diff --git a/docs/source/changelog.rst b/docs/source/changelog.rst
index 0017ec6630..a5fa5559f7 100644
--- a/docs/source/changelog.rst
+++ b/docs/source/changelog.rst
@@ -155,6 +155,8 @@ UNRELEASED
 
 * Enterprise Corda only: node configuration property ``database.schema`` and documented existing database properties.
 
+* Enterprise Corda only: Compatibility with PostgreSQL 9.6 database.
+
 .. _changelog_v1:
 
 Release 1.0
diff --git a/docs/source/node-database.rst b/docs/source/node-database.rst
index d854586397..5d77f2911f 100644
--- a/docs/source/node-database.rst
+++ b/docs/source/node-database.rst
@@ -58,3 +58,25 @@ database {
     transactionIsolationLevel = "readCommitted"
     schema = [SCHEMA]
 }
+
+PostgreSQL
+````````````````````````
+Corda supports PostgreSQL 9.6 database.
+The property ``database.schema`` is optional. The value of ``database.schema`` is automatically wrapped in double quotes
+to preserve case-sensitivity (e.g. `AliceCorp` becomes `"AliceCorp"`, without quotes PostgresSQL would treat the value as `alicecorp`).
+Corda ships with PostgreSQL JDBC Driver 42.1.4 out-of-the-box.
+
+Example node configuration for PostgreSQL:
+
+.. sourcecode:: none
+
+dataSourceProperties = {
+    dataSourceClassName = "org.postgresql.ds.PGSimpleDataSource"
+    dataSource.url = "jdbc:postgresql://[HOST]:[PORT]/postgres"
+    dataSource.user = [USER]
+    dataSource.password = [PASSWORD]
+}
+database = {
+    transactionIsolationLevel = READ_COMMITTED
+    schema = [SCHEMA]
+}
diff --git a/node-api/src/main/kotlin/net/corda/nodeapi/internal/persistence/HibernateConfiguration.kt b/node-api/src/main/kotlin/net/corda/nodeapi/internal/persistence/HibernateConfiguration.kt
index 8669c79a8e..2857ed5372 100644
--- a/node-api/src/main/kotlin/net/corda/nodeapi/internal/persistence/HibernateConfiguration.kt
+++ b/node-api/src/main/kotlin/net/corda/nodeapi/internal/persistence/HibernateConfiguration.kt
@@ -51,7 +51,13 @@ class HibernateConfiguration(
                 .setProperty("hibernate.connection.isolation", databaseConfig.transactionIsolationLevel.jdbcValue.toString())
 
         databaseConfig.schema?.apply {
-            config.setProperty("hibernate.default_schema", databaseConfig.schema)
+            //preserving case-sensitive schema name for PostgreSQL by wrapping in double quotes, schema without double quotes would be treated as case-insensitive (lower cases)
+            val schemaName = if (jdbcUrl.contains(":postgresql:", ignoreCase = true) && !databaseConfig.schema.startsWith("\"")) {
+                "\"" + databaseConfig.schema + "\""
+            }  else {
+                databaseConfig.schema
+            }
+            config.setProperty("hibernate.default_schema", schemaName)
         }
 
         schemas.forEach { schema ->
@@ -97,7 +103,7 @@ class HibernateConfiguration(
             applyBasicType(CordaWrapperBinaryType, CordaWrapperBinaryType.name)
             // When connecting to SqlServer (and only then) do we need to tell hibernate to use
             // nationalised (i.e. Unicode) strings by default
-            val forceUnicodeForSqlServer = jdbcUrl.contains(":sqlserver:", ignoreCase = true);
+            val forceUnicodeForSqlServer = jdbcUrl.contains(":sqlserver:", ignoreCase = true)
             enableGlobalNationalizedCharacterDataSupport(forceUnicodeForSqlServer)
             build()
         }
diff --git a/testing/test-utils/src/main/resources/database-scripts/postgres/db-global-cleanup.sql b/testing/test-utils/src/main/resources/database-scripts/postgres/db-global-cleanup.sql
new file mode 100644
index 0000000000..4fd1cf384b
--- /dev/null
+++ b/testing/test-utils/src/main/resources/database-scripts/postgres/db-global-cleanup.sql
@@ -0,0 +1,3 @@
+DROP SCHEMA IF EXISTS "${schema}" CASCADE;
+DROP OWNED by "${schema}";
+DROP USER "${schema}";
\ No newline at end of file
diff --git a/testing/test-utils/src/main/resources/database-scripts/postgres/db-global-setup.sql b/testing/test-utils/src/main/resources/database-scripts/postgres/db-global-setup.sql
new file mode 100644
index 0000000000..c41885d64b
--- /dev/null
+++ b/testing/test-utils/src/main/resources/database-scripts/postgres/db-global-setup.sql
@@ -0,0 +1,10 @@
+DROP SCHEMA IF EXISTS "${schema}" CASCADE;
+DROP OWNED by "${schema}";
+DROP USER IF EXISTS "${schema}";
+CREATE USER "${schema}" WITH LOGIN password '1234';
+CREATE SCHEMA "${schema}";
+GRANT ALL ON SCHEMA "${schema}" TO "${schema}";
+GRANT ALL ON ALL tables IN SCHEMA "${schema}" TO "${schema}";
+ALTER DEFAULT privileges IN SCHEMA "${schema}" GRANT ALL ON tables TO "${schema}";
+GRANT ALL ON ALL sequences IN SCHEMA "${schema}" TO "${schema}";
+ALTER DEFAULT privileges IN SCHEMA "${schema}" GRANT ALL ON sequences TO "${schema}";
\ No newline at end of file
diff --git a/testing/test-utils/src/main/resources/database-scripts/postgres/db-setup.sql b/testing/test-utils/src/main/resources/database-scripts/postgres/db-setup.sql
new file mode 100644
index 0000000000..aa34b09d5a
--- /dev/null
+++ b/testing/test-utils/src/main/resources/database-scripts/postgres/db-setup.sql
@@ -0,0 +1,5 @@
+DROP SCHEMA IF EXISTS "${schema}" CASCADE;
+CREATE SCHEMA "${schema}";
+GRANT ALL ON SCHEMA "${schema}" TO "${schema}";
+ALTER DEFAULT privileges IN SCHEMA "${schema}" GRANT ALL ON tables TO "${schema}";
+ALTER DEFAULT privileges IN SCHEMA "${schema}" GRANT ALL ON sequences TO "${schema}";
\ No newline at end of file
diff --git a/testing/test-utils/src/main/resources/database-scripts/sql-server/db-global-setup.sql b/testing/test-utils/src/main/resources/database-scripts/sql-server/db-global-setup.sql
index a9f9ef63d9..ac53ec2a1a 100644
--- a/testing/test-utils/src/main/resources/database-scripts/sql-server/db-global-setup.sql
+++ b/testing/test-utils/src/main/resources/database-scripts/sql-server/db-global-setup.sql
@@ -29,18 +29,20 @@ DROP TABLE IF EXISTS ${schema}.node_named_identities;
 DROP TABLE IF EXISTS ${schema}.children;
 DROP TABLE IF EXISTS ${schema}.parents;
 DROP TABLE IF EXISTS ${schema}.contract_cash_states;
+DROP TABLE IF EXISTS ${schema}.contract_cash_states_v1;
 DROP TABLE IF EXISTS ${schema}.messages;
 DROP TABLE IF EXISTS ${schema}.state_participants;
 DROP TABLE IF EXISTS ${schema}.cash_states_v2;
 DROP TABLE IF EXISTS ${schema}.cash_states_v3;
+DROP TABLE IF EXISTS ${schema}.cp_states_v1;
 DROP TABLE IF EXISTS ${schema}.cp_states_v2;
 DROP TABLE IF EXISTS ${schema}.dummy_deal_states;
 DROP TABLE IF EXISTS ${schema}.dummy_linear_states;
 DROP TABLE IF EXISTS ${schema}.dummy_linear_states_v2;
 DROP TABLE IF EXISTS ${schema}.node_mutual_exclusion;
-DROP SEQUENCE IF EXISTS ${schema}.hibernate_sequence;
 DROP TABLE IF EXISTS ${schema}.DATABASECHANGELOG;
 DROP TABLE IF EXISTS ${schema}.DATABASECHANGELOGLOCK;
+DROP SEQUENCE IF EXISTS ${schema}.hibernate_sequence;
 DROP USER IF EXISTS ${schema};
 DROP LOGIN ${schema};
 DROP SCHEMA IF EXISTS ${schema};
diff --git a/testing/test-utils/src/main/resources/integration-postgres.conf b/testing/test-utils/src/main/resources/integration-postgres.conf
new file mode 100644
index 0000000000..447fcf52fa
--- /dev/null
+++ b/testing/test-utils/src/main/resources/integration-postgres.conf
@@ -0,0 +1,10 @@
+dataSourceProperties = {
+    dataSourceClassName = "org.postgresql.ds.PGSimpleDataSource"
+    dataSource.url = "jdbc:postgresql://[HOST]:[PORT]/postgres"
+    dataSource.user = ${nodeOrganizationName}
+    dataSource.password = "1234"
+}
+database = {
+    transactionIsolationLevel = READ_COMMITTED
+    schema = ${nodeOrganizationName}
+}
\ No newline at end of file