diff --git a/app/scripts/controllers/network/network.js b/app/scripts/controllers/network/network.js
index 0c6327f6e..47432c1e2 100644
--- a/app/scripts/controllers/network/network.js
+++ b/app/scripts/controllers/network/network.js
@@ -25,10 +25,18 @@ const INFURA_PROVIDER_TYPES = [ROPSTEN, RINKEBY, KOVAN, MAINNET]
 
 const env = process.env.METAMASK_ENV
 const METAMASK_DEBUG = process.env.METAMASK_DEBUG
-const testMode = (METAMASK_DEBUG || env === 'test')
+
+let defaultProviderConfigType
+if (process.env.IN_TEST === 'true') {
+  defaultProviderConfigType = LOCALHOST
+} else if (METAMASK_DEBUG || env === 'test') {
+  defaultProviderConfigType = RINKEBY
+} else {
+  defaultProviderConfigType = MAINNET
+}
 
 const defaultProviderConfig = {
-  type: testMode ? RINKEBY : MAINNET,
+  type: defaultProviderConfigType,
 }
 
 const defaultNetworkConfig = {
diff --git a/gulpfile.js b/gulpfile.js
index f4c9fc9dd..57d20c54a 100644
--- a/gulpfile.js
+++ b/gulpfile.js
@@ -311,6 +311,7 @@ const buildJsFiles = [
 // bundle tasks
 createTasksForBuildJsUIDeps({ dependenciesToBundle: uiDependenciesToBundle, filename: 'libs' })
 createTasksForBuildJsExtension({ buildJsFiles, taskPrefix: 'dev:extension:js', devMode: true })
+createTasksForBuildJsExtension({ buildJsFiles, taskPrefix: 'dev:test-extension:js', devMode: true, testing: 'true' })
 createTasksForBuildJsExtension({ buildJsFiles, taskPrefix: 'build:extension:js' })
 
 function createTasksForBuildJsUIDeps ({ dependenciesToBundle, filename }) {
@@ -334,7 +335,7 @@ function createTasksForBuildJsUIDeps ({ dependenciesToBundle, filename }) {
 }
 
 
-function createTasksForBuildJsExtension ({ buildJsFiles, taskPrefix, devMode, bundleTaskOpts = {} }) {
+function createTasksForBuildJsExtension ({ buildJsFiles, taskPrefix, devMode, testing, bundleTaskOpts = {} }) {
   // inpage must be built before all other scripts:
   const rootDir = './app/scripts'
   const nonInpageFiles = buildJsFiles.filter(file => file !== 'inpage')
@@ -348,6 +349,7 @@ function createTasksForBuildJsExtension ({ buildJsFiles, taskPrefix, devMode, bu
     buildWithFullPaths: devMode,
     watch: devMode,
     devMode,
+    testing,
   }, bundleTaskOpts)
   createTasksForBuildJs({ rootDir, taskPrefix, bundleTaskOpts, destinations, buildPhase1, buildPhase2 })
 }
@@ -412,7 +414,7 @@ gulp.task('dev:test',
     'clean',
     'dev:scss',
     gulp.parallel(
-      'dev:extension:js',
+      'dev:test-extension:js',
       'test:copy',
       'dev:reload'
     )
@@ -496,6 +498,7 @@ function generateBundler (opts, performBundle) {
   bundler.transform(envify({
     METAMASK_DEBUG: opts.devMode,
     NODE_ENV: opts.devMode ? 'development' : 'production',
+    IN_TEST: opts.testing,
     PUBNUB_SUB_KEY: process.env.PUBNUB_SUB_KEY || '',
     PUBNUB_PUB_KEY: process.env.PUBNUB_PUB_KEY || '',
   }), {
diff --git a/test/e2e/beta/metamask-beta-ui.spec.js b/test/e2e/beta/metamask-beta-ui.spec.js
index 202a0052d..0c9c59e55 100644
--- a/test/e2e/beta/metamask-beta-ui.spec.js
+++ b/test/e2e/beta/metamask-beta-ui.spec.js
@@ -329,16 +329,6 @@ describe('MetaMask', function () {
       await delay(regularDelayMs)
     })
 
-    it('switches to localhost', async () => {
-      const networkDropdown = await findElement(driver, By.css('.network-name'))
-      await networkDropdown.click()
-      await delay(regularDelayMs)
-
-      const [localhost] = await findElements(driver, By.xpath(`//span[contains(text(), 'Localhost')]`))
-      await localhost.click()
-      await delay(largeDelayMs * 2)
-    })
-
     it('balance renders', async () => {
       const balance = await findElement(driver, By.css('.balance-display .token-amount'))
       await driver.wait(until.elementTextMatches(balance, /100\s*ETH/))