From the Subversion FAQ:
Subversion 1.1 (and later) has the ability to put a symlink under version control, via the usual svn add command.
Details: the Subversion repository has no internal concept of a symlink. It stores a “versioned symlink” as an ordinary file with an ’svn:special’ property attached. The svn client (on unix) sees the property and translates the file into a symlink in the working copy. Win32 has no symlinks, so a win32 client won’t do any such translation: the object appears as a normal file.
So I tested this with:
cd propsite/tools/library ln -s ../../config/database.yml . svn add database.yml svn ci -m "Symlink test"
And then on the test server:
cd propsite2 svn up cd tools/library ls -la
The symlink is there, and correct.