diff --git a/discovery/gossiper.go b/discovery/gossiper.go
index 87c98be2..f15eec31 100644
--- a/discovery/gossiper.go
+++ b/discovery/gossiper.go
@@ -1520,7 +1520,7 @@ func (d *AuthenticatedGossiper) processRejectedEdge(
 	if err != nil {
 		return nil, err
 	}
-	err = ValidateChannelAnn(chanAnn)
+	err = routing.ValidateChannelAnn(chanAnn)
 	if err != nil {
 		err := fmt.Errorf("assembled channel announcement proof "+
 			"for shortChanID=%v isn't valid: %v",
@@ -1598,7 +1598,7 @@ func (d *AuthenticatedGossiper) processNetworkAnnouncement(
 				return nil
 			}
 
-			if err := ValidateNodeAnn(msg); err != nil {
+			if err := routing.ValidateNodeAnn(msg); err != nil {
 				err := fmt.Errorf("unable to validate "+
 					"node announcement: %v", err)
 				log.Error(err)
@@ -1701,7 +1701,7 @@ func (d *AuthenticatedGossiper) processNetworkAnnouncement(
 		// formed.
 		var proof *channeldb.ChannelAuthProof
 		if nMsg.isRemote {
-			if err := ValidateChannelAnn(msg); err != nil {
+			if err := routing.ValidateChannelAnn(msg); err != nil {
 				err := fmt.Errorf("unable to validate "+
 					"announcement: %v", err)
 				d.rejectMtx.Lock()
@@ -1993,7 +1993,7 @@ func (d *AuthenticatedGossiper) processNetworkAnnouncement(
 		// Validate the channel announcement with the expected public
 		// key, In the case of an invalid channel , we'll return an
 		// error to the caller and exit early.
-		if err := ValidateChannelUpdateAnn(pubKey, msg); err != nil {
+		if err := routing.ValidateChannelUpdateAnn(pubKey, msg); err != nil {
 			rErr := fmt.Errorf("unable to validate channel "+
 				"update announcement for short_chan_id=%v: %v",
 				spew.Sdump(msg.ShortChannelID), err)
@@ -2297,7 +2297,7 @@ func (d *AuthenticatedGossiper) processNetworkAnnouncement(
 
 		// With all the necessary components assembled validate the
 		// full channel announcement proof.
-		if err := ValidateChannelAnn(chanAnn); err != nil {
+		if err := routing.ValidateChannelAnn(chanAnn); err != nil {
 			err := fmt.Errorf("channel  announcement proof "+
 				"for short_chan_id=%v isn't valid: %v",
 				shortChanID, err)
@@ -2505,7 +2505,7 @@ func (d *AuthenticatedGossiper) updateChannel(info *channeldb.ChannelEdgeInfo,
 
 	// To ensure that our signature is valid, we'll verify it ourself
 	// before committing it to the slice returned.
-	err = ValidateChannelUpdateAnn(d.selfKey, chanUpdate)
+	err = routing.ValidateChannelUpdateAnn(d.selfKey, chanUpdate)
 	if err != nil {
 		return nil, nil, fmt.Errorf("generated invalid channel "+
 			"update sig: %v", err)
diff --git a/discovery/ann_validation.go b/routing/ann_validation.go
similarity index 99%
rename from discovery/ann_validation.go
rename to routing/ann_validation.go
index 6ca07f64..257ac3fd 100644
--- a/discovery/ann_validation.go
+++ b/routing/ann_validation.go
@@ -1,4 +1,4 @@
-package discovery
+package routing
 
 import (
 	"bytes"
diff --git a/routing/notifications_test.go b/routing/notifications_test.go
index dbd9467a..2fa12274 100644
--- a/routing/notifications_test.go
+++ b/routing/notifications_test.go
@@ -35,6 +35,8 @@ var (
 		0x6a, 0x49, 0x18, 0x83, 0x31, 0x98, 0x47, 0x53,
 	}
 
+	testTime = time.Date(2018, time.January, 9, 14, 00, 00, 0, time.UTC)
+
 	priv1, _    = btcec.NewPrivateKey(btcec.S256())
 	bitcoinKey1 = priv1.PubKey()
 
@@ -337,7 +339,7 @@ func (m *mockChainView) Stop() error {
 func TestEdgeUpdateNotification(t *testing.T) {
 	t.Parallel()
 
-	ctx, cleanUp, err := createTestCtx(0)
+	ctx, cleanUp, err := createTestCtxSingleNode(0)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -526,7 +528,7 @@ func TestNodeUpdateNotification(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight)
+	ctx, cleanUp, err := createTestCtxSingleNode(startingBlockHeight)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -704,7 +706,7 @@ func TestNotificationCancellation(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight)
+	ctx, cleanUp, err := createTestCtxSingleNode(startingBlockHeight)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -796,7 +798,7 @@ func TestChannelCloseNotification(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight)
+	ctx, cleanUp, err := createTestCtxSingleNode(startingBlockHeight)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
diff --git a/routing/pathfind_test.go b/routing/pathfind_test.go
index c5e41501..a014bfb2 100644
--- a/routing/pathfind_test.go
+++ b/routing/pathfind_test.go
@@ -14,7 +14,6 @@ import (
 	"os"
 	"strings"
 	"testing"
-	"time"
 
 	"github.com/btcsuite/btcd/btcec"
 	"github.com/btcsuite/btcd/chaincfg/chainhash"
@@ -22,8 +21,6 @@ import (
 	"github.com/btcsuite/btcutil"
 	"github.com/lightningnetwork/lnd/channeldb"
 	"github.com/lightningnetwork/lnd/lnwire"
-
-	prand "math/rand"
 )
 
 const (
@@ -50,9 +47,7 @@ const (
 )
 
 var (
-	randSource = prand.NewSource(time.Now().Unix())
-	randInts   = prand.New(randSource)
-	testSig    = &btcec.Signature{
+	testSig = &btcec.Signature{
 		R: new(big.Int),
 		S: new(big.Int),
 	}
@@ -126,17 +121,12 @@ func makeTestGraph() (*channeldb.ChannelGraph, func(), error) {
 	return cdb.ChannelGraph(), cleanUp, nil
 }
 
-// aliasMap is a map from a node's alias to its public key. This type is
-// provided in order to allow easily look up from the human memorable alias
-// to an exact node's public key.
-type aliasMap map[string]*btcec.PublicKey
-
 // parseTestGraph returns a fully populated ChannelGraph given a path to a JSON
 // file which encodes a test graph.
-func parseTestGraph(path string) (*channeldb.ChannelGraph, func(), aliasMap, error) {
+func parseTestGraph(path string) (*testGraphInstance, error) {
 	graphJSON, err := ioutil.ReadFile(path)
 	if err != nil {
-		return nil, nil, nil, err
+		return nil, err
 	}
 
 	// First unmarshal the JSON graph into an instance of the testGraph
@@ -144,7 +134,7 @@ func parseTestGraph(path string) (*channeldb.ChannelGraph, func(), aliasMap, err
 	// will be properly parsed into the struct above.
 	var g testGraph
 	if err := json.Unmarshal(graphJSON, &g); err != nil {
-		return nil, nil, nil, err
+		return nil, err
 	}
 
 	// We'll use this fake address for the IP address of all the nodes in
@@ -153,14 +143,14 @@ func parseTestGraph(path string) (*channeldb.ChannelGraph, func(), aliasMap, err
 	var testAddrs []net.Addr
 	testAddr, err := net.ResolveTCPAddr("tcp", "192.0.0.1:8888")
 	if err != nil {
-		return nil, nil, nil, err
+		return nil, err
 	}
 	testAddrs = append(testAddrs, testAddr)
 
 	// Next, create a temporary graph database for usage within the test.
 	graph, cleanUp, err := makeTestGraph()
 	if err != nil {
-		return nil, nil, nil, err
+		return nil, err
 	}
 
 	aliasMap := make(map[string]*btcec.PublicKey)
@@ -170,13 +160,13 @@ func parseTestGraph(path string) (*channeldb.ChannelGraph, func(), aliasMap, err
 	for _, node := range g.Nodes {
 		pubBytes, err := hex.DecodeString(node.PubKey)
 		if err != nil {
-			return nil, nil, nil, err
+			return nil, err
 		}
 
 		dbNode := &channeldb.LightningNode{
 			HaveNodeAnnouncement: true,
 			AuthSigBytes:         testSig.Serialize(),
-			LastUpdate:           time.Now(),
+			LastUpdate:           testTime,
 			Addresses:            testAddrs,
 			Alias:                node.Alias,
 			Features:             testFeatures,
@@ -186,13 +176,13 @@ func parseTestGraph(path string) (*channeldb.ChannelGraph, func(), aliasMap, err
 		// We require all aliases within the graph to be unique for our
 		// tests.
 		if _, ok := aliasMap[node.Alias]; ok {
-			return nil, nil, nil, errors.New("aliases for nodes " +
+			return nil, errors.New("aliases for nodes " +
 				"must be unique!")
 		}
 
 		pub, err := btcec.ParsePubKey(pubBytes, btcec.S256())
 		if err != nil {
-			return nil, nil, nil, err
+			return nil, err
 		}
 
 		// If the alias is unique, then add the node to the
@@ -208,7 +198,7 @@ func parseTestGraph(path string) (*channeldb.ChannelGraph, func(), aliasMap, err
 			// iteration, then the JSON has an error as only ONE
 			// node can be the source in the graph.
 			if source != nil {
-				return nil, nil, nil, errors.New("JSON is invalid " +
+				return nil, errors.New("JSON is invalid " +
 					"multiple nodes are tagged as the source")
 			}
 
@@ -218,14 +208,14 @@ func parseTestGraph(path string) (*channeldb.ChannelGraph, func(), aliasMap, err
 		// With the node fully parsed, add it as a vertex within the
 		// graph.
 		if err := graph.AddLightningNode(dbNode); err != nil {
-			return nil, nil, nil, err
+			return nil, err
 		}
 	}
 
 	if source != nil {
 		// Set the selected source node
 		if err := graph.SetSourceNode(source); err != nil {
-			return nil, nil, nil, err
+			return nil, err
 		}
 	}
 
@@ -234,18 +224,18 @@ func parseTestGraph(path string) (*channeldb.ChannelGraph, func(), aliasMap, err
 	for _, edge := range g.Edges {
 		node1Bytes, err := hex.DecodeString(edge.Node1)
 		if err != nil {
-			return nil, nil, nil, err
+			return nil, err
 		}
 
 		node2Bytes, err := hex.DecodeString(edge.Node2)
 		if err != nil {
-			return nil, nil, nil, err
+			return nil, err
 		}
 
 		fundingTXID := strings.Split(edge.ChannelPoint, ":")[0]
 		txidBytes, err := chainhash.NewHashFromStr(fundingTXID)
 		if err != nil {
-			return nil, nil, nil, err
+			return nil, err
 		}
 		fundingPoint := wire.OutPoint{
 			Hash:  *txidBytes,
@@ -268,25 +258,29 @@ func parseTestGraph(path string) (*channeldb.ChannelGraph, func(), aliasMap, err
 
 		err = graph.AddChannelEdge(&edgeInfo)
 		if err != nil && err != channeldb.ErrEdgeAlreadyExist {
-			return nil, nil, nil, err
+			return nil, err
 		}
 
 		edgePolicy := &channeldb.ChannelEdgePolicy{
 			SigBytes:                  testSig.Serialize(),
 			Flags:                     lnwire.ChanUpdateFlag(edge.Flags),
 			ChannelID:                 edge.ChannelID,
-			LastUpdate:                time.Now(),
+			LastUpdate:                testTime,
 			TimeLockDelta:             edge.Expiry,
 			MinHTLC:                   lnwire.MilliSatoshi(edge.MinHTLC),
 			FeeBaseMSat:               lnwire.MilliSatoshi(edge.FeeBaseMsat),
 			FeeProportionalMillionths: lnwire.MilliSatoshi(edge.FeeRate),
 		}
 		if err := graph.UpdateEdgePolicy(edgePolicy); err != nil {
-			return nil, nil, nil, err
+			return nil, err
 		}
 	}
 
-	return graph, cleanUp, aliasMap, nil
+	return &testGraphInstance{
+		graph:    graph,
+		cleanUp:  cleanUp,
+		aliasMap: aliasMap,
+	}, nil
 }
 
 type testChannelPolicy struct {
@@ -314,7 +308,15 @@ func defaultTestChannelEnd(alias string) *testChannelEnd {
 }
 
 func symmetricTestChannel(alias1 string, alias2 string, capacity btcutil.Amount,
-	policy *testChannelPolicy) *testChannel {
+	policy *testChannelPolicy, chanID ...uint64) *testChannel {
+
+	// Leaving id zero will result in auto-generation of a channel id during
+	// graph construction.
+	var id uint64
+	if len(chanID) > 0 {
+		id = chanID[0]
+	}
+
 	return &testChannel{
 		Capacity: capacity,
 		Node1: &testChannelEnd{
@@ -325,38 +327,55 @@ func symmetricTestChannel(alias1 string, alias2 string, capacity btcutil.Amount,
 			Alias:             alias2,
 			testChannelPolicy: *policy,
 		},
+		ChannelID: id,
 	}
 }
 
 type testChannel struct {
-	Node1    *testChannelEnd
-	Node2    *testChannelEnd
-	Capacity btcutil.Amount
+	Node1     *testChannelEnd
+	Node2     *testChannelEnd
+	Capacity  btcutil.Amount
+	ChannelID uint64
 }
 
-// createTestGraph returns a fully populated ChannelGraph based on a set of
+type testGraphInstance struct {
+	graph   *channeldb.ChannelGraph
+	cleanUp func()
+
+	// aliasMap is a map from a node's alias to its public key. This type is
+	// provided in order to allow easily look up from the human memorable alias
+	// to an exact node's public key.
+	aliasMap map[string]*btcec.PublicKey
+
+	// privKeyMap maps a node alias to its private key. This is used to be
+	// able to mock a remote node's signing behaviour.
+	privKeyMap map[string]*btcec.PrivateKey
+}
+
+// createTestGraphFromChannels returns a fully populated ChannelGraph based on a set of
 // test channels. Additional required information like keys are derived in
 // a deterministical way and added to the channel graph. A list of nodes is
 // not required and derived from the channel data. The goal is to keep
 // instantiating a test channel graph as light weight as possible.
-func createTestGraph(testChannels []*testChannel) (*channeldb.ChannelGraph, func(), aliasMap, error) {
+func createTestGraphFromChannels(testChannels []*testChannel) (*testGraphInstance, error) {
 	// We'll use this fake address for the IP address of all the nodes in
 	// our tests. This value isn't needed for path finding so it doesn't
 	// need to be unique.
 	var testAddrs []net.Addr
 	testAddr, err := net.ResolveTCPAddr("tcp", "192.0.0.1:8888")
 	if err != nil {
-		return nil, nil, nil, err
+		return nil, err
 	}
 	testAddrs = append(testAddrs, testAddr)
 
 	// Next, create a temporary graph database for usage within the test.
 	graph, cleanUp, err := makeTestGraph()
 	if err != nil {
-		return nil, nil, nil, err
+		return nil, err
 	}
 
 	aliasMap := make(map[string]*btcec.PublicKey)
+	privKeyMap := make(map[string]*btcec.PrivateKey)
 
 	nodeIndex := byte(0)
 	addNodeWithAlias := func(alias string) (*channeldb.LightningNode, error) {
@@ -368,13 +387,13 @@ func createTestGraph(testChannels []*testChannel) (*channeldb.ChannelGraph, func
 			0, 0, 0, 0, 0, 0, 0, nodeIndex + 1,
 		}
 
-		_, pubKey := btcec.PrivKeyFromBytes(btcec.S256(),
+		privKey, pubKey := btcec.PrivKeyFromBytes(btcec.S256(),
 			keyBytes)
 
 		dbNode := &channeldb.LightningNode{
 			HaveNodeAnnouncement: true,
 			AuthSigBytes:         testSig.Serialize(),
-			LastUpdate:           time.Now(),
+			LastUpdate:           testTime,
 			Addresses:            testAddrs,
 			Alias:                alias,
 			Features:             testFeatures,
@@ -382,6 +401,8 @@ func createTestGraph(testChannels []*testChannel) (*channeldb.ChannelGraph, func
 
 		copy(dbNode.PubKeyBytes[:], pubKey.SerializeCompressed())
 
+		privKeyMap[alias] = privKey
+
 		// With the node fully parsed, add it as a vertex within the
 		// graph.
 		if err := graph.AddLightningNode(dbNode); err != nil {
@@ -396,15 +417,18 @@ func createTestGraph(testChannels []*testChannel) (*channeldb.ChannelGraph, func
 
 	var source *channeldb.LightningNode
 	if source, err = addNodeWithAlias("roasbeef"); err != nil {
-		return nil, nil, nil, err
+		return nil, err
 	}
 
 	// Set the source node
 	if err := graph.SetSourceNode(source); err != nil {
-		return nil, nil, nil, err
+		return nil, err
 	}
 
-	channelID := uint64(0)
+	// Initialize variable that keeps track of the next channel id to assign
+	// if none is specified.
+	nextUnassignedChannelID := uint64(100000)
+
 	for _, testChannel := range testChannels {
 		for _, alias := range []string{
 			testChannel.Node1.Alias, testChannel.Node2.Alias} {
@@ -415,6 +439,14 @@ func createTestGraph(testChannels []*testChannel) (*channeldb.ChannelGraph, func
 			}
 		}
 
+		channelID := testChannel.ChannelID
+
+		// If no channel id is specified, generate an id.
+		if channelID == 0 {
+			channelID = nextUnassignedChannelID
+			nextUnassignedChannelID++
+		}
+
 		var hash [sha256.Size]byte
 		hash[len(hash)-1] = byte(channelID)
 
@@ -442,28 +474,28 @@ func createTestGraph(testChannels []*testChannel) (*channeldb.ChannelGraph, func
 
 		err = graph.AddChannelEdge(&edgeInfo)
 		if err != nil && err != channeldb.ErrEdgeAlreadyExist {
-			return nil, nil, nil, err
+			return nil, err
 		}
 
 		edgePolicy := &channeldb.ChannelEdgePolicy{
 			SigBytes:                  testSig.Serialize(),
 			Flags:                     lnwire.ChanUpdateFlag(0),
 			ChannelID:                 channelID,
-			LastUpdate:                time.Now(),
+			LastUpdate:                testTime,
 			TimeLockDelta:             testChannel.Node1.Expiry,
 			MinHTLC:                   testChannel.Node1.MinHTLC,
 			FeeBaseMSat:               testChannel.Node1.FeeBaseMsat,
 			FeeProportionalMillionths: testChannel.Node1.FeeRate,
 		}
 		if err := graph.UpdateEdgePolicy(edgePolicy); err != nil {
-			return nil, nil, nil, err
+			return nil, err
 		}
 
 		edgePolicy = &channeldb.ChannelEdgePolicy{
 			SigBytes:                  testSig.Serialize(),
 			Flags:                     lnwire.ChanUpdateFlag(lnwire.ChanUpdateDirection),
 			ChannelID:                 channelID,
-			LastUpdate:                time.Now(),
+			LastUpdate:                testTime,
 			TimeLockDelta:             testChannel.Node2.Expiry,
 			MinHTLC:                   testChannel.Node2.MinHTLC,
 			FeeBaseMSat:               testChannel.Node2.FeeBaseMsat,
@@ -471,13 +503,18 @@ func createTestGraph(testChannels []*testChannel) (*channeldb.ChannelGraph, func
 		}
 
 		if err := graph.UpdateEdgePolicy(edgePolicy); err != nil {
-			return nil, nil, nil, err
+			return nil, err
 		}
 
 		channelID++
 	}
 
-	return graph, cleanUp, aliasMap, nil
+	return &testGraphInstance{
+		graph:      graph,
+		cleanUp:    cleanUp,
+		aliasMap:   aliasMap,
+		privKeyMap: privKeyMap,
+	}, nil
 }
 
 // TestFindLowestFeePath tests that out of two routes with identical total
@@ -518,13 +555,13 @@ func TestFindLowestFeePath(t *testing.T) {
 		}),
 	}
 
-	graph, cleanUp, aliases, err := createTestGraph(testChannels)
-	defer cleanUp()
+	testGraphInstance, err := createTestGraphFromChannels(testChannels)
+	defer testGraphInstance.cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create graph: %v", err)
 	}
 
-	sourceNode, err := graph.SourceNode()
+	sourceNode, err := testGraphInstance.graph.SourceNode()
 	if err != nil {
 		t.Fatalf("unable to fetch source node: %v", err)
 	}
@@ -539,10 +576,10 @@ func TestFindLowestFeePath(t *testing.T) {
 	)
 
 	paymentAmt := lnwire.NewMSatFromSatoshis(100)
-	target := aliases["target"]
+	target := testGraphInstance.aliasMap["target"]
 	path, err := findPath(
-		nil, graph, nil, sourceNode, target, ignoredVertexes,
-		ignoredEdges, paymentAmt, noFeeLimit, nil,
+		nil, testGraphInstance.graph, nil, sourceNode, target,
+		ignoredVertexes, ignoredEdges, paymentAmt, noFeeLimit, nil,
 	)
 	if err != nil {
 		t.Fatalf("unable to find path: %v", err)
@@ -556,7 +593,7 @@ func TestFindLowestFeePath(t *testing.T) {
 
 	// Assert that the lowest fee route is returned.
 	if !bytes.Equal(route.Hops[1].Channel.Node.PubKeyBytes[:],
-		aliases["b"].SerializeCompressed()) {
+		testGraphInstance.aliasMap["b"].SerializeCompressed()) {
 		t.Fatalf("expected route to pass through b, "+
 			"but got a route through %v",
 			route.Hops[1].Channel.Node.Alias)
@@ -626,8 +663,8 @@ var basicGraphPathFindingTests = []basicGraphPathFindingTestCase{
 func TestBasicGraphPathFinding(t *testing.T) {
 	t.Parallel()
 
-	graph, cleanUp, aliases, err := parseTestGraph(basicGraphFilePath)
-	defer cleanUp()
+	testGraphInstance, err := parseTestGraph(basicGraphFilePath)
+	defer testGraphInstance.cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create graph: %v", err)
 	}
@@ -639,18 +676,19 @@ func TestBasicGraphPathFinding(t *testing.T) {
 
 	for _, testCase := range basicGraphPathFindingTests {
 		t.Run(testCase.target, func(subT *testing.T) {
-			testBasicGraphPathFindingCase(subT, graph, aliases, &testCase)
+			testBasicGraphPathFindingCase(subT, testGraphInstance, &testCase)
 		})
 	}
 }
 
-func testBasicGraphPathFindingCase(t *testing.T, graph *channeldb.ChannelGraph,
-	aliases aliasMap, test *basicGraphPathFindingTestCase) {
+func testBasicGraphPathFindingCase(t *testing.T, graphInstance *testGraphInstance,
+	test *basicGraphPathFindingTestCase) {
 
+	aliases := graphInstance.aliasMap
 	expectedHops := test.expectedHops
 	expectedHopCount := len(expectedHops)
 
-	sourceNode, err := graph.SourceNode()
+	sourceNode, err := graphInstance.graph.SourceNode()
 	if err != nil {
 		t.Fatalf("unable to fetch source node: %v", err)
 	}
@@ -665,10 +703,10 @@ func testBasicGraphPathFindingCase(t *testing.T, graph *channeldb.ChannelGraph,
 	)
 
 	paymentAmt := lnwire.NewMSatFromSatoshis(test.paymentAmt)
-	target := aliases[test.target]
+	target := graphInstance.aliasMap[test.target]
 	path, err := findPath(
-		nil, graph, nil, sourceNode, target, ignoredVertexes,
-		ignoredEdges, paymentAmt, test.feeLimit, nil,
+		nil, graphInstance.graph, nil, sourceNode, target,
+		ignoredVertexes, ignoredEdges, paymentAmt, test.feeLimit, nil,
 	)
 	if test.expectFailureNoPath {
 		if err == nil {
@@ -804,13 +842,13 @@ func testBasicGraphPathFindingCase(t *testing.T, graph *channeldb.ChannelGraph,
 func TestPathFindingWithAdditionalEdges(t *testing.T) {
 	t.Parallel()
 
-	graph, cleanUp, aliases, err := parseTestGraph(basicGraphFilePath)
-	defer cleanUp()
+	graph, err := parseTestGraph(basicGraphFilePath)
+	defer graph.cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create graph: %v", err)
 	}
 
-	sourceNode, err := graph.SourceNode()
+	sourceNode, err := graph.graph.SourceNode()
 	if err != nil {
 		t.Fatalf("unable to fetch source node: %v", err)
 	}
@@ -847,12 +885,12 @@ func TestPathFindingWithAdditionalEdges(t *testing.T) {
 	}
 
 	additionalEdges := map[Vertex][]*channeldb.ChannelEdgePolicy{
-		NewVertex(aliases["songoku"]): {songokuToDoge},
+		NewVertex(graph.aliasMap["songoku"]): {songokuToDoge},
 	}
 
 	// We should now be able to find a path from roasbeef to doge.
 	path, err := findPath(
-		nil, graph, additionalEdges, sourceNode, dogePubKey, nil, nil,
+		nil, graph.graph, additionalEdges, sourceNode, dogePubKey, nil, nil,
 		paymentAmt, noFeeLimit, nil,
 	)
 	if err != nil {
@@ -867,13 +905,13 @@ func TestPathFindingWithAdditionalEdges(t *testing.T) {
 func TestKShortestPathFinding(t *testing.T) {
 	t.Parallel()
 
-	graph, cleanUp, aliases, err := parseTestGraph(basicGraphFilePath)
-	defer cleanUp()
+	graph, err := parseTestGraph(basicGraphFilePath)
+	defer graph.cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create graph: %v", err)
 	}
 
-	sourceNode, err := graph.SourceNode()
+	sourceNode, err := graph.graph.SourceNode()
 	if err != nil {
 		t.Fatalf("unable to fetch source node: %v", err)
 	}
@@ -887,9 +925,9 @@ func TestKShortestPathFinding(t *testing.T) {
 	// them in order of their total "distance".
 
 	paymentAmt := lnwire.NewMSatFromSatoshis(100)
-	target := aliases["luoji"]
+	target := graph.aliasMap["luoji"]
 	paths, err := findPaths(
-		nil, graph, sourceNode, target, paymentAmt, noFeeLimit, 100,
+		nil, graph.graph, sourceNode, target, paymentAmt, noFeeLimit, 100,
 		nil,
 	)
 	if err != nil {
@@ -1206,13 +1244,13 @@ func TestNewRoutePathTooLong(t *testing.T) {
 
 	// Ensure that potential paths which are over the maximum hop-limit are
 	// rejected.
-	graph, cleanUp, aliases, err := parseTestGraph(excessiveHopsGraphFilePath)
-	defer cleanUp()
+	graph, err := parseTestGraph(excessiveHopsGraphFilePath)
+	defer graph.cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create graph: %v", err)
 	}
 
-	sourceNode, err := graph.SourceNode()
+	sourceNode, err := graph.graph.SourceNode()
 	if err != nil {
 		t.Fatalf("unable to fetch source node: %v", err)
 	}
@@ -1224,9 +1262,9 @@ func TestNewRoutePathTooLong(t *testing.T) {
 
 	// We start by confirming that routing a payment 20 hops away is possible.
 	// Alice should be able to find a valid route to ursula.
-	target := aliases["ursula"]
+	target := graph.aliasMap["ursula"]
 	_, err = findPath(
-		nil, graph, nil, sourceNode, target, ignoredVertexes,
+		nil, graph.graph, nil, sourceNode, target, ignoredVertexes,
 		ignoredEdges, paymentAmt, noFeeLimit, nil,
 	)
 	if err != nil {
@@ -1235,9 +1273,9 @@ func TestNewRoutePathTooLong(t *testing.T) {
 
 	// Vincent is 21 hops away from Alice, and thus no valid route should be
 	// presented to Alice.
-	target = aliases["vincent"]
+	target = graph.aliasMap["vincent"]
 	path, err := findPath(
-		nil, graph, nil, sourceNode, target, ignoredVertexes,
+		nil, graph.graph, nil, sourceNode, target, ignoredVertexes,
 		ignoredEdges, paymentAmt, noFeeLimit, nil,
 	)
 	if err == nil {
@@ -1251,13 +1289,13 @@ func TestNewRoutePathTooLong(t *testing.T) {
 func TestPathNotAvailable(t *testing.T) {
 	t.Parallel()
 
-	graph, cleanUp, _, err := parseTestGraph(basicGraphFilePath)
-	defer cleanUp()
+	graph, err := parseTestGraph(basicGraphFilePath)
+	defer graph.cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create graph: %v", err)
 	}
 
-	sourceNode, err := graph.SourceNode()
+	sourceNode, err := graph.graph.SourceNode()
 	if err != nil {
 		t.Fatalf("unable to fetch source node: %v", err)
 	}
@@ -1279,7 +1317,7 @@ func TestPathNotAvailable(t *testing.T) {
 	}
 
 	_, err = findPath(
-		nil, graph, nil, sourceNode, unknownNode, ignoredVertexes,
+		nil, graph.graph, nil, sourceNode, unknownNode, ignoredVertexes,
 		ignoredEdges, 100, noFeeLimit, nil,
 	)
 	if !IsError(err, ErrNoPathFound) {
@@ -1290,13 +1328,13 @@ func TestPathNotAvailable(t *testing.T) {
 func TestPathInsufficientCapacity(t *testing.T) {
 	t.Parallel()
 
-	graph, cleanUp, aliases, err := parseTestGraph(basicGraphFilePath)
-	defer cleanUp()
+	graph, err := parseTestGraph(basicGraphFilePath)
+	defer graph.cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create graph: %v", err)
 	}
 
-	sourceNode, err := graph.SourceNode()
+	sourceNode, err := graph.graph.SourceNode()
 	if err != nil {
 		t.Fatalf("unable to fetch source node: %v", err)
 	}
@@ -1311,11 +1349,11 @@ func TestPathInsufficientCapacity(t *testing.T) {
 	// satoshis. The largest channel in the basic graph is of size 100k
 	// satoshis, so we shouldn't be able to find a path to sophon even
 	// though we have a 2-hop link.
-	target := aliases["sophon"]
+	target := graph.aliasMap["sophon"]
 
 	payAmt := lnwire.NewMSatFromSatoshis(btcutil.SatoshiPerBitcoin)
 	_, err = findPath(
-		nil, graph, nil, sourceNode, target, ignoredVertexes,
+		nil, graph.graph, nil, sourceNode, target, ignoredVertexes,
 		ignoredEdges, payAmt, noFeeLimit, nil,
 	)
 	if !IsError(err, ErrNoPathFound) {
@@ -1328,13 +1366,13 @@ func TestPathInsufficientCapacity(t *testing.T) {
 func TestRouteFailMinHTLC(t *testing.T) {
 	t.Parallel()
 
-	graph, cleanUp, aliases, err := parseTestGraph(basicGraphFilePath)
-	defer cleanUp()
+	graph, err := parseTestGraph(basicGraphFilePath)
+	defer graph.cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create graph: %v", err)
 	}
 
-	sourceNode, err := graph.SourceNode()
+	sourceNode, err := graph.graph.SourceNode()
 	if err != nil {
 		t.Fatalf("unable to fetch source node: %v", err)
 	}
@@ -1344,10 +1382,10 @@ func TestRouteFailMinHTLC(t *testing.T) {
 	// We'll not attempt to route an HTLC of 10 SAT from roasbeef to Son
 	// Goku. However, the min HTLC of Son Goku is 1k SAT, as a result, this
 	// attempt should fail.
-	target := aliases["songoku"]
+	target := graph.aliasMap["songoku"]
 	payAmt := lnwire.MilliSatoshi(10)
 	_, err = findPath(
-		nil, graph, nil, sourceNode, target, ignoredVertexes,
+		nil, graph.graph, nil, sourceNode, target, ignoredVertexes,
 		ignoredEdges, payAmt, noFeeLimit, nil,
 	)
 	if !IsError(err, ErrNoPathFound) {
@@ -1361,13 +1399,13 @@ func TestRouteFailMinHTLC(t *testing.T) {
 func TestRouteFailDisabledEdge(t *testing.T) {
 	t.Parallel()
 
-	graph, cleanUp, aliases, err := parseTestGraph(basicGraphFilePath)
-	defer cleanUp()
+	graph, err := parseTestGraph(basicGraphFilePath)
+	defer graph.cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create graph: %v", err)
 	}
 
-	sourceNode, err := graph.SourceNode()
+	sourceNode, err := graph.graph.SourceNode()
 	if err != nil {
 		t.Fatalf("unable to fetch source node: %v", err)
 	}
@@ -1376,10 +1414,10 @@ func TestRouteFailDisabledEdge(t *testing.T) {
 
 	// First, we'll try to route from roasbeef -> sophon. This should
 	// succeed without issue, and return a single path via phamnuwen
-	target := aliases["sophon"]
+	target := graph.aliasMap["sophon"]
 	payAmt := lnwire.NewMSatFromSatoshis(105000)
 	_, err = findPath(
-		nil, graph, nil, sourceNode, target, ignoredVertexes,
+		nil, graph.graph, nil, sourceNode, target, ignoredVertexes,
 		ignoredEdges, payAmt, noFeeLimit, nil,
 	)
 	if err != nil {
@@ -1388,19 +1426,19 @@ func TestRouteFailDisabledEdge(t *testing.T) {
 
 	// First, we'll modify the edge from roasbeef -> phamnuwen, to read that
 	// it's disabled.
-	_, _, phamnuwenEdge, err := graph.FetchChannelEdgesByID(999991)
+	_, _, phamnuwenEdge, err := graph.graph.FetchChannelEdgesByID(999991)
 	if err != nil {
 		t.Fatalf("unable to fetch goku's edge: %v", err)
 	}
 	phamnuwenEdge.Flags = lnwire.ChanUpdateDisabled | lnwire.ChanUpdateDirection
-	if err := graph.UpdateEdgePolicy(phamnuwenEdge); err != nil {
+	if err := graph.graph.UpdateEdgePolicy(phamnuwenEdge); err != nil {
 		t.Fatalf("unable to update edge: %v", err)
 	}
 
 	// Now, if we attempt to route through that edge, we should get a
 	// failure as it is no longer eligible.
 	_, err = findPath(
-		nil, graph, nil, sourceNode, target, ignoredVertexes,
+		nil, graph.graph, nil, sourceNode, target, ignoredVertexes,
 		ignoredEdges, payAmt, noFeeLimit, nil,
 	)
 	if !IsError(err, ErrNoPathFound) {
@@ -1425,7 +1463,7 @@ func TestPathFindSpecExample(t *testing.T) {
 	// we'll pass that in to ensure that the router uses 100 as the current
 	// height.
 	const startingHeight = 100
-	ctx, cleanUp, err := createTestCtx(startingHeight, specExampleFilePath)
+	ctx, cleanUp, err := createTestCtxFromFile(startingHeight, specExampleFilePath)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
diff --git a/routing/router.go b/routing/router.go
index 075dcdea..5186476f 100644
--- a/routing/router.go
+++ b/routing/router.go
@@ -1801,7 +1801,8 @@ func (r *ChannelRouter) sendPayment(payment *LightningPayment,
 			// correct block height is.
 			case *lnwire.FailExpiryTooSoon:
 				update := onionErr.Update
-				if err := r.applyChannelUpdate(&update); err != nil {
+				err := r.applyChannelUpdate(&update, errSource)
+				if err != nil {
 					log.Errorf("unable to apply channel "+
 						"update for onion error: %v", err)
 				}
@@ -1826,7 +1827,8 @@ func (r *ChannelRouter) sendPayment(payment *LightningPayment,
 			// and continue with the rest of the routes.
 			case *lnwire.FailAmountBelowMinimum:
 				update := onionErr.Update
-				if err := r.applyChannelUpdate(&update); err != nil {
+				err := r.applyChannelUpdate(&update, errSource)
+				if err != nil {
 					log.Errorf("unable to apply channel "+
 						"update for onion error: %v", err)
 				}
@@ -1838,7 +1840,8 @@ func (r *ChannelRouter) sendPayment(payment *LightningPayment,
 			// newly updated fees.
 			case *lnwire.FailFeeInsufficient:
 				update := onionErr.Update
-				if err := r.applyChannelUpdate(&update); err != nil {
+				err := r.applyChannelUpdate(&update, errSource)
+				if err != nil {
 					log.Errorf("unable to apply channel "+
 						"update for onion error: %v", err)
 
@@ -1871,7 +1874,8 @@ func (r *ChannelRouter) sendPayment(payment *LightningPayment,
 			// finding.
 			case *lnwire.FailIncorrectCltvExpiry:
 				update := onionErr.Update
-				if err := r.applyChannelUpdate(&update); err != nil {
+				err := r.applyChannelUpdate(&update, errSource)
+				if err != nil {
 					log.Errorf("unable to apply channel "+
 						"update for onion error: %v", err)
 				}
@@ -1886,7 +1890,8 @@ func (r *ChannelRouter) sendPayment(payment *LightningPayment,
 			// the update and continue.
 			case *lnwire.FailChannelDisabled:
 				update := onionErr.Update
-				if err := r.applyChannelUpdate(&update); err != nil {
+				err := r.applyChannelUpdate(&update, errSource)
+				if err != nil {
 					log.Errorf("unable to apply channel "+
 						"update for onion error: %v", err)
 				}
@@ -1899,7 +1904,8 @@ func (r *ChannelRouter) sendPayment(payment *LightningPayment,
 			// now, and continue onwards with our path finding.
 			case *lnwire.FailTemporaryChannelFailure:
 				update := onionErr.Update
-				if err := r.applyChannelUpdate(update); err != nil {
+				err := r.applyChannelUpdate(update, errSource)
+				if err != nil {
 					log.Errorf("unable to apply channel "+
 						"update for onion error: %v", err)
 				}
@@ -2023,15 +2029,20 @@ func pruneEdgeFailure(paySession *paymentSession, route *Route,
 	paySession.ReportChannelFailure(badChan.ChannelID)
 }
 
-// applyChannelUpdate applies a channel update directly to the database,
-// skipping preliminary validation.
-func (r *ChannelRouter) applyChannelUpdate(msg *lnwire.ChannelUpdate) error {
+// applyChannelUpdate validates a channel update and if valid, applies it to the
+// database.
+func (r *ChannelRouter) applyChannelUpdate(msg *lnwire.ChannelUpdate,
+	pubKey *btcec.PublicKey) error {
 	// If we get passed a nil channel update (as it's optional with some
 	// onion errors), then we'll exit early with a nil error.
 	if msg == nil {
 		return nil
 	}
 
+	if err := ValidateChannelUpdateAnn(pubKey, msg); err != nil {
+		return err
+	}
+
 	err := r.UpdateEdge(&channeldb.ChannelEdgePolicy{
 		SigBytes:                  msg.Signature.ToSignatureBytes(),
 		ChannelID:                 msg.ShortChannelID.ToUint64(),
diff --git a/routing/router_test.go b/routing/router_test.go
index 0c9492be..c1d7d344 100644
--- a/routing/router_test.go
+++ b/routing/router_test.go
@@ -14,6 +14,7 @@ import (
 	"github.com/lightningnetwork/lnd/htlcswitch"
 
 	"github.com/btcsuite/btcd/btcec"
+	"github.com/btcsuite/btcd/chaincfg/chainhash"
 	"github.com/davecgh/go-spew/spew"
 	"github.com/lightningnetwork/lightning-onion"
 	"github.com/lightningnetwork/lnd/lnwire"
@@ -74,51 +75,17 @@ func copyPubKey(pub *btcec.PublicKey) *btcec.PublicKey {
 	}
 }
 
-func createTestCtx(startingHeight uint32, testGraph ...string) (*testCtx, func(), error) {
-	var (
-		graph      *channeldb.ChannelGraph
-		sourceNode *channeldb.LightningNode
-		cleanup    func()
-		err        error
-	)
+func createTestCtxFromGraphInstance(startingHeight uint32, graphInstance *testGraphInstance) (
+	*testCtx, func(), error) {
 
-	aliasMap := make(map[string]*btcec.PublicKey)
-
-	// If the testGraph isn't set, then we'll create an empty graph to
-	// start out with. Our usage of a variadic parameter allows caller to
-	// omit the testGraph argument all together if they wish to start with
-	// a blank graph.
-	if testGraph == nil {
-		// First we'll set up a test graph for usage within the test.
-		graph, cleanup, err = makeTestGraph()
-		if err != nil {
-			return nil, nil, fmt.Errorf("unable to create test graph: %v", err)
-		}
-
-		sourceNode, err = createTestNode()
-		if err != nil {
-			return nil, nil, fmt.Errorf("unable to create source node: %v", err)
-		}
-		if err = graph.SetSourceNode(sourceNode); err != nil {
-			return nil, nil, fmt.Errorf("unable to set source node: %v", err)
-		}
-	} else {
-		// Otherwise, we'll attempt to locate and parse out the file
-		// that encodes the graph that our tests should be run against.
-		graph, cleanup, aliasMap, err = parseTestGraph(testGraph[0])
-		if err != nil {
-			return nil, nil, fmt.Errorf("unable to create test graph: %v", err)
-		}
-	}
-
-	// Next we'll initialize an instance of the channel router with mock
+	// We'll initialize an instance of the channel router with mock
 	// versions of the chain and channel notifier. As we don't need to test
 	// any p2p functionality, the peer send and switch send messages won't
 	// be populated.
 	chain := newMockChain(startingHeight)
 	chainView := newMockChainView(chain)
 	router, err := New(Config{
-		Graph:     graph,
+		Graph:     graphInstance.graph,
 		Chain:     chain,
 		ChainView: chainView,
 		SendToSwitch: func(_ lnwire.ShortChannelID,
@@ -141,20 +108,60 @@ func createTestCtx(startingHeight uint32, testGraph ...string) (*testCtx, func()
 
 	ctx := &testCtx{
 		router:    router,
-		graph:     graph,
-		aliases:   aliasMap,
+		graph:     graphInstance.graph,
+		aliases:   graphInstance.aliasMap,
 		chain:     chain,
 		chainView: chainView,
 	}
 
 	cleanUp := func() {
 		ctx.router.Stop()
-		cleanup()
+		graphInstance.cleanUp()
 	}
 
 	return ctx, cleanUp, nil
 }
 
+func createTestCtxSingleNode(startingHeight uint32) (*testCtx, func(), error) {
+	var (
+		graph      *channeldb.ChannelGraph
+		sourceNode *channeldb.LightningNode
+		cleanup    func()
+		err        error
+	)
+
+	graph, cleanup, err = makeTestGraph()
+	if err != nil {
+		return nil, nil, fmt.Errorf("unable to create test graph: %v", err)
+	}
+
+	sourceNode, err = createTestNode()
+	if err != nil {
+		return nil, nil, fmt.Errorf("unable to create source node: %v", err)
+	}
+	if err = graph.SetSourceNode(sourceNode); err != nil {
+		return nil, nil, fmt.Errorf("unable to set source node: %v", err)
+	}
+
+	graphInstance := &testGraphInstance{
+		graph:   graph,
+		cleanUp: cleanup,
+	}
+
+	return createTestCtxFromGraphInstance(startingHeight, graphInstance)
+}
+
+func createTestCtxFromFile(startingHeight uint32, testGraph string) (*testCtx, func(), error) {
+	// We'll attempt to locate and parse out the file
+	// that encodes the graph that our tests should be run against.
+	graphInstance, err := parseTestGraph(testGraph)
+	if err != nil {
+		return nil, nil, fmt.Errorf("unable to create test graph: %v", err)
+	}
+
+	return createTestCtxFromGraphInstance(startingHeight, graphInstance)
+}
+
 // TestFindRoutesFeeSorting asserts that routes found by the FindRoutes method
 // within the channel router are properly returned in a sorted order, with the
 // lowest fee route coming first.
@@ -162,7 +169,7 @@ func TestFindRoutesFeeSorting(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight, basicGraphFilePath)
+	ctx, cleanUp, err := createTestCtxFromFile(startingBlockHeight, basicGraphFilePath)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -215,7 +222,7 @@ func TestFindRoutesWithFeeLimit(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(
+	ctx, cleanUp, err := createTestCtxFromFile(
 		startingBlockHeight, basicGraphFilePath,
 	)
 	defer cleanUp()
@@ -269,7 +276,7 @@ func TestSendPaymentRouteFailureFallback(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight, basicGraphFilePath)
+	ctx, cleanUp, err := createTestCtxFromFile(startingBlockHeight, basicGraphFilePath)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -341,6 +348,171 @@ func TestSendPaymentRouteFailureFallback(t *testing.T) {
 	}
 }
 
+// TestChannelUpdateValidation tests that a failed payment with an associated
+// channel update will only be applied to the graph when the update contains a
+// valid signature.
+func TestChannelUpdateValidation(t *testing.T) {
+	t.Parallel()
+
+	// Setup a three node network.
+	testChannels := []*testChannel{
+		symmetricTestChannel("a", "b", 100000, &testChannelPolicy{
+			Expiry:  144,
+			FeeRate: 400,
+			MinHTLC: 1,
+		}, 1),
+		symmetricTestChannel("b", "c", 100000, &testChannelPolicy{
+			Expiry:  144,
+			FeeRate: 400,
+			MinHTLC: 1,
+		}, 2),
+	}
+
+	testGraph, err := createTestGraphFromChannels(testChannels)
+	defer testGraph.cleanUp()
+	if err != nil {
+		t.Fatalf("unable to create graph: %v", err)
+	}
+
+	const startingBlockHeight = 101
+
+	ctx, cleanUp, err := createTestCtxFromGraphInstance(startingBlockHeight,
+		testGraph)
+
+	defer cleanUp()
+	if err != nil {
+		t.Fatalf("unable to create router: %v", err)
+	}
+
+	// Assert that the initially configured fee is retrieved correctly.
+	_, policy, _, err := ctx.router.GetChannelByID(
+		lnwire.NewShortChanIDFromInt(1))
+	if err != nil {
+		t.Fatalf("cannot retrieve channel")
+	}
+
+	if policy.FeeProportionalMillionths != 400 {
+		t.Fatalf("invalid fee")
+	}
+
+	// Setup a route from source a to destination c. The route will be used
+	// in a call to SendToRoute. SendToRoute also applies channel updates,
+	// but it saves us from including RequestRoute in the test scope too.
+	var hop1 [33]byte
+	copy(hop1[:], ctx.aliases["b"].SerializeCompressed())
+
+	var hop2 [33]byte
+	copy(hop2[:], ctx.aliases["c"].SerializeCompressed())
+
+	hops := []*Hop{
+		{
+			Channel: &ChannelHop{
+				ChannelEdgePolicy: &channeldb.ChannelEdgePolicy{
+					ChannelID: 1,
+					Node: &channeldb.LightningNode{
+						PubKeyBytes: hop1,
+					},
+				},
+			},
+		},
+		{
+			Channel: &ChannelHop{
+				ChannelEdgePolicy: &channeldb.ChannelEdgePolicy{
+					ChannelID: 2,
+					Node: &channeldb.LightningNode{
+						PubKeyBytes: hop2,
+					},
+				},
+			},
+		},
+	}
+
+	route := &Route{
+		Hops: hops,
+	}
+
+	// Set up a channel update message with an invalid signature to be
+	// returned to the sender.
+	var invalidSignature [64]byte
+	errChanUpdate := lnwire.ChannelUpdate{
+		Signature:      invalidSignature,
+		FeeRate:        500,
+		ShortChannelID: lnwire.NewShortChanIDFromInt(1),
+		Timestamp:      uint32(testTime.Add(time.Minute).Unix()),
+	}
+
+	// We'll modify the SendToSwitch method so that it simulates a failed
+	// payment with an error originating from the first hop of the route.
+	// The unsigned channel update is attached to the failure message.
+	ctx.router.cfg.SendToSwitch = func(firstHop lnwire.ShortChannelID,
+		_ *lnwire.UpdateAddHTLC, _ *sphinx.Circuit) ([32]byte, error) {
+
+		return [32]byte{}, &htlcswitch.ForwardingError{
+			ErrorSource: ctx.aliases["b"],
+			FailureMessage: &lnwire.FailFeeInsufficient{
+				Update: errChanUpdate,
+			},
+		}
+	}
+
+	// The payment parameter is mostly redundant in SendToRoute. Can be left
+	// empty for this test.
+	payment := &LightningPayment{}
+
+	// Send off the payment request to the router. The specified route
+	// should be attempted and the channel update should be received by
+	// router and ignored because it is missing a valid signature.
+	_, _, err = ctx.router.SendToRoute([]*Route{route}, payment)
+	if err == nil {
+		t.Fatalf("expected route to fail with channel update")
+	}
+
+	_, policy, _, err = ctx.router.GetChannelByID(
+		lnwire.NewShortChanIDFromInt(1))
+	if err != nil {
+		t.Fatalf("cannot retrieve channel")
+	}
+
+	if policy.FeeProportionalMillionths != 400 {
+		t.Fatalf("fee updated without valid signature")
+	}
+
+	// Next, add a signature to the channel update.
+	chanUpdateMsg, err := errChanUpdate.DataToSign()
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	digest := chainhash.DoubleHashB(chanUpdateMsg)
+	sig, err := testGraph.privKeyMap["b"].Sign(digest)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	errChanUpdate.Signature, err = lnwire.NewSigFromSignature(sig)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	// Retry the payment using the same route as before.
+	_, _, err = ctx.router.SendToRoute([]*Route{route}, payment)
+	if err == nil {
+		t.Fatalf("expected route to fail with channel update")
+	}
+
+	// This time a valid signature was supplied and the policy change should
+	// have been applied to the graph.
+	_, policy, _, err = ctx.router.GetChannelByID(
+		lnwire.NewShortChanIDFromInt(1))
+	if err != nil {
+		t.Fatalf("cannot retrieve channel")
+	}
+
+	if policy.FeeProportionalMillionths != 500 {
+		t.Fatalf("fee not updated even though signature is valid")
+	}
+}
+
 // TestSendPaymentErrorRepeatedFeeInsufficient tests that if we receive
 // multiple fee related errors from a channel that we're attempting to route
 // through, then we'll prune the channel after the second attempt.
@@ -348,7 +520,7 @@ func TestSendPaymentErrorRepeatedFeeInsufficient(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight, basicGraphFilePath)
+	ctx, cleanUp, err := createTestCtxFromFile(startingBlockHeight, basicGraphFilePath)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -449,7 +621,7 @@ func TestSendPaymentErrorNonFinalTimeLockErrors(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight, basicGraphFilePath)
+	ctx, cleanUp, err := createTestCtxFromFile(startingBlockHeight, basicGraphFilePath)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -581,7 +753,7 @@ func TestSendPaymentErrorPathPruning(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight, basicGraphFilePath)
+	ctx, cleanUp, err := createTestCtxFromFile(startingBlockHeight, basicGraphFilePath)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -753,7 +925,7 @@ func TestSendPaymentErrorPathPruning(t *testing.T) {
 func TestAddProof(t *testing.T) {
 	t.Parallel()
 
-	ctx, cleanup, err := createTestCtx(0)
+	ctx, cleanup, err := createTestCtxSingleNode(0)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -816,7 +988,7 @@ func TestIgnoreNodeAnnouncement(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight,
+	ctx, cleanUp, err := createTestCtxFromFile(startingBlockHeight,
 		basicGraphFilePath)
 	defer cleanUp()
 	if err != nil {
@@ -849,7 +1021,7 @@ func TestAddEdgeUnknownVertexes(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight,
+	ctx, cleanUp, err := createTestCtxFromFile(startingBlockHeight,
 		basicGraphFilePath)
 	defer cleanUp()
 	if err != nil {
@@ -910,7 +1082,7 @@ func TestAddEdgeUnknownVertexes(t *testing.T) {
 	edgePolicy := &channeldb.ChannelEdgePolicy{
 		SigBytes:                  testSig.Serialize(),
 		ChannelID:                 edge.ChannelID,
-		LastUpdate:                time.Now(),
+		LastUpdate:                testTime,
 		TimeLockDelta:             10,
 		MinHTLC:                   1,
 		FeeBaseMSat:               10,
@@ -926,7 +1098,7 @@ func TestAddEdgeUnknownVertexes(t *testing.T) {
 	edgePolicy = &channeldb.ChannelEdgePolicy{
 		SigBytes:                  testSig.Serialize(),
 		ChannelID:                 edge.ChannelID,
-		LastUpdate:                time.Now(),
+		LastUpdate:                testTime,
 		TimeLockDelta:             10,
 		MinHTLC:                   1,
 		FeeBaseMSat:               10,
@@ -1006,7 +1178,7 @@ func TestAddEdgeUnknownVertexes(t *testing.T) {
 	edgePolicy = &channeldb.ChannelEdgePolicy{
 		SigBytes:                  testSig.Serialize(),
 		ChannelID:                 edge.ChannelID,
-		LastUpdate:                time.Now(),
+		LastUpdate:                testTime,
 		TimeLockDelta:             10,
 		MinHTLC:                   1,
 		FeeBaseMSat:               10,
@@ -1021,7 +1193,7 @@ func TestAddEdgeUnknownVertexes(t *testing.T) {
 	edgePolicy = &channeldb.ChannelEdgePolicy{
 		SigBytes:                  testSig.Serialize(),
 		ChannelID:                 edge.ChannelID,
-		LastUpdate:                time.Now(),
+		LastUpdate:                testTime,
 		TimeLockDelta:             10,
 		MinHTLC:                   1,
 		FeeBaseMSat:               10,
@@ -1119,7 +1291,7 @@ func TestWakeUpOnStaleBranch(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight)
+	ctx, cleanUp, err := createTestCtxSingleNode(startingBlockHeight)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -1322,7 +1494,7 @@ func TestDisconnectedBlocks(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight)
+	ctx, cleanUp, err := createTestCtxSingleNode(startingBlockHeight)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -1512,7 +1684,7 @@ func TestRouterChansClosedOfflinePruneGraph(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight)
+	ctx, cleanUp, err := createTestCtxSingleNode(startingBlockHeight)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -1665,7 +1837,7 @@ func TestFindPathFeeWeighting(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight, basicGraphFilePath)
+	ctx, cleanUp, err := createTestCtxFromFile(startingBlockHeight, basicGraphFilePath)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -1716,7 +1888,7 @@ func TestIsStaleNode(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight)
+	ctx, cleanUp, err := createTestCtxSingleNode(startingBlockHeight)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -1798,7 +1970,7 @@ func TestIsKnownEdge(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight)
+	ctx, cleanUp, err := createTestCtxSingleNode(startingBlockHeight)
 	defer cleanUp()
 	if err != nil {
 		t.Fatalf("unable to create router: %v", err)
@@ -1850,7 +2022,7 @@ func TestIsStaleEdgePolicy(t *testing.T) {
 	t.Parallel()
 
 	const startingBlockHeight = 101
-	ctx, cleanUp, err := createTestCtx(startingBlockHeight,
+	ctx, cleanUp, err := createTestCtxFromFile(startingBlockHeight,
 		basicGraphFilePath)
 	defer cleanUp()
 	if err != nil {