Rails 5: Attempting to create and use new test database

I need to create a new test database (postgres) and am having trouble. It seems that when I try to run any tests it is attempting to connect to the production database which is worrisome for many reasons. Here is my database.yml currently.

test:
  adapter: postgresql
  encoding: unicode
  database: xxxxxx-test
  pool: 5
  username: xxx
  host: localhost

But when I run a test I see:

An error occurred while loading ./spec/models/recipe_spec.rb.
Failure/Error: ActiveRecord::Migration.maintain_test_schema!

PG::ConnectionBad:
  FATAL:  no pg_hba.conf entry for host "IP_ADDRESS", user "PRODUCTION_USER", database "PRODUCTION_DATABASE", SSL off

I'm not sure why this is happening or how I am supposed to set this up.