Use what the clients use. It's safer. 4 implements things like subqueries, so if you happen to write one in development, then move it to production on 3, it'll bomb.
It's always best to try to duplicate the production enviroments as much as possible. This includes OS, MySQL, Apache, PHP, etc. All versions. Gives the most accurate test enviroment possible. Now if you were looking to upgrade the clients, that would be a different story....