Right way to handle multiple environments?

[Meekohi]

I'm a little lost on the philosophy behind how to use this tool to manage different environments (i.e. connecting to a local development database, but then having the deployed version connect to the production database). What I was expecting was to have development.env,staging.env and production.env files, but that doesn't seem like the strategy taken. Any tips to point me in the right direction? Does deploy.env get ignored in development and then can overwrite variables in production?

[DeviaVir]

This is one way of doing it:
#95