The issue that I consider is how to write code that can easily know the location of a required config file and yet is portable, without any edit, from an environment to another. We don't want to edit the location of the configuration file to adapt the code to each new environment, say each time we move the code from a development environment to production. The method should not rely on resources that are not universally available, such as an access to user-defined environment variables or an access to a specific directory. For example, it may seem that using the DOCUMENT_ROOT as a base location for the config file is the way to go, but that is not universal. First, in a command line environment the DOCUMENT_ROOT makes no sense. Second, a programmer might be given access to a sub-folder of the DOCUMENT_ROOT only. Another requirement is that the configuration file could depend on values known at run time, say the user who call the application, as in this question How to load a config file based on user selection from "unknown" location .
The question is not what is the best location of the configuration file in specific environments, such as Location to put user configuration files in windows . The programmers would still have to figure out the best location so that end users could easily find the configuration file. The question is how this location, whatever it is, even if it depends on values known at run time, can be passed to the code in a portable manner.
One approach is to design any script file with in mind that it is to be included in another file and so on until we get to a wrapper script that only defines the directory of the config file to the benefit of the included file and other included files therein. Once this directory path is known, other configuration values can be obtained from a named configuration file within it. This works because the wrapper scripts are not updated when we update the code from a repository or testing environment. This approach seems universally applicable : no special support of any kind such as an access to user defined environment variables or to some specific directory in the server is needed. As long as you have access to the code, which is a strict minimum to expect, it works. Also, scripts are often naturally designed to be included in another file - so it is natural.
The approach only requires that we agree on a convention for the name of the constant, say CONFIG_DIRECTORY. If every programmer would agree to search at the location specified by this constant for the config file, then any user of the code could put the config file anywhere and just define this constant accordingly.
In Linux, they have the folder /etc for config files. So, the notion of an universally agreed standard in a very large context is already there. This is the same idea than the one proposed here, except that it is the same constant for all machines and someone might not have access to that level of the server. Moreover, we lose the possibility to have different configuration directories for different wrapper scripts. Allowing the universal standard to be a constant name, say 'CONFIG_DIRECTORY', instead of being the fixed constant '/etc', seems just an extra flexibility with no additional inconvenient. It does require that we define this constant in some wrapper script, but we could fall back to the old approach if it is not defined. The outcome, if the approach is strictly applied, would be that all the scripts required in the server document root would only be simple wrappers that define a configuration directory. That seems cool. Often people say that it is safer to have important code outside the document root.