Mac OS X Mountain Lion “Rails is not currently installed on this system.”

Question

I am on a fresh install of OS X Mountain Lion. I have installed rails via:

sudo gem install rails

Everything seems to install correctly, but wh

Answer 1

Actually, /usr/bin/rails script is just a

# Stub rails command to load rails from Gems or print an error if not installed.

(Comment quoted from the very script's source)

If Rails is installed, then it is loaded. Else, the script will throw the error you pasted in your question.