diff --git a/src/Umbraco.Core/DatabaseContext.cs b/src/Umbraco.Core/DatabaseContext.cs
index 8633107845..be7467356a 100644
--- a/src/Umbraco.Core/DatabaseContext.cs
+++ b/src/Umbraco.Core/DatabaseContext.cs
@@ -1,6 +1,8 @@
 using System;
 using System.Configuration;
-using System.Data.Common;
+using System.Linq;
+using System.Web.Configuration;
+using System.Xml.Linq;
 using Umbraco.Core.Configuration;
 using Umbraco.Core.Persistence;
 using Umbraco.Core.Persistence.SqlSyntax;
@@ -51,6 +53,115 @@ namespace Umbraco.Core
             get { return _configured; }
         }
 
+        /// <summary>
+        /// Configure a ConnectionString for the embedded database.
+        /// </summary>
+        public void ConfigureDatabaseConnection()
+        {
+            var providerName = "System.Data.SqlServerCe.4.0";
+            var connectionString = "Datasource=|DataDirectory|Umbraco.sdf";
+            var appSettingsConnection = @"datalayer=SQLCE4Umbraco.SqlCEHelper,SQLCE4Umbraco;data source=|DataDirectory|\Umbraco.sdf";
+
+            SaveConnectionString(connectionString, appSettingsConnection, providerName);
+            Initialize();
+        }
+
+        /// <summary>
+        /// Configure a ConnectionString that has been entered manually.
+        /// </summary>
+        /// <remarks>
+        /// Please note that we currently assume that the 'System.Data.SqlClient' provider can be used.
+        /// </remarks>
+        /// <param name="connectionString"></param>
+        public void ConfigureDatabaseConnection(string connectionString)
+        {
+            SaveConnectionString(connectionString, connectionString, string.Empty);
+            Initialize();
+        }
+
+        /// <summary>
+        /// Configures a ConnectionString for the Umbraco database based on the passed in properties from the installer.
+        /// </summary>
+        /// <param name="server">Name or address of the database server</param>
+        /// <param name="databaseName">Name of the database</param>
+        /// <param name="user">Database Username</param>
+        /// <param name="password">Database Password</param>
+        /// <param name="databaseProvider">Type of the provider to be used (Sql, Sql Azure, Sql Ce, MySql)</param>
+        public void ConfigureDatabaseConnection(string server, string databaseName, string user, string password, string databaseProvider)
+        {
+            string connectionString;
+            string appSettingsConnection;
+            string providerName = "System.Data.SqlClient";
+            if(databaseProvider.ToLower().Contains("mysql"))
+            {
+                providerName = "MySql.Data.MySqlClient";
+                connectionString = string.Format("Server={0}; Database={1};Uid={2};Pwd={3}", server, databaseName, user, password);
+                appSettingsConnection = connectionString;
+            }
+            else if(databaseProvider.ToLower().Contains("azure"))
+            {
+                connectionString = string.Format("Server=tcp:{0}.database.windows.net;Database={1};User ID={2}@{0};Password={3}", server, databaseName, user, password);
+                appSettingsConnection = connectionString;
+            }
+            else
+            {
+                connectionString = string.Format("server={0};database={1};user id={2};password={3}", server, databaseName, user, password);
+                appSettingsConnection = connectionString;
+            }
+
+            SaveConnectionString(connectionString, appSettingsConnection, providerName);
+            Initialize();
+        }
+
+        /// <summary>
+        /// Saves the connection string as a proper .net ConnectionString and the legacy AppSettings key/value.
+        /// </summary>
+        /// <param name="connectionString"></param>
+        /// <param name="appSettingsConnection"></param>
+        /// <param name="providerName"></param>
+        private void SaveConnectionString(string connectionString, string appSettingsConnection, string providerName)
+        {
+            //Set the connection string for the new datalayer
+            var connectionStringSettings = string.IsNullOrEmpty(providerName)
+                                      ? new ConnectionStringSettings(GlobalSettings.UmbracoConnectionName,
+                                                                     connectionString)
+                                      : new ConnectionStringSettings(GlobalSettings.UmbracoConnectionName,
+                                                                     connectionString, providerName);
+
+            //Set the connection string in appsettings used in the legacy datalayer
+            GlobalSettings.DbDsn = appSettingsConnection;
+            //ConfigurationManager.ConnectionStrings.Add(conectionString);
+
+            var webConfig = new WebConfigurationFileMap();
+            var vDir = GlobalSettings.FullpathToRoot;
+            foreach (VirtualDirectoryMapping v in webConfig.VirtualDirectories)
+            {
+                if (v.IsAppRoot)
+                {
+                    vDir = v.PhysicalDirectory;
+                }
+            }
+
+            string fileName = String.Concat(vDir, "web.config");
+            var xml = XDocument.Load(fileName);
+            var connectionstrings = xml.Root.Descendants("connectionStrings").Single();
+
+            // Update connectionString if it exists, or else create a new appSetting for the given key and value
+            var setting = connectionstrings.Descendants("add").FirstOrDefault(s => s.Attribute("name").Value == GlobalSettings.UmbracoConnectionName);
+            if (setting == null)
+                connectionstrings.Add(new XElement("add", 
+                    new XAttribute("name", GlobalSettings.UmbracoConnectionName),
+                    new XAttribute("connectionString", connectionStringSettings),
+                    new XAttribute("providerName", providerName)));
+            else
+            {
+                setting.Attribute("connectionString").Value = connectionString;
+            }
+
+            xml.Save(fileName);
+            ConfigurationManager.RefreshSection("connectionStrings");
+        }
+
         /// <summary>
         /// Internal method to initialize the database configuration.
         /// </summary>
diff --git a/src/Umbraco.Core/Persistence/DatabaseFactory.cs b/src/Umbraco.Core/Persistence/DatabaseFactory.cs
index 718ed94bfd..1b166f5e55 100644
--- a/src/Umbraco.Core/Persistence/DatabaseFactory.cs
+++ b/src/Umbraco.Core/Persistence/DatabaseFactory.cs
@@ -66,6 +66,7 @@ namespace Umbraco.Core.Persistence
                 if (dbtype.StartsWith("Npgsql")) return DatabaseProviders.PostgreSQL;
                 if (dbtype.StartsWith("Oracle") || dbtype.Contains("OracleClient")) return DatabaseProviders.Oracle;
                 if (dbtype.StartsWith("SQLite")) return DatabaseProviders.SQLite;
+                if(dbtype.Contains("Azure")) return DatabaseProviders.SqlAzure;
 
                 return DatabaseProviders.SqlServer;
             }
diff --git a/src/Umbraco.Core/Persistence/DatabaseProviders.cs b/src/Umbraco.Core/Persistence/DatabaseProviders.cs
index 473528e38d..e3c0ba125f 100644
--- a/src/Umbraco.Core/Persistence/DatabaseProviders.cs
+++ b/src/Umbraco.Core/Persistence/DatabaseProviders.cs
@@ -3,6 +3,7 @@
     public enum DatabaseProviders
     {
         SqlServer,
+        SqlAzure,
         SqlServerCE,
         MySql,
         PostgreSQL,
diff --git a/src/Umbraco.Web/umbraco.presentation/install/steps/database.ascx.cs b/src/Umbraco.Web/umbraco.presentation/install/steps/database.ascx.cs
index cb862bb748..50376424f6 100644
--- a/src/Umbraco.Web/umbraco.presentation/install/steps/database.ascx.cs
+++ b/src/Umbraco.Web/umbraco.presentation/install/steps/database.ascx.cs
@@ -2,6 +2,8 @@ using System;
 using System.Data.Common;
 using System.Web.UI.WebControls;
 using System.Web.UI.HtmlControls;
+using Umbraco.Core;
+using Umbraco.Core.Persistence;
 using umbraco.DataLayer;
 using umbraco.DataLayer.Utility.Installer;
 using System.IO;
@@ -154,8 +156,23 @@ namespace umbraco.presentation.install.steps
 
             try
             {
-                DbConnectionStringBuilder connectionStringBuilder = CreateConnectionString();
-                GlobalSettings.DbDSN = connectionStringBuilder.ConnectionString;
+                /*DbConnectionStringBuilder connectionStringBuilder = CreateConnectionString();
+                GlobalSettings.DbDSN = connectionStringBuilder.ConnectionString;*/
+
+                if (string.IsNullOrEmpty(ConnectionString.Text) == false)
+                {
+                    DatabaseContext.Current.ConfigureDatabaseConnection(ConnectionString.Text);
+                }
+                else if (IsEmbeddedDatabase)
+                {
+                    DatabaseContext.Current.ConfigureDatabaseConnection();
+                }
+                else
+                {
+                    DatabaseContext.Current.ConfigureDatabaseConnection(DatabaseServer.Text, DatabaseName.Text,
+                                                                        DatabaseUsername.Text, DatabasePassword.Text,
+                                                                        DatabaseType.SelectedValue);
+                }
             }
             catch (Exception ex)
             {