Invalid Command \N and restoring PostgreSQL dumps

During a recent DB restore from Heroku onto my local machine I got a ton of "Invalid Command \N" errors after doing a psql DBNAME -f DUMP.sql .

It took a lot of googling but I finally found the answer.
You've got to drop and recreate the database like so:
dropdb DBNAME && createdb -T template0 DBNAME

Then you can continue on your way, everything should work fine.