diff --git a/watchtower/wtserver/server.go b/watchtower/wtserver/server.go
index dd39af98..b9d22275 100644
--- a/watchtower/wtserver/server.go
+++ b/watchtower/wtserver/server.go
@@ -6,7 +6,6 @@ import (
 	"fmt"
 	"net"
 	"sync"
-	"sync/atomic"
 	"time"
 
 	"github.com/btcsuite/btcd/btcec"
@@ -65,8 +64,8 @@ type Config struct {
 // is to accept incoming connections, and dispatch processing of the client
 // message streams.
 type Server struct {
-	started  int32 // atomic
-	shutdown int32 // atomic
+	started sync.Once
+	stopped sync.Once
 
 	cfg *Config
 
@@ -75,6 +74,8 @@ type Server struct {
 	clientMtx sync.RWMutex
 	clients   map[wtdb.SessionID]Peer
 
+	newPeers chan Peer
+
 	localInit *wtwire.Init
 
 	wg   sync.WaitGroup
@@ -93,6 +94,7 @@ func New(cfg *Config) (*Server, error) {
 	s := &Server{
 		cfg:       cfg,
 		clients:   make(map[wtdb.SessionID]Peer),
+		newPeers:  make(chan Peer),
 		localInit: localInit,
 		quit:      make(chan struct{}),
 	}
@@ -113,36 +115,31 @@ func New(cfg *Config) (*Server, error) {
 
 // Start begins listening on the server's listeners.
 func (s *Server) Start() error {
-	// Already running?
-	if !atomic.CompareAndSwapInt32(&s.started, 0, 1) {
-		return nil
-	}
+	s.started.Do(func() {
+		log.Infof("Starting watchtower server")
 
-	log.Infof("Starting watchtower server")
+		s.wg.Add(1)
+		go s.peerHandler()
 
-	s.connMgr.Start()
-
-	log.Infof("Watchtower server started successfully")
+		s.connMgr.Start()
 
+		log.Infof("Watchtower server started successfully")
+	})
 	return nil
 }
 
 // Stop shutdowns down the server's listeners and any active requests.
 func (s *Server) Stop() error {
-	// Bail if we're already shutting down.
-	if !atomic.CompareAndSwapInt32(&s.shutdown, 0, 1) {
-		return nil
-	}
+	s.stopped.Do(func() {
+		log.Infof("Stopping watchtower server")
 
-	log.Infof("Stopping watchtower server")
+		s.connMgr.Stop()
 
-	s.connMgr.Stop()
-
-	close(s.quit)
-	s.wg.Wait()
-
-	log.Infof("Watchtower server stopped successfully")
+		close(s.quit)
+		s.wg.Wait()
 
+		log.Infof("Watchtower server stopped successfully")
+	})
 	return nil
 }
 
@@ -167,8 +164,29 @@ func (s *Server) inboundPeerConnected(c net.Conn) {
 // by the client. This method serves also as a public endpoint for locally
 // registering new clients with the server.
 func (s *Server) InboundPeerConnected(peer Peer) {
-	s.wg.Add(1)
-	go s.handleClient(peer)
+	select {
+	case s.newPeers <- peer:
+	case <-s.quit:
+	}
+}
+
+// peerHandler processes newly accepted peers and spawns a client handler for
+// each. The peerHandler is used to ensure that waitgrouped client handlers are
+// spawned from a waitgrouped goroutine.
+func (s *Server) peerHandler() {
+	defer s.wg.Done()
+	defer s.removeAllPeers()
+
+	for {
+		select {
+		case peer := <-s.newPeers:
+			s.wg.Add(1)
+			go s.handleClient(peer)
+
+		case <-s.quit:
+			return
+		}
+	}
 }
 
 // handleClient processes a series watchtower messages sent by a client. The
@@ -625,6 +643,21 @@ func (s *Server) removePeer(id *wtdb.SessionID, addr net.Addr) {
 	}
 }
 
+// removeAllPeers iterates through the server's current set of peers and closes
+// all open connections.
+func (s *Server) removeAllPeers() {
+	s.clientMtx.Lock()
+	defer s.clientMtx.Unlock()
+
+	for id, peer := range s.clients {
+		log.Infof("Releasing incoming peer %s@%s", id,
+			peer.RemoteAddr())
+
+		delete(s.clients, id)
+		peer.Close()
+	}
+}
+
 // logMessage writes information about a message exchanged with a remote peer,
 // using directional prepositions to signal whether the message was sent or
 // received.