time field works');
 
 my $field3_datetime_with_TZ = SQL::Translator::Schema::Field->new(
     name      => 'datetime_with_TZ',
@@ -496,7 +496,7 @@ my $field12 = SQL::Translator::Schema::Field->new( name => 'time_field',
 
 my $field12_sql = SQL::Translator::Producer::PostgreSQL::create_field($field12,{ postgres_version => 8.3 });
 
-is($field12_sql, 'time_field timestamp NOT NULL', 'time with precision');
+is($field12_sql, 'time_field timestamp without time zone NOT NULL', 'time with precision');
 
 my $field13 = SQL::Translator::Schema::Field->new( name => 'enum_field_with_type_name',
                                                    table => $table,
diff --git a/t/66-postgres-dbi-parser.t b/t/66-postgres-dbi-parser.t
index aae516227..39219e1ad 100644
--- a/t/66-postgres-dbi-parser.t
+++ b/t/66-postgres-dbi-parser.t
@@ -91,7 +91,7 @@ is( scalar @t1_fields, 4, '4 fields in sqlt_test1' );
 
 my $f1 = shift @t1_fields;
 is( $f1->name, 'f_serial', 'First field is "f_serial"' );
-is( $f1->data_type, 'integer', 'Field is an integer' );
+is( $f1->data_type, 'serial', 'Field is a serial' );
 is( $f1->is_nullable, 0, 'Field cannot be null' );
 is( $f1->default_value, "nextval('sqlt_test1_f_serial_seq'::regclass)", 'Default value is nextval()' );
 is( $f1->is_primary_key, 1, 'Field is PK' );
@@ -102,8 +102,7 @@ my $f2 = shift @t1_fields;
 is( $f2->name, 'f_varchar', 'Second field is "f_varchar"' );
 is( $f2->data_type, 'character varying(255)', 'Field is a character varying(255)' );
 is( $f2->is_nullable, 1, 'Field can be null' );
-#FIXME: should not be 255?
-is( $f2->size, 259, 'Size is "259"' );
+is( $f2->size, 255, 'Size is "255"' );
 is( $f2->default_value, undef, 'Default value is undefined' );
 is( $f2->is_primary_key, 0, 'Field is not PK' );
 is( $f2->is_auto_increment, 0, 'Field is not auto increment' );