diff --git a/README.md b/README.md
index 06788ff..17586e0 100644
--- a/README.md
+++ b/README.md
@@ -34,55 +34,110 @@
 ## PyTest Fixtures
 
 <!-- FIXTURES -->
-### `ws` fixture
-Create and provide a Databricks WorkspaceClient object.
-
-This fixture initializes a Databricks WorkspaceClient object, which can be used
-to interact with the Databricks workspace API. The created instance of WorkspaceClient
-is shared across all test functions within the test session.
-
-See https://databricks-sdk-py.readthedocs.io/en/latest/authentication.html
+### `debug_env_name` fixture
+Specify the name of the debug environment. By default, it is set to `.env`,
+which will try to find a [file named `.env`](https://www.dotenv.org/docs/security/env)
+in any of the parent directories of the current working directory and load
+the environment variables from it via the [`debug_env` fixture](#debug_env-fixture).
+
+Alternatively, if you are concerned of the
+[risk of `.env` files getting checked into version control](https://thehackernews.com/2024/08/attackers-exploit-public-env-files-to.html),
+we recommend using the `~/.databricks/debug-env.json` file to store different sets of environment variables.
+The file cannot be checked into version control by design, because it is stored in the user's home directory.
+
+This file is used for local debugging and integration tests in IDEs like PyCharm, VSCode, and IntelliJ IDEA
+while developing Databricks Platform Automation Stack, which includes Databricks SDKs for Python, Go, and Java,
+as well as Databricks Terraform Provider and Databricks CLI. This file enables multi-environment and multi-cloud
+testing with a single set of integration tests.
+
+The file is typically structured as follows:
+
+```shell
+$ cat ~/.databricks/debug-env.json
+{
+   "ws": {
+     "CLOUD_ENV": "azure",
+     "DATABRICKS_HOST": "....azuredatabricks.net",
+     "DATABRICKS_CLUSTER_ID": "0708-200540-...",
+     "DATABRICKS_WAREHOUSE_ID": "33aef...",
+        ...
+   },
+   "acc": {
+     "CLOUD_ENV": "aws",
+     "DATABRICKS_HOST": "accounts.cloud.databricks.net",
+     "DATABRICKS_CLIENT_ID": "....",
+     "DATABRICKS_CLIENT_SECRET": "....",
+     ...
+   }
+}
+```
 
-Returns:
---------
-databricks.sdk.WorkspaceClient:
-    An instance of WorkspaceClient for interacting with the Databricks Workspace APIs.
+And you can load it in your `conftest.py` file as follows:
 
-Usage:
-------
-In your test functions, include this fixture as an argument to use the WorkspaceClient:
+```python
+@pytest.fixture
+def debug_env_name():
+    return "ws"
+```
 
-.. code-block:: python
+This will load the `ws` environment from the `~/.databricks/debug-env.json` file.
 
-    def test_workspace_operations(ws):
-        clusters = ws.clusters.list_clusters()
-        assert len(clusters) >= 0
+If any of the environment variables are not found, [`env_or_skip` fixture](#env_or_skip-fixture)
+will gracefully skip the execution of tests.
 
-This fixture is built on top of: [`debug_env`](#debug_env-fixture), [`product_info`](#product_info-fixture)
+See also [`debug_env` fixture](#debug_env-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
 
 ### `debug_env` fixture
-_No description yet._
+Loads environment variables specified in [`debug_env_name` fixture](#debug_env_name-fixture) from a file
+for local debugging in IDEs, otherwise allowing the tests to run with the default environment variables
+specified in the CI/CD pipeline.
 
-This fixture is built on top of: [`monkeypatch`](#monkeypatch-fixture), [`debug_env_name`](#debug_env_name-fixture)
+See also [`env_or_skip` fixture](#env_or_skip-fixture), [`ws` fixture](#ws-fixture), [`debug_env_name` fixture](#debug_env_name-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
 
-### `debug_env_name` fixture
-_No description yet._
+### `env_or_skip` fixture
+Fixture to get environment variables or skip tests.
 
-This fixture is built on top of: 
+It is extremely useful to skip tests if the required environment variables are not set.
+
+In the following example, `test_something` would only run if the environment variable
+`SOME_EXTERNAL_SERVICE_TOKEN` is set:
+
+```python
+def test_something(env_or_skip):
+    token = env_or_skip("SOME_EXTERNAL_SERVICE_TOKEN")
+    assert token is not None
+```
+
+See also [`make_udf` fixture](#make_udf-fixture), [`sql_backend` fixture](#sql_backend-fixture), [`debug_env` fixture](#debug_env-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
 
-### `env_or_skip` fixture
-_No description yet._
+### `ws` fixture
+Create and provide a Databricks WorkspaceClient object.
 
-This fixture is built on top of: [`debug_env`](#debug_env-fixture)
+This fixture initializes a Databricks WorkspaceClient object, which can be used
+to interact with the Databricks workspace API. The created instance of WorkspaceClient
+is shared across all test functions within the test session.
+
+See [detailed documentation](https://databricks-sdk-py.readthedocs.io/en/latest/authentication.html) for the list
+of environment variables that can be used to authenticate the WorkspaceClient.
+
+In your test functions, include this fixture as an argument to use the WorkspaceClient:
+
+```python
+def test_workspace_operations(ws):
+    clusters = ws.clusters.list_clusters()
+    assert len(clusters) >= 0
+```
+
+See also [`make_catalog` fixture](#make_catalog-fixture), [`make_cluster` fixture](#make_cluster-fixture), [`make_cluster_policy` fixture](#make_cluster_policy-fixture), [`make_directory` fixture](#make_directory-fixture), [`make_group` fixture](#make_group-fixture), [`make_instance_pool` fixture](#make_instance_pool-fixture), [`make_job` fixture](#make_job-fixture), [`make_notebook` fixture](#make_notebook-fixture), [`make_repo` fixture](#make_repo-fixture), [`make_schema` fixture](#make_schema-fixture), [`make_secret_scope` fixture](#make_secret_scope-fixture), [`make_secret_scope_acl` fixture](#make_secret_scope_acl-fixture), [`make_table` fixture](#make_table-fixture), [`make_udf` fixture](#make_udf-fixture), [`make_user` fixture](#make_user-fixture), [`sql_backend` fixture](#sql_backend-fixture), [`workspace_library` fixture](#workspace_library-fixture), [`debug_env` fixture](#debug_env-fixture), [`product_info` fixture](#product_info-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -108,7 +163,7 @@ random_string = make_random(k=8)
 assert len(random_string) == 8
 ```
 
-This fixture is built on top of: 
+See also [`make_catalog` fixture](#make_catalog-fixture), [`make_cluster` fixture](#make_cluster-fixture), [`make_cluster_policy` fixture](#make_cluster_policy-fixture), [`make_directory` fixture](#make_directory-fixture), [`make_group` fixture](#make_group-fixture), [`make_instance_pool` fixture](#make_instance_pool-fixture), [`make_job` fixture](#make_job-fixture), [`make_notebook` fixture](#make_notebook-fixture), [`make_repo` fixture](#make_repo-fixture), [`make_schema` fixture](#make_schema-fixture), [`make_secret_scope` fixture](#make_secret_scope-fixture), [`make_table` fixture](#make_table-fixture), [`make_udf` fixture](#make_udf-fixture), [`make_user` fixture](#make_user-fixture), [`workspace_library` fixture](#workspace_library-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -141,7 +196,7 @@ To manage Databricks instance pools using the make_instance_pool fixture:
         instance_pool_info = make_instance_pool(instance_pool_name="my-pool")
         assert instance_pool_info is not None
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`make_random`](#make_random-fixture)
+See also [`ws` fixture](#ws-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -176,7 +231,7 @@ To manage Databricks jobs using the make_job fixture:
         job_info = make_job(name="my-job")
         assert job_info is not None
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`make_random`](#make_random-fixture), [`make_notebook`](#make_notebook-fixture)
+See also [`ws` fixture](#ws-fixture), [`make_random` fixture](#make_random-fixture), [`make_notebook` fixture](#make_notebook-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -209,7 +264,7 @@ To manage Databricks clusters using the make_cluster fixture:
         cluster_info = make_cluster(cluster_name="my-cluster", single_node=True)
         assert cluster_info is not None
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`make_random`](#make_random-fixture)
+See also [`ws` fixture](#ws-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -242,7 +297,7 @@ To manage Databricks cluster policies using the make_cluster_policy fixture:
         policy_info = make_cluster_policy(name="my-policy")
         assert policy_info is not None
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`make_random`](#make_random-fixture)
+See also [`ws` fixture](#ws-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -275,7 +330,7 @@ To manage Databricks workspace groups using the make_group fixture:
         group_info = make_group(members=["user@example.com"], roles=["viewer"])
         assert group_info is not None
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`make_random`](#make_random-fixture)
+See also [`ws` fixture](#ws-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -308,7 +363,7 @@ To manage Databricks workspace users using the make_user fixture:
         user_info = make_user()
         assert user_info is not None
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`make_random`](#make_random-fixture)
+See also [`ws` fixture](#ws-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -341,7 +396,7 @@ To manage Databricks notebooks using the make_notebook fixture:
         notebook_path = make_notebook()
         assert notebook_path.startswith("/Users/") and notebook_path.endswith(".py")
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`make_random`](#make_random-fixture)
+See also [`make_job` fixture](#make_job-fixture), [`ws` fixture](#ws-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -374,7 +429,7 @@ To manage Databricks directories using the make_directory fixture:
         directory_path = make_directory()
         assert directory_path.startswith("/Users/") and not directory_path.endswith(".py")
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`make_random`](#make_random-fixture)
+See also [`ws` fixture](#ws-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -407,7 +462,7 @@ To manage Databricks repos using the make_repo fixture:
         repo_info = make_repo()
         assert repo_info is not None
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`make_random`](#make_random-fixture)
+See also [`ws` fixture](#ws-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -441,7 +496,7 @@ To create a secret scope and use it within a test function:
         secret_scope_name = make_secret_scope()
         assert secret_scope_name.startswith("sdk-")
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`make_random`](#make_random-fixture)
+See also [`ws` fixture](#ws-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -477,7 +532,7 @@ To manage secret scope ACLs using the make_secret_scope_acl fixture:
         acl_info = make_secret_scope_acl(scope=scope_name, principal=principal_name, permission=permission)
         assert acl_info == (scope_name, principal_name)
 
-This fixture is built on top of: [`ws`](#ws-fixture)
+See also [`ws` fixture](#ws-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -485,7 +540,7 @@ This fixture is built on top of: [`ws`](#ws-fixture)
 ### `make_udf` fixture
 _No description yet._
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`env_or_skip`](#env_or_skip-fixture), [`sql_backend`](#sql_backend-fixture), [`make_schema`](#make_schema-fixture), [`make_random`](#make_random-fixture)
+See also [`ws` fixture](#ws-fixture), [`env_or_skip` fixture](#env_or_skip-fixture), [`sql_backend` fixture](#sql_backend-fixture), [`make_schema` fixture](#make_schema-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -493,7 +548,7 @@ This fixture is built on top of: [`ws`](#ws-fixture), [`env_or_skip`](#env_or_sk
 ### `make_catalog` fixture
 _No description yet._
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`sql_backend`](#sql_backend-fixture), [`make_random`](#make_random-fixture)
+See also [`ws` fixture](#ws-fixture), [`sql_backend` fixture](#sql_backend-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -501,7 +556,7 @@ This fixture is built on top of: [`ws`](#ws-fixture), [`sql_backend`](#sql_backe
 ### `make_schema` fixture
 _No description yet._
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`sql_backend`](#sql_backend-fixture), [`make_random`](#make_random-fixture)
+See also [`make_table` fixture](#make_table-fixture), [`make_udf` fixture](#make_udf-fixture), [`ws` fixture](#ws-fixture), [`sql_backend` fixture](#sql_backend-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -509,7 +564,7 @@ This fixture is built on top of: [`ws`](#ws-fixture), [`sql_backend`](#sql_backe
 ### `make_table` fixture
 _No description yet._
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`sql_backend`](#sql_backend-fixture), [`make_schema`](#make_schema-fixture), [`make_random`](#make_random-fixture)
+See also [`ws` fixture](#ws-fixture), [`sql_backend` fixture](#sql_backend-fixture), [`make_schema` fixture](#make_schema-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -517,7 +572,7 @@ This fixture is built on top of: [`ws`](#ws-fixture), [`sql_backend`](#sql_backe
 ### `product_info` fixture
 _No description yet._
 
-This fixture is built on top of: 
+See also [`ws` fixture](#ws-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -525,7 +580,9 @@ This fixture is built on top of:
 ### `sql_backend` fixture
 te and provide a SQL backend for executing statements.
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`env_or_skip`](#env_or_skip-fixture)
+Requires the environment variable `DATABRICKS_WAREHOUSE_ID` to be set.
+
+See also [`make_catalog` fixture](#make_catalog-fixture), [`make_schema` fixture](#make_schema-fixture), [`make_table` fixture](#make_table-fixture), [`make_udf` fixture](#make_udf-fixture), [`sql_exec` fixture](#sql_exec-fixture), [`sql_fetch_all` fixture](#sql_fetch_all-fixture), [`ws` fixture](#ws-fixture), [`env_or_skip` fixture](#env_or_skip-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -533,7 +590,7 @@ This fixture is built on top of: [`ws`](#ws-fixture), [`env_or_skip`](#env_or_sk
 ### `sql_exec` fixture
 ute SQL statement and don't return any results.
 
-This fixture is built on top of: [`sql_backend`](#sql_backend-fixture)
+See also [`sql_backend` fixture](#sql_backend-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -541,7 +598,7 @@ This fixture is built on top of: [`sql_backend`](#sql_backend-fixture)
 ### `sql_fetch_all` fixture
 h all rows from a SQL statement.
 
-This fixture is built on top of: [`sql_backend`](#sql_backend-fixture)
+See also [`sql_backend` fixture](#sql_backend-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
@@ -549,7 +606,7 @@ This fixture is built on top of: [`sql_backend`](#sql_backend-fixture)
 ### `workspace_library` fixture
 _No description yet._
 
-This fixture is built on top of: [`ws`](#ws-fixture), [`fresh_local_wheel_file`](#fresh_local_wheel_file-fixture), [`make_random`](#make_random-fixture)
+See also [`ws` fixture](#ws-fixture), [`make_random` fixture](#make_random-fixture).
 
 
 [[back to top](#python-testing-for-databricks)]
diff --git a/scripts/gen-readme.py b/scripts/gen-readme.py
index fb87057..0e46459 100644
--- a/scripts/gen-readme.py
+++ b/scripts/gen-readme.py
@@ -1,3 +1,4 @@
+import collections
 import inspect
 import re
 from dataclasses import dataclass
@@ -19,11 +20,11 @@ def main():
 class Fixture:
     name: str
     description: str
-    upstreams: list[str]
+    see_also: list[str]
 
     @staticmethod
     def ref(name: str) -> str:
-        return f"[`{name}`](#{name}-fixture)"
+        return f"[`{name}` fixture](#{name}-fixture)"
 
     def usage(self) -> str:
         lines = "\n".join(_[4:] for _ in self.description.split("\n"))
@@ -35,7 +36,7 @@ def doc(self) -> str:
                 f"### `{self.name}` fixture",
                 self.usage() if self.description else "_No description yet._",
                 "",
-                f"This fixture is built on top of: {', '.join([self.ref(up) for up in self.upstreams])}",
+                f"See also {', '.join([self.ref(up) for up in self.see_also])}.",
                 "",
                 BACK_TO_TOP,
             ]
@@ -54,18 +55,27 @@ def overwrite_readme(part, docs):
 
 def discover_fixtures():
     fixtures = []
+    see_also = collections.defaultdict(set)
+    idx: dict[str, int] = {}
     for fixture in P.__all__:
         fn = getattr(P, fixture)
         upstreams = []
         sig = inspect.signature(fn)
         for param in sig.parameters.values():
+            if param.name in {'fresh_local_wheel_file', 'monkeypatch'}:
+                continue
             upstreams.append(param.name)
+            see_also[param.name].add(fixture)
         fx = Fixture(
             name=fixture,
             description=fn.__doc__,
-            upstreams=upstreams,
+            see_also=upstreams,
         )
+        idx[fixture] = len(fixtures)
         fixtures.append(fx)
+    for fixture, other in see_also.items():
+        fx = fixtures[idx[fixture]]
+        fx.see_also = sorted(other) + fx.see_also
     return fixtures
 
 
diff --git a/src/databricks/labs/pytester/fixtures/baseline.py b/src/databricks/labs/pytester/fixtures/baseline.py
index 0299b3e..92ee3e0 100644
--- a/src/databricks/labs/pytester/fixtures/baseline.py
+++ b/src/databricks/labs/pytester/fixtures/baseline.py
@@ -1,21 +1,16 @@
-import json
 import logging
-import os
-import pathlib
 import random
 import string
-import sys
-from collections.abc import Callable, MutableMapping
 from datetime import timedelta, datetime, timezone
 from functools import partial
 
-import pytest
 from pytest import fixture
 
 from databricks.labs.lsql.backends import StatementExecutionBackend
 from databricks.sdk import WorkspaceClient
 from databricks.sdk.errors import NotFound
 
+
 _LOG = logging.getLogger(__name__)
 
 
@@ -67,53 +62,6 @@ def inner(k=16) -> str:
     return inner
 
 
-def _is_in_debug() -> bool:
-    return os.path.basename(sys.argv[0]) in {"_jb_pytest_runner.py", "testlauncher.py"}
-
-
-@fixture
-def debug_env_name():
-    # Alternatively, we could use @pytest.mark.xxx, but
-    # not sure how reusable it becomes then.
-    #
-    # we don't use scope=session, as monkeypatch.setenv
-    # doesn't work on a session level
-    return "UNKNOWN"
-
-
-@pytest.fixture
-def debug_env(monkeypatch, debug_env_name) -> MutableMapping[str, str]:
-    if not _is_in_debug():
-        return os.environ
-    # TODO: add support for `.env` files
-    conf_file = pathlib.Path.home() / ".databricks/debug-env.json"
-    if not conf_file.exists():
-        return os.environ
-    with conf_file.open("r") as f:
-        conf = json.load(f)
-        if debug_env_name not in conf:
-            sys.stderr.write(f"""{debug_env_name} not found in ~/.databricks/debug-env.json""")
-            msg = f"{debug_env_name} not found in ~/.databricks/debug-env.json"
-            raise KeyError(msg)
-        for env_key, value in conf[debug_env_name].items():
-            monkeypatch.setenv(env_key, value)
-    return os.environ
-
-
-@fixture
-def env_or_skip(debug_env) -> Callable[[str], str]:
-    skip = pytest.skip
-    if _is_in_debug():
-        skip = pytest.fail  # type: ignore[assignment]
-
-    def inner(var: str) -> str:
-        if var not in debug_env:
-            skip(f"Environment variable {var} is missing")
-        return debug_env[var]
-
-    return inner
-
-
 def factory(name, create, remove):
     """
     Factory function for creating fixtures.
@@ -186,22 +134,16 @@ def ws(debug_env, product_info) -> WorkspaceClient:
     to interact with the Databricks workspace API. The created instance of WorkspaceClient
     is shared across all test functions within the test session.
 
-    See https://databricks-sdk-py.readthedocs.io/en/latest/authentication.html
+    See [detailed documentation](https://databricks-sdk-py.readthedocs.io/en/latest/authentication.html) for the list
+    of environment variables that can be used to authenticate the WorkspaceClient.
 
-    Returns:
-    --------
-    databricks.sdk.WorkspaceClient:
-        An instance of WorkspaceClient for interacting with the Databricks Workspace APIs.
-
-    Usage:
-    ------
     In your test functions, include this fixture as an argument to use the WorkspaceClient:
 
-    .. code-block:: python
-
-        def test_workspace_operations(ws):
-            clusters = ws.clusters.list_clusters()
-            assert len(clusters) >= 0
+    ```python
+    def test_workspace_operations(ws):
+        clusters = ws.clusters.list_clusters()
+        assert len(clusters) >= 0
+    ```
     """
     product_name, product_version = product_info
     return WorkspaceClient(host=debug_env["DATABRICKS_HOST"], product=product_name, product_version=product_version)
@@ -209,7 +151,10 @@ def test_workspace_operations(ws):
 
 @fixture
 def sql_backend(ws, env_or_skip) -> StatementExecutionBackend:
-    """Create and provide a SQL backend for executing statements."""
+    """Create and provide a SQL backend for executing statements.
+
+    Requires the environment variable `DATABRICKS_WAREHOUSE_ID` to be set.
+    """
     warehouse_id = env_or_skip("DATABRICKS_WAREHOUSE_ID")
     return StatementExecutionBackend(ws, warehouse_id)
 
diff --git a/src/databricks/labs/pytester/fixtures/environment.py b/src/databricks/labs/pytester/fixtures/environment.py
new file mode 100644
index 0000000..5c9d375
--- /dev/null
+++ b/src/databricks/labs/pytester/fixtures/environment.py
@@ -0,0 +1,147 @@
+import json
+import os
+from pathlib import Path
+import sys
+from collections.abc import MutableMapping, Callable
+
+import pytest
+from pytest import fixture
+from databricks.labs.blueprint.entrypoint import find_dir_with_leaf
+
+
+def _is_in_debug() -> bool:
+    return os.path.basename(sys.argv[0]) in {"_jb_pytest_runner.py", "testlauncher.py"}
+
+
+@fixture
+def debug_env_name():
+    """
+    Specify the name of the debug environment. By default, it is set to `.env`,
+    which will try to find a [file named `.env`](https://www.dotenv.org/docs/security/env)
+    in any of the parent directories of the current working directory and load
+    the environment variables from it via the [`debug_env` fixture](#debug_env-fixture).
+
+    Alternatively, if you are concerned of the
+    [risk of `.env` files getting checked into version control](https://thehackernews.com/2024/08/attackers-exploit-public-env-files-to.html),
+    we recommend using the `~/.databricks/debug-env.json` file to store different sets of environment variables.
+    The file cannot be checked into version control by design, because it is stored in the user's home directory.
+
+    This file is used for local debugging and integration tests in IDEs like PyCharm, VSCode, and IntelliJ IDEA
+    while developing Databricks Platform Automation Stack, which includes Databricks SDKs for Python, Go, and Java,
+    as well as Databricks Terraform Provider and Databricks CLI. This file enables multi-environment and multi-cloud
+    testing with a single set of integration tests.
+
+    The file is typically structured as follows:
+
+    ```shell
+    $ cat ~/.databricks/debug-env.json
+    {
+       "ws": {
+         "CLOUD_ENV": "azure",
+         "DATABRICKS_HOST": "....azuredatabricks.net",
+         "DATABRICKS_CLUSTER_ID": "0708-200540-...",
+         "DATABRICKS_WAREHOUSE_ID": "33aef...",
+            ...
+       },
+       "acc": {
+         "CLOUD_ENV": "aws",
+         "DATABRICKS_HOST": "accounts.cloud.databricks.net",
+         "DATABRICKS_CLIENT_ID": "....",
+         "DATABRICKS_CLIENT_SECRET": "....",
+         ...
+       }
+    }
+    ```
+
+    And you can load it in your `conftest.py` file as follows:
+
+    ```python
+    @pytest.fixture
+    def debug_env_name():
+        return "ws"
+    ```
+
+    This will load the `ws` environment from the `~/.databricks/debug-env.json` file.
+
+    If any of the environment variables are not found, [`env_or_skip` fixture](#env_or_skip-fixture)
+    will gracefully skip the execution of tests.
+    """
+    return ".env"
+
+
+@fixture
+def debug_env(monkeypatch, debug_env_name) -> MutableMapping[str, str]:
+    """
+    Loads environment variables specified in [`debug_env_name` fixture](#debug_env_name-fixture) from a file
+    for local debugging in IDEs, otherwise allowing the tests to run with the default environment variables
+    specified in the CI/CD pipeline.
+    """
+    if not _is_in_debug():
+        return os.environ
+    if debug_env_name == ".env":
+        dot_env = _parse_dotenv()
+        if not dot_env:
+            return os.environ
+        for env_key, value in dot_env.items():
+            monkeypatch.setenv(env_key, value)
+        return os.environ
+    conf_file = Path.home() / ".databricks/debug-env.json"
+    if not conf_file.exists():
+        return os.environ
+    with conf_file.open("r") as f:
+        conf = json.load(f)
+        if debug_env_name not in conf:
+            sys.stderr.write(f"""{debug_env_name} not found in ~/.databricks/debug-env.json""")
+            msg = f"{debug_env_name} not found in ~/.databricks/debug-env.json"
+            raise KeyError(msg)
+        for env_key, value in conf[debug_env_name].items():
+            monkeypatch.setenv(env_key, value)
+    return os.environ
+
+
+@fixture
+def env_or_skip(debug_env) -> Callable[[str], str]:
+    """
+    Fixture to get environment variables or skip tests.
+
+    It is extremely useful to skip tests if the required environment variables are not set.
+
+    In the following example, `test_something` would only run if the environment variable
+    `SOME_EXTERNAL_SERVICE_TOKEN` is set:
+
+    ```python
+    def test_something(env_or_skip):
+        token = env_or_skip("SOME_EXTERNAL_SERVICE_TOKEN")
+        assert token is not None
+    ```
+    """
+    skip = pytest.skip
+    if _is_in_debug():
+        skip = pytest.fail  # type: ignore[assignment]
+
+    def inner(var: str) -> str:
+        if var not in debug_env:
+            skip(f"Environment variable {var} is missing")
+        return debug_env[var]
+
+    return inner
+
+
+def _parse_dotenv():
+    """See https://www.dotenv.org/docs/security/env"""
+    dot_env = find_dir_with_leaf(Path.cwd(), '.env')
+    if dot_env is None:
+        return {}
+    env_vars = {}
+    with dot_env.open(encoding='utf8') as file:
+        for line in file:
+            line = line.strip()
+            if not line or line.startswith('#'):
+                continue
+            if '=' not in line:
+                continue
+            key, value = line.split('=', 1)
+            # Remove any surrounding quotes (single or double)
+            value = value.strip().strip('"').strip("'")
+            env_vars[key.strip()] = value
+    return env_vars
diff --git a/src/databricks/labs/pytester/fixtures/plugin.py b/src/databricks/labs/pytester/fixtures/plugin.py
index dc5a8fe..26d9861 100644
--- a/src/databricks/labs/pytester/fixtures/plugin.py
+++ b/src/databricks/labs/pytester/fixtures/plugin.py
@@ -6,9 +6,6 @@
     sql_backend,
     sql_exec,
     sql_fetch_all,
-    env_or_skip,
-    debug_env,
-    debug_env_name,
     product_info,
 )
 from databricks.labs.pytester.fixtures.compute import make_instance_pool, make_job, make_cluster, make_cluster_policy
@@ -17,12 +14,13 @@
 from databricks.labs.pytester.fixtures.notebooks import make_notebook, make_directory, make_repo
 from databricks.labs.pytester.fixtures.secrets import make_secret_scope, make_secret_scope_acl
 from databricks.labs.pytester.fixtures.wheel import workspace_library
+from databricks.labs.pytester.fixtures.environment import debug_env, debug_env_name, env_or_skip
 
 __all__ = [
-    'ws',
-    'debug_env',
     'debug_env_name',
+    'debug_env',
     'env_or_skip',
+    'ws',
     'make_random',
     'make_instance_pool',
     'make_job',