diff --git a/railties/lib/generators/rails/app/templates/script/rails b/railties/lib/generators/rails/app/templates/script/rails
index 199fe1a6d30a99545b8ac3dc138d828270c88be9..b01d1ee183a933675fccd6858b31fd18b43440fa 100644
--- a/railties/lib/generators/rails/app/templates/script/rails
+++ b/railties/lib/generators/rails/app/templates/script/rails
@@ -1,5 +1,8 @@
 # This command will automatically be run when you run "rails" with Rails 3 gems installed from the root of your application.
 
-ENV_PATH = File.expand_path('../../config/environment',  __FILE__)
-require File.expand_path('../../config/boot',  __FILE__)
+ENV_PATH  = File.expand_path('../../config/environment',  __FILE__)
+BOOT_PATH = File.expand_path('../../config/boot',  __FILE__)
+APP_PATH  = File.expand_path('../../config/application',  __FILE__)
+
+require BOOT_PATH
 require 'rails/commands'
diff --git a/railties/lib/rails/commands.rb b/railties/lib/rails/commands.rb
index d4558be00fdee2d1ff7efa1a5e4ba9469b7175c2..6972e25b29a3a489414fc1efd77be9d56528f43d 100644
--- a/railties/lib/rails/commands.rb
+++ b/railties/lib/rails/commands.rb
@@ -30,17 +30,19 @@
   require 'rails/commands/generate'
 when 'c', 'console'
   require 'rails/commands/console'
-  require ENV_PATH
+  require APP_PATH
   Rails::Console.start(Rails::Application)
 when 's', 'server'
   require 'rails/commands/server'
+  # Initialize the server first, so environment options are set
   server = Rails::Server.new
-  require ENV_PATH
+  require APP_PATH
+
   Dir.chdir(Rails::Application.root)
   server.start
 when 'db', 'dbconsole'
   require 'rails/commands/dbconsole'
-  require ENV_PATH
+  require APP_PATH
   Rails::DBConsole.start(Rails::Application)
 
 when 'application'
@@ -55,7 +57,7 @@
   require ENV_PATH
   require 'rails/commands/performance/profiler'
 when 'plugin'
-  require ENV_PATH
+  require APP_PATH
   require 'rails/commands/plugin'
 when 'runner'
   require 'rails/commands/runner'