How to handle Ruby on Rails error: "Please install the postgresql adapter: `gem install activerecord-postgresql-adapter'"

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Running a Ruby on Rails (RoR) app or Ruby code which uses the ActiveRecord framework, you get the error message:

Please install the postgresql adapter: gem install activerecord-postgresql-adapter

Trying to run:

gem install activerecord-postgresql-adapter

also fails, leaving you at a loss.

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