CREATE PROCEDURE RebuildDevDatabase AS

-- the original database (use 'SET @DB = NULL' to disable backup)
DECLARE @DB varchar(200)
SET @DB = 'LiveDatabase'

-- the backup filename
DECLARE @BackupFile varchar(2000)
SET @BackupFile = 'C:\Backups\SQL\RebuildDevDatabase\db_backup.dat'

-- the new database name
DECLARE @TestDB varchar(200)
SET @TestDB = 'DevDatabase'

-- the new database files without .mdf/.ldf
DECLARE @RestoreFile varchar(2000)
SET @RestoreFile = 'C:\Backups\SQL\RebuildDevDatabase\db_backup'


-- ****************************************************************
--                    no change below this line
-- ****************************************************************


DECLARE @query varchar(2000)

DECLARE @DataFile varchar(2000)
SET @DataFile = @RestoreFile + '.mdf'

DECLARE @LogFile varchar(2000)
SET @LogFile = @RestoreFile + '.ldf'

IF @DB IS NOT NULL
BEGIN
    SET @query = 'BACKUP DATABASE ' + @DB + ' TO DISK = ' + QUOTENAME(@BackupFile, '''') + ' WITH INIT, SKIP'
select @query
    EXEC (@query)
END

-- RESTORE FILELISTONLY FROM DISK = 'C:\temp\backup.dat'
-- RESTORE HEADERONLY FROM DISK = 'C:\temp\backup.dat'
-- RESTORE LABELONLY FROM DISK = 'C:\temp\backup.dat'
-- RESTORE VERIFYONLY FROM DISK = 'C:\temp\backup.dat'

IF EXISTS(SELECT * FROM sysdatabases WHERE name = @TestDB)
BEGIN
    SET @query = 'ALTER DATABASE ' + @TestDB + '  SET SINGLE_USER with ROLLBACK IMMEDIATE'
    EXEC (@query)
    SET @query = 'DROP DATABASE ' + @TestDB
    EXEC (@query)
END

RESTORE HEADERONLY FROM DISK = @BackupFile
DECLARE @File int
SET @File = @@ROWCOUNT

DECLARE @Data varchar(500)
DECLARE @Log varchar(500)

SET @query = 'RESTORE FILELISTONLY FROM DISK = ' + QUOTENAME(@BackupFile , '''')

CREATE TABLE #restoretemp
(
 LogicalName varchar(500),
 PhysicalName varchar(500),
 type varchar(10),
 FilegroupName varchar(200),
 size int,
 maxsize bigint
)
INSERT #restoretemp EXEC (@query)

SELECT @Data = LogicalName FROM #restoretemp WHERE type = 'D'
SELECT @Log = LogicalName FROM #restoretemp WHERE type = 'L'

PRINT @Data
PRINT @Log

TRUNCATE TABLE #restoretemp
DROP TABLE #restoretemp

IF @File > 0
BEGIN
    SET @query = 'RESTORE DATABASE ' + @TestDB + ' FROM DISK = ' + QUOTENAME(@BackupFile, '''') + 
        ' WITH MOVE ' + QUOTENAME(@Data, '''') + ' TO ' + QUOTENAME(@DataFile, '''') + ', MOVE ' +
        QUOTENAME(@Log, '''') + ' TO ' + QUOTENAME(@LogFile, '''') + ', FILE = ' + CONVERT(varchar, @File)
    EXEC (@query)
END
GO

http://weblogs.asp.net/mschwarz/archive/2004/08/26/220735.aspx

This script should be run from the "master" database. It will destroy the dev copy of a database and restore from the live copy.

Code slightly modified from original (linked).

SQL Rebuild Dev Database

database

SQL