I've always preferred this (using Django):<p>1. Local development is done with the simplest of everything (local memory cache, SQLite3 database, console based email backend, local static file storage (vs S3, etc.)). The result is that there is very little overhead and everything is easy to work on and test quickly. This also gives me the ability to quickly wipe out things locally (erase and make new migrations for trivial changes, delete the database file, clear cache more quickly by just restarting the Django server, etc.).<p>2. Final testing takes place on a staging server (Heroku), which is free, and which can contain all the production-level backing services that production will have. This server will be treated like production (no in-place hot-fixes and database wipes / restarts). Separate dev accounts will of course be used for things like APIs, email, etc.<p>3. Production (Heroku).<p>This gives me the best of both worlds; the simplicity of local development with simple backing services, with the comprehensiveness of a staging server with better parity.