I wasn't suggesting it should, ideally they'd be on completely isolated machines, and there's no reason it has to connect to production. Just because you use production backups to set up your dev environment, doesn't mean the dev environment should be able to talk to production servers, quite the opposite.

What I'd normally do is have a production server, which has daily backups, copies of which are used for dev on local machines, and then pushed to a dev server with separate dev db which is wiped periodically with that production data (a useful test of restoring backups), and has no connection with the production server or db.

Can't work out why they would possibly be doing development on a live db like this, that's insanity.