diff --git a/lib/datasource.js b/lib/datasource.js
index 3a58e935..1049ec51 100644
--- a/lib/datasource.js
+++ b/lib/datasource.js
@@ -176,7 +176,14 @@ DataSource.prototype.setup = function(name, settings) {
     
     // just save everything we get
     this.name = name;
-    this.settings = settings;
+    this.settings = settings || {};
+
+    // Check the debug env settings
+    var debugEnv = process.env.DEBUG || process.env.NODE_DEBUG || '';
+    var debugModules = debugEnv.split(/[\s,]+/);
+    if(debugModules.indexOf('loopback') !== -1) {
+        this.settings.debug = true;
+    }
 
     // Disconnected by default
     this.connected = false;