CREATE DATABASE actually works by copying an existing
   database.  By default, it copies the standard system database named
   template1.  Thus that database is the "template"
   from which new databases are made.  If you add objects to
   template1, these objects 
   will be copied into subsequently created user databases.  This
   behavior allows site-local modifications to the standard set of
   objects in databases.  For example, if you install the procedural
   language PL/pgSQL in template1, it will
   automatically be available in user databases without any extra action
   being taken when those databases are made.
  
   There is a second standard system database named template0.
   This database contains the same data as the initial contents of
   template1, that is, only the standard objects predefined by
   your version of PostgreSQL.
     template0 should never be changed 
   after initdb.  By instructing CREATE DATABASE to
   copy template0 instead of template1, you can
   create a "virgin" user database that contains none of the
   site-local additions in template1.  This is particularly
   handy when restoring a pg_dump dump: the dump script should
   be restored in a virgin database to ensure that one recreates the
   correct contents of the dumped database, without any conflicts with
   additions that may now be present in template1.
  
   To create a database by copying template0, use
CREATE DATABASE dbname TEMPLATE template0;
   from the SQL environment, or
createdb -T template0 dbname
   from the shell.
  
   It is possible to create additional template databases, and indeed
   one might copy any database in an installation by specifying its name
   as the template for CREATE DATABASE.  It is important to
   understand, however, that this is not (yet) intended as
   a general-purpose "COPY DATABASE" facility.  In particular, it is
   essential that the source database be idle (no data-altering transactions
   in progress)
   for the duration of the copying operation.  CREATE DATABASE
   will check
   that no backend processes (other than itself) are connected to
   the source database at the start of the operation, but this does not
   guarantee that changes cannot be made while the copy proceeds, which
   would result in an inconsistent copied database.  Therefore,
   we recommend that databases used as templates be treated as read-only.
  
   Two useful flags exist in pg_database for each
   database: the columns datistemplate and
   datallowconn.  datistemplate
   may be set to indicate that a database is intended as a template for
   CREATE DATABASE.  If this flag is set, the database may be
   cloned by 
   any user with CREATEDB privileges; if it is not set, only superusers
   and the owner of the database may clone it.
   If datallowconn is false, then no new connections
   to that database will be allowed (but existing sessions are not killed
   simply by setting the flag false).  The template0
   database is normally marked datallowconn =
   false to prevent modification of it.
   Both template0 and template1
   should always be marked with datistemplate =
   true.
  
   After preparing a template database, or making any changes to one,
   it is a good idea to perform
   VACUUM FREEZE or VACUUM FULL FREEZE in that
   database.  If this is done when there are no other open transactions
   in the same database, then it is guaranteed that all tuples in the
   database are "frozen" and will not be subject to transaction
   ID wraparound problems.  This is particularly important for a database
   that will have datallowconn set to false, since it
   will be impossible to do routine maintenance VACUUMs on
   such a database.
   See Section 8.2.3 for more information.
  
Note:     template1 and template0 do not have any special
    status beyond the fact that the name template1 is the default
    source database name for CREATE DATABASE and the default
    database-to-connect-to for various programs such as createdb.
    For example, one could drop template1 and recreate it from
    template0 without any ill effects.  This course of action
    might be advisable if one has carelessly added a bunch of junk in
    template1.