diff --git a/app/react-native/package.json b/app/react-native/package.json
index b91415c57c3..f581bf213b0 100644
--- a/app/react-native/package.json
+++ b/app/react-native/package.json
@@ -55,12 +55,12 @@
     "global": "^4.3.2",
     "html-webpack-plugin": "^4.0.0-beta.1",
     "json5": "^2.1.0",
+    "lazy-universal-dotenv": "^1.9.1",
     "prop-types": "^15.6.2",
     "raw-loader": "^0.5.1",
     "react-dev-utils": "6.0.4",
     "react-native-swipe-gestures": "^1.0.2",
     "shelljs": "^0.8.2",
-    "universal-dotenv": "^1.9.1",
     "url-parse": "^1.4.3",
     "uuid": "^3.3.2",
     "webpack": "^4.20.2",
diff --git a/app/react-native/src/server/config/utils.js b/app/react-native/src/server/config/utils.js
index fee44f7b254..421e0032580 100644
--- a/app/react-native/src/server/config/utils.js
+++ b/app/react-native/src/server/config/utils.js
@@ -1,7 +1,33 @@
 import path from 'path';
+import { getEnvironment } from 'lazy-universal-dotenv';
 
 export const includePaths = [path.resolve('./')];
 
 export const excludePaths = [path.resolve('./node_modules')];
 
 export const nodeModulesPaths = path.resolve('./node_modules');
+
+// Load environment variables starts with STORYBOOK_ to the client side.
+export function loadEnv(options = {}) {
+  const defaultNodeEnv = options.production ? 'production' : 'development';
+  const env = {
+    NODE_ENV: JSON.stringify(process.env.NODE_ENV || defaultNodeEnv),
+    // This is to support CRA's public folder feature.
+    // In production we set this to dot(.) to allow the browser to access these assests
+    // even when deployed inside a subpath. (like in GitHub pages)
+    // In development this is just empty as we always serves from the root.
+    PUBLIC_URL: JSON.stringify(options.production ? '.' : ''),
+  };
+
+  const { stringified } = getEnvironment();
+
+  Object.keys(process.env)
+    .filter(name => /^STORYBOOK_/.test(name))
+    .forEach(name => {
+      env[name] = JSON.stringify(process.env[name]);
+    });
+
+  return {
+    'process.env': Object.assign({}, env, stringified),
+  };
+}
diff --git a/app/react-native/src/server/config/webpack.config.js b/app/react-native/src/server/config/webpack.config.js
index ec9c6ee8dc4..2369fae2819 100644
--- a/app/react-native/src/server/config/webpack.config.js
+++ b/app/react-native/src/server/config/webpack.config.js
@@ -1,6 +1,5 @@
 import path from 'path';
 import webpack from 'webpack';
-import { getEnvironment } from 'universal-dotenv';
 import Dotenv from 'dotenv-webpack';
 import WatchMissingNodeModulesPlugin from 'react-dev-utils/WatchMissingNodeModulesPlugin';
 import CaseSensitivePathsPlugin from 'case-sensitive-paths-webpack-plugin';
@@ -8,10 +7,11 @@ import HtmlWebpackPlugin from 'html-webpack-plugin';
 
 import { getManagerHeadHtml } from '@storybook/core/server';
 
-import { includePaths, excludePaths, nodeModulesPaths } from './utils';
+import { includePaths, excludePaths, nodeModulesPaths, loadEnv } from './utils';
 import { version } from '../../../package.json';
 
 const getConfig = options => {
+  const environment = loadEnv();
   const entriesMeta = {
     manager: {
       headHtmlSnippet: getManagerHeadHtml(options.configDir, process.env),
@@ -44,14 +44,14 @@ const getConfig = options => {
         }),
         template: require.resolve(`@storybook/core/src/server/templates/index.ejs`),
       }),
-      new webpack.HotModuleReplacementPlugin(),
-      new CaseSensitivePathsPlugin(),
-      new WatchMissingNodeModulesPlugin(nodeModulesPaths),
-      new webpack.DefinePlugin(getEnvironment().webpack),
-      new Dotenv({ silent: true }),
       new webpack.DefinePlugin({
         storybookOptions: JSON.stringify(options),
       }),
+      new webpack.HotModuleReplacementPlugin(),
+      new CaseSensitivePathsPlugin(),
+      new WatchMissingNodeModulesPlugin(nodeModulesPaths),
+      new webpack.DefinePlugin(environment),
+      new Dotenv({ silent: true }),
     ],
     module: {
       rules: [
diff --git a/app/react-native/src/server/config/webpack.config.prod.js b/app/react-native/src/server/config/webpack.config.prod.js
index 6c6db323bde..09720b78ff2 100644
--- a/app/react-native/src/server/config/webpack.config.prod.js
+++ b/app/react-native/src/server/config/webpack.config.prod.js
@@ -1,14 +1,14 @@
 import path from 'path';
 import webpack from 'webpack';
-import { getEnvironment } from 'universal-dotenv';
 import Dotenv from 'dotenv-webpack';
 import HtmlWebpackPlugin from 'html-webpack-plugin';
 
 import { getManagerHeadHtml } from '@storybook/core/dist/server/utils';
 import { version } from '../../../package.json';
-import { includePaths, excludePaths } from './utils';
+import { includePaths, excludePaths, loadEnv } from './utils';
 
 const getConfig = options => {
+  const environment = loadEnv({ production: true });
   const entriesMeta = {
     manager: {
       headHtmlSnippet: getManagerHeadHtml(options.configDir, process.env),
@@ -48,11 +48,10 @@ const getConfig = options => {
         template: require.resolve(`@storybook/core/src/server/templates/index.ejs`),
       }),
       new webpack.DefinePlugin({
-        'process.env.NODE_ENV': '"production"',
         storybookOptions: JSON.stringify(options),
       }),
       new webpack.optimize.DedupePlugin(),
-      new webpack.DefinePlugin(getEnvironment().webpack),
+      new webpack.DefinePlugin(environment),
       new Dotenv({ silent: true }),
     ],
     module: {
diff --git a/examples/official-storybook/.env b/examples/official-storybook/.env
index f088c261657..aa608211b26 100644
--- a/examples/official-storybook/.env
+++ b/examples/official-storybook/.env
@@ -1,2 +1,2 @@
-DISPLAY_WARNING=none
+DOTENV_DISPLAY_WARNING=none
 STORYBOOK_EXAMPLE_APP=true
diff --git a/examples/official-storybook/.env.development b/examples/official-storybook/.env.development
new file mode 100644
index 00000000000..3746c482ab5
--- /dev/null
+++ b/examples/official-storybook/.env.development
@@ -0,0 +1 @@
+DOTENV_DEVELOPMENT_DISPLAY_WARNING=true
diff --git a/examples/official-storybook/config.js b/examples/official-storybook/config.js
index 520d9f5b50a..9b48d7835fb 100644
--- a/examples/official-storybook/config.js
+++ b/examples/official-storybook/config.js
@@ -9,6 +9,20 @@ import 'react-chromatic/storybook-addon';
 import addHeadWarning from './head-warning';
 import extraViewports from './extra-viewports.json';
 
+if (process.env.NODE_ENV === 'development') {
+  if (!process.env.DOTENV_DEVELOPMENT_DISPLAY_WARNING) {
+    addHeadWarning('Dotenv development file not loaded');
+  }
+
+  if (!process.env.STORYBOOK_DISPLAY_WARNING) {
+    addHeadWarning('Global storybook env var not loaded');
+  }
+
+  if (process.env.DISPLAY_WARNING) {
+    addHeadWarning('Global non-storybook env var loaded');
+  }
+}
+
 addHeadWarning('Preview head not loaded', 'preview-head-not-loaded');
 addHeadWarning('Dotenv file not loaded', 'dotenv-file-not-loaded');
 
diff --git a/examples/official-storybook/head-warning.js b/examples/official-storybook/head-warning.js
index 6d6f1552732..1f25db16fd0 100644
--- a/examples/official-storybook/head-warning.js
+++ b/examples/official-storybook/head-warning.js
@@ -1,6 +1,6 @@
 import { document } from 'global';
 
-export default function addHeadWarning(text, className) {
+export default function addHeadWarning(text, className = '') {
   const warning = document.createElement('h1');
   warning.textContent = text;
   warning.className = className;
diff --git a/examples/official-storybook/package.json b/examples/official-storybook/package.json
index e5243716bd3..cba48ea505a 100644
--- a/examples/official-storybook/package.json
+++ b/examples/official-storybook/package.json
@@ -9,7 +9,7 @@
     "generate-addon-jest-testresults": "jest --config=tests/addon-jest.config.json --json --outputFile=stories/addon-jest.testresults.json",
     "graphql": "node ./graphql-server/index.js",
     "image-snapshots": "yarn run build-storybook && yarn run do-image-snapshots",
-    "storybook": "start-storybook -p 9011 -c ./ -s built-storybooks"
+    "storybook": "STORYBOOK_DISPLAY_WARNING=true DISPLAY_WARNING=true start-storybook -p 9011 -c ./ -s built-storybooks"
   },
   "devDependencies": {
     "@emotion/core": "^0.13.1",
diff --git a/examples/official-storybook/preview-head.html b/examples/official-storybook/preview-head.html
index 4b10c3cde53..cdaf1026b73 100644
--- a/examples/official-storybook/preview-head.html
+++ b/examples/official-storybook/preview-head.html
@@ -4,6 +4,6 @@
     }
 
     .dotenv-file-not-loaded {
-      display: %DISPLAY_WARNING%;
+      display: %DOTENV_DISPLAY_WARNING%;
     }
 </style>
diff --git a/lib/core/env.js b/lib/core/env.js
deleted file mode 100644
index 0e6c77e4a58..00000000000
--- a/lib/core/env.js
+++ /dev/null
@@ -1 +0,0 @@
-require('./dist/server/config/env');
diff --git a/lib/core/package.json b/lib/core/package.json
index efbb94a1fcb..60c54e8a4a8 100644
--- a/lib/core/package.json
+++ b/lib/core/package.json
@@ -60,6 +60,7 @@
     "interpret": "^1.1.0",
     "ip": "^1.1.5",
     "json5": "^2.1.0",
+    "lazy-universal-dotenv": "^1.9.1",
     "node-fetch": "^2.2.0",
     "opn": "^5.4.0",
     "postcss-flexbugs-fixes": "^4.1.0",
@@ -76,7 +77,6 @@
     "style-loader": "^0.23.1",
     "svg-url-loader": "^2.3.2",
     "tty-table": "^2.6.9",
-    "universal-dotenv": "^1.9.1",
     "url-loader": "^1.1.2",
     "webpack": "^4.20.2",
     "webpack-dev-middleware": "^3.4.0",
diff --git a/lib/core/src/server/build-dev.js b/lib/core/src/server/build-dev.js
index 6fe8d1ea96d..708677d12f3 100644
--- a/lib/core/src/server/build-dev.js
+++ b/lib/core/src/server/build-dev.js
@@ -16,7 +16,6 @@ import Table from 'tty-table';
 
 import storybook, { webpackValid } from './middleware';
 import { getDevCli } from './cli';
-import './config/env';
 
 const defaultFavIcon = require.resolve('./public/favicon.ico');
 
diff --git a/lib/core/src/server/build-static.js b/lib/core/src/server/build-static.js
index 0a1c7c56252..b83ee3090e0 100644
--- a/lib/core/src/server/build-static.js
+++ b/lib/core/src/server/build-static.js
@@ -4,7 +4,6 @@ import fs from 'fs';
 import shelljs from 'shelljs';
 import { logger } from '@storybook/node-logger';
 import { getProdCli } from './cli';
-import './config/env';
 import loadConfig from './config';
 
 const defaultFavIcon = require.resolve('./public/favicon.ico');
diff --git a/lib/core/src/server/config/env.js b/lib/core/src/server/config/env.js
deleted file mode 100644
index 3b39d07c38d..00000000000
--- a/lib/core/src/server/config/env.js
+++ /dev/null
@@ -1 +0,0 @@
-import 'universal-dotenv';
diff --git a/lib/core/src/server/config/utils.js b/lib/core/src/server/config/utils.js
index 99eb89b8755..c04c7b32256 100644
--- a/lib/core/src/server/config/utils.js
+++ b/lib/core/src/server/config/utils.js
@@ -1,4 +1,5 @@
 import path from 'path';
+import { getEnvironment } from 'lazy-universal-dotenv';
 
 export const includePaths = [path.resolve('./')];
 
@@ -29,8 +30,10 @@ export function loadEnv(options = {}) {
       env[name] = JSON.stringify(process.env[name]);
     });
 
+  const { stringified } = getEnvironment({ nodeEnv: JSON.parse(env.NODE_ENV) });
+
   return {
-    'process.env': env,
+    'process.env': Object.assign({}, env, stringified),
   };
 }
 
diff --git a/lib/core/src/server/config/webpack.config.dev.js b/lib/core/src/server/config/webpack.config.dev.js
index d70f33fd8e5..97a94ba3d6a 100644
--- a/lib/core/src/server/config/webpack.config.dev.js
+++ b/lib/core/src/server/config/webpack.config.dev.js
@@ -1,6 +1,5 @@
 import path from 'path';
 import webpack from 'webpack';
-import { getEnvironment } from 'universal-dotenv';
 import Dotenv from 'dotenv-webpack';
 import WatchMissingNodeModulesPlugin from 'react-dev-utils/WatchMissingNodeModulesPlugin';
 import CaseSensitivePathsPlugin from 'case-sensitive-paths-webpack-plugin';
@@ -18,6 +17,7 @@ import { getPreviewHeadHtml, getManagerHeadHtml, getPreviewBodyHtml } from '../u
 import { version } from '../../../package.json';
 
 export default ({ configDir, quiet, babelOptions, entries }) => {
+  const environment = loadEnv();
   const entriesMeta = {
     iframe: {
       headHtmlSnippet: getPreviewHeadHtml(configDir, process.env),
@@ -61,12 +61,11 @@ export default ({ configDir, quiet, babelOptions, entries }) => {
             template: require.resolve(`../templates/index.ejs`),
           })
       ),
-      new webpack.DefinePlugin(loadEnv()),
+      new webpack.DefinePlugin(environment),
       new webpack.HotModuleReplacementPlugin(),
       new CaseSensitivePathsPlugin(),
       new WatchMissingNodeModulesPlugin(nodeModulesPaths),
       quiet ? null : new webpack.ProgressPlugin(),
-      new webpack.DefinePlugin(getEnvironment().webpack),
       new Dotenv({ silent: true }),
     ].filter(Boolean),
     module: {
diff --git a/lib/core/src/server/config/webpack.config.prod.js b/lib/core/src/server/config/webpack.config.prod.js
index a2bf9bd9419..eee8e5aa179 100644
--- a/lib/core/src/server/config/webpack.config.prod.js
+++ b/lib/core/src/server/config/webpack.config.prod.js
@@ -1,5 +1,4 @@
 import webpack from 'webpack';
-import { getEnvironment } from 'universal-dotenv';
 import Dotenv from 'dotenv-webpack';
 import HtmlWebpackPlugin from 'html-webpack-plugin';
 
@@ -8,6 +7,7 @@ import { includePaths, excludePaths, loadEnv, nodePaths, getBabelRuntimePath } f
 import { getPreviewHeadHtml, getManagerHeadHtml, getPreviewBodyHtml } from '../utils';
 
 export default ({ configDir, babelOptions, entries }) => {
+  const environment = loadEnv({ production: true });
   const entriesMeta = {
     iframe: {
       headHtmlSnippet: getPreviewHeadHtml(configDir, process.env),
@@ -51,8 +51,7 @@ export default ({ configDir, babelOptions, entries }) => {
             template: require.resolve(`../templates/index.ejs`),
           })
       ),
-      new webpack.DefinePlugin(loadEnv({ production: true })),
-      new webpack.DefinePlugin(getEnvironment().webpack),
+      new webpack.DefinePlugin(environment),
       new Dotenv({ silent: true }),
     ],
     module: {
diff --git a/yarn.lock b/yarn.lock
index 7e37a94bd34..408cae3fa25 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -13336,6 +13336,17 @@ lazy-cache@^1.0.3:
   resolved "https://registry.yarnpkg.com/lazy-cache/-/lazy-cache-1.0.4.tgz#a1d78fc3a50474cb80845d3b3b6e1da49a446e8e"
   integrity sha1-odePw6UEdMuAhF07O24dpJpEbo4=
 
+lazy-universal-dotenv@^1.9.1:
+  version "1.9.1"
+  resolved "https://registry.yarnpkg.com/lazy-universal-dotenv/-/lazy-universal-dotenv-1.9.1.tgz#d3fe9d5dd30309fc84eea1dab2a03585491474f9"
+  integrity sha512-Xd8XLG1S1TgoOcuPJZcxzAadRhXG5HLzOHUMPlon9VV/ewhAc56HGKPWbES99owbBoextbG8nb/AQA3c0S7TIQ==
+  dependencies:
+    "@babel/runtime" "^7.0.0"
+    app-root-dir "^1.0.2"
+    core-js "^2.5.7"
+    dotenv "^6.0.0"
+    dotenv-expand "^4.2.0"
+
 lcid@^1.0.0:
   version "1.0.0"
   resolved "https://registry.yarnpkg.com/lcid/-/lcid-1.0.0.tgz#308accafa0bc483a3867b4b6f2b9506251d1b835"
@@ -22098,17 +22109,6 @@ unist-util-visit@^1.0.0, unist-util-visit@^1.1.0, unist-util-visit@^1.1.1:
   dependencies:
     unist-util-visit-parents "^2.0.0"
 
-universal-dotenv@^1.9.1:
-  version "1.9.1"
-  resolved "https://registry.yarnpkg.com/universal-dotenv/-/universal-dotenv-1.9.1.tgz#b19730a2d8a83b8c5b72e5db09ef44dc30539b83"
-  integrity sha512-38GhLyN0rAz7040sltVEDSkO/yTcShKJFBIX5/4Hi/c//wUS9UgvnP1GDTLVs9CR+XARLsihPBciSS9y+USyKA==
-  dependencies:
-    "@babel/runtime" "^7.0.0"
-    app-root-dir "^1.0.2"
-    core-js "^2.5.7"
-    dotenv "^6.0.0"
-    dotenv-expand "^4.2.0"
-
 universal-user-agent@^2.0.0:
   version "2.0.1"
   resolved "https://registry.yarnpkg.com/universal-user-agent/-/universal-user-agent-2.0.1.tgz#18e591ca52b1cb804f6b9cbc4c336cf8191f80e1"