diff --git a/activerecord/lib/active_record.rb b/activerecord/lib/active_record.rb
index c6dc7db2e8b7b..3b37b001f7487 100644
--- a/activerecord/lib/active_record.rb
+++ b/activerecord/lib/active_record.rb
@@ -141,6 +141,8 @@ module Tasks
     extend ActiveSupport::Autoload
 
     autoload :DatabaseTasks
+    autoload :SQLiteDatabaseTasks, 'active_record/tasks/sqlite_database_tasks'
+    autoload :MySQLDatabaseTasks,  'active_record/tasks/mysql_database_tasks'
   end
 
   autoload :TestCase
diff --git a/activerecord/lib/active_record/railties/databases.rake b/activerecord/lib/active_record/railties/databases.rake
index b44d479fb6a2e..662c84bfdabde 100644
--- a/activerecord/lib/active_record/railties/databases.rake
+++ b/activerecord/lib/active_record/railties/databases.rake
@@ -59,36 +59,7 @@ db_namespace = namespace :db do
     rescue
       case config['adapter']
       when /mysql/
-        if config['adapter'] =~ /jdbc/
-          #FIXME After Jdbcmysql gives this class
-          require 'active_record/railties/jdbcmysql_error'
-          error_class = ArJdbcMySQL::Error
-        else
-          error_class = config['adapter'] =~ /mysql2/ ? Mysql2::Error : Mysql::Error
-        end
-        access_denied_error = 1045
-        begin
-          ActiveRecord::Base.establish_connection(config.merge('database' => nil))
-          ActiveRecord::Base.connection.create_database(config['database'], mysql_creation_options(config))
-          ActiveRecord::Base.establish_connection(config)
-        rescue error_class => sqlerr
-          if sqlerr.errno == access_denied_error
-            print "#{sqlerr.error}. \nPlease provide the root password for your mysql installation\n>"
-            root_password = $stdin.gets.strip
-            grant_statement = "GRANT ALL PRIVILEGES ON #{config['database']}.* " \
-              "TO '#{config['username']}'@'localhost' " \
-              "IDENTIFIED BY '#{config['password']}' WITH GRANT OPTION;"
-            ActiveRecord::Base.establish_connection(config.merge(
-                'database' => nil, 'username' => 'root', 'password' => root_password))
-            ActiveRecord::Base.connection.create_database(config['database'], mysql_creation_options(config))
-            ActiveRecord::Base.connection.execute grant_statement
-            ActiveRecord::Base.establish_connection(config)
-          else
-            $stderr.puts sqlerr.error
-            $stderr.puts "Couldn't create database for #{config.inspect}, charset: #{config['charset'] || @charset}, collation: #{config['collation'] || @collation}"
-            $stderr.puts "(if you set the charset manually, make sure you have a matching collation)" if config['charset']
-          end
-        end
+        ActiveRecord::Tasks::DatabaseTasks.create config
       when /postgresql/
         @encoding = config['encoding'] || ENV['CHARSET'] || 'utf8'
         begin
diff --git a/activerecord/lib/active_record/tasks/database_tasks.rb b/activerecord/lib/active_record/tasks/database_tasks.rb
index a72ec0175b2c1..d0d3ea12dd7b1 100644
--- a/activerecord/lib/active_record/tasks/database_tasks.rb
+++ b/activerecord/lib/active_record/tasks/database_tasks.rb
@@ -1,14 +1,19 @@
 class ActiveRecord::Tasks::DatabaseTasks
-  def self.create(configuration)
-    if File.exist?(configuration['database'])
-      $stderr.puts "#{configuration['database']} already exists"
-      return
-    end
+  TASKS_PATTERNS = {
+    /mysql/      => ActiveRecord::Tasks::MySQLDatabaseTasks,
+    # /postgresql/ => ActiveRecord::Tasks::PostgreSQLTasker,
+    /sqlite/     => ActiveRecord::Tasks::SQLiteDatabaseTasks
+  }
 
-    ActiveRecord::Base.establish_connection(configuration)
-    ActiveRecord::Base.connection
+  def self.create(configuration)
+    class_for_adapter(configuration['adapter']).new(configuration).create
   rescue Exception => e
     $stderr.puts e, *(e.backtrace)
     $stderr.puts "Couldn't create database for #{configuration.inspect}"
   end
+
+  def self.class_for_adapter(adapter)
+    key = TASKS_PATTERNS.keys.detect { |key| adapter[key] }
+    TASKS_PATTERNS[key]
+  end
 end
diff --git a/activerecord/lib/active_record/tasks/mysql_database_tasks.rb b/activerecord/lib/active_record/tasks/mysql_database_tasks.rb
new file mode 100644
index 0000000000000..16d606d6fb9f8
--- /dev/null
+++ b/activerecord/lib/active_record/tasks/mysql_database_tasks.rb
@@ -0,0 +1,76 @@
+class ActiveRecord::Tasks::MySQLDatabaseTasks
+  DEFAULT_CHARSET     = ENV['CHARSET']   || 'utf8'
+  DEFAULT_COLLATION   = ENV['COLLATION'] || 'utf8_unicode_ci'
+  ACCESS_DENIED_ERROR = 1045
+
+  delegate :connection, :establish_connection, :to => ActiveRecord::Base
+
+  def initialize(configuration)
+    @configuration = configuration
+  end
+
+  def create
+    establish_connection configuration_without_database
+    connection.create_database configuration['database'], creation_options
+    establish_connection configuration
+  rescue error_class => error
+    raise error unless error.errno == ACCESS_DENIED_ERROR
+
+    $stdout.print error.error
+    establish_connection root_configuration_without_database
+    connection.create_database configuration['database'], creation_options
+    connection.execute grant_statement.gsub(/\s+/, ' ').strip
+    establish_connection configuration
+  rescue error_class => error
+    $stderr.puts error.error
+    $stderr.puts "Couldn't create database for #{configuration.inspect}, #{creation_options.inspect}"
+    $stderr.puts "(If you set the charset manually, make sure you have a matching collation)" if configuration['charset']
+  end
+
+  private
+
+  attr_reader :configuration
+
+  def configuration_without_database
+    configuration.merge('database' => nil)
+  end
+
+  def creation_options
+    {
+      :charset   => (configuration['charset']   || DEFAULT_CHARSET),
+      :collation => (configuration['collation'] || DEFAULT_COLLATION)
+    }
+  end
+
+  def error_class
+    case configuration['adapter']
+    when /jdbc/
+      require 'active_record/railties/jdbcmysql_error'
+      error_class = ArJdbcMySQL::Error
+    when /mysql2/
+      Mysql2::Error
+    else
+      Mysql::Error
+    end
+  end
+
+  def grant_statement
+    <<-SQL
+GRANT ALL PRIVILEGES ON #{configuration['database']}.*
+  TO '#{configuration['username']}'@'localhost'
+IDENTIFIED BY '#{configuration['password']}' WITH GRANT OPTION;
+    SQL
+  end
+
+  def root_configuration_without_database
+    configuration_without_database.merge(
+      'username' => 'root',
+      'password' => root_password
+    )
+  end
+
+  def root_password
+    $stdout.print "Please provide the root password for your mysql installation\n>"
+    $stdin.gets.strip
+  end
+end
diff --git a/activerecord/lib/active_record/tasks/sqlite_database_tasks.rb b/activerecord/lib/active_record/tasks/sqlite_database_tasks.rb
new file mode 100644
index 0000000000000..882a4f98a9950
--- /dev/null
+++ b/activerecord/lib/active_record/tasks/sqlite_database_tasks.rb
@@ -0,0 +1,19 @@
+class ActiveRecord::Tasks::SQLiteDatabaseTasks
+  def initialize(configuration)
+    @configuration = configuration
+  end
+
+  def create
+    if File.exist?(configuration['database'])
+      $stderr.puts "#{configuration['database']} already exists"
+      return
+    end
+
+    ActiveRecord::Base.establish_connection(configuration)
+    ActiveRecord::Base.connection
+  end
+
+  private
+
+  attr_reader :configuration
+end
diff --git a/activerecord/test/cases/mysql_rake_test.rb b/activerecord/test/cases/mysql_rake_test.rb
new file mode 100644
index 0000000000000..fc49a16553c75
--- /dev/null
+++ b/activerecord/test/cases/mysql_rake_test.rb
@@ -0,0 +1,120 @@
+require 'cases/helper'
+
+module ActiveRecord
+  class MysqlDBCreateTest < ActiveRecord::TestCase
+    def setup
+      @connection    = stub(:create_database => true)
+      @configuration = {
+        'adapter'  => 'mysql',
+        'database' => 'my-app-db'
+      }
+
+      ActiveRecord::Base.stubs(:connection).returns(@connection)
+      ActiveRecord::Base.stubs(:establish_connection).returns(true)
+    end
+
+    def test_establishes_connection_without_database
+      ActiveRecord::Base.expects(:establish_connection).
+        with('adapter' => 'mysql', 'database' => nil)
+
+      ActiveRecord::Tasks::DatabaseTasks.create @configuration
+    end
+
+    def test_creates_database_with_default_options
+      @connection.expects(:create_database).
+        with('my-app-db', {:charset => 'utf8', :collation => 'utf8_unicode_ci'})
+
+      ActiveRecord::Tasks::DatabaseTasks.create @configuration
+    end
+
+    def test_creates_database_with_given_options
+      @connection.expects(:create_database).
+        with('my-app-db', {:charset => 'latin', :collation => 'latin_ci'})
+
+      ActiveRecord::Tasks::DatabaseTasks.create @configuration.merge(
+        'charset' => 'latin', 'collation' => 'latin_ci'
+      )
+    end
+
+    def test_establishes_connection_to_database
+      ActiveRecord::Base.expects(:establish_connection).with(@configuration)
+
+      ActiveRecord::Tasks::DatabaseTasks.create @configuration
+    end
+  end
+
+  class MysqlDBCreateAsRootTest < ActiveRecord::TestCase
+    def setup
+      require 'mysql'
+
+      @connection    = stub(:create_database => true, :execute => true)
+      @error         = Mysql::Error.new "Invalid permissions"
+      @configuration = {
+        'adapter'  => 'mysql',
+        'database' => 'my-app-db',
+        'username' => 'pat',
+        'password' => 'wossname'
+      }
+
+      $stdin.stubs(:gets).returns("secret\n")
+      $stdout.stubs(:print).returns(nil)
+      @error.stubs(:errno).returns(1045)
+      ActiveRecord::Base.stubs(:connection).returns(@connection)
+      ActiveRecord::Base.stubs(:establish_connection).raises(@error).then.
+        returns(true)
+    end
+
+    def test_root_password_is_requested
+      $stdin.expects(:gets).returns("secret\n")
+
+      ActiveRecord::Tasks::DatabaseTasks.create @configuration
+    end
+
+    def test_connection_established_as_root
+      ActiveRecord::Base.expects(:establish_connection).with({
+        'adapter'  => 'mysql',
+        'database' => nil,
+        'username' => 'root',
+        'password' => 'secret'
+      })
+
+      ActiveRecord::Tasks::DatabaseTasks.create @configuration
+    end
+
+    def test_database_created_by_root
+      @connection.expects(:create_database).
+        with('my-app-db', :charset => 'utf8', :collation => 'utf8_unicode_ci')
+
+      ActiveRecord::Tasks::DatabaseTasks.create @configuration
+    end
+
+    def test_grant_privileges_for_normal_user
+      @connection.expects(:execute).with("GRANT ALL PRIVILEGES ON my-app-db.* TO 'pat'@'localhost' IDENTIFIED BY 'wossname' WITH GRANT OPTION;")
+
+      ActiveRecord::Tasks::DatabaseTasks.create @configuration
+    end
+
+    def test_connection_established_as_normal_user
+      ActiveRecord::Base.expects(:establish_connection).returns do
+        ActiveRecord::Base.expects(:establish_connection).with({
+          'adapter'  => 'mysql',
+          'database' => 'my-app-db',
+          'username' => 'pat',
+          'password' => 'secret'
+        })
+
+        raise @error
+      end
+
+      ActiveRecord::Tasks::DatabaseTasks.create @configuration
+    end
+
+    def test_sends_output_to_stderr_when_other_errors
+      @error.stubs(:errno).returns(42)
+
+      $stderr.expects(:puts).at_least_once.returns(nil)
+
+      ActiveRecord::Tasks::DatabaseTasks.create @configuration
+    end
+  end
+end