password authentication failed

[Gary Roach]

Every time I try to do a python manage.py migrate I get:
django.db.utils.OperationalError: FATAL:  password 		authentication 
failed for user "postgres"
FATAL:  password authentication failed for user "postgres"


System Debian linux jessie
python 2.79
Django 1.8
Postgresql 9.4.3 database
Using virtualenv and virtualenvwrapper

Postgres has root privileges in the Debian passwd file.

Project settings.py file database setup
	# Database
	# https://docs.djangoproject.com/en/1.8/ref/settings/#databases

	DATABASES = {
	    'default': {
	        'ENGINE': 'django.db.backends.postgresql_psycopg2',
	        'NAME': 'archivedb',
	        'USER': 'postgres',
	        'PASSWORD': 'xxxxxx', # A valid debian pw
	        'HOST': '127.0.0.1',
	        'PORT': '5432'
	    }
	}

I'm not certain how this should be corrected. Postgres ( using \d 
commands) does not seem to have any privileges set. Am I supposed to go 
outside the virtual environment to set up a postgres account in postgres 
or is Django supposed to  do this with the migrate command. I feel like 
I am at a critical point where I can really screw things up and need 
some expert advise. This is my first time working with python / Django 
and am really shaky. I do have another learning project (rango) using 
SQLite that works fine.

Gary R