This has come up a few times recently, both on SO and on the PostgreSQL mailing lists.
The TL;DR for your last two points:
(a) The bigger shared_buffers may be why TRUNCATE is slower on the CI server. Different fsync configuration or the use of rotational media instead of SSDs could also be at fault.
(b) TRUNCATE has a fixed cost, but not necessarily slower than DELETE, plus it does more work. See the detailed explanation that follows.
UPDATE: A significant discussion on pgsql-performance arose from this post. See this thread.
UPDATE 2: Improvements have been added to 9.2beta3 that should help with this, see this post.
Detailed explanation of TRUNCATE vs DELETE FROM:
While not an expert on the topic, my understanding is that TRUNCATE has a nearly fixed cost per table, while DELETE is at least O(n) for n rows; worse if there are any foreign keys referencing the table being deleted.
I always assumed that the fixed cost of a TRUNCATE was lower than the cost of a DELETE on a near-empty table, but this isn't true at all.
TRUNCATE table; does more than DELETE FROM table;
The state of the database after a TRUNCATE table is much the same as if you'd instead run:
DELETE FROM table;VACCUUM (FULL, ANALYZE) table; (9.0+ only, see footnote)
... though of course TRUNCATE doesn't actually achieve its effects with a DELETE and a VACUUM.
The point is that DELETE and TRUNCATE do different things, so you're not just comparing two commands with identical outcomes.
A DELETE FROM table; allows dead rows and bloat to remain, allows the indexes to carry dead entries, doesn't update the table statistics used by the query planner, etc.
A TRUNCATE gives you a completely new table and indexes as if they were just CREATEed. It's like you deleted all the records, reindexed the table and did a VACUUM FULL.
If you don't care if there's crud left in the table because you're about to go and fill it up again, you may be better off using DELETE FROM table;.
Because you aren't running VACUUM you will find that dead rows and index entries accumulate as bloat that must be scanned then ignored; this slows all your queries down. If your tests don't actually create and delete all that much data you may not notice or care, and you can always do a VACUUM or two part-way through your test run if you do. Better, let aggressive autovacuum settings ensure that autovacuum does it for you in the background.
You can still TRUNCATE all your tables after the whole test suite runs to make sure no effects build up across many runs. On 9.0 and newer, VACUUM (FULL, ANALYZE); globally on the table is at least as good if not better, and it's a whole lot easier.
IIRC Pg has a few optimisations that mean it might notice when your transaction is the only one that can see the table and immediately mark the blocks as free anyway. In testing, when I've wanted to create bloat I've had to have more than one concurrent connection to do it. I wouldn't rely on this, though.
DELETE FROM table; is very cheap for small tables with no f/k refs
To DELETE all records from a table with no foreign key references to it, all Pg has to do a sequential table scan and set the xmax of the tuples encountered. This is a very cheap operation - basically a linear read and a semi-linear write. AFAIK it doesn't have to touch the indexes; they continue to point to the dead tuples until they're cleaned up by a later VACUUM that also marks blocks in the table containing only dead tuples as free.
DELETE only gets expensive if there are lots of records, if there are lots of foreign key references that must be checked, or if you count the subsequent VACUUM (FULL, ANALYZE) table; needed to match TRUNCATE's effects within the cost of your DELETE .
In my tests here, a DELETE FROM table; was typically 4x faster than TRUNCATE at 0.5ms vs 2ms. That's a test DB on an SSD, running with fsync=off because I don't care if I lose all this data. Of course, DELETE FROM table; isn't doing all the same work, and if I follow up with a VACUUM (FULL, ANALYZE) table; it's a much more expensive 21ms, so the DELETE is only a win if I don't actually need the table pristine.
TRUNCATE table; does a lot more fixed-cost work and housekeeping than DELETE
By contrast, a TRUNCATE has to do a lot of work. It must allocate new files for the table, its TOAST table if any, and every index the table has. Headers must be written into those files and the system catalogs may need updating too (not sure on that point, haven't checked). It then has to replace the old files with the new ones or remove the old ones, and has to ensure the file system has caught up with the changes with a synchronization operation - fsync() or similar - that usually flushes all buffers to the disk. I'm not sure whether the the sync is skipped if you're running with the (data-eating) option fsync=off .
I learned recently that TRUNCATE must also flush all PostgreSQL's buffers related to the old table. This can take a non-trivial amount of time with huge shared_buffers. I suspect this is why it's slower on your CI server.
The balance
Anyway, you can see that a TRUNCATE of a table that has an associated TOAST table (most do) and several indexes could take a few moments. Not long, but longer than a DELETE from a near-empty table.
Consequently, you might be better off doing a DELETE FROM table;.
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Note: on DBs before 9.0, CLUSTER table_id_seq ON table; ANALYZE table; or VACUUM FULL ANALYZE table; REINDEX table; would be a closer equivalent to TRUNCATE. The VACUUM FULL impl changed to a much better one in 9.0.
