Have you ever been developing some kind of application that sends email? You need to test how the email looks, so you have to have access to an external SMTP server and you have to configure your application to use that. You can definitely set up sendgrid or another MTA to send email from your local computer and then use a real email address as your target. However, then to develop this portion of the application you need to be online.
Another option that I’ve found is the Mailcatcher gem. This is a small ruby program that you can easily configure as your SMTP endpoint. Then when your development environment sends mail, mailcatcher catches it. Then you can visit a URL on your local computer and view received emails. As soon as mailcatcher shuts down, the emails are lost, however.
Even though this is a ruby gem, you can use the app with different languages–as long as it you can configure the application to point to an SMTP server, you’re good (in the readme, there are examples for Django and PHP).
One note about it being a gem. Don’t put it in your Gemfile if you are building a rails app, because of possible conflicts. This means that if you manage your ruby environments via rvm you’ll need to re-install mailcatcher every time you change your ruby version.
Bonus: mailcatcher even has an API so you can use it in your integration test environment to verify that certain actions in your application caused certain emails to be sent.