http://blog.aeonmedia.eu/2013/02/good-way-to-change-in-easy-way-application-environment

database.php

<?php
/* 
cakephp 1.2 database configuration for different environments

@author AgBorkowski
@link http://blog.aeonmedia.eu/2013/02/good-way-to-change-in-easy-way-application-environment
*/
class DATABASE_CONFIG {

	public $default = array();

	function __construct() {
		if (APPLICATION_ENV === 'production') {
			$this->default = array(
				'driver' => 'mysql',
				'persistent' => true,
				'host' =>  'production.host',
				'login' => '',
				'password' => '',
				'database' => ''
				#,'encoding' => 'utf8'
			);
		} else {
			$this->default = array(
				'driver' => 'mysql',
				'persistent' => false,
				'host' => 'localhost',
				'login' => '',
				'password' => '',
				'database' => '',
				'encoding' => 'utf8'
			);
		}
	}

}
?>