diff --git a/REFERENCE.md b/REFERENCE.md
index 428f5fa9a3..b03fc8aca3 100644
--- a/REFERENCE.md
+++ b/REFERENCE.md
@@ -64,9 +64,9 @@ _Private Classes_
 _Public Functions_
 
 * [`postgresql::default`](#postgresqldefault): This function pull default values from the `params` class  or `globals` class if the value is not present in `params`.
-* [`postgresql::postgresql_escape`](#postgresqlpostgresql_escape): This function safely escapes a string using a consistent random tag
+* [`postgresql::postgresql_escape`](#postgresqlpostgresql_escape): This function escapes a string using [Dollar Quoting](https://www.postgresql.org/docs/12/sql-syntax-lexical.html#SQL-SYNTAX-DOLLAR-QUOTING) using a randomly generated tag if required.
 * [`postgresql::postgresql_password`](#postgresqlpostgresql_password): This function returns the postgresql password hash from the clear text username / password
-* [`postgresql_escape`](#postgresql_escape): This function safely escapes a string using a consistent random tag
+* [`postgresql_escape`](#postgresql_escape): DEPRECATED.  Use the namespaced function [`postgresql::postgresql_escape`](#postgresqlpostgresql_escape) instead.
 * [`postgresql_password`](#postgresql_password): DEPRECATED.  Use the namespaced function [`postgresql::postgresql_password`](#postgresqlpostgresql_password) instead.
 
 _Private Functions_
@@ -2787,26 +2787,19 @@ Data type: `String`
 
 Type: Ruby 4.x API
 
-postgresql_escape.rb
----- original file header ----
+This function escapes a string using [Dollar Quoting](https://www.postgresql.org/docs/12/sql-syntax-lexical.html#SQL-SYNTAX-DOLLAR-QUOTING) using a randomly generated tag if required.
 
-   @return Safely escapes a string using $$ using a random tag which should be consistent
+#### `postgresql::postgresql_escape(String[1] $input_string)`
 
-#### `postgresql::postgresql_escape(Any *$args)`
+The postgresql::postgresql_escape function.
 
-postgresql_escape.rb
----- original file header ----
+Returns: `String` A `Dollar Quoted` string
 
-   @return Safely escapes a string using $$ using a random tag which should be consistent
+##### `input_string`
 
-Returns: `Data type` Describe what the function returns here
-
-##### `*args`
-
-Data type: `Any`
+Data type: `String[1]`
 
-The original array of arguments. Port this to individually managed params
-to get the full benefit of the modern function API.
+The unescaped string you want to escape using `dollar quoting`
 
 ### postgresql::postgresql_password
 
@@ -2834,15 +2827,21 @@ The clear text `password`
 
 ### postgresql_escape
 
-Type: Ruby 3.x API
+Type: Ruby 4.x API
+
+DEPRECATED.  Use the namespaced function [`postgresql::postgresql_escape`](#postgresqlpostgresql_escape) instead.
 
-This function safely escapes a string using a consistent random tag
+#### `postgresql_escape(Any *$args)`
 
-#### `postgresql_escape()`
+The postgresql_escape function.
+
+Returns: `Any`
+
+##### `*args`
+
+Data type: `Any`
 
-This function safely escapes a string using a consistent random tag
 
-Returns: `Any` Safely escapes a string using $$ using a random tag which should be consistent
 
 ### postgresql_password
 
diff --git a/lib/puppet/functions/postgresql/postgresql_escape.rb b/lib/puppet/functions/postgresql/postgresql_escape.rb
index 1555af0783..223ad7018f 100644
--- a/lib/puppet/functions/postgresql/postgresql_escape.rb
+++ b/lib/puppet/functions/postgresql/postgresql_escape.rb
@@ -1,52 +1,30 @@
-# This is an autogenerated function, ported from the original legacy version.
-# It /should work/ as is, but will not have all the benefits of the modern
-# function API. You should see the function docs to learn how to add function
-# signatures for type safety and to document this function using puppet-strings.
-#
-# https://puppet.com/docs/puppet/latest/custom_functions_ruby.html
-#
-# ---- original file header ----
 require 'digest/md5'
 
-# postgresql_escape.rb
-# ---- original file header ----
-#
-# @summary
-#       This function safely escapes a string using a consistent random tag
-#    @return Safely escapes a string using $$ using a random tag which should be consistent
-#
-#
+# @summary This function escapes a string using [Dollar Quoting](https://www.postgresql.org/docs/12/sql-syntax-lexical.html#SQL-SYNTAX-DOLLAR-QUOTING) using a randomly generated tag if required.
 Puppet::Functions.create_function(:'postgresql::postgresql_escape') do
-  # @param args
-  #   The original array of arguments. Port this to individually managed params
-  #   to get the full benefit of the modern function API.
-  #
-  # @return [Data type]
-  #   Describe what the function returns here
+  # @param input_string
+  #   The unescaped string you want to escape using `dollar quoting`
   #
+  # @return [String]
+  #   A `Dollar Quoted` string
   dispatch :default_impl do
-    # Call the method named 'default_impl' when this is matched
-    # Port this to match individual params for better type safety
-    repeated_param 'Any', :args
+    param 'String[1]', :input_string
   end
 
-  def default_impl(*args)
-    if args.size != 1
-      raise(Puppet::ParseError, 'postgresql_escape(): Wrong number of arguments ' \
-        "given (#{args.size} for 1)")
+  def default_impl(input_string)
+    # Where allowed, just return the original string wrapped in `$$`
+    return "$$#{input_string}$$" unless tag_needed?(input_string)
+
+    # Keep generating possible values for tag until we find one that doesn't appear in the input string
+    tag = Digest::MD5.hexdigest(input_string)[0..5].gsub(%r{\d}, '')
+    until input_string !~ %r{#{tag}}
+      tag = Digest::MD5.hexdigest(tag)[0..5].gsub(%r{\d}, '')
     end
 
-    password = args[0]
+    "$#{tag}$#{input_string}$#{tag}$"
+  end
 
-    if password !~ %r{\$\$} && password[-1] != '$'
-      retval = "$$#{password}$$"
-    else
-      escape = Digest::MD5.hexdigest(password)[0..5].gsub(%r{\d}, '')
-      until password !~ %r{#{escape}}
-        escape = Digest::MD5.hexdigest(escape)[0..5].gsub(%r{\d}, '')
-      end
-      retval = "$#{escape}$#{password}$#{escape}$"
-    end
-    retval
+  def tag_needed?(input_string)
+    input_string =~ %r{\$\$} || input_string.end_with?('$')
   end
 end
diff --git a/lib/puppet/functions/postgresql_escape.rb b/lib/puppet/functions/postgresql_escape.rb
new file mode 100644
index 0000000000..1e366d2d06
--- /dev/null
+++ b/lib/puppet/functions/postgresql_escape.rb
@@ -0,0 +1,10 @@
+# @summary DEPRECATED.  Use the namespaced function [`postgresql::postgresql_escape`](#postgresqlpostgresql_escape) instead.
+Puppet::Functions.create_function(:postgresql_escape) do
+  dispatch :deprecation_gen do
+    repeated_param 'Any', :args
+  end
+  def deprecation_gen(*args)
+    call_function('deprecation', 'postgresql_escape', 'This method is deprecated, please use postgresql::postgresql_escape instead.')
+    call_function('postgresql::postgresql_escape', *args)
+  end
+end
diff --git a/lib/puppet/parser/functions/postgresql_escape.rb b/lib/puppet/parser/functions/postgresql_escape.rb
deleted file mode 100644
index f7e6f33add..0000000000
--- a/lib/puppet/parser/functions/postgresql_escape.rb
+++ /dev/null
@@ -1,29 +0,0 @@
-require 'digest/md5'
-
-# postgresql_escape.rb
-module Puppet::Parser::Functions
-  newfunction(:postgresql_escape, type: :rvalue, doc: <<-EOS
-    This function safely escapes a string using a consistent random tag
-    @return Safely escapes a string using $$ using a random tag which should be consistent
-    EOS
-             ) do |args|
-
-    if args.size != 1
-      raise(Puppet::ParseError, 'postgresql_escape(): Wrong number of arguments ' \
-        "given (#{args.size} for 1)")
-    end
-
-    password = args[0]
-
-    if password !~ %r{\$\$} && password[-1] != '$'
-      retval = "$$#{password}$$"
-    else
-      escape = Digest::MD5.hexdigest(password)[0..5].gsub(%r{\d}, '')
-      until password !~ %r{#{escape}}
-        escape = Digest::MD5.hexdigest(escape)[0..5].gsub(%r{\d}, '')
-      end
-      retval = "$#{escape}$#{password}$#{escape}$"
-    end
-    retval
-  end
-end
diff --git a/manifests/server/passwd.pp b/manifests/server/passwd.pp
index a9477fd0f3..a2f52ba18b 100644
--- a/manifests/server/passwd.pp
+++ b/manifests/server/passwd.pp
@@ -15,12 +15,12 @@
     default => ''
   }
 
-  if ($postgres_password != undef) {
+  if $postgres_password {
     # NOTE: this password-setting logic relies on the pg_hba.conf being
     #  configured to allow the postgres system user to connect via psql
     #  without specifying a password ('ident' or 'trust' security). This is
     #  the default for pg_hba.conf.
-    $escaped = postgresql_escape($postgres_password)
+    $escaped = postgresql::postgresql_escape($postgres_password)
     exec { 'set_postgres_postgrespw':
       # This command works w/no password because we run it as postgres system
       # user
diff --git a/spec/functions/postgresql_escape_spec.rb b/spec/functions/postgresql_escape_spec.rb
new file mode 100644
index 0000000000..a00f05eecd
--- /dev/null
+++ b/spec/functions/postgresql_escape_spec.rb
@@ -0,0 +1,5 @@
+require 'spec_helper'
+
+describe 'postgresql_escape' do
+  it_behaves_like 'postgresql_escape function'
+end
diff --git a/spec/functions/postgresql_postgresql_escape_spec.rb b/spec/functions/postgresql_postgresql_escape_spec.rb
index 947ee72423..329ae8521a 100644
--- a/spec/functions/postgresql_postgresql_escape_spec.rb
+++ b/spec/functions/postgresql_postgresql_escape_spec.rb
@@ -1,40 +1,5 @@
 require 'spec_helper'
 
 describe 'postgresql::postgresql_escape' do
-  # without knowing details about the implementation, this is the only test
-  # case that we can autogenerate. You should add more examples below!
-  it { is_expected.not_to eq(nil) }
-
-  #################################
-  # Below are some example test cases. You may uncomment and modify them to match
-  # your needs. Notice that they all expect the base error class of `StandardError`.
-  # This is because the autogenerated function uses an untyped array for parameters
-  # and relies on your implementation to do the validation. As you convert your
-  # function to proper dispatches and typed signatures, you should change the
-  # expected error of the argument validation examples to `ArgumentError`.
-  #
-  # Other error types you might encounter include
-  #
-  # * StandardError
-  # * ArgumentError
-  # * Puppet::ParseError
-  #
-  # Read more about writing function unit tests at https://rspec-puppet.com/documentation/functions/
-  #
-  #   it 'raises an error if called with no argument' do
-  #     is_expected.to run.with_params.and_raise_error(StandardError)
-  #   end
-  #
-  #   it 'raises an error if there is more than 1 arguments' do
-  #     is_expected.to run.with_params({ 'foo' => 1 }, 'bar' => 2).and_raise_error(StandardError)
-  #   end
-  #
-  #   it 'raises an error if argument is not the proper type' do
-  #     is_expected.to run.with_params('foo').and_raise_error(StandardError)
-  #   end
-  #
-  #   it 'returns the proper output' do
-  #     is_expected.to run.with_params(123).and_return('the expected output')
-  #   end
-  #################################
+  it_behaves_like 'postgresql_escape function'
 end
diff --git a/spec/spec_helper_local.rb b/spec/spec_helper_local.rb
index ba834774b1..a5ed86af90 100644
--- a/spec/spec_helper_local.rb
+++ b/spec/spec_helper_local.rb
@@ -55,3 +55,23 @@ def param(type, title, param)
     is_expected.to run.with_params('foo').and_raise_error(StandardError)
   end
 end
+
+shared_examples 'postgresql_escape function' do
+  it { is_expected.not_to eq(nil) }
+  it {
+    is_expected.to run.with_params('foo')
+                      .and_return('$$foo$$')
+  }
+  it {
+    is_expected.to run.with_params('fo$$o')
+                      .and_return('$ed$fo$$o$ed$')
+  }
+  it {
+    is_expected.to run.with_params('foo$')
+                      .and_return('$a$foo$$a$')
+  }
+  it 'raises an error if there is more than 1 argument' do
+    is_expected.to run.with_params(['foo'], ['foo'])
+                      .and_raise_error(StandardError)
+  end
+end
diff --git a/spec/unit/functions/postgresql_escape_spec.rb b/spec/unit/functions/postgresql_escape_spec.rb
deleted file mode 100644
index b512c0cda9..0000000000
--- a/spec/unit/functions/postgresql_escape_spec.rb
+++ /dev/null
@@ -1,27 +0,0 @@
-require 'spec_helper'
-describe 'postgresql_escape' do
-  describe 'postgresql_escape', type: :puppet_function do
-    it {
-      is_expected.to run.with_params('foo')
-                        .and_return('$$foo$$')
-    }
-  end
-  describe 'postgresql_escape', type: :puppet_function do
-    it {
-      is_expected.to run.with_params('fo$$o')
-                        .and_return('$ed$fo$$o$ed$')
-    }
-  end
-  describe 'postgresql_escape', type: :puppet_function do
-    it {
-      is_expected.to run.with_params('foo$')
-                        .and_return('$a$foo$$a$')
-    }
-  end
-  describe 'postgresql_escape', type: :puppet_function do
-    it {
-      is_expected.to run.with_params(['foo'], ['foo'])
-                        .and_raise_error(%r{Wrong number of arguments})
-    }
-  end
-end