diff --git a/.circleci/config.yml b/.circleci/config.yml
index 57b3117a284..a7f36fe4b72 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -50,7 +50,7 @@ executors:
     working_directory: *workdir
     environment:
       <<: *environment
-      DB: sqlite
+      DB: sqlite3
     docker:
       - image: *image
 
diff --git a/Gemfile b/Gemfile
index d87dc854867..c18c1320208 100644
--- a/Gemfile
+++ b/Gemfile
@@ -17,7 +17,7 @@ end
 # and https://github.com/rails/sprockets-rails/issues/369
 gem 'sprockets', '~> 3'
 
-dbs = ENV['DB_ALL'] ? 'all' : ENV.fetch('DB', 'sqlite')
+dbs = ENV['DB_ALL'] ? 'all' : ENV.fetch('DB', 'sqlite3')
 gem 'mysql2', '~> 0.5.0', require: false if dbs.match?(/all|mysql/)
 gem 'pg', '~> 1.0', require: false if dbs.match?(/all|postgres/)
 gem 'fast_sqlite', require: false if dbs.match?(/all|sqlite/)
diff --git a/README.md b/README.md
index 434aeb4b913..195ca28d45e 100644
--- a/README.md
+++ b/README.md
@@ -341,7 +341,7 @@ createuser --superuser --echo postgres # only the first time
 bin/build
 ```
 
-The `bin/build` script runs using PostgreSQL by default, but it can be overridden by setting the DB environment variable to `DB=sqlite` or `DB=mysql`. For example:
+The `bin/build` script runs using PostgreSQL by default, but it can be overridden by setting the DB environment variable to `DB=sqlite3` or `DB=mysql`. For example:
 
 ```bash
 env DB=mysql bin/build
diff --git a/bin/build b/bin/build
index 339f9770084..021fc529f8b 100755
--- a/bin/build
+++ b/bin/build
@@ -2,7 +2,7 @@
 
 set -e
 
-# Target postgresql. Override with: `env DB=sqlite bin/build`
+# Target postgresql. Override with: `env DB=sqlite3 bin/build`
 export DB=${DB:-postgresql}
 
 if [ -n "$COVERAGE" ]; then
diff --git a/bin/sandbox b/bin/sandbox
index ebff817bc09..b42808f539d 100755
--- a/bin/sandbox
+++ b/bin/sandbox
@@ -18,7 +18,7 @@ mysql)
   USERNAME=$DB_USERNAME
   PASSWORD=$DB_PASSWORD
   ;;
-sqlite|'')
+sqlite3|sqlite|'')
   RAILSDB="sqlite3"
   ;;
 *)
diff --git a/core/lib/generators/spree/dummy/templates/rails/database.yml b/core/lib/generators/spree/dummy/templates/rails/database.yml
index 8041f137b17..3212af72c5a 100644
--- a/core/lib/generators/spree/dummy/templates/rails/database.yml
+++ b/core/lib/generators/spree/dummy/templates/rails/database.yml
@@ -1,113 +1,48 @@
-<% db = case ENV['DB']
-        when 'mysql'
-          'mysql'
-        when 'postgres', 'postgresql'
-          'postgres'
-        when 'sqlite', '', nil
-          'sqlite'
-        else
-          raise "Invalid DB specified: #{ENV['DB']}"
-        end %>
-<% db_host = case db
-             when 'mysql'
-               ENV['DB_MYSQL_HOST'] || ENV['DB_HOST']
-             when 'postgres'
-               ENV['DB_POSTGRES_HOST'] || ENV['DB_HOST']
-             else
-               ENV['DB_HOST']
-             end %>
-<% db_username = ENV['DB_USERNAME'] %>
-<% db_password = ENV['DB_PASSWORD'] %>
+<%=
+require 'yaml'
 
-<% case ENV['DB']
-  when 'mysql' %>
-development:
-  adapter: mysql2
-  database: <%= options[:lib_name] %>_solidus_development
-  <% unless db_username.blank? %>
-  username: <%= db_username %>
-  <% end %>
-  <% unless db_password.blank? %>
-  password: <%= db_password %>
-  <% end %>
-  <% unless db_host.blank? %>
-  host: <%= db_host %>
-  <% end %>
-  encoding: utf8
-test:
-  adapter: mysql2
-  database: <%= options[:lib_name] %>_solidus_test
-  <% unless db_username.blank? %>
-  username: <%= db_username %>
-  <% end %>
-  <% unless db_password.blank? %>
-  password: <%= db_password %>
-  <% end %>
-  <% unless db_host.blank? %>
-  host: <%= db_host %>
-  <% end %>
-  encoding: utf8
-production:
-  adapter: mysql2
-  database: <%= options[:lib_name] %>_solidus_production
-  <% unless db_username.blank? %>
-  username: <%= db_username %>
-  <% end %>
-  <% unless db_password.blank? %>
-  password: <%= db_password %>
-  <% end %>
-  <% unless db_host.blank? %>
-  host: <%= db_host %>
-  <% end %>
-  encoding: utf8
-<% when 'postgres', 'postgresql' %>
-development:
-  adapter: postgresql
-  database: <%= options[:lib_name] %>_solidus_development
-  <% unless db_username.blank? %>
-  username: <%= db_username %>
-  <% end %>
-  <% unless db_password.blank? %>
-  password: <%= db_password %>
-  <% end %>
-  <% unless db_host.blank? %>
-  host: <%= db_host %>
-  <% end %>
-  min_messages: warning
-test:
-  adapter: postgresql
-  database: <%= options[:lib_name] %>_solidus_test
-  <% unless db_username.blank? %>
-  username: <%= db_username %>
-  <% end %>
-  <% unless db_password.blank? %>
-  password: <%= db_password %>
-  <% end %>
-  <% unless db_host.blank? %>
-  host: <%= db_host %>
-  <% end %>
-  min_messages: warning
-production:
-  adapter: postgresql
-  database: <%= options[:lib_name] %>_solidus_production
-  <% unless db_username.blank? %>
-  username: <%= db_username %>
-  <% end %>
-  <% unless db_password.blank? %>
-  password: <%= db_password %>
-  <% end %>
-  <% unless db_host.blank? %>
-  host: <%= db_host %>
-  <% end %>
-  min_messages: warning
-<% when 'sqlite', '', nil %>
-development:
-  adapter: sqlite3
-  database: db/solidus_development.sqlite3
-test:
-  adapter: sqlite3
-  database: db/solidus_test.sqlite3
-production:
-  adapter: sqlite3
-  database: db/solidus_production.sqlite3
-<% end %>
+lib = "#{options[:lib_name]}_solidus"
+
+case ENV['DB'].presence
+when /mysql/
+  default = {
+    adapter: 'mysql2',
+    encoding: 'utf8',
+    host: (ENV['DB_MYSQL_HOST'] || ENV['DB_HOST']).presence,
+    username: ENV['DB_PASSWORD'].presence,
+    password: ENV['DB_USERNAME'].presence,
+  }.compact
+
+  config = {
+    development: default.merge(database: "#{lib}_development"),
+    production:  default.merge(database: "#{lib}_production"),
+    test:        default.merge(database: "#{lib}_test"),
+  }
+when /postgres/ then 'postgres'
+  default = {
+    adapter: 'postgresql',
+    encoding: 'utf8',
+    host: ENV['DB_POSTGRES_HOST'] || ENV['DB_HOST'],
+    username: ENV['DB_PASSWORD'].presence,
+    password: ENV['DB_USERNAME'].presence,
+  }.compact
+
+  config = {
+    development: default.merge(database: "#{lib}_development"),
+    production:  default.merge(database: "#{lib}_production"),
+    test:        default.merge(database: "#{lib}_test"),
+  }
+when /sqlite/, nil then 'sqlite3'
+  default = {
+    adapter: sqlite3
+  }
+  config = {
+    development: default.merge(database: "db/#{lib}_development.sqlite3"),
+    production:  default.merge(database: "db/#{lib}_production.sqlite3"),
+    test:        default.merge(database: "db/#{lib}_test.sqlite3"),
+  }
+else raise "Invalid DB specified: #{ENV['DB'].inspect}"
+end
+
+config.deep_stringify_keys.to_yaml
+%>