diff --git a/config.go b/config.go
index 7bce9cc5..50ad9942 100644
--- a/config.go
+++ b/config.go
@@ -38,6 +38,7 @@ const (
 )
 
 var (
+	// TODO(roasbeef): base off of datadir instead?
 	lndHomeDir          = btcutil.AppDataDir("lnd", false)
 	defaultConfigFile   = filepath.Join(lndHomeDir, defaultConfigFilename)
 	defaultDataDir      = filepath.Join(lndHomeDir, defaultDataDirname)
@@ -310,6 +311,21 @@ func loadConfig() (*config, error) {
 		}
 	}
 
+	// At this point, we'll save the base data directory in order to ensure
+	// we don't store the macaroon database within any of the chain
+	// namespaced directories.
+	macaroonDatabaseDir = cfg.DataDir
+
+	// If a custom macaroon directory wasn't specified and the data
+	// directory has changed from the default path, then we'll also update
+	// the path for the macaroons to be generated.
+	if cfg.DataDir != defaultDataDir && cfg.AdminMacPath == defaultAdminMacPath {
+		cfg.AdminMacPath = filepath.Join(cfg.DataDir, defaultAdminMacFilename)
+	}
+	if cfg.DataDir != defaultDataDir && cfg.ReadMacPath == defaultReadMacPath {
+		cfg.ReadMacPath = filepath.Join(cfg.DataDir, defaultReadMacFilename)
+	}
+
 	// Append the network type to the data directory so it is "namespaced"
 	// per network. In addition to the block database, there are other
 	// pieces of data that are saved to disk such as address manager state.
diff --git a/lnd.go b/lnd.go
index 2b490381..485bf97d 100644
--- a/lnd.go
+++ b/lnd.go
@@ -49,6 +49,8 @@ var (
 	shutdownChannel  = make(chan struct{})
 	registeredChains = newChainRegistry()
 
+	macaroonDatabaseDir string
+
 	// End of ASN.1 time.
 	endOfTime = time.Date(2049, 12, 31, 23, 59, 59, 0, time.UTC)
 
@@ -100,16 +102,14 @@ func lndMain() error {
 	var macaroonService *bakery.Service
 	if !cfg.NoMacaroons {
 		// Create the macaroon authentication/authorization service.
-		macaroonService, err = macaroons.NewService(cfg.DataDir)
+		macaroonService, err = macaroons.NewService(macaroonDatabaseDir)
 		if err != nil {
-			srvrLog.Errorf("unable to create macaroon service: %v",
-				err)
+			srvrLog.Errorf("unable to create macaroon service: %v", err)
 			return err
 		}
 
 		// Create macaroon files for lncli to use if they don't exist.
-		if !fileExists(cfg.AdminMacPath) &&
-			!fileExists(cfg.ReadMacPath) {
+		if !fileExists(cfg.AdminMacPath) && !fileExists(cfg.ReadMacPath) {
 			err = genMacaroons(macaroonService, cfg.AdminMacPath,
 				cfg.ReadMacPath)
 			if err != nil {
@@ -121,7 +121,7 @@ func lndMain() error {
 	}
 
 	// With the information parsed from the configuration, create valid
-	// instances of the paertinent interfaces required to operate the
+	// instances of the pertinent interfaces required to operate the
 	// Lightning Network Daemon.
 	activeChainControl, chainCleanUp, err := newChainControlFromConfig(cfg, chanDB)
 	if err != nil {
@@ -183,7 +183,7 @@ func lndMain() error {
 			return server.genNodeAnnouncement(true)
 		},
 		SendAnnouncement: func(msg lnwire.Message) error {
-			errChan := server.discoverSrv.ProcessLocalAnnouncement(msg,
+			errChan := server.authGossiper.ProcessLocalAnnouncement(msg,
 				idPrivKey.PubKey())
 			return <-errChan
 		},