Figured it out -- sort of. For some reason, the database.yml was not being parsed properly to pick up the values for the development environment but override the database name for test. This block:
test: <<: *postgres_defaults database: via_test was not successfully switching the database name declared in the development block, even though it follows the syntax I've used in other projects. This project is Ruby 1.9.2p180, Rails 3.1.
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