diff --git a/.github/workflows/installation.yml b/.github/workflows/installation.yml
index 2ff62bc..6be384d 100644
--- a/.github/workflows/installation.yml
+++ b/.github/workflows/installation.yml
@@ -20,7 +20,7 @@ jobs:
         uses: actions/checkout@v4
         with:
           ref: ${{ inputs.branch }}
-      - name: Set up Python 
+      - name: Set up Python
         uses: actions/setup-python@v5
         with:
           python-version: "3.10"
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5fd6504..336b22a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,10 @@
 # Change Log
 
+
+# 0.2.0
+- `Select Environment` actions now update the run environment instead of base.
+- Modified status bar to show both environments, i.e.`base + local`, and `base` is no longer selectable.
+
 # 0.1.0
 - Expanded pipeline discovery to support `*pipeline*.py` patterns and improved handling of nested subdirectories.
 - Add new extension setting `Kedro: Environment` to change the configuration environment.
diff --git a/bundled/tool/lsp_server.py b/bundled/tool/lsp_server.py
index 4543f11..c7b71e8 100644
--- a/bundled/tool/lsp_server.py
+++ b/bundled/tool/lsp_server.py
@@ -115,21 +115,20 @@ def _set_project_with_workspace(self):
             context = session.load_context()
             config_loader: OmegaConfigLoader = context.config_loader
             # context.env is set when KEDRO_ENV or kedro run --env is set
-            conf_env = context.env if context.env else config_loader.base_env
-            base_path = str(Path(config_loader.conf_source) / conf_env)
+            run_env = context.env if context.env else config_loader.default_run_env
 
         except RuntimeError as e:
             log_for_lsp_debug(str(e))
             project_metadata = None
             context = None
             config_loader = None
-            base_path = None
+            run_env = None
         finally:
             self.project_metadata = project_metadata
             self.context = context
             self.config_loader = config_loader
             self.dummy_catalog = self._get_dummy_catalog()
-            self.base_path = base_path
+            self.run_env = run_env
 
     def _get_dummy_catalog(self):
         # '**/catalog*' reads modular pipeline configs
@@ -196,10 +195,11 @@ def _get_conf_paths(server: KedroLanguageServer, key):
         A set of configuration paths.
 
     """
-    config_loader: OmegaConfigLoader = LSP_SERVER.config_loader
+    config_loader: OmegaConfigLoader = server.config_loader
     patterns = config_loader.config_patterns.get(key, [])
-    default_run_env = str(
-        Path(config_loader.conf_source) / config_loader.default_run_env
+    # By default is local
+    run_env = str(
+        Path(config_loader.conf_source) / server.run_env
     )
     base_env = str(Path(config_loader.conf_source) / config_loader.base_env)
 
@@ -209,7 +209,7 @@ def _get_conf_paths(server: KedroLanguageServer, key):
     # That is, if a config is found in both environment, the LSP should return the default_run_env one.
     # The LSP start searching in default_run_env first, if there is match it will end eagerly.
 
-    for base_path in [default_run_env, base_env]:
+    for base_path in [run_env, base_env]:
         tmp_paths = []
         for pattern in patterns:
             for each in config_loader._fs.glob(
diff --git a/src/common/commands.ts b/src/common/commands.ts
index 01229cf..76ec172 100644
--- a/src/common/commands.ts
+++ b/src/common/commands.ts
@@ -14,10 +14,10 @@ export async function selectEnvironment() {
         .filter((dirent) => dirent.isDirectory())
         .map((dirent) => dirent.name);
 
-    const envs: QuickPickItem[] = directories.map((label) => ({ label }));
+    const envs: QuickPickItem[] = directories.filter(dir => dir !== 'base').map((label) => ({ label }));
 
     const result = await window.showQuickPick(envs, {
-        placeHolder: 'Select Kedro base environment',
+        placeHolder: 'Select Kedro runtime environment',
     });
 
     return result;
diff --git a/src/common/status_bar.ts b/src/common/status_bar.ts
index c52ed41..21b16c6 100644
--- a/src/common/status_bar.ts
+++ b/src/common/status_bar.ts
@@ -4,20 +4,20 @@ import {
 } from './settings';
 import { getProjectRoot } from './utilities';
 
-export async function createStatusBar(commandName: string, serverId:string): Promise<vscode.StatusBarItem>{
+export async function createStatusBar(commandName: string, serverId: string): Promise<vscode.StatusBarItem> {
     // Create a status bar item
     const statusBarItem = vscode.window.createStatusBarItem(vscode.StatusBarAlignment.Right, 100);
     statusBarItem.command = commandName;
     // https://code.visualstudio.com/api/references/vscode-api#WorkspaceConfiguration
     const projectRoot = await getProjectRoot();
     const workspaceSetting = await getWorkspaceSettings(serverId, projectRoot, true);
-    let environment = 'base'; // todo: Assume base, better to take this from server as it could be changed in project settings.
+    let environment = 'local';
 
     if (workspaceSetting.environment) {
-    environment = workspaceSetting.environment;
+        environment = workspaceSetting.environment;
     }
 
-    statusBarItem.text = `$(kedro-logo) ${environment}`;
+    statusBarItem.text = `$(kedro-logo) base + ${environment}`;
     statusBarItem.show();
     return statusBarItem;
 }