diff --git a/wagtail/project_template/project_name/settings/dev.py b/wagtail/project_template/project_name/settings/dev.py
index ccf551c499..823c6fb2d3 100644
--- a/wagtail/project_template/project_name/settings/dev.py
+++ b/wagtail/project_template/project_name/settings/dev.py
@@ -3,7 +3,9 @@ from .base import *
 
 # SECURITY WARNING: don't run with debug turned on in production!
 DEBUG = True
-TEMPLATE_DEBUG = True
+
+for template_engine in TEMPLATES:
+    template_engine['OPTIONS']['debug'] = True
 
 # SECURITY WARNING: keep the secret key used in production secret!
 SECRET_KEY = '{{ secret_key }}'
diff --git a/wagtail/project_template/project_name/settings/production.py b/wagtail/project_template/project_name/settings/production.py
index bea6d7eb81..4d403fb14d 100644
--- a/wagtail/project_template/project_name/settings/production.py
+++ b/wagtail/project_template/project_name/settings/production.py
@@ -2,8 +2,6 @@ from .base import *
 
 
 DEBUG = False
-TEMPLATE_DEBUG = False
-
 
 try:
     from .local import *