Database structure and source control – best practice

Have a look at this five part series on the principles and practices of database version control (by K. Scott Allen):

1. Three rules for database work
2. The Baseline
3. Change Scripts
4. Views, Stored Procedures and the Like
5. Branching and Merging

The five parts are important but basically the idea is to have a baseline and then change scripts (with a version table). Updating the database means applying change scripts “above” the current version. And this strategy is very VCS friendly (no conflicts).