diff --git a/channeldb/channel_test.go b/channeldb/channel_test.go
index e06f8994..9d67af91 100644
--- a/channeldb/channel_test.go
+++ b/channeldb/channel_test.go
@@ -95,7 +95,7 @@ func TestOpenChannelEncodeDecode(t *testing.T) {
 
 	// Next, create channeldb for the first time, also setting a mock
 	// EncryptorDecryptor implementation for testing purposes.
-	cdb, err := Create(tempDirName)
+	cdb, err := Open(tempDirName)
 	if err != nil {
 		t.Fatalf("unable to create channeldb: %v", err)
 	}
@@ -154,7 +154,7 @@ func TestOpenChannelEncodeDecode(t *testing.T) {
 		TotalSatoshisReceived:  2,
 		TotalNetFees:           9,
 		CreationTime:           time.Date(2009, time.November, 10, 23, 0, 0, 0, time.UTC),
-		db:                     cdb,
+		Db:                     cdb,
 	}
 
 	if err := state.FullSync(); err != nil {
diff --git a/channeldb/db.go b/channeldb/db.go
index c947ebba..a962cecc 100644
--- a/channeldb/db.go
+++ b/channeldb/db.go
@@ -44,22 +44,15 @@ type DB struct {
 // sensitive data encrypted by the passed EncryptorDecryptor implementation.
 // TODO(roasbeef): versioning?
 func Open(dbPath string) (*DB, error) {
-	if !fileExists(dbPath) {
-		return nil, ErrNoExists
-	}
-
 	path := filepath.Join(dbPath, dbName)
-	bdb, err := bolt.Open(path, 0600, nil)
-	if err != nil {
-		return nil, err
+
+	if !fileExists(path) {
+		if err := createChannelDB(dbPath); err != nil {
+			return nil, err
+		}
 	}
 
-	return &DB{store: bdb}, nil
-}
-
-// Create...
-func Create(dbPath string) (*DB, error) {
-	bdb, err := createChannelDB(dbPath)
+	bdb, err := bolt.Open(path, 0600, nil)
 	if err != nil {
 		return nil, err
 	}
@@ -86,17 +79,17 @@ func (d *DB) Close() error {
 }
 
 // createChannelDB...
-func createChannelDB(dbPath string) (*bolt.DB, error) {
+func createChannelDB(dbPath string) error {
 	if !fileExists(dbPath) {
 		if err := os.MkdirAll(dbPath, 0700); err != nil {
-			return nil, err
+			return err
 		}
 	}
 
 	path := filepath.Join(dbPath, dbName)
 	bdb, err := bolt.Open(path, 0600, nil)
 	if err != nil {
-		return nil, err
+		return err
 	}
 
 	err = bdb.Update(func(tx *bolt.Tx) error {
@@ -115,10 +108,10 @@ func createChannelDB(dbPath string) (*bolt.DB, error) {
 		return nil
 	})
 	if err != nil {
-		return nil, fmt.Errorf("unable to create new channeldb")
+		return fmt.Errorf("unable to create new channeldb")
 	}
 
-	return bdb, nil
+	return bdb.Close()
 }
 
 // fileExists...
diff --git a/channeldb/db_test.go b/channeldb/db_test.go
index f2053856..69c2d3b5 100644
--- a/channeldb/db_test.go
+++ b/channeldb/db_test.go
@@ -3,16 +3,11 @@ package channeldb
 import (
 	"io/ioutil"
 	"os"
+	"path/filepath"
 	"testing"
 )
 
-func TestOpenNotCreated(t *testing.T) {
-	if _, err := Open("path doesn't exist"); err != ErrNoExists {
-		t.Fatalf("channeldb Open should fail due to non-existant dir")
-	}
-}
-
-func TestCreateThenOpen(t *testing.T) {
+func TestOpenWithCreate(t *testing.T) {
 	// First, create a temporary directory to be used for the duration of
 	// this test.
 	tempDirName, err := ioutil.TempDir("", "channeldb")
@@ -21,8 +16,9 @@ func TestCreateThenOpen(t *testing.T) {
 	}
 	defer os.RemoveAll(tempDirName)
 
-	// Next, create channeldb for the first time.
-	cdb, err := Create(tempDirName)
+	// Next, open thereby creating channeldb for the first time.
+	dbPath := filepath.Join(tempDirName, "cdb")
+	cdb, err := Open(dbPath)
 	if err != nil {
 		t.Fatalf("unable to create channeldb: %v", err)
 	}
@@ -30,9 +26,8 @@ func TestCreateThenOpen(t *testing.T) {
 		t.Fatalf("unable to close channeldb: %v", err)
 	}
 
-	// Open should now succeed as the cdb was created above.
-	cdb, err = Open(tempDirName)
-	if err != nil {
-		t.Fatalf("unable to open channeldb: %v", err)
+	// The path should have been succesfully created.
+	if !fileExists(dbPath) {
+		t.Fatalf("channeldb failed to create data directory")
 	}
 }