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I would lean towards a "scrubbed production clone".

Maybe have a nightly (or whatever) process that does this automatically and dumps it into the QA environment which your CI/CD tests run against.

Then if a dev wants the latest data, they just copy it from the QA environment (or protected s3 bucket) and they are ready to roll.

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I agree. For RDS, AWS will create nightly snapshots for the production data. Then it would be up to the company to set up an additional pipeline to take that snapshot, scrub the data, and create a new snapshot which would get used by the developers. Not an easy task, but the benefits are there.

And getting the most up to date data would be the same process. Create a new snapshot, run the scrubbing process, create a new scrubbed snapshot, get the database to the developers.

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