gem install pg

pg

ganesh@shreeganesh /cygdrive/f/projects/catarse
$ gem install pg -v '0.14.0'
Building native extensions.  This could take a while...
ERROR:  Error installing pg:
        ERROR: Failed to build gem native extension.

        /usr/local/bin/ruby.exe extconf.rb
checking for pg_config... yes
Using config values from /usr/bin/pg_config
checking for libpq-fe.h... yes
checking for libpq/libpq-fs.h... yes
checking for pg_config_manual.h... yes
checking for PQconnectdb() in -lpq... yes
checking for PQconnectionUsedPassword()... no
Your PostgreSQL is too old. Either install an older version of this gem or upgrade your database.
*** extconf.rb failed ***
Could not create Makefile due to some reason, probably lack of
necessary libraries and/or headers.  Check the mkmf.log file for more
details.  You may need configuration options.

Provided configuration options:
        --with-opt-dir
        --without-opt-dir
        --with-opt-include
        --without-opt-include=${opt-dir}/include
        --with-opt-lib
        --without-opt-lib=${opt-dir}/lib
        --with-make-prog
        --without-make-prog
        --srcdir=.
        --curdir
        --ruby=/usr/local/bin/ruby
        --with-pg
        --without-pg
        --with-pg-dir
        --without-pg-dir
        --with-pg-include
        --without-pg-include=${pg-dir}/include
        --with-pg-lib
        --without-pg-lib=${pg-dir}/lib
        --with-pg-config
        --without-pg-config
        --with-pg_config
        --without-pg_config
        --with-pqlib
        --without-pqlib


Gem files will remain installed in /usr/local/lib/ruby/gems/1.9.1/gems/pg-0.14.0 for inspection.
Results logged to /usr/local/lib/ruby/gems/1.9.1/gems/pg-0.14.0/ext/gem_make.out

How to solved this issue?