This applies to NetBeans 6.5
If you are running your application on a WEBrick or Mongrel server, then you can easily switch the Rails environment by right-clicking the project node and choosing Properties from the pop-up menu. Type in the environment, or select one from the drop-down list. The list includes development, test, and production modes. It also looks in the config/environments folder for your custom environments.
If you are running the application on the GlassFish V3 server, then edit config/environment.rb and add RAILS_ENV="put environment here". Save the change and restart the server.