Install Postgres gem issue on rails app

When you try to install postgres gem for your application, but unfortunately you end up with this problem

$ 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.

        /home/user/.rvm/rubies/ruby-1.9.3/bin/ruby extconf.rb
checking for pg_config... yes
Using config values from /usr/bin/pg_config
You need to install postgresql-server-dev-X.Y for building a server-side extension or libpq-dev for building a client-side application.
You need to install postgresql-server-dev-X.Y for building a server-side extension or libpq-dev for building a client-side application.
checking for libpq-fe.h... *** 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=/home/user/.rvm/rubies/ruby-1.9.3/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

Solution:

$ sudo apt-get install libpq-dev

You need to install postgresql-server for building a server-side extension or libpq-dev for building a client-side application.