http://stackoverflow.com/questions/6651275/what-do-the-mean-in-this-database-yml-file
The
& marks an alias for the node (in your example &defaultaliases the development node as "default")
* references the aliased node with the name "default".
<<: inserts the content of that node.
test:
&test
<<: *default
default_env:
<<: *production