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I am using Passenger3 with Apache2, Rails 2.3.8 with Bundler1.0.3

I can't trigger development mode from the vhost. I need to explicitly set it in ENV['RAILS_ENV'] = 'development'

RackEnv development
RailsEnv development

Neither of these are working, it is defaulting to production.

I have another 2.3.8 project that is fine with RailsEnv in the vhost probably because I am not using Bundler with it.

Does anyone have a solution for this combination?