'development' database is not configured

I am getting this error while doing rake db:migrate of newly cloned app.

'development' database is not configured. Available: ["production"]

So after reading the error, I am doing RAILS_ENV=production rake db:migrate

But this isn't working either.

My database.yml has

production:adapter: postgresqlencoding: unicodedatabase: testpool: 5username: adminpassword: adminport: 5433

Please suggest.