At the moment I have my test server set-up like so
I should also say I am using a public_html folder and not var/www.
EDIT: What I mean by fake url is that I want to turn my url from
http://localhost/~callum to something like this
http://callumstestwebsite.com/ without owning the domain so that I can continue to develop on my new laptop, I used to use windows 7 so I am getting used to ubuntu.