diff --git a/migrations/base/02-post-setup.sql b/migrations/base/02-post-setup.sql
deleted file mode 100644
index ddd1c267..00000000
--- a/migrations/base/02-post-setup.sql
+++ /dev/null
@@ -1,12 +0,0 @@
-ALTER ROLE postgres SET search_path TO "\$user",public,extensions;
-CREATE OR REPLACE FUNCTION extensions.notify_api_restart()
-RETURNS event_trigger
-LANGUAGE plpgsql
-AS $$
-BEGIN
-    NOTIFY pgrst, 'reload schema';
-END;
-$$;
-CREATE EVENT TRIGGER api_restart ON ddl_command_end
-EXECUTE PROCEDURE extensions.notify_api_restart();
-COMMENT ON FUNCTION extensions.notify_api_restart IS 'Sends a notification to the API to restart. If your database schema has changed, this is required so that Supabase can rebuild the relationships.';
diff --git a/src/database/connection.ts b/src/database/connection.ts
index 20070219..9a447c3c 100644
--- a/src/database/connection.ts
+++ b/src/database/connection.ts
@@ -35,7 +35,7 @@ export class TenantConnection {
   public readonly role: string
 
   protected constructor(
-    public readonly pool: Knex,
+    protected readonly pool: Knex,
     protected readonly options: TenantConnectionOptions
   ) {
     this.role = options.user.payload.role || 'anon'
@@ -56,7 +56,7 @@ export class TenantConnection {
     let knexPool = connections.get(connectionString)
 
     if (knexPool) {
-      return new this(await knexPool, options)
+      return new this(knexPool, options)
     }
 
     const isExternalPool = Boolean(options.isExternalPool)
@@ -67,7 +67,6 @@ export class TenantConnection {
       pool: {
         min: 0,
         max: isExternalPool ? 1 : options.maxConnections || databaseMaxConnections,
-        propagateCreateError: false,
         acquireTimeoutMillis: databaseConnectionTimeout,
         idleTimeoutMillis: isExternalPool ? 100 : databaseFreePoolAfterInactivity,
         reapIntervalMillis: isExternalPool ? 110 : undefined,
@@ -115,15 +114,19 @@ export class TenantConnection {
     }
   }
 
-  transaction(instance?: Knex): Knex.TransactionProvider {
-    return async () => {
-      const pool = instance || this.pool
-      const tnx = await pool.transaction()
+  async transaction(instance?: Knex) {
+    const pool = instance || this.pool
+    const tnx = await pool.transaction()
 
-      if (!instance) {
-        await tnx.raw(`set search_path to ${searchPath.join(', ')}`)
-      }
-      return tnx
+    if (!instance && this.options.isExternalPool) {
+      await tnx.raw(`SELECT set_config('search_path', ?, true)`, [searchPath.join(', ')])
+    }
+    return tnx
+  }
+
+  transactionProvider(instance?: Knex): Knex.TransactionProvider {
+    return async () => {
+      return this.transaction(instance)
     }
   }
 
diff --git a/src/storage/database/knex.ts b/src/storage/database/knex.ts
index 5403de8a..b17b9e94 100644
--- a/src/storage/database/knex.ts
+++ b/src/storage/database/knex.ts
@@ -39,7 +39,7 @@ export class StorageKnexDB implements Database {
     transactionOptions?: TransactionOptions
   ) {
     try {
-      const tnx = await this.connection.transaction(this.options.tnx)()
+      const tnx = await this.connection.transactionProvider(this.options.tnx)()
 
       try {
         await this.connection.setScope(tnx)
@@ -546,7 +546,7 @@ export class StorageKnexDB implements Database {
     const needsNewTransaction = !tnx || differentScopes
 
     if (!tnx || needsNewTransaction) {
-      tnx = await this.connection.transaction(this.options.tnx)()
+      tnx = await this.connection.transactionProvider(this.options.tnx)()
       tnx.on('query-error', (error: DatabaseError) => {
         throw DBError.fromDBError(error)
       })
diff --git a/src/test/object.test.ts b/src/test/object.test.ts
index 579c3327..602db570 100644
--- a/src/test/object.test.ts
+++ b/src/test/object.test.ts
@@ -12,11 +12,13 @@ import { StorageBackendError } from '../storage'
 import { useMockObject, useMockQueue } from './common'
 import { getPostgresConnection } from '../database'
 import { getServiceKeyUser } from '../database/tenant'
+import { Knex } from 'knex'
 
 dotenv.config({ path: '.env.test' })
 
 const { anonKey, jwtSecret, serviceKey, tenantId } = getConfig()
 
+let tnx: Knex.Transaction | undefined
 async function getSuperuserPostgrestClient() {
   const superUser = await getServiceKeyUser(tenantId)
 
@@ -26,14 +28,19 @@ async function getSuperuserPostgrestClient() {
     tenantId,
     host: 'localhost',
   })
-  const tnx = await conn.pool
-
+  tnx = await conn.transaction()
   return tnx
 }
 
 useMockObject()
 useMockQueue()
 
+afterEach(async () => {
+  if (tnx) {
+    await tnx.commit()
+  }
+})
+
 /*
  * GET /object/:id
  */
diff --git a/src/test/rls.test.ts b/src/test/rls.test.ts
index 8c698bf3..7bb22025 100644
--- a/src/test/rls.test.ts
+++ b/src/test/rls.test.ts
@@ -127,7 +127,7 @@ describe('RLS policies', () => {
 
   afterAll(async () => {
     await db.destroy()
-    await (storage.db as StorageKnexDB).connection.pool.destroy()
+    await (storage.db as StorageKnexDB).connection.dispose()
   })
 
   testSpec.tests.forEach((_test, index) => {
diff --git a/src/test/webhooks.test.ts b/src/test/webhooks.test.ts
index bda4276a..f90b45d6 100644
--- a/src/test/webhooks.test.ts
+++ b/src/test/webhooks.test.ts
@@ -294,7 +294,7 @@ describe('Webhooks', () => {
 
 async function createObject(pg: TenantConnection, bucketId: string) {
   const objectName = Date.now()
-  const tnx = pg.pool
+  const tnx = await pg.transaction()
 
   const [data] = await tnx
     .from<Obj>('objects')
@@ -316,5 +316,7 @@ async function createObject(pg: TenantConnection, bucketId: string) {
     ])
     .returning('*')
 
+  await tnx.commit()
+
   return data as Obj
 }