Turns out it was happening when rpsec-rails was being loaded.
Conditional loading for the test environment solved this:

config.gem 'rspec-rails', :lib => 'spec/rails', :version => '1.1.11'
if RAILS_ENV == 'test'

On Dec 10, 8:39 am, Nik B <[EMAIL PROTECTED]> wrote:
> I think RAILS_ENV is getting set incorrectly, but I don't know exactly
> how to find out where.
>
> At the bottom of Rails::Initializer.run do |config| in environment.rb,
> RAILS_ENV is the correct value (staging, development, production,
> etc).
>
> Just below the initializer block, RAILS_ENV has changed to 'test'.
>
> Any ideas?
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