I just upgraded from OS X Lion to OS X Mountain Lion. My rails environment for the most part stayed in tact.
The only steps I had to do to get things back to a good
I just got mine up and running via this ticket:
How can I pass a parameter for gem installation when I run bundle install?
bundle config build.pg --with-pg-config=/path/to/pg_config
bundle install
Like Matt, Ranjan, and Peter Mellett all say, you have to get the right pg_config location, and Mountain Lion comes with a different location that doesn't seem to play well with rubygems, so if you find your old version like
/Library/PostgreSQL/bin/pg_config
then you can set that in the bundle config before installing.
My situation was upgrading from Lion to Mountain Lion.