>> Does Postgres allow updates based on the context of a sub-query,
something like the sample below ?

Yes,

Update real_tab 
set real_tab.data_desc = temp_tab.data_desc
>From temp_tab
Where real_tab.keyID = temp_tab.keyID

(don't repeat your updated table in the "from" list unless you
Mean to self-join)

http://www.postgresql.org/docs/8.3/interactive/sql-update.html



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