Best practices for Dev environment

Hi,

I have a local dev environment and a live environment for my website. However, as my website has become more complex, I’d like a second dev environment which exactly matches my live environment.

Keeping this in mind, I’d like to do is have both my live and second dev environment on the same server. In addition, I’ll have 2 databases (one live and one dev). Then, I’m thinking of creating a dev subfolder and then just copy all of my files there. Further, within the dev and live sites, I could have separate config variables. Is this the typical approach or is there a better way of addressing this?

Thanks!

Maybe try installing completely free domain from http://dot.tk/ on your server and it will prevent any conflicts.

Edit
This is one I use for testing.

http://this-is-a-test-to-see-if-it-works.tk

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