Create the database with the mysqladmin tool.
Don’t forget sure and add the bin folder to your path if you are on Windows or Mac!  Not necessary on Linux.
For example, on my Windows box it is C:Program FilesMySQLMySQL Server 5.1bin

mysqladmin --user=root --pass=some_pass create local_db

(replace “some_pass” with your mysql root password.)

now login to my sql as root..

mysql --user=root --pass=some_pass

now change to the new db…

mysql>use  local_db;
Database changed.
mysql>

create the user(s) and grant rights ….this allows the user monty to access the database locally and remotely.

mysql> GRANT ALL PRIVILEGES ON *.* TO 'monty'@'localhost'
    ->     IDENTIFIED BY 'some_pass' WITH GRANT OPTION;
mysql> GRANT ALL PRIVILEGES ON *.* TO 'monty'@'%'
    ->     IDENTIFIED BY 'some_pass' WITH GRANT OPTION;