diff --git a/rhodecode/config/environment.py b/rhodecode/config/environment.py
--- a/rhodecode/config/environment.py
+++ b/rhodecode/config/environment.py
@@ -62,7 +62,6 @@ def load_environment(global_conf, app_co
     """
     config = PylonsConfig()
 
-    rhodecode.is_test = str2bool(app_conf.get('is_test', 'False'))
 
     # Pylons paths
     root = os.path.dirname(os.path.dirname(os.path.abspath(__file__)))
diff --git a/rhodecode/config/middleware.py b/rhodecode/config/middleware.py
--- a/rhodecode/config/middleware.py
+++ b/rhodecode/config/middleware.py
@@ -168,7 +168,9 @@ def make_pyramid_app(global_config, **se
     # If this is a test run we prepare the test environment like
     # creating a test database, test search index and test repositories.
     # This has to be done before the database connection is initialized.
+    # if settings['is_test']:
     if settings['is_test']:
+        rhodecode.is_test = True
         utils.initialize_test_environment(settings_merged)
 
     # Initialize the database connection.
@@ -316,6 +318,7 @@ def sanitize_settings_and_apply_defaults
 
     _bool_setting(settings, 'vcs.server.enable', 'true')
     _bool_setting(settings, 'static_files', 'true')
+    _bool_setting(settings, 'is_test', 'false')
 
     return settings