diff --git a/common_test.go b/common_test.go
new file mode 100644
index 00000000..340718a7
--- /dev/null
+++ b/common_test.go
@@ -0,0 +1,74 @@
+// Copyright (c) 2013 Conformal Systems LLC.
+// Use of this source code is governed by an ISC
+// license that can be found in the LICENSE file.
+
+package btcchain_test
+
+import (
+	"fmt"
+	"github.com/conformal/btcchain"
+	"github.com/conformal/btcdb"
+	_ "github.com/conformal/btcdb/ldb"
+	"github.com/conformal/btcutil"
+	"github.com/conformal/btcwire"
+	"os"
+	"path/filepath"
+)
+
+// testDbRoot is the root directory used to create all test databases.
+const testDbRoot = "testdbs"
+
+// filesExists returns whether or not the named file or directory exists.
+func fileExists(name string) bool {
+	if _, err := os.Stat(name); err != nil {
+		if os.IsNotExist(err) {
+			return false
+		}
+	}
+	return true
+}
+
+// chainSetup is used to create a new db and chain instance with the genesis
+// block already inserted.  In addition to the new chain instnce, it returns
+// a teardown function the caller should invoke when done testing to clean up.
+func chainSetup(dbName string) (*btcchain.BlockChain, func(), error) {
+	// Create the root directory for test databases.
+	if !fileExists(testDbRoot) {
+		if err := os.MkdirAll(testDbRoot, 0700); err != nil {
+			err := fmt.Errorf("unable to create test db root: %v", err)
+			return nil, nil, err
+		}
+	}
+
+	// Create a new database to store the accepted blocks into.
+	dbPath := filepath.Join(testDbRoot, dbName)
+	_ = os.RemoveAll(dbPath)
+	db, err := btcdb.CreateDB("leveldb", dbPath)
+	if err != nil {
+		return nil, nil, fmt.Errorf("error creating db: %v", err)
+	}
+
+	// Setup a teardown function for cleaning up.  This function is returned
+	// to the caller to be invoked when it is done testing.
+	teardown := func() {
+		dbVersionPath := filepath.Join(testDbRoot, dbName+".ver")
+		db.Sync()
+		db.Close()
+		os.RemoveAll(dbPath)
+		os.Remove(dbVersionPath)
+		os.RemoveAll(testDbRoot)
+	}
+
+	// Insert the main network genesis block.  This is part of the initial
+	// database setup.
+	genesisBlock := btcutil.NewBlock(&btcwire.GenesisBlock)
+	_, err = db.InsertBlock(genesisBlock)
+	if err != nil {
+		teardown()
+		err := fmt.Errorf("failed to insert genesis block: %v", err)
+		return nil, nil, err
+	}
+
+	chain := btcchain.New(db, btcwire.MainNet, nil)
+	return chain, teardown, nil
+}
diff --git a/reorganization_test.go b/reorganization_test.go
index 69f22b0f..dbb902bb 100644
--- a/reorganization_test.go
+++ b/reorganization_test.go
@@ -8,8 +8,6 @@ import (
 	"compress/bzip2"
 	"encoding/binary"
 	"github.com/conformal/btcchain"
-	"github.com/conformal/btcdb"
-	_ "github.com/conformal/btcdb/sqlite3"
 	"github.com/conformal/btcutil"
 	"github.com/conformal/btcwire"
 	"io"
@@ -26,7 +24,7 @@ import (
 func TestReorganization(t *testing.T) {
 	// Intentionally load the side chain blocks out of order to ensure
 	// orphans are handled properly along with chain reorganization.
-	testFiles := [...]string{
+	testFiles := []string{
 		"blk_0_to_4.dat.bz2",
 		"blk_4A.dat.bz2",
 		"blk_5A.dat.bz2",
@@ -46,36 +44,26 @@ func TestReorganization(t *testing.T) {
 
 	t.Logf("Number of blocks: %v\n", len(blocks))
 
-	dbname := "chaintest"
-	_ = os.Remove(dbname)
-	db, err := btcdb.CreateDB("sqlite", dbname)
+	// Create a new database and chain instance to run tests against.
+	chain, teardownFunc, err := chainSetup("reorg")
 	if err != nil {
-		t.Errorf("Error creating db: %v\n", err)
-	}
-	// Clean up
-	defer os.Remove(dbname)
-	defer db.Close()
-
-	// Insert the main network genesis block.
-	genesis := btcutil.NewBlock(&btcwire.GenesisBlock)
-	if _, err := db.InsertBlock(genesis); err != nil {
-		t.Errorf("Failed to insert genesis block: %v", err)
+		t.Errorf("Failed to setup chain instance: %v", err)
+		return
 	}
+	defer teardownFunc()
 
 	// Since we're not dealing with the real block chain, disable
 	// checkpoints and set the coinbase maturity to 1.
-	blockChain := btcchain.New(db, btcwire.MainNet, nil)
-	blockChain.DisableCheckpoints(true)
+	chain.DisableCheckpoints(true)
 	btcchain.TstSetCoinbaseMaturity(1)
 
 	for i := 1; i < len(blocks); i++ {
-		err = blockChain.ProcessBlock(blocks[i])
+		err = chain.ProcessBlock(blocks[i])
 		if err != nil {
 			t.Errorf("ProcessBlock fail on block %v: %v\n", i, err)
 			return
 		}
 	}
-	db.Sync()
 
 	return
 }
diff --git a/validate_test.go b/validate_test.go
index 1b2998cd..5cde8f1a 100644
--- a/validate_test.go
+++ b/validate_test.go
@@ -6,30 +6,22 @@ package btcchain_test
 
 import (
 	"github.com/conformal/btcchain"
-	"github.com/conformal/btcdb"
 	"github.com/conformal/btcutil"
 	"github.com/conformal/btcwire"
 	"math"
-	"os"
 	"reflect"
 	"testing"
 	"time"
 )
 
 func TestCheckBlockSanity(t *testing.T) {
-	// Create a new test database.
-	dbName := "cbsanitytest.db"
-	_ = os.Remove(dbName)
-	db, err := btcdb.CreateDB("sqlite", dbName)
+	// Create a new database and chain instance to run tests against.
+	chain, teardownFunc, err := chainSetup("cbsanity")
 	if err != nil {
-		t.Errorf("Error creating db: %v\n", err)
+		t.Errorf("Failed to setup chain instance: %v", err)
+		return
 	}
-	defer os.Remove(dbName)
-	defer db.Close()
-
-	// Create a new BlockChain instance using the underlying database for
-	// the main bitcoin network and ignore notifications.
-	chain := btcchain.New(db, btcwire.MainNet, nil)
+	defer teardownFunc()
 
 	block := btcutil.NewBlock(&Block100000)
 	err = chain.TstCheckBlockSanity(block)