I have a postgres database on a VPS. It is accessed or updated by
three different web applications.

It is updated hourly with potentially private data  (names, addresses,
etc.). There is no CC numbers and such but data that falls under a
'privacy act'.

On a regular basis I wish to download this data onto a local copy of
the database (running on a local PC) and delete the sensitive parts of
the records on the hosted database. The hosted DB will still contain
certain non-sensitive data.

Is there a standard way to do this?

Will the slony project be of any help?

Thanks,
NK