diff --git a/.env b/.env
index 26671af649..f6c05b695b 100644
--- a/.env
+++ b/.env
@@ -29,6 +29,7 @@ LOCAL_WP_DEBUG=true
 LOCAL_WP_DEBUG_LOG=true
 LOCAL_WP_DEBUG_DISPLAY=true
 LOCAL_SCRIPT_DEBUG=true
+LOCAL_WP_ENVIRONMENT_TYPE=local
 
 # The URL to use when running e2e tests.
 WP_BASE_URL=http://localhost:${LOCAL_PORT}
diff --git a/tools/local-env/scripts/install.js b/tools/local-env/scripts/install.js
index 29e982797c..61a4eebce8 100644
--- a/tools/local-env/scripts/install.js
+++ b/tools/local-env/scripts/install.js
@@ -14,6 +14,7 @@ wp_cli( `config set WP_DEBUG ${process.env.LOCAL_WP_DEBUG} --raw` );
 wp_cli( `config set WP_DEBUG_LOG ${process.env.LOCAL_WP_DEBUG_LOG} --raw` );
 wp_cli( `config set WP_DEBUG_DISPLAY ${process.env.LOCAL_WP_DEBUG_DISPLAY} --raw` );
 wp_cli( `config set SCRIPT_DEBUG ${process.env.LOCAL_SCRIPT_DEBUG} --raw` );
+wp_cli( `config set WP_ENVIRONMENT_TYPE ${process.env.LOCAL_WP_ENVIRONMENT_TYPE}` );
 
 // Move wp-config.php to the base directory, so it doesn't get mixed up in the src or build directories.
 renameSync( 'src/wp-config.php', 'wp-config.php' );