I installed fresh Laravel 5 copy.
My detectEnvironment function is defined this way:
$app->detectEnvironment(function()
{
return \'local\';
Although in documentation for Laravel dev (5.0) there is info that configuration will cascade it's not true. I have tested it about 2 weeks ago and it seems at the moment the only way to have different values for environments is using ENV file where you put custom values for current environment. Putting settings in directories won't work as it used to work however it's possible it will change or maybe has been already changed for last 2 weeks.