To create and initialize an Odoo database with the Odoo data schema, we should run the Odoo server using the -d option:
$ ~/odoo-dev/odoo/odoo-bin -d testdb
This will take a couple of minutes to initialize the testdb database, and it will end with an INFO log message, Modules loaded. Note that it might not be the last log message, and it can be in the last three or four lines. With this, the server will be ready to listen to client requests.
Since Odoo 9.0, the database is automatically created if it doesn't exist yet. In version 8.0, this was not so, and you needed to create the database manually, using the createdb command.
By default, this will initialize the database with demonstration data, which is often useful for development databases. This is the equivalent to having the Load demonstration data checkbox ticked when creating a new...