diff --git a/assets/config.php b/assets/config.php
index 42798b19..5e285da3 100644
--- a/assets/config.php
+++ b/assets/config.php
@@ -30,6 +30,7 @@ return [
         'based_on' => null, // The connection that will be used as a base for the dynamically created tenant connection. Set to null to use the default connection.
         'prefix' => 'tenant',
         'suffix' => '',
+        'separate_by' => 'database', // database or schema (only supported by pgsql)
     ],
     'redis' => [
         'prefix_base' => 'tenant',
@@ -69,7 +70,6 @@ return [
         'mysql' => 'mysql',
         'pgsql' => 'pgsql',
     ],
-    'separate_by' => 'database', // database or schema (only supported by pgsql)
     'bootstrappers' => [
         // Tenancy bootstrappers are executed when tenancy is initialized.
         // Their responsibility is making Laravel features tenant-aware.
diff --git a/src/DatabaseManager.php b/src/DatabaseManager.php
index 0dd6c317..05a8d9e3 100644
--- a/src/DatabaseManager.php
+++ b/src/DatabaseManager.php
@@ -248,7 +248,7 @@ class DatabaseManager
     public function separateBy(string $connectionName): string
     {
         if ($this->getDriver($this->getBaseConnection($connectionName)) === 'pgsql'
-            && $this->app['config']['tenancy.separate_by'] === 'schema') {
+            && $this->app['config']['tenancy.database.separate_by'] === 'schema') {
             return 'schema';
         }
 
diff --git a/tests/DatabaseSchemaManagerTest.php b/tests/DatabaseSchemaManagerTest.php
index 65c011c0..aaaa0b91 100644
--- a/tests/DatabaseSchemaManagerTest.php
+++ b/tests/DatabaseSchemaManagerTest.php
@@ -20,7 +20,7 @@ class DatabaseSchemaManagerTest extends TestCase
             'database.connections.pgsql.schema' => 'public',
             'tenancy.database.based_on' => null,
             'tenancy.database.suffix' => '',
-            'tenancy.separate_by' => 'schema',
+            'tenancy.database.separate_by' => 'schema',
         ]);
     }