A system and method can support network management in a network environment. The network environment can include a plurality of configuration daemons (CDs), wherein a master CD is an active CD on a switch with a master subnet manager (SM). The master CD operates to perform consistency check on one or more states associated with one or more peer CDs in the network environment, and replicate a configuration file to the one or more peer CDs, wherein the configuration file includes at least one management key (M_Key) value.