The best way to deal with this issue is to use the SQL Server Client Network Utility and create a new alias for the database. This will point to different physical servers in your development and production machines, of course. Next, in your configuration files, as well as your code, in the connection string Data source attribute, use that alias. You can even point the alias to an specific SQL Server instance, if you have more than one in a single server.
This was first published in July 2003