diff --git a/package.json b/package.json
index b70d074d..813d189b 100644
--- a/package.json
+++ b/package.json
@@ -35,6 +35,7 @@
     "lint:js": "eslint --ext .js --ext .jsx ."
   },
   "devDependencies": {
+    "deepmerge": "^1.5.2",
     "7zip-bin": "^2.0.4",
     "babel-core": "^6.24.1",
     "babel-eslint": "^7.2.3",
diff --git a/src/common/config/base.json b/src/common/config/base.json
index 850251fa..96283bd6 100644
--- a/src/common/config/base.json
+++ b/src/common/config/base.json
@@ -4,7 +4,7 @@
     "showTrayIcon": false,
     "trayIconTheme": "light",
     "minimizeToTray": false,
-    "version": "1",
+    "version": 1,
     "notifications": {
       "flashWindow": 0
     },
@@ -17,7 +17,7 @@
     "showTrayIcon": false,
     "trayIconTheme": "light",
     "minimizeToTray": false,
-    "version": "1",
+    "version": 1,
     "notifications": {
       "flashWindow": 0
     },
diff --git a/src/common/settings.js b/src/common/settings.js
index 8761787f..dbc9cf21 100644
--- a/src/common/settings.js
+++ b/src/common/settings.js
@@ -1,7 +1,10 @@
 'use strict';
 
 const fs = require('fs');
-const deepmerge = require('deepmerge').default;
+let deepmerge = require('deepmerge').default;
+if (process.env.TEST) {
+  deepmerge = require('deepmerge'); // eslint-disable-line
+}
 
 const settingsVersion = 1;
 const baseConfig = require('./config/base.json');
@@ -32,7 +35,7 @@ function loadDefault(version, spellCheckerLocale) {
 }
 
 function upgradeV0toV1(configV0) {
-  var config = loadDefault('1');
+  var config = loadDefault(1);
   config.teams.push({
     name: 'Primary team',
     url: configV0.url
@@ -41,7 +44,7 @@ function upgradeV0toV1(configV0) {
 }
 
 function upgrade(config, newAppVersion) {
-  var configVersion = config.version ? config.version : '1';
+  var configVersion = config.version ? config.version : 0;
   if (newAppVersion) {
     config.lastMattermostVersion = newAppVersion;
   }
diff --git a/src/package.json b/src/package.json
index dd5ea7b3..f817f732 100644
--- a/src/package.json
+++ b/src/package.json
@@ -12,7 +12,7 @@
     "auto-launch": "^5.0.1",
     "bootstrap": "^3.3.7",
     "create-react-class": "^15.5.3",
-    "deepmerge": "^1.5.1",
+    "deepmerge": "^1.5.2",
     "electron-context-menu": "^0.9.0",
     "electron-devtools-installer": "^2.2.0",
     "electron-is-dev": "^0.1.2",
diff --git a/test/modules/environment.js b/test/modules/environment.js
index ffe8abc7..4fd19f02 100644
--- a/test/modules/environment.js
+++ b/test/modules/environment.js
@@ -1,4 +1,5 @@
 'use strict';
+process.env.TEST = 'test';
 
 const chai = require('chai');
 chai.should();
diff --git a/test/specs/settings_test.js b/test/specs/settings_test.js
index 18cfd7de..8db72848 100644
--- a/test/specs/settings_test.js
+++ b/test/specs/settings_test.js
@@ -1,4 +1,5 @@
 const settings = require('../../src/common/settings');
+const deepmerge = require('deepmerge');
 
 describe('common/settings.js', () => {
   it('should upgrade v0 config file', () => {
@@ -10,4 +11,14 @@ describe('common/settings.js', () => {
     config.teams[0].url.should.equal(v0Config.url);
     config.version.should.equal(settings.version);
   });
+
+  it('should loadDefault config for version 1', () => {
+    const baseConfig = require('../../src/common/config/base.json');
+    const overrideConfig = require('../../src/common/config/override.json');
+    const expectedDefaults = deepmerge(
+      baseConfig[1], overrideConfig[1] || {}, {clone: true, arrayMerge: settings.deepMergeArray}
+    );
+    const defaultConfig = settings.loadDefault();
+    defaultConfig.should.eql(expectedDefaults);
+  });
 });