The following bug has been logged online:

Bug reference: 1850
Logged by: Danilo Barbosa
Email address: dusb (AT) airgate (DOT) com.br
PostgreSQL version: 8.1
Operating system: LINUX
Description: parameter WITH HOLD (of function DECLARE CURSOR) not
acepted inside CREATE FUNCTION.
Details:

CREATE OR REPLACE FUNCTION teste2()
RETURNS refcursor AS
$BODY$DECLARE
ref CURSOR WITH HOLD FOR SELECT * FROM tb_ponto;
BEGIN
OPEN ref;
RETURN ref;
END;$BODY$
LANGUAGE 'plpgsql' VOLATILE;
ALTER FUNCTION teste2() OWNER TO aes_jacui;

The same DECLARE works outside the CREATE FUNCTION.

thank you!

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