diff -ruN postgresql-7.4.7-old/src/backend/catalog/namespace.c postgresql-7.4.7/src/backend/catalog/namespace.c
--- postgresql-7.4.7-old/src/backend/catalog/namespace.c	2003-09-25 08:57:57.000000000 +0200
+++ postgresql-7.4.7/src/backend/catalog/namespace.c	2007-04-20 10:46:48.000000000 +0200
@@ -64,14 +64,32 @@
  * SQL99.  Also, this provides a way to search the system namespace first
  * without thereby making it the default creation target namespace.)
  *
+ * For security reasons, searches using the search path will ignore the temp
+ * namespace when searching for any object type other than relations and
+ * types.  (We must allow types since temp tables have rowtypes.)
+ *
  * The default creation target namespace is normally equal to the first
  * element of the explicit list, but is the "special" namespace when one
  * has been set.  If the explicit list is empty and there is no special
  * namespace, there is no default target.
  *
- * In bootstrap mode, the search path is set equal to 'pg_catalog', so that
+ * The textual specification of search_path can include "$user" to refer to
+ * the namespace named the same as the current user, if any.  (This is just
+ * ignored if there is no such namespace.)  Also, it can include "pg_temp"
+ * to refer to the current backend's temp namespace.  This is usually also
+ * ignorable if the temp namespace hasn't been set up, but there's a special
+ * case: if "pg_temp" appears first then it should be the default creation
+ * target.  We kluge this case a little bit so that the temp namespace isn't
+ * set up until the first attempt to create something in it.  (The reason for
+ * klugery is that we can't create the temp namespace outside a transaction,
+ * but initial GUC processing of search_path happens outside a transaction.)
+ * tempCreationPending is TRUE if "pg_temp" appears first in the string but
+ * is not reflected in defaultCreationNamespace because the namespace isn't
+ * set up yet.
+ *
+ * In bootstrap mode, the search path is set equal to "pg_catalog", so that
  * the system namespace is the only one searched or inserted into.
- * The initdb script is also careful to set search_path to 'pg_catalog' for
+ * The initdb script is also careful to set search_path to "pg_catalog" for
  * its post-bootstrap standalone backend runs.	Otherwise the default search
  * path is determined by GUC.  The factory default path contains the PUBLIC
  * namespace (if it exists), preceded by the user's personal namespace
@@ -99,7 +117,10 @@
 /* first explicit member of list; usually same as defaultCreationNamespace */
 static Oid	firstExplicitNamespace = InvalidOid;
 
-/* The above four values are valid only if namespaceSearchPathValid */
+/* if TRUE, defaultCreationNamespace is wrong, it should be temp namespace */
+static bool tempCreationPending = false;
+
+/* The above five values are valid only if namespaceSearchPathValid */
 static bool namespaceSearchPathValid = true;
 
 /*
@@ -235,6 +256,14 @@
 
 	if (newRelation->schemaname)
 	{
+		/* check for pg_temp alias */
+		if (strcmp(newRelation->schemaname, "pg_temp") == 0)
+		{
+			/* Initialize temp namespace if first time through */
+			if (!OidIsValid(myTempNamespace))
+				InitTempTableNamespace();
+			return myTempNamespace;
+		}
 		/* use exact schema given */
 		namespaceId = GetSysCacheOid(NAMESPACENAME,
 								CStringGetDatum(newRelation->schemaname),
@@ -250,6 +279,12 @@
 	{
 		/* use the default creation namespace */
 		recomputeNamespacePath();
+		if (tempCreationPending)
+		{
+			/* Need to initialize temp namespace */
+			InitTempTableNamespace();
+			return myTempNamespace;
+		}
 		namespaceId = defaultCreationNamespace;
 		if (!OidIsValid(namespaceId))
 			ereport(ERROR,
@@ -490,12 +525,16 @@
 		}
 		else
 		{
-			/* Consider only procs that are in the search path */
+			/*
+			 * Consider only procs that are in the search path and are not
+			 * in the temp namespace.
+			 */
 			List	   *nsp;
 
 			foreach(nsp, namespaceSearchPath)
 			{
-				if (procform->pronamespace == lfirsto(nsp))
+				if (procform->pronamespace == lfirsto(nsp) &&
+					procform->pronamespace != myTempNamespace)
 					break;
 				pathpos++;
 			}
@@ -705,12 +744,16 @@
 		}
 		else
 		{
-			/* Consider only opers that are in the search path */
+			/*
+			 * Consider only opers that are in the search path and are not
+			 * in the temp namespace.
+			 */
 			List	   *nsp;
 
 			foreach(nsp, namespaceSearchPath)
 			{
-				if (operform->oprnamespace == lfirsto(nsp))
+				if (operform->oprnamespace == lfirsto(nsp) &&
+					operform->oprnamespace != myTempNamespace)
 					break;
 				pathpos++;
 			}
@@ -886,7 +929,8 @@
 		/* Consider only opclasses that are in the search path */
 		foreach(nsp, namespaceSearchPath)
 		{
-			if (opcform->opcnamespace == lfirsto(nsp))
+			if (opcform->opcnamespace == lfirsto(nsp) &&
+				opcform->opcnamespace != myTempNamespace)
 				break;
 			pathpos++;
 		}
@@ -984,6 +1028,9 @@
 	{
 		Oid			namespaceId = lfirsto(lptr);
 
+		if (namespaceId == myTempNamespace)
+			continue;			/* do not look in temp namespace */
+
 		opcid = GetSysCacheOid(CLAAMNAMENSP,
 							   ObjectIdGetDatum(amid),
 							   PointerGetDatum(opcname),
@@ -1066,6 +1113,9 @@
 	{
 		Oid			namespaceId = lfirsto(lptr);
 
+		if (namespaceId == myTempNamespace)
+			continue;			/* do not look in temp namespace */
+
 		conid = GetSysCacheOid(CONNAMENSP,
 							   PointerGetDatum(conname),
 							   ObjectIdGetDatum(namespaceId),
@@ -1191,6 +1241,19 @@
 	Oid			namespaceId;
 	AclResult	aclresult;
 
+	/* check for pg_temp alias */
+	if (strcmp(nspname, "pg_temp") == 0)
+	{
+		if (OidIsValid(myTempNamespace))
+			return myTempNamespace;
+		/*
+		 * Since this is used only for looking up existing objects, there
+		 * is no point in trying to initialize the temp namespace here;
+		 * and doing so might create problems for some callers.
+		 * Just fall through and give the "does not exist" error.
+		 */
+	}
+
 	namespaceId = GetSysCacheOid(NAMESPACENAME,
 								 CStringGetDatum(nspname),
 								 0, 0, 0);
@@ -1213,21 +1276,28 @@
  *		format), determine what namespace the object should be created in.
  *		Also extract and return the object name (last component of list).
  *
- * This is *not* used for tables.  Hence, the TEMP table namespace is
- * never selected as the creation target.
+ * Note: calling this may result in a CommandCounterIncrement operation,
+ * if we have to create or clean out the temp namespace.
  */
 Oid
 QualifiedNameGetCreationNamespace(List *names, char **objname_p)
 {
 	char	   *schemaname;
-	char	   *objname;
 	Oid			namespaceId;
 
 	/* deconstruct the name list */
-	DeconstructQualifiedName(names, &schemaname, &objname);
+	DeconstructQualifiedName(names, &schemaname, objname_p);
 
 	if (schemaname)
 	{
+		/* check for pg_temp alias */
+		if (strcmp(schemaname, "pg_temp") == 0)
+		{
+			/* Initialize temp namespace if first time through */
+			if (!OidIsValid(myTempNamespace))
+				InitTempTableNamespace();
+			return myTempNamespace;
+		}
 		/* use exact schema given */
 		namespaceId = GetSysCacheOid(NAMESPACENAME,
 									 CStringGetDatum(schemaname),
@@ -1242,6 +1312,12 @@
 	{
 		/* use the default creation namespace */
 		recomputeNamespacePath();
+		if (tempCreationPending)
+		{
+			/* Need to initialize temp namespace */
+			InitTempTableNamespace();
+			return myTempNamespace;
+		}
 		namespaceId = defaultCreationNamespace;
 		if (!OidIsValid(namespaceId))
 			ereport(ERROR,
@@ -1251,7 +1327,6 @@
 
 	/* Note: callers will check for CREATE rights when appropriate */
 
-	*objname_p = objname;
 	return namespaceId;
 }
 
@@ -1431,6 +1506,10 @@
 		foreach(lptr, namespaceSearchPath)
 		{
 			namespaceId = lfirsto(lptr);
+
+			if (namespaceId == myTempNamespace)
+				continue;			/* do not look in temp namespace */
+
 			conoid = FindConversion(conversion_name, namespaceId);
 			if (OidIsValid(conoid))
 				return conoid;
@@ -1456,6 +1535,9 @@
 	{
 		Oid			namespaceId = lfirsto(lptr);
 
+		if (namespaceId == myTempNamespace)
+			continue;			/* do not look in temp namespace */
+
 		proc = FindDefaultConversion(namespaceId, for_encoding, to_encoding);
 		if (OidIsValid(proc))
 			return proc;
@@ -1477,6 +1559,7 @@
 	List	   *oidlist;
 	List	   *newpath;
 	List	   *l;
+	bool		temp_missing;
 	Oid			firstNS;
 	MemoryContext oldcxt;
 
@@ -1504,6 +1587,7 @@
 	 * has already been accepted.)	Don't make duplicate entries, either.
 	 */
 	oidlist = NIL;
+	temp_missing = false;
 	foreach(l, namelist)
 	{
 		char	   *curname = (char *) lfirst(l);
@@ -1533,6 +1617,21 @@
 					oidlist = lappendo(oidlist, namespaceId);
 			}
 		}
+		else if (strcmp(curname, "pg_temp") == 0)
+		{
+			/* pg_temp --- substitute temp namespace, if any */
+			if (OidIsValid(myTempNamespace))
+			{
+				if (!oidMember(myTempNamespace, oidlist))
+					oidlist = lappendo(oidlist, myTempNamespace);
+			}
+			else
+			{
+				/* If it ought to be the creation namespace, set flag */
+				if (oidlist == NIL)
+					temp_missing = true;
+			}
+		}
 		else
 		{
 			/* normal namespace reference */
@@ -1548,7 +1647,9 @@
 	}
 
 	/*
-	 * Remember the first member of the explicit list.
+	 * Remember the first member of the explicit list.  (Note: this is
+	 * nominally wrong if temp_missing, but we need it anyway to distinguish
+	 * explicit from implicit mention of pg_catalog.)
 	 */
 	if (oidlist == NIL)
 		firstNS = InvalidOid;
@@ -1588,9 +1689,16 @@
 	 */
 	firstExplicitNamespace = firstNS;
 	if (OidIsValid(mySpecialNamespace))
+	{
 		defaultCreationNamespace = mySpecialNamespace;
+		/* don't have to create temp in this state */
+		tempCreationPending = false;
+	}
 	else
+	{
 		defaultCreationNamespace = firstNS;
+		tempCreationPending = temp_missing;
+	}
 
 	/* Mark the path valid. */
 	namespaceSearchPathValid = true;
@@ -1612,6 +1720,8 @@
 	char		namespaceName[NAMEDATALEN];
 	Oid			namespaceId;
 
+	Assert(!OidIsValid(myTempNamespace));
+
 	/*
 	 * First, do permission check to see if we are authorized to make temp
 	 * tables.	We use a nonstandard error message here since
@@ -1782,9 +1892,9 @@
 	{
 		/*
 		 * Verify that all the names are either valid namespace names or
-		 * "$user".  We do not require $user to correspond to a valid
-		 * namespace.  We do not check for USAGE rights, either; should
-		 * we?
+		 * "$user" or "pg_temp".  We do not require $user to correspond to a
+		 * valid namespace, and pg_temp might not exist yet.  We do not check
+		 * for USAGE rights, either; should we?
 		 */
 		foreach(l, namelist)
 		{
@@ -1792,6 +1902,8 @@
 
 			if (strcmp(curname, "$user") == 0)
 				continue;
+			if (strcmp(curname, "pg_temp") == 0)
+				continue;
 			if (!SearchSysCacheExists(NAMESPACENAME,
 									  CStringGetDatum(curname),
 									  0, 0, 0))
@@ -1837,6 +1949,7 @@
 		MemoryContextSwitchTo(oldcxt);
 		defaultCreationNamespace = PG_CATALOG_NAMESPACE;
 		firstExplicitNamespace = PG_CATALOG_NAMESPACE;
+		tempCreationPending = false;
 		namespaceSearchPathValid = true;
 		namespaceUser = GetUserId();
 	}
@@ -1872,6 +1985,9 @@
  * includeImplicit is true.
  *
  * NB: caller must treat the list as read-only!
+ *
+ * Note: calling this may result in a CommandCounterIncrement operation,
+ * if we have to create or clean out the temp namespace.
  */
 List *
 fetch_search_path(bool includeImplicit)
@@ -1880,6 +1996,19 @@
 
 	recomputeNamespacePath();
 
+	/*
+	 * If the temp namespace should be first, force it to exist.  This is
+	 * so that callers can trust the result to reflect the actual default
+	 * creation namespace.  It's a bit bogus to do this here, since
+	 * current_schema() is supposedly a stable function without side-effects,
+	 * but the alternatives seem worse.
+	 */
+	if (tempCreationPending)
+	{
+		InitTempTableNamespace();
+		recomputeNamespacePath();
+	}
+
 	result = namespaceSearchPath;
 	if (!includeImplicit)
 	{
diff -ruN postgresql-7.4.7-old/src/test/regress/expected/temp.out postgresql-7.4.7/src/test/regress/expected/temp.out
--- postgresql-7.4.7-old/src/test/regress/expected/temp.out	2003-09-25 08:58:06.000000000 +0200
+++ postgresql-7.4.7/src/test/regress/expected/temp.out	2007-04-20 10:46:26.000000000 +0200
@@ -82,3 +82,61 @@
 -- ON COMMIT is only allowed for TEMP
 CREATE TABLE temptest(col int) ON COMMIT DELETE ROWS;
 ERROR:  ON COMMIT can only be used on temporary tables
+-- Test manipulation of temp schema's placement in search path
+create table public.whereami (f1 text);
+insert into public.whereami values ('public');
+create temp table whereami (f1 text);
+insert into whereami values ('temp');
+create function public.whoami() returns text
+  as 'select ''public''::text' language sql;
+create function pg_temp.whoami() returns text
+  as 'select ''temp''::text' language sql;
+-- default should have pg_temp implicitly first, but only for tables
+select * from whereami;
+  f1  
+------
+ temp
+(1 row)
+
+select whoami();
+ whoami 
+--------
+ public
+(1 row)
+
+-- can list temp first explicitly, but it still doesn't affect functions
+set search_path = pg_temp, public;
+select * from whereami;
+  f1  
+------
+ temp
+(1 row)
+
+select whoami();
+ whoami 
+--------
+ public
+(1 row)
+
+-- or put it last for security
+set search_path = public, pg_temp;
+select * from whereami;
+   f1   
+--------
+ public
+(1 row)
+
+select whoami();
+ whoami 
+--------
+ public
+(1 row)
+
+-- you can invoke a temp function explicitly, though
+select pg_temp.whoami();
+ whoami 
+--------
+ temp
+(1 row)
+
+drop table public.whereami;
diff -ruN postgresql-7.4.7-old/src/test/regress/sql/temp.sql postgresql-7.4.7/src/test/regress/sql/temp.sql
--- postgresql-7.4.7-old/src/test/regress/sql/temp.sql	2003-05-14 05:26:03.000000000 +0200
+++ postgresql-7.4.7/src/test/regress/sql/temp.sql	2007-04-20 10:46:26.000000000 +0200
@@ -83,3 +83,36 @@
 -- ON COMMIT is only allowed for TEMP
 
 CREATE TABLE temptest(col int) ON COMMIT DELETE ROWS;
+
+-- Test manipulation of temp schema's placement in search path
+
+create table public.whereami (f1 text);
+insert into public.whereami values ('public');
+
+create temp table whereami (f1 text);
+insert into whereami values ('temp');
+
+create function public.whoami() returns text
+  as 'select ''public''::text' language sql;
+
+create function pg_temp.whoami() returns text
+  as 'select ''temp''::text' language sql;
+
+-- default should have pg_temp implicitly first, but only for tables
+select * from whereami;
+select whoami();
+
+-- can list temp first explicitly, but it still doesn't affect functions
+set search_path = pg_temp, public;
+select * from whereami;
+select whoami();
+
+-- or put it last for security
+set search_path = public, pg_temp;
+select * from whereami;
+select whoami();
+
+-- you can invoke a temp function explicitly, though
+select pg_temp.whoami();
+
+drop table public.whereami;