diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7336a1c7..d8a0a7e3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,7 @@
 ### Changes
 
 * Get rid of activesupport dependency ([#230](https://github.com/railsconfig/config/pull/230))
+* Ignore .local files in test environment ([#135](https://github.com/railsconfig/config/issues/135), [#233](https://github.com/railsconfig/config/pull/233))
 
 ## 2.0.0
 
diff --git a/README.md b/README.md
index 0a792ed5..5c8831bb 100644
--- a/README.md
+++ b/README.md
@@ -162,6 +162,10 @@ Rails.root.join("config", "settings", "#{Rails.env}.local.yml").to_s,
 Rails.root.join("config", "environments", "#{Rails.env}.local.yml").to_s
 ```
 
+**NOTE:** The file `settings.local.yml` will not be loaded in tests to prevent local
+configuration from causing flaky or non-deterministic tests. Environment-specific files
+(e.g. `settings/test.local.yml`) will still be loaded to allow test-specific credentials.
+
 ### Adding sources at runtime
 
 You can add new YAML config files at runtime. Just use:
diff --git a/lib/config.rb b/lib/config.rb
index 59b0590c..8fc0148e 100644
--- a/lib/config.rb
+++ b/lib/config.rb
@@ -58,11 +58,16 @@ def self.setting_files(config_root, env)
       File.join(config_root, 'settings.yml').to_s,
       File.join(config_root, 'settings', "#{env}.yml").to_s,
       File.join(config_root, 'environments', "#{env}.yml").to_s,
+      *local_setting_files(config_root, env)
+    ].freeze
+  end
 
-      File.join(config_root, 'settings.local.yml').to_s,
+  def self.local_setting_files(config_root, env)
+    [
+      (File.join(config_root, 'settings.local.yml').to_s if env != 'test'),
       File.join(config_root, 'settings', "#{env}.local.yml").to_s,
       File.join(config_root, 'environments', "#{env}.local.yml").to_s
-    ].freeze
+    ].compact
   end
 
   def self.reload!
diff --git a/spec/config_spec.rb b/spec/config_spec.rb
index 1908fd55..bcabae11 100644
--- a/spec/config_spec.rb
+++ b/spec/config_spec.rb
@@ -3,12 +3,23 @@
 describe Config do
 
   it "should get setting files" do
+    config = Config.setting_files("root/config", "staging")
+    expect(config).to eq([
+                           'root/config/settings.yml',
+                           'root/config/settings/staging.yml',
+                           'root/config/environments/staging.yml',
+                           'root/config/settings.local.yml',
+                           'root/config/settings/staging.local.yml',
+                           'root/config/environments/staging.local.yml'
+                         ])
+  end
+
+  it "should ignore local config in test environment" do
     config = Config.setting_files("root/config", "test")
     expect(config).to eq([
                            'root/config/settings.yml',
                            'root/config/settings/test.yml',
                            'root/config/environments/test.yml',
-                           'root/config/settings.local.yml',
                            'root/config/settings/test.local.yml',
                            'root/config/environments/test.local.yml'
                          ])