You have some good advice here already, but I'll add what I don't see mentioned.

My advice to you is to use the same database in development as you do in production, PostgreSQL . There are a number of reasons this is a good idea and you have just come across one, deployment headaches.

But let's say you stick with the different database types. This line in your gemfile looks strange to me-- "not devlopment"

# 
# 
###################################################################################
group :development, :test do # <<<< :development, not devlopment
  gem 'sqlite3'
end

I think you should try

# 
# 
###################################################################################
group :development, :test do 
  gem 'sqlite3'
end

Let me know how it goes.