.env in main folder of your installation. If not, copy file .env.example to .env2 If it will not run, check .env file. First two lines should look like this:
APP_ENV=local
APP_DEBUG=true
First line sets your environment, second sets debugging to true or false (on 'production' always set to 'false').
In Laravel 5 there is no app/config.php file. More about environments in this version of framework you can read in configuration section of L5 documentation.
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