diff --git a/packages/schemas/package.json b/packages/schemas/package.json
index 92fea2780..a9a9c53e1 100644
--- a/packages/schemas/package.json
+++ b/packages/schemas/package.json
@@ -9,7 +9,7 @@
     "lib"
   ],
   "scripts": {
-    "generate": "ts-node src/gen/index.ts",
+    "generate": "ts-node src/gen/index.ts && xo src/db-entries --fix",
     "build": "yarn generate && rm -rf lib/ && tsc --p tsconfig.build.json",
     "lint": "xo src/"
   },
@@ -18,10 +18,12 @@
     "yarn": "1"
   },
   "devDependencies": {
-    "@logto/essentials": "^1.0.2",
+    "@logto/essentials": "^1.0.5",
+    "@types/lodash.uniq": "^4.5.6",
     "@types/node": "14",
     "@types/pluralize": "^0.0.29",
     "camelcase": "^6.2.0",
+    "lodash.uniq": "^4.5.0",
     "pluralize": "^8.0.0",
     "ts-node": "^10.0.0",
     "typescript": "^4.3.4",
diff --git a/packages/schemas/src/db-entries/custom-types.ts b/packages/schemas/src/db-entries/custom-types.ts
new file mode 100644
index 000000000..f93207b0a
--- /dev/null
+++ b/packages/schemas/src/db-entries/custom-types.ts
@@ -0,0 +1,5 @@
+// THIS IS AN AUTOGENERATED FILE. DO NOT EDIT THIS FILE DIRECTLY.
+
+export enum PasswordEncryptionMethod {
+  SaltAndPepper = 'SaltAndPepper',
+}
diff --git a/packages/schemas/src/db-entries/user.ts b/packages/schemas/src/db-entries/user.ts
index db3838901..4afd6f685 100644
--- a/packages/schemas/src/db-entries/user.ts
+++ b/packages/schemas/src/db-entries/user.ts
@@ -1,12 +1,14 @@
 // THIS IS AN AUTOGENERATED FILE. DO NOT EDIT THIS FILE DIRECTLY.
 
+import { PasswordEncryptionMethod } from './custom-types';
+
 export type UserDBEntry = {
   id: string;
   userName?: string;
   primaryEmail?: string;
   primaryPhone?: string;
   passwordEncrypted?: string;
-  passwordEncryptionMethod?: string;
+  passwordEncryptionMethod?: PasswordEncryptionMethod;
   passwordEncryptionSalt?: string;
 };
 
diff --git a/packages/schemas/src/gen/index.ts b/packages/schemas/src/gen/index.ts
index c04272703..357ada298 100644
--- a/packages/schemas/src/gen/index.ts
+++ b/packages/schemas/src/gen/index.ts
@@ -3,22 +3,47 @@ import camelcase from 'camelcase';
 import fs from 'fs/promises';
 import path from 'path';
 import pluralize from 'pluralize';
-import { conditionalString } from '@logto/essentials';
+import uniq from 'lodash.uniq';
+import { conditional, conditionalString } from '@logto/essentials';
 
 import { findFirstParentheses, getType, normalizeWhitespaces, removeParentheses } from './utils';
 
 type Field = {
   name: string;
-  type: string;
+  type?: string;
+  customType?: string;
   required: boolean;
   isArray: boolean;
 };
 
+// eslint-disable-next-line @typescript-eslint/ban-types
+type FieldWithType = Omit<Field, 'type' | 'customType'> & { type: string };
+
+type Type = {
+  name: string;
+  type: 'enum';
+  values: string[];
+};
+
+type GeneratedType = Type & {
+  tsName: string;
+};
+
 type Table = {
   name: string;
   fields: Field[];
 };
 
+type TableWithType = {
+  name: string;
+  fields: FieldWithType[];
+};
+
+type FileData = {
+  types: Type[];
+  tables: Table[];
+};
+
 const dir = 'tables';
 
 const generate = async () => {
@@ -26,13 +51,12 @@ const generate = async () => {
   const generated = await Promise.all(
     files
       .filter((file) => file.endsWith('.sql'))
-      .map<Promise<[string, Table[]]>>(async (file) => [
-        file,
-        (
-          await fs.readFile(path.join(dir, file), { encoding: 'utf-8' })
-        )
+      .map<Promise<[string, FileData]>>(async (file) => {
+        const statements = (await fs.readFile(path.join(dir, file), { encoding: 'utf-8' }))
           .split(';')
-          .map((value) => normalizeWhitespaces(value).toLowerCase())
+          .map((value) => normalizeWhitespaces(value));
+        const tables = statements
+          .map((value) => value.toLowerCase())
           .filter((value) => value.startsWith('create table'))
           .map((value) => findFirstParentheses(value))
           .filter((value): value is NonNullable<typeof value> => Boolean(value))
@@ -56,17 +80,38 @@ const generate = async () => {
                 // CAUTION: Only works for single dimension arrays
                 const isArray = Boolean(/\[.*]/.test(type)) || restJoined.includes('array');
                 const required = restJoined.includes('not null');
+                const primitiveType = getType(type);
 
                 return {
                   name,
-                  type: getType(type),
+                  type: primitiveType,
+                  customType: conditional(!primitiveType && type),
                   isArray,
                   required,
                 };
               });
             return { name, fields };
-          }),
-      ])
+          });
+        const types = statements
+          .filter((value) => value.toLowerCase().startsWith('create type'))
+          .map<Type>((value) => {
+            const breakdowns = value.split(' ');
+            const name = breakdowns[2];
+            const data = findFirstParentheses(value);
+            assert(
+              name &&
+                data &&
+                breakdowns[3]?.toLowerCase() === 'as' &&
+                breakdowns[4]?.toLowerCase() === 'enum',
+              'Only support enum custom type'
+            );
+            const values = data.body.split(',').map((value) => value.trim().slice(1, -1));
+
+            return { name, type: 'enum', values };
+          });
+
+        return [file, { tables, types }];
+      })
   );
 
   const generatedDir = 'src/db-entries';
@@ -75,11 +120,61 @@ const generate = async () => {
 
   await fs.rmdir(generatedDir, { recursive: true });
   await fs.mkdir(generatedDir, { recursive: true });
+  const allTypes = generated
+    .flatMap((data) => data[1].types)
+    .map<GeneratedType>((type) => ({
+      ...type,
+      tsName: camelcase(type.name, { pascalCase: true }),
+    }));
+
+  // Generate custom types
+  await fs.writeFile(
+    path.join(generatedDir, 'custom-types.ts'),
+    header +
+      allTypes
+        .map(({ tsName, values }) =>
+          [
+            `export enum ${tsName} {`,
+            ...values.map((value) => `  ${value} = '${value}',`),
+            '}',
+          ].join('\n')
+        )
+        .join('\n') +
+      '\n'
+  );
+
+  // Generate DB entry types
   await Promise.all(
-    generated.map(async ([file, tables]) => {
+    generated.map(async ([file, { tables }]) => {
+      const customTypes: string[] = [];
+      const tableWithTypes = tables.map<TableWithType>(({ fields, ...rest }) => ({
+        ...rest,
+        fields: fields.map(({ type, customType, ...rest }) => {
+          const finalType = type ?? allTypes.find(({ name }) => name === customType)?.tsName;
+          assert(finalType, `Type ${customType ?? 'N/A'} not found`);
+          if (type === undefined) {
+            customTypes.push(finalType);
+          }
+
+          return { ...rest, type: finalType };
+        }),
+      }));
+
+      const importTypes =
+        customTypes.length > 0
+          ? [
+              'import {',
+              uniq(customTypes)
+                .map((value) => `  ${value}`)
+                .join(',\n'),
+              "} from './custom-types';",
+            ].join('\n') + '\n\n'
+          : '';
+
       const content =
         header +
-        tables
+        importTypes +
+        tableWithTypes
           .map(({ name, fields }) =>
             [
               `export type ${pluralize(camelcase(name, { pascalCase: true }), 1)}DBEntry = {`,
diff --git a/packages/schemas/src/gen/utils.ts b/packages/schemas/src/gen/utils.ts
index 223f2a2bb..df199e032 100644
--- a/packages/schemas/src/gen/utils.ts
+++ b/packages/schemas/src/gen/utils.ts
@@ -82,7 +82,7 @@ const getRawType = (value: string): string => {
 // eslint-disable-next-line complexity
 export const getType = (
   value: string
-): 'string' | 'number' | 'boolean' | 'Record<string, unknown>' | 'Date' => {
+): 'string' | 'number' | 'boolean' | 'Record<string, unknown>' | 'Date' | undefined => {
   switch (getRawType(value)) {
     case 'bpchar':
     case 'char':
@@ -117,6 +117,5 @@ export const getType = (
     case 'timestamptz':
       return 'Date';
     default:
-      throw new Error('Unable to parse type: ' + value);
   }
 };
diff --git a/packages/schemas/tables/users.sql b/packages/schemas/tables/users.sql
index c567d8e31..16437dbef 100644
--- a/packages/schemas/tables/users.sql
+++ b/packages/schemas/tables/users.sql
@@ -1,10 +1,12 @@
+create type password_encryption_method as enum ('SaltAndPepper');
+
 create table users (
   id varchar(24) not null,
   user_name varchar(128) unique,
   primary_email varchar(128) unique,
   primary_phone varchar(128) unique,
   password_encrypted varchar(128),
-  password_encryption_method varchar(32),
+  password_encryption_method password_encryption_method,
   password_encryption_salt varchar(128),
   primary key (id)
 );
diff --git a/packages/schemas/yarn.lock b/packages/schemas/yarn.lock
index 03a528321..2a3be5bd5 100644
--- a/packages/schemas/yarn.lock
+++ b/packages/schemas/yarn.lock
@@ -232,10 +232,10 @@
     minimatch "^3.0.4"
     strip-json-comments "^3.1.1"
 
-"@logto/essentials@^1.0.2":
-  version "1.0.2"
-  resolved "https://registry.yarnpkg.com/@logto/essentials/-/essentials-1.0.2.tgz#02a8c878b4079a63709c35ce8c143370f259bb13"
-  integrity sha512-GN6m1c5ll7EhOgJbmFwRESkeWGjdoihst8O1aVIxvEOXhLe/79bph4hejsdm59piX3jgKWakEHimpqcBT1kO+Q==
+"@logto/essentials@^1.0.5":
+  version "1.0.5"
+  resolved "https://registry.yarnpkg.com/@logto/essentials/-/essentials-1.0.5.tgz#edc1a376cf82e8829adcf26e8b98db1235cfbfcd"
+  integrity sha512-zft8VodNOtkhyyQTHiOlksk6UonQBY68dON4cQaUOlpN5JS9z5/zchi4I0j+XB6EeQ7l8ZtVXct2VZBp8m03kw==
   dependencies:
     lodash.orderby "^4.6.0"
     lodash.pick "^4.4.0"
@@ -337,6 +337,18 @@
   resolved "https://registry.yarnpkg.com/@types/json5/-/json5-0.0.29.tgz#ee28707ae94e11d2b827bcbe5270bcea7f3e71ee"
   integrity sha1-7ihweulOEdK4J7y+UnC86n8+ce4=
 
+"@types/lodash.uniq@^4.5.6":
+  version "4.5.6"
+  resolved "https://registry.yarnpkg.com/@types/lodash.uniq/-/lodash.uniq-4.5.6.tgz#adb052f6c7eeb38b920c13166e7a972dd960b4c5"
+  integrity sha512-XHNMXBtiwsWZstZMyxOYjr0e8YYWv0RgPlzIHblTuwBBiWo2MzWVaTBihtBpslb5BglgAWIeBv69qt1+RTRW1A==
+  dependencies:
+    "@types/lodash" "*"
+
+"@types/lodash@*":
+  version "4.14.170"
+  resolved "https://registry.yarnpkg.com/@types/lodash/-/lodash-4.14.170.tgz#0d67711d4bf7f4ca5147e9091b847479b87925d6"
+  integrity sha512-bpcvu/MKHHeYX+qeEN8GE7DIravODWdACVA1ctevD8CN24RhPZIKMn9ntfAsrvLfSX3cR5RrBKAbYm9bGs0A+Q==
+
 "@types/minimatch@*":
   version "3.0.4"
   resolved "https://registry.yarnpkg.com/@types/minimatch/-/minimatch-3.0.4.tgz#f0ec25dbf2f0e4b18647313ac031134ca5b24b21"
@@ -2557,6 +2569,11 @@ lodash.truncate@^4.4.2:
   resolved "https://registry.yarnpkg.com/lodash.truncate/-/lodash.truncate-4.4.2.tgz#5a350da0b1113b837ecfffd5812cbe58d6eae193"
   integrity sha1-WjUNoLERO4N+z//VgSy+WNbq4ZM=
 
+lodash.uniq@^4.5.0:
+  version "4.5.0"
+  resolved "https://registry.yarnpkg.com/lodash.uniq/-/lodash.uniq-4.5.0.tgz#d0225373aeb652adc1bc82e4945339a842754773"
+  integrity sha1-0CJTc662Uq3BvILklFM5qEJ1R3M=
+
 lodash@^4.13.1, lodash@^4.17.21:
   version "4.17.21"
   resolved "https://registry.yarnpkg.com/lodash/-/lodash-4.17.21.tgz#679591c564c3bffaae8454cf0b3df370c3d6911c"