Exposing passwords in django
That assumes your database is only accessible from one specific host, and even then, why would you want to give a potential attacker another piece of information?  Suppose you deploy this to a shared host and I have an account on there, I could connect to your database just by logging into my account on that box.
Also, depending on who you are writing this for and what kind of auditing they need to go through (PCI, state audits, etc), this might just not be allowed.
I would try to find a way around checking in the password.
For a git repository that is shared with others, is it a vulnerability to expose your database password in the settings.py file? (My initial thought was no, since you still need the ssh password.)