diff --git a/server_environment/README.rst b/server_environment/README.rst
index e7d66f985..407e2de24 100644
--- a/server_environment/README.rst
+++ b/server_environment/README.rst
@@ -68,6 +68,8 @@ used values are 'dev', 'test', 'production'::
 Values associated to keys containing 'passw' are only displayed in the 'dev'
 environment.
 
+If you don't provide any value, `test` is used as a safe default.
+
 You have several possibilities to set configuration values:
 
 server_environment_files
diff --git a/server_environment/readme/CONFIGURE.rst b/server_environment/readme/CONFIGURE.rst
index deca37ca9..6610f4493 100644
--- a/server_environment/readme/CONFIGURE.rst
+++ b/server_environment/readme/CONFIGURE.rst
@@ -8,6 +8,8 @@ used values are 'dev', 'test', 'production'::
 Values associated to keys containing 'passw' are only displayed in the 'dev'
 environment.
 
+If you don't provide any value, `test` is used as a safe default.
+
 You have several possibilities to set configuration values:
 
 server_environment_files
diff --git a/server_environment/server_env.py b/server_environment/server_env.py
index 4d2af55c6..1999d6ced 100644
--- a/server_environment/server_env.py
+++ b/server_environment/server_env.py
@@ -58,14 +58,20 @@
     "off": False,
 }
 
-if not system_base_config.get("running_env", False):
-    raise Exception(
-        "The parameter 'running_env' has not be set neither in base config "
-        "file option -c or in openerprc.\n"
-        "We strongly recommend against using the rc file but instead use an "
-        "explicit config file with this content:\n"
-        "[options]\nrunning_env = dev"
-    )
+
+def _load_running_env():
+    if not system_base_config.get("running_env"):
+        _logger.warning("`running_env` not found. Using default = `test`.")
+        _logger.warning(
+            "We strongly recommend against using the rc file but instead use an "
+            "explicit config file or env variable."
+        )
+        # safe default
+        system_base_config["running_env"] = "test"
+
+
+_load_running_env()
+
 
 ck_path = None
 if _dir:
@@ -184,9 +190,6 @@ def _build_model(cls, pool, cr):
         """
         ModelClass = super(ServerConfiguration, cls)._build_model(pool, cr)
         ModelClass._add_columns()
-        ModelClass.running_env = system_base_config["running_env"]
-        # Only show passwords in development
-        ModelClass.show_passwords = ModelClass.running_env in ("dev",)
         ModelClass._arch = None
         ModelClass._build_osv()
         return ModelClass
@@ -195,6 +198,10 @@ def _build_model(cls, pool, cr):
     def _format_key(cls, section, key):
         return "{}_I_{}".format(section, key)
 
+    @property
+    def show_passwords(self):
+        return system_base_config["running_env"] in ("dev",)
+
     @classmethod
     def _format_key_display_name(cls, key_name):
         return key_name.replace("_I_", " | ")
diff --git a/server_environment/static/description/index.html b/server_environment/static/description/index.html
index 5ec96fc4c..d5348779e 100644
--- a/server_environment/static/description/index.html
+++ b/server_environment/static/description/index.html
@@ -424,6 +424,7 @@ <h1><a class="toc-backref" href="#id2">Configuration</a></h1>
 </pre>
 <p>Values associated to keys containing ‘passw’ are only displayed in the ‘dev’
 environment.</p>
+<p>If you don’t provide any value, <cite>test</cite> is used as a safe default.</p>
 <p>You have several possibilities to set configuration values:</p>
 <div class="section" id="server-environment-files">
 <h2><a class="toc-backref" href="#id3">server_environment_files</a></h2>
diff --git a/server_environment/tests/common.py b/server_environment/tests/common.py
index 781ce2561..519706f9b 100644
--- a/server_environment/tests/common.py
+++ b/server_environment/tests/common.py
@@ -6,22 +6,12 @@
 from unittest.mock import patch
 
 from odoo.tests import common
-from odoo.tools.config import config
 
 import odoo.addons.server_environment.models.server_env_mixin as server_env_mixin
 from odoo.addons.server_environment import server_env
 
 
 class ServerEnvironmentCase(common.SavepointCase):
-    def setUp(self):
-        super().setUp()
-        self._original_running_env = config.get("running_env")
-        config["running_env"] = "testing"
-
-    def tearDown(self):
-        super().tearDown()
-        config["running_env"] = self._original_running_env
-
     @contextmanager
     def set_config_dir(self, path):
         original_dir = server_env._dir
diff --git a/server_environment/tests/test_environment_variable.py b/server_environment/tests/test_environment_variable.py
index 17474067f..5c21677ae 100644
--- a/server_environment/tests/test_environment_variable.py
+++ b/server_environment/tests/test_environment_variable.py
@@ -2,11 +2,22 @@
 # License GPL-3.0 or later (http://www.gnu.org/licenses/agpl).
 
 
+from unittest.mock import patch
+
+from odoo.tools.config import config as odoo_config
+
 from odoo.addons.server_environment import server_env
 
 from .common import ServerEnvironmentCase
 
 
+class TestRunningEnvDefault(ServerEnvironmentCase):
+    def test_running_env_default(self):
+        """When var is not provided it defaults to `test`."""
+        self.assertEqual(odoo_config["running_env"], "test")
+
+
+@patch.dict(odoo_config.options, {"running_env": "testing"})
 class TestEnvironmentVariables(ServerEnvironmentCase):
     def test_env_variables(self):
         public = "[section]\n" "foo=bar\n" "bar=baz\n"
diff --git a/server_environment/tests/test_server_environment.py b/server_environment/tests/test_server_environment.py
index 48df0cdc5..892e94ab8 100644
--- a/server_environment/tests/test_server_environment.py
+++ b/server_environment/tests/test_server_environment.py
@@ -1,5 +1,9 @@
 # Copyright 2018 Camptocamp (https://www.camptocamp.com).
 # License GPL-3.0 or later (http://www.gnu.org/licenses/agpl).
+from unittest.mock import patch
+
+from odoo.tools.config import config as odoo_config
+
 from .. import server_env
 from . import common
 
@@ -10,7 +14,7 @@ def test_view(self):
         view = model.fields_view_get()
         self.assertTrue(view)
 
-    def test_default(self):
+    def _test_default(self, hidden_pwd=False):
         model = self.env["server.config"]
         rec = model.create({})
         defaults = rec.default_get([])
@@ -19,10 +23,20 @@ def test_default(self):
         pass_checked = False
         for default in defaults:
             if "passw" in default:
-                self.assertNotEqual(defaults[default], "**********")
+                check = self.assertEqual if hidden_pwd else self.assertNotEqual
+                check(defaults[default], "**********")
                 pass_checked = True
         self.assertTrue(pass_checked)
 
+    @patch.dict(odoo_config.options, {"running_env": "dev"})
+    def test_default_dev(self):
+        self._test_default()
+
+    @patch.dict(odoo_config.options, {"running_env": "whatever"})
+    def test_default_non_dev_env(self):
+        self._test_default(hidden_pwd=True)
+
+    @patch.dict(odoo_config.options, {"running_env": "testing"})
     def test_value_retrival(self):
         with self.set_config_dir("testfiles"):
             parser = server_env._load_config()