diff --git a/examples/phoenix/.test.sh b/examples/phoenix/.test.sh
index b3405d8a4..8728f2944 100755
--- a/examples/phoenix/.test.sh
+++ b/examples/phoenix/.test.sh
@@ -2,7 +2,7 @@
 set -ex
 
 pushd hello
-    wait_for_port 4000
+    wait_for_port 4000 60
     mix ecto.create
     curl -s http://localhost:4000/ | grep "Phoenix Framework"
 popd
diff --git a/examples/phoenix/README.md b/examples/phoenix/README.md
index 5ee416ee6..9c6520d50 100644
--- a/examples/phoenix/README.md
+++ b/examples/phoenix/README.md
@@ -5,7 +5,9 @@ $ devenv shell
 $ mix local.hex --force
 $ mix local.rebar --force
 $ mix archive.install hex phx_new
-$ mix phx.new hello
+$ mix phx.new --install hello
+$ sed -i.bak -e "s/hostname: \"localhost\"/socket_dir: System.get_env(\"PGHOST\")/" \
+    ./hello/config/dev.exs && rm ./hello/config/dev.exs.bak
 $ devenv up
 $ cd hello && mix ecto.create
 ```
diff --git a/examples/phoenix/devenv.nix b/examples/phoenix/devenv.nix
index 99b2925d1..204a81177 100644
--- a/examples/phoenix/devenv.nix
+++ b/examples/phoenix/devenv.nix
@@ -18,11 +18,17 @@
   processes.phoenix.exec = "cd hello && mix phx.server";
 
   enterShell = ''
+    mix local.hex --force
+    mix local.rebar --force
+    mix archive.install --force hex phx_new
+
     if [ ! -d "hello" ]; then
-      mix local.hex --force
-      mix local.rebar --force
-      mix archive.install --force hex phx_new
-      mix phx.new --install hello
+      # guard against multiple invocation of "enterShell"
+      mkdir hello
+
+      echo y | mix phx.new --install hello
+      sed -i.bak -e "s/hostname: \"localhost\"/socket_dir: System.get_env(\"PGHOST\")/" \
+        ./hello/config/dev.exs && rm ./hello/config/dev.exs.bak
     fi
   '';
 }