diff --git a/btcwallet.go b/btcwallet.go
index b8cd0cd..f3f0515 100644
--- a/btcwallet.go
+++ b/btcwallet.go
@@ -28,8 +28,7 @@ import (
 )
 
 var (
-	cfg          *config
-	shutdownChan = make(chan struct{})
+	cfg *config
 )
 
 func main() {
@@ -75,7 +74,7 @@ func walletMain() error {
 		log.Errorf("%v", err)
 		return err
 	}
-	defer wallet.db.Close()
+	defer wallet.Db().Close()
 
 	// Create and start HTTP server to serve wallet client connections.
 	// This will be updated with the wallet and chain server RPC client
diff --git a/config.go b/config.go
index 1220bdd..d86de7d 100644
--- a/config.go
+++ b/config.go
@@ -24,24 +24,33 @@ import (
 	"sort"
 	"strings"
 
-	"github.com/btcsuite/btcd/wire"
 	"github.com/btcsuite/btcutil"
 	"github.com/btcsuite/btcwallet/legacy/keystore"
 	flags "github.com/btcsuite/go-flags"
 )
 
 const (
-	defaultCAFilename        = "btcd.cert"
-	defaultConfigFilename    = "btcwallet.conf"
-	defaultBtcNet            = wire.TestNet3
-	defaultLogLevel          = "info"
-	defaultLogDirname        = "logs"
-	defaultLogFilename       = "btcwallet.log"
-	defaultDisallowFree      = false
-	defaultRPCMaxClients     = 10
-	defaultRPCMaxWebsockets  = 25
-	walletDbName             = "wallet.db"
-	walletDbWatchingOnlyName = "wowallet.db"
+	defaultCAFilename       = "btcd.cert"
+	defaultConfigFilename   = "btcwallet.conf"
+	defaultLogLevel         = "info"
+	defaultLogDirname       = "logs"
+	defaultLogFilename      = "btcwallet.log"
+	defaultDisallowFree     = false
+	defaultRPCMaxClients    = 10
+	defaultRPCMaxWebsockets = 25
+
+	// defaultPubPassphrase is the default public wallet passphrase which is
+	// used when the user indicates they do not want additional protection
+	// provided by having all public data in the wallet encrypted by a
+	// passphrase only known to them.
+	defaultPubPassphrase = "public"
+
+	// maxEmptyAccounts is the number of accounts to scan even if they have no
+	// transaction history. This is a deviation from BIP044 to make account
+	// creation easier by allowing a limited number of empty accounts.
+	maxEmptyAccounts = 100
+
+	walletDbName = "wallet.db"
 )
 
 var (
diff --git a/log.go b/log.go
index 577444c..90a231d 100644
--- a/log.go
+++ b/log.go
@@ -23,6 +23,7 @@ import (
 	"github.com/btcsuite/btclog"
 	"github.com/btcsuite/btcwallet/chain"
 	"github.com/btcsuite/btcwallet/txstore"
+	"github.com/btcsuite/btcwallet/wallet"
 	"github.com/btcsuite/seelog"
 )
 
@@ -42,6 +43,7 @@ const (
 var (
 	backendLog = seelog.Disabled
 	log        = btclog.Disabled
+	walletLog  = btclog.Disabled
 	txstLog    = btclog.Disabled
 	chainLog   = btclog.Disabled
 )
@@ -49,6 +51,7 @@ var (
 // subsystemLoggers maps each subsystem identifier to its associated logger.
 var subsystemLoggers = map[string]btclog.Logger{
 	"BTCW": log,
+	"WLLT": walletLog,
 	"TXST": txstLog,
 	"CHNS": chainLog,
 }
@@ -80,6 +83,9 @@ func useLogger(subsystemID string, logger btclog.Logger) {
 	switch subsystemID {
 	case "BTCW":
 		log = logger
+	case "WLLT":
+		walletLog = logger
+		wallet.UseLogger(logger)
 	case "TXST":
 		txstLog = logger
 		txstore.UseLogger(logger)
diff --git a/rpcserver.go b/rpcserver.go
index 473296d..ee01f51 100644
--- a/rpcserver.go
+++ b/rpcserver.go
@@ -47,6 +47,7 @@ import (
 	"github.com/btcsuite/btcwallet/chain"
 	"github.com/btcsuite/btcwallet/txstore"
 	"github.com/btcsuite/btcwallet/waddrmgr"
+	"github.com/btcsuite/btcwallet/wallet"
 	"github.com/btcsuite/websocket"
 )
 
@@ -286,7 +287,7 @@ func genCertPair(certFile, keyFile string) error {
 // rpcServer holds the items the RPC server may need to access (auth,
 // config, shutdown, etc.)
 type rpcServer struct {
-	wallet        *Wallet
+	wallet        *wallet.Wallet
 	chainSvr      *chain.Client
 	createOK      bool
 	handlerLookup func(string) (requestHandler, bool)
@@ -557,7 +558,7 @@ func (noopLocker) Unlock() {}
 // functional bitcoin wallet RPC server.  If wallet is nil, this informs the
 // server that the createencryptedwallet RPC method is valid and must be called
 // by a client before any other wallet methods are allowed.
-func (s *rpcServer) SetWallet(wallet *Wallet) {
+func (s *rpcServer) SetWallet(wallet *wallet.Wallet) {
 	s.handlerLock.Lock()
 	defer s.handlerLock.Unlock()
 
@@ -1031,7 +1032,7 @@ type (
 	wsClientNotification interface {
 		// This returns a slice only because some of these types result
 		// in multpile client notifications.
-		notificationCmds(w *Wallet) []btcjson.Cmd
+		notificationCmds(w *wallet.Wallet) []btcjson.Cmd
 	}
 
 	blockConnected    waddrmgr.BlockStamp
@@ -1048,17 +1049,17 @@ type (
 	btcdConnected bool
 )
 
-func (b blockConnected) notificationCmds(w *Wallet) []btcjson.Cmd {
+func (b blockConnected) notificationCmds(w *wallet.Wallet) []btcjson.Cmd {
 	n := btcws.NewBlockConnectedNtfn(b.Hash.String(), b.Height)
 	return []btcjson.Cmd{n}
 }
 
-func (b blockDisconnected) notificationCmds(w *Wallet) []btcjson.Cmd {
+func (b blockDisconnected) notificationCmds(w *wallet.Wallet) []btcjson.Cmd {
 	n := btcws.NewBlockDisconnectedNtfn(b.Hash.String(), b.Height)
 	return []btcjson.Cmd{n}
 }
 
-func (c txCredit) notificationCmds(w *Wallet) []btcjson.Cmd {
+func (c txCredit) notificationCmds(w *wallet.Wallet) []btcjson.Cmd {
 	blk := w.Manager.SyncedTo()
 	acctName := waddrmgr.DefaultAccountName
 	if creditAccount, err := w.CreditAccount(txstore.Credit(c)); err == nil {
@@ -1075,7 +1076,7 @@ func (c txCredit) notificationCmds(w *Wallet) []btcjson.Cmd {
 	return []btcjson.Cmd{n}
 }
 
-func (d txDebit) notificationCmds(w *Wallet) []btcjson.Cmd {
+func (d txDebit) notificationCmds(w *wallet.Wallet) []btcjson.Cmd {
 	blk := w.Manager.SyncedTo()
 	ltrs, err := txstore.Debits(d).ToJSON("", blk.Height, activeNet.Params)
 	if err != nil {
@@ -1090,24 +1091,24 @@ func (d txDebit) notificationCmds(w *Wallet) []btcjson.Cmd {
 	return ns
 }
 
-func (l managerLocked) notificationCmds(w *Wallet) []btcjson.Cmd {
+func (l managerLocked) notificationCmds(w *wallet.Wallet) []btcjson.Cmd {
 	n := btcws.NewWalletLockStateNtfn("", bool(l))
 	return []btcjson.Cmd{n}
 }
 
-func (b confirmedBalance) notificationCmds(w *Wallet) []btcjson.Cmd {
+func (b confirmedBalance) notificationCmds(w *wallet.Wallet) []btcjson.Cmd {
 	n := btcws.NewAccountBalanceNtfn("",
 		btcutil.Amount(b).ToBTC(), true)
 	return []btcjson.Cmd{n}
 }
 
-func (b unconfirmedBalance) notificationCmds(w *Wallet) []btcjson.Cmd {
+func (b unconfirmedBalance) notificationCmds(w *wallet.Wallet) []btcjson.Cmd {
 	n := btcws.NewAccountBalanceNtfn("",
 		btcutil.Amount(b).ToBTC(), false)
 	return []btcjson.Cmd{n}
 }
 
-func (b btcdConnected) notificationCmds(w *Wallet) []btcjson.Cmd {
+func (b btcdConnected) notificationCmds(w *wallet.Wallet) []btcjson.Cmd {
 	n := btcws.NewBtcdConnectedNtfn(bool(b))
 	return []btcjson.Cmd{n}
 }
@@ -1325,7 +1326,7 @@ out:
 // or any of the above special error classes, the server will respond with
 // the JSON-RPC appropiate error code.  All other errors use the wallet
 // catch-all error code, btcjson.ErrWallet.Code.
-type requestHandler func(*Wallet, *chain.Client, btcjson.Cmd) (interface{}, error)
+type requestHandler func(*wallet.Wallet, *chain.Client, btcjson.Cmd) (interface{}, error)
 
 var rpcHandlers = map[string]requestHandler{
 	// Reference implementation wallet methods (implemented)
@@ -1396,13 +1397,13 @@ var rpcHandlers = map[string]requestHandler{
 
 // Unimplemented handles an unimplemented RPC request with the
 // appropiate error.
-func Unimplemented(*Wallet, *chain.Client, btcjson.Cmd) (interface{}, error) {
+func Unimplemented(*wallet.Wallet, *chain.Client, btcjson.Cmd) (interface{}, error) {
 	return nil, btcjson.ErrUnimplemented
 }
 
 // Unsupported handles a standard bitcoind RPC request which is
 // unsupported by btcwallet due to design differences.
-func Unsupported(*Wallet, *chain.Client, btcjson.Cmd) (interface{}, error) {
+func Unsupported(*wallet.Wallet, *chain.Client, btcjson.Cmd) (interface{}, error) {
 	return nil, btcjson.Error{
 		Code:    -1,
 		Message: "Request unsupported by btcwallet",
@@ -1411,14 +1412,14 @@ func Unsupported(*Wallet, *chain.Client, btcjson.Cmd) (interface{}, error) {
 
 // UnloadedWallet is the handler func that is run when a wallet has not been
 // loaded yet when trying to execute a wallet RPC.
-func UnloadedWallet(*Wallet, *chain.Client, btcjson.Cmd) (interface{}, error) {
+func UnloadedWallet(*wallet.Wallet, *chain.Client, btcjson.Cmd) (interface{}, error) {
 	return nil, ErrUnloadedWallet
 }
 
 // NoEncryptedWallet is the handler func that is run when no wallet has been
 // created by the user yet.
 // loaded yet when trying to execute a wallet RPC.
-func NoEncryptedWallet(*Wallet, *chain.Client, btcjson.Cmd) (interface{}, error) {
+func NoEncryptedWallet(*wallet.Wallet, *chain.Client, btcjson.Cmd) (interface{}, error) {
 	return nil, btcjson.Error{
 		Code: btcjson.ErrWallet.Code,
 		Message: "Request requires a wallet but no wallet has been " +
@@ -1519,7 +1520,7 @@ func jsonError(err error) *btcjson.Error {
 // AddMultiSig and CreateMultiSig.
 // all error codes are rpc parse error here to match bitcoind which just throws
 // a runtime exception. *sigh*.
-func makeMultiSigScript(w *Wallet, keys []string, nRequired int) ([]byte, error) {
+func makeMultiSigScript(w *wallet.Wallet, keys []string, nRequired int) ([]byte, error) {
 	keysesPrecious := make([]*btcutil.AddressPubKey, len(keys))
 
 	// The address list will made up either of addreseses (pubkey hash), for
@@ -1562,7 +1563,7 @@ func makeMultiSigScript(w *Wallet, keys []string, nRequired int) ([]byte, error)
 
 // AddMultiSigAddress handles an addmultisigaddress request by adding a
 // multisig address to the given wallet.
-func AddMultiSigAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func AddMultiSigAddress(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.AddMultisigAddressCmd)
 
 	err := checkDefaultAccount(cmd.Account)
@@ -1591,7 +1592,7 @@ func AddMultiSigAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (in
 
 // CreateMultiSig handles an createmultisig request by returning a
 // multisig address for the given inputs.
-func CreateMultiSig(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func CreateMultiSig(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.CreateMultisigCmd)
 
 	script, err := makeMultiSigScript(w, cmd.Keys, cmd.NRequired)
@@ -1614,7 +1615,7 @@ func CreateMultiSig(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interf
 // DumpPrivKey handles a dumpprivkey request with the private key
 // for a single address, or an appropiate error if the wallet
 // is locked.
-func DumpPrivKey(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func DumpPrivKey(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.DumpPrivKeyCmd)
 
 	addr, err := btcutil.DecodeAddress(cmd.Address, activeNet.Params)
@@ -1634,7 +1635,7 @@ func DumpPrivKey(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface
 // DumpWallet handles a dumpwallet request by returning  all private
 // keys in a wallet, or an appropiate error if the wallet is locked.
 // TODO: finish this to match bitcoind by writing the dump to a file.
-func DumpWallet(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func DumpWallet(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	keys, err := w.DumpPrivKeys()
 	if isManagerLockedError(err) {
 		return nil, btcjson.ErrWalletUnlockNeeded
@@ -1648,7 +1649,7 @@ func DumpWallet(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{
 // returning  base64-encoding of serialized account files.
 //
 // TODO: remove Download from the command, this always assumes download now.
-func ExportWatchingWallet(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func ExportWatchingWallet(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcws.ExportWatchingWalletCmd)
 
 	err := checkAccountName(cmd.Account)
@@ -1656,13 +1657,13 @@ func ExportWatchingWallet(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (
 		return nil, err
 	}
 
-	return w.ExportWatchingWallet()
+	return w.ExportWatchingWallet(cfg.WalletPass)
 }
 
 // GetAddressesByAccount handles a getaddressesbyaccount request by returning
 // all addresses for an account, or an error if the requested account does
 // not exist.
-func GetAddressesByAccount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetAddressesByAccount(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.GetAddressesByAccountCmd)
 
 	account, err := w.Manager.LookupAccount(cmd.Account)
@@ -1686,7 +1687,7 @@ func GetAddressesByAccount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd)
 // GetBalance handles a getbalance request by returning the balance for an
 // account (wallet), or an error if the requested account does not
 // exist.
-func GetBalance(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetBalance(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.GetBalanceCmd)
 
 	var balance btcutil.Amount
@@ -1709,7 +1710,7 @@ func GetBalance(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{
 
 // GetBestBlock handles a getbestblock request by returning a JSON object
 // with the height and hash of the most recently processed block.
-func GetBestBlock(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetBestBlock(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	blk := w.Manager.SyncedTo()
 	result := &btcws.GetBestBlockResult{
 		Hash:   blk.Hash.String(),
@@ -1720,14 +1721,14 @@ func GetBestBlock(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interfac
 
 // GetBestBlockHash handles a getbestblockhash request by returning the hash
 // of the most recently processed block.
-func GetBestBlockHash(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetBestBlockHash(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	blk := w.Manager.SyncedTo()
 	return blk.Hash.String(), nil
 }
 
 // GetBlockCount handles a getblockcount request by returning the chain height
 // of the most recently processed block.
-func GetBlockCount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetBlockCount(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	blk := w.Manager.SyncedTo()
 	return blk.Height, nil
 }
@@ -1735,7 +1736,7 @@ func GetBlockCount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interfa
 // GetInfo handles a getinfo request by returning the a structure containing
 // information about the current state of btcwallet.
 // exist.
-func GetInfo(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetInfo(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	// Call down to btcd for all of the information in this command known
 	// by them.
 	info, err := chainSvr.GetInfo()
@@ -1766,7 +1767,7 @@ func GetInfo(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{},
 
 // GetAccount handles a getaccount request by returning the account name
 // associated with a single address.
-func GetAccount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetAccount(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.GetAccountCmd)
 
 	// Is address valid?
@@ -1794,7 +1795,7 @@ func GetAccount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{
 // If the most recently-requested address has been used, a new address (the
 // next chained address in the keypool) is used.  This can fail if the keypool
 // runs out (and will return btcjson.ErrWalletKeypoolRanOut if that happens).
-func GetAccountAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetAccountAddress(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.GetAccountAddressCmd)
 
 	account, err := w.Manager.LookupAccount(cmd.Account)
@@ -1811,7 +1812,7 @@ func GetAccountAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (int
 
 // GetUnconfirmedBalance handles a getunconfirmedbalance extension request
 // by returning the current unconfirmed balance of an account.
-func GetUnconfirmedBalance(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetUnconfirmedBalance(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcws.GetUnconfirmedBalanceCmd)
 
 	account, err := w.Manager.LookupAccount(cmd.Account)
@@ -1833,7 +1834,7 @@ func GetUnconfirmedBalance(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd)
 
 // ImportPrivKey handles an importprivkey request by parsing
 // a WIF-encoded private key and adding it to an account.
-func ImportPrivKey(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func ImportPrivKey(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.ImportPrivKeyCmd)
 
 	// Yes, Label is the account name...
@@ -1862,14 +1863,14 @@ func ImportPrivKey(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interfa
 
 // KeypoolRefill handles the keypoolrefill command. Since we handle the keypool
 // automatically this does nothing since refilling is never manually required.
-func KeypoolRefill(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func KeypoolRefill(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	return nil, nil
 }
 
 // CreateNewAccount handles a createnewaccount request by creating and
 // returning a new account. If the last account has no transaction history
 // as per BIP 0044 a new account cannot be created so an error will be returned.
-func CreateNewAccount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func CreateNewAccount(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcws.CreateNewAccountCmd)
 
 	// Check that we are within the maximum allowed non-empty accounts limit.
@@ -1897,7 +1898,7 @@ func CreateNewAccount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (inte
 
 // RenameAccount handles a renameaccount request by renaming an account.
 // If the account does not exist an appropiate error will be returned.
-func RenameAccount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func RenameAccount(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcws.RenameAccountCmd)
 	// Check that given account exists
 	account, err := w.Manager.LookupAccount(cmd.OldAccount)
@@ -1912,7 +1913,7 @@ func RenameAccount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interfa
 // error is returned.
 // TODO: Follow BIP 0044 and warn if number of unused addresses exceeds
 // the gap limit.
-func GetNewAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetNewAddress(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.GetNewAddressCmd)
 
 	account, err := w.Manager.LookupAccount(cmd.Account)
@@ -1934,7 +1935,7 @@ func GetNewAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interfa
 //
 // Note: bitcoind allows specifying the account as an optional parameter,
 // but ignores the parameter.
-func GetRawChangeAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetRawChangeAddress(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.GetRawChangeAddressCmd)
 	account, err := w.Manager.LookupAccount(cmd.Account)
 	if err != nil {
@@ -1951,7 +1952,7 @@ func GetRawChangeAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (i
 
 // GetReceivedByAccount handles a getreceivedbyaccount request by returning
 // the total amount received by addresses of an account.
-func GetReceivedByAccount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetReceivedByAccount(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.GetReceivedByAccountCmd)
 
 	account, err := w.Manager.LookupAccount(cmd.Account)
@@ -1969,7 +1970,7 @@ func GetReceivedByAccount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (
 
 // GetReceivedByAddress handles a getreceivedbyaddress request by returning
 // the total amount received by a single address.
-func GetReceivedByAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetReceivedByAddress(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.GetReceivedByAddressCmd)
 
 	addr, err := btcutil.DecodeAddress(cmd.Address, activeNet.Params)
@@ -1986,7 +1987,7 @@ func GetReceivedByAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (
 
 // GetTransaction handles a gettransaction request by returning details about
 // a single transaction saved by wallet.
-func GetTransaction(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func GetTransaction(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.GetTransactionCmd)
 
 	txSha, err := wire.NewShaHashFromStr(cmd.Txid)
@@ -2089,7 +2090,7 @@ func GetTransaction(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interf
 
 // ListAccounts handles a listaccounts request by returning a map of account
 // names to their balances.
-func ListAccounts(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func ListAccounts(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.ListAccountsCmd)
 
 	accountBalances := map[string]float64{}
@@ -2114,7 +2115,7 @@ func ListAccounts(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interfac
 
 // ListLockUnspent handles a listlockunspent request by returning an slice of
 // all locked outpoints.
-func ListLockUnspent(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func ListLockUnspent(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	return w.LockedOutpoints(), nil
 }
 
@@ -2128,7 +2129,7 @@ func ListLockUnspent(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (inter
 //             default: one;
 //  "includeempty": whether or not to include addresses that have no transactions -
 //                  default: false.
-func ListReceivedByAccount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func ListReceivedByAccount(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.ListReceivedByAccountCmd)
 
 	accounts, err := w.Manager.AllAccounts()
@@ -2166,7 +2167,7 @@ func ListReceivedByAccount(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd)
 //             default: one;
 //  "includeempty": whether or not to include addresses that have no transactions -
 //                  default: false.
-func ListReceivedByAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func ListReceivedByAddress(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.ListReceivedByAddressCmd)
 
 	// Intermediate data for each address.
@@ -2247,7 +2248,7 @@ func ListReceivedByAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd)
 
 // ListSinceBlock handles a listsinceblock request by returning an array of maps
 // with details of sent and received wallet transactions since the given block.
-func ListSinceBlock(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func ListSinceBlock(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.ListSinceBlockCmd)
 
 	height := int32(-1)
@@ -2291,7 +2292,7 @@ func ListSinceBlock(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interf
 
 // ListTransactions handles a listtransactions request by returning an
 // array of maps with details of sent and recevied wallet transactions.
-func ListTransactions(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func ListTransactions(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.ListTransactionsCmd)
 
 	if cmd.Account != nil {
@@ -2309,7 +2310,7 @@ func ListTransactions(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (inte
 // transactions.  The form of the reply is identical to listtransactions,
 // but the array elements are limited to transaction details which are
 // about the addresess included in the request.
-func ListAddressTransactions(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func ListAddressTransactions(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcws.ListAddressTransactionsCmd)
 
 	err := checkAccountName(cmd.Account)
@@ -2338,7 +2339,7 @@ func ListAddressTransactions(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd
 // a map with details of sent and recevied wallet transactions.  This is
 // similar to ListTransactions, except it takes only a single optional
 // argument for the account name and replies with all transactions.
-func ListAllTransactions(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func ListAllTransactions(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcws.ListAllTransactionsCmd)
 
 	if cmd.Account != nil {
@@ -2352,7 +2353,7 @@ func ListAllTransactions(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (i
 }
 
 // ListUnspent handles the listunspent command.
-func ListUnspent(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func ListUnspent(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.ListUnspentCmd)
 
 	addresses := make(map[string]bool)
@@ -2376,7 +2377,7 @@ func ListUnspent(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface
 }
 
 // LockUnspent handles the lockunspent command.
-func LockUnspent(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func LockUnspent(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.LockUnspentCmd)
 
 	switch {
@@ -2401,7 +2402,7 @@ func LockUnspent(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface
 
 // sendPairs is a helper routine to reduce duplicated code when creating and
 // sending payment transactions.
-func sendPairs(w *Wallet, chainSvr *chain.Client, cmd btcjson.Cmd,
+func sendPairs(w *wallet.Wallet, chainSvr *chain.Client, cmd btcjson.Cmd,
 	amounts map[string]btcutil.Amount, account uint32, minconf int) (interface{}, error) {
 
 	// Create transaction, replying with an error if the creation
@@ -2409,7 +2410,7 @@ func sendPairs(w *Wallet, chainSvr *chain.Client, cmd btcjson.Cmd,
 	createdTx, err := w.CreateSimpleTx(account, amounts, minconf)
 	if err != nil {
 		switch {
-		case err == ErrNonPositiveAmount:
+		case err == wallet.ErrNonPositiveAmount:
 			return nil, ErrNeedPositiveAmount
 		case isManagerLockedError(err):
 			return nil, btcjson.ErrWalletUnlockNeeded
@@ -2419,7 +2420,7 @@ func sendPairs(w *Wallet, chainSvr *chain.Client, cmd btcjson.Cmd,
 	}
 
 	// Add to transaction store.
-	txr, err := w.TxStore.InsertTx(createdTx.tx, nil)
+	txr, err := w.TxStore.InsertTx(createdTx.Tx, nil)
 	if err != nil {
 		log.Errorf("Error adding sent tx history: %v", err)
 		return nil, btcjson.ErrInternal
@@ -2429,8 +2430,8 @@ func sendPairs(w *Wallet, chainSvr *chain.Client, cmd btcjson.Cmd,
 		log.Errorf("Error adding sent tx history: %v", err)
 		return nil, btcjson.ErrInternal
 	}
-	if createdTx.changeIndex >= 0 {
-		_, err = txr.AddCredit(uint32(createdTx.changeIndex), true)
+	if createdTx.ChangeIndex >= 0 {
+		_, err = txr.AddCredit(uint32(createdTx.ChangeIndex), true)
 		if err != nil {
 			log.Errorf("Error adding change address for sent "+
 				"tx: %v", err)
@@ -2439,7 +2440,7 @@ func sendPairs(w *Wallet, chainSvr *chain.Client, cmd btcjson.Cmd,
 	}
 	w.TxStore.MarkDirty()
 
-	txSha, err := chainSvr.SendRawTransaction(createdTx.tx.MsgTx(), false)
+	txSha, err := chainSvr.SendRawTransaction(createdTx.Tx.MsgTx(), false)
 	if err != nil {
 		return nil, err
 	}
@@ -2452,7 +2453,7 @@ func sendPairs(w *Wallet, chainSvr *chain.Client, cmd btcjson.Cmd,
 // address.  Leftover inputs not sent to the payment address or a fee for
 // the miner are sent back to a new address in the wallet.  Upon success,
 // the TxID for the created transaction is returned.
-func SendFrom(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func SendFrom(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.SendFromCmd)
 
 	account, err := w.Manager.LookupAccount(cmd.FromAccount)
@@ -2480,7 +2481,7 @@ func SendFrom(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{},
 // payment addresses.  Leftover inputs not sent to the payment address
 // or a fee for the miner are sent back to a new address in the wallet.
 // Upon success, the TxID for the created transaction is returned.
-func SendMany(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func SendMany(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.SendManyCmd)
 
 	account, err := w.Manager.LookupAccount(cmd.FromAccount)
@@ -2507,7 +2508,7 @@ func SendMany(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{},
 // payment address.  Leftover inputs not sent to the payment address or a fee
 // for the miner are sent back to a new address in the wallet.  Upon success,
 // the TxID for the created transaction is returned.
-func SendToAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func SendToAddress(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.SendToAddressCmd)
 
 	// Check that signed integer parameters are positive.
@@ -2525,7 +2526,7 @@ func SendToAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interfa
 }
 
 // SetTxFee sets the transaction fee per kilobyte added to transactions.
-func SetTxFee(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func SetTxFee(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.SetTxFeeCmd)
 
 	// Check that amount is not negative.
@@ -2541,7 +2542,7 @@ func SetTxFee(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{},
 
 // SignMessage signs the given message with the private key for the given
 // address
-func SignMessage(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func SignMessage(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.SignMessageCmd)
 
 	addr, err := btcutil.DecodeAddress(cmd.Address, activeNet.Params)
@@ -2578,7 +2579,7 @@ type pendingTx struct {
 }
 
 // SignRawTransaction handles the signrawtransaction command.
-func SignRawTransaction(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func SignRawTransaction(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.SignRawTransactionCmd)
 
 	serializedTx, err := decodeHexStr(cmd.RawTx)
@@ -2852,7 +2853,7 @@ func SignRawTransaction(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (in
 }
 
 // ValidateAddress handles the validateaddress command.
-func ValidateAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func ValidateAddress(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.ValidateAddressCmd)
 
 	result := btcjson.ValidateAddressResult{}
@@ -2933,7 +2934,7 @@ func ValidateAddress(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (inter
 
 // VerifyMessage handles the verifymessage command by verifying the provided
 // compact signature for the given address and message.
-func VerifyMessage(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func VerifyMessage(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.VerifyMessageCmd)
 
 	addr, err := btcutil.DecodeAddress(cmd.Address, activeNet.Params)
@@ -2976,14 +2977,14 @@ func VerifyMessage(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interfa
 // WalletIsLocked handles the walletislocked extension request by
 // returning the current lock state (false for unlocked, true for locked)
 // of an account.
-func WalletIsLocked(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func WalletIsLocked(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	return w.Locked(), nil
 }
 
 // WalletLock handles a walletlock request by locking the all account
 // wallets, returning an error if any wallet is not encrypted (for example,
 // a watching-only wallet).
-func WalletLock(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func WalletLock(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	w.Lock()
 	return nil, nil
 }
@@ -2991,7 +2992,7 @@ func WalletLock(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{
 // WalletPassphrase responds to the walletpassphrase request by unlocking
 // the wallet.  The decryption key is saved in the wallet until timeout
 // seconds expires, after which the wallet is locked.
-func WalletPassphrase(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func WalletPassphrase(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.WalletPassphraseCmd)
 
 	timeout := time.Second * time.Duration(cmd.Timeout)
@@ -3006,7 +3007,7 @@ func WalletPassphrase(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (inte
 //
 // If the old passphrase is correct and the passphrase is changed, all
 // wallets will be immediately locked.
-func WalletPassphraseChange(w *Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
+func WalletPassphraseChange(w *wallet.Wallet, chainSvr *chain.Client, icmd btcjson.Cmd) (interface{}, error) {
 	cmd := icmd.(*btcjson.WalletPassphraseChangeCmd)
 
 	err := w.ChangePassphrase([]byte(cmd.OldPassphrase),
diff --git a/wallet/README.md b/wallet/README.md
new file mode 100644
index 0000000..196920c
--- /dev/null
+++ b/wallet/README.md
@@ -0,0 +1,31 @@
+wallet
+======
+
+[![Build Status](https://travis-ci.org/btcsuite/btcwallet.png?branch=master)]
+(https://travis-ci.org/btcsuite/btcwallet)
+
+## Feature Overview
+
+TODO: Flesh out this section
+
+## Documentation
+
+[![GoDoc](https://godoc.org/github.com/btcsuite/btcwallet/wallet?status.png)]
+(http://godoc.org/github.com/btcsuite/btcwallet/wallet)
+
+Full `go doc` style documentation for the project can be viewed online without
+installing this package by using the GoDoc site here:
+http://godoc.org/github.com/btcsuite/btcwallet/wallet
+
+You can also view the documentation locally once the package is installed with
+the `godoc` tool by running `godoc -http=":6060"` and pointing your browser to
+http://localhost:6060/pkg/github.com/btcsuite/btcwallet/wallet
+
+## Installation
+
+```bash
+$ go get github.com/btcsuite/btcwallet/wallet
+```
+
+Package wallet is licensed under the [copyfree](http://copyfree.org) ISC
+License.
diff --git a/chainntfns.go b/wallet/chainntfns.go
similarity index 99%
rename from chainntfns.go
rename to wallet/chainntfns.go
index 1f0e7f4..3d9b8be 100644
--- a/chainntfns.go
+++ b/wallet/chainntfns.go
@@ -14,7 +14,7 @@
  * OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
  */
 
-package main
+package wallet
 
 import (
 	"github.com/btcsuite/btcd/txscript"
@@ -120,7 +120,7 @@ func (w *Wallet) addReceivedTx(tx *btcutil.Tx, block *txstore.Block) error {
 		// Errors don't matter here.  If addrs is nil, the range below
 		// does nothing.
 		_, addrs, _, _ := txscript.ExtractPkScriptAddrs(txOut.PkScript,
-			activeNet.Params)
+			w.chainParams)
 		insert := false
 		for _, addr := range addrs {
 			_, err := w.Manager.Address(addr)
diff --git a/wallet/config.go b/wallet/config.go
new file mode 100644
index 0000000..530985f
--- /dev/null
+++ b/wallet/config.go
@@ -0,0 +1,33 @@
+/*
+ * Copyright (c) 2015 Conformal Systems LLC <info@conformal.com>
+ *
+ * Permission to use, copy, modify, and distribute this software for any
+ * purpose with or without fee is hereby granted, provided that the above
+ * copyright notice and this permission notice appear in all copies.
+ *
+ * THE SOFTWARE IS PROVIDED "AS IS" AND THE AUTHOR DISCLAIMS ALL WARRANTIES
+ * WITH REGARD TO THIS SOFTWARE INCLUDING ALL IMPLIED WARRANTIES OF
+ * MERCHANTABILITY AND FITNESS. IN NO EVENT SHALL THE AUTHOR BE LIABLE FOR
+ * ANY SPECIAL, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES
+ * WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN
+ * ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF
+ * OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
+ */
+
+package wallet
+
+import (
+	"github.com/btcsuite/btcd/chaincfg"
+	"github.com/btcsuite/btcwallet/txstore"
+	"github.com/btcsuite/btcwallet/waddrmgr"
+	"github.com/btcsuite/btcwallet/walletdb"
+)
+
+// Config is a structure used to initialize a Wallet
+// All values are required for successfully opening a Wallet
+type Config struct {
+	ChainParams *chaincfg.Params
+	Db          *walletdb.DB
+	TxStore     *txstore.Store
+	Waddrmgr    *waddrmgr.Manager
+}
diff --git a/createtx.go b/wallet/createtx.go
similarity index 92%
rename from createtx.go
rename to wallet/createtx.go
index 61daad0..17df4be 100644
--- a/createtx.go
+++ b/wallet/createtx.go
@@ -14,7 +14,7 @@
  * OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
  */
 
-package main
+package wallet
 
 import (
 	"errors"
@@ -24,6 +24,7 @@ import (
 	"time"
 
 	"github.com/btcsuite/btcd/blockchain"
+	"github.com/btcsuite/btcd/chaincfg"
 	"github.com/btcsuite/btcd/txscript"
 	"github.com/btcsuite/btcd/wire"
 	"github.com/btcsuite/btcutil"
@@ -108,9 +109,9 @@ const defaultFeeIncrement = 1e3
 // CreatedTx holds the state of a newly-created transaction and the change
 // output (if one was added).
 type CreatedTx struct {
-	tx          *btcutil.Tx
-	changeAddr  btcutil.Address
-	changeIndex int // negative if no change
+	Tx          *btcutil.Tx
+	ChangeAddr  btcutil.Address
+	ChangeIndex int // negative if no change
 }
 
 // ByAmount defines the methods needed to satisify sort.Interface to
@@ -150,7 +151,7 @@ func (w *Wallet) txToPairs(pairs map[string]btcutil.Amount, account uint32, minc
 		return nil, err
 	}
 
-	return createTx(eligible, pairs, bs, w.FeeIncrement, w.Manager, account, w.NewChangeAddress)
+	return createTx(eligible, pairs, bs, w.FeeIncrement, w.Manager, account, w.NewChangeAddress, w.chainParams, w.DisallowFree)
 }
 
 // createTx selects inputs (from the given slice of eligible utxos)
@@ -158,18 +159,14 @@ func (w *Wallet) txToPairs(pairs map[string]btcutil.Amount, account uint32, minc
 // the mining fee. It then creates and returns a CreatedTx containing
 // the selected inputs and the given outputs, validating it (using
 // validateMsgTx) as well.
-func createTx(
-	eligible []txstore.Credit,
-	outputs map[string]btcutil.Amount,
-	bs *waddrmgr.BlockStamp,
-	feeIncrement btcutil.Amount,
-	mgr *waddrmgr.Manager,
-	account uint32,
-	changeAddress func(account uint32) (btcutil.Address, error)) (
-	*CreatedTx, error) {
+func createTx(eligible []txstore.Credit,
+	outputs map[string]btcutil.Amount, bs *waddrmgr.BlockStamp,
+	feeIncrement btcutil.Amount, mgr *waddrmgr.Manager, account uint32,
+	changeAddress func(account uint32) (btcutil.Address, error),
+	chainParams *chaincfg.Params, disallowFree bool) (*CreatedTx, error) {
 
 	msgtx := wire.NewMsgTx()
-	minAmount, err := addOutputs(msgtx, outputs)
+	minAmount, err := addOutputs(msgtx, outputs, chainParams)
 	if err != nil {
 		return nil, err
 	}
@@ -196,7 +193,7 @@ func createTx(
 	// Get an initial fee estimate based on the number of selected inputs
 	// and added outputs, with no change.
 	szEst := estimateTxSize(len(inputs), len(msgtx.TxOut))
-	feeEst := minimumFee(feeIncrement, szEst, msgtx.TxOut, inputs, bs.Height)
+	feeEst := minimumFee(feeIncrement, szEst, msgtx.TxOut, inputs, bs.Height, disallowFree)
 
 	// Now make sure the sum amount of all our inputs is enough for the
 	// sum amount of all outputs plus the fee. If necessary we add more,
@@ -210,7 +207,7 @@ func createTx(
 		msgtx.AddTxIn(wire.NewTxIn(input.OutPoint(), nil))
 		szEst += txInEstimate
 		totalAdded += input.Amount()
-		feeEst = minimumFee(feeIncrement, szEst, msgtx.TxOut, inputs, bs.Height)
+		feeEst = minimumFee(feeIncrement, szEst, msgtx.TxOut, inputs, bs.Height, disallowFree)
 	}
 
 	var changeAddr btcutil.Address
@@ -233,7 +230,7 @@ func createTx(
 			}
 		}
 
-		if err = signMsgTx(msgtx, inputs, mgr); err != nil {
+		if err = signMsgTx(msgtx, inputs, mgr, chainParams); err != nil {
 			return nil, err
 		}
 
@@ -261,7 +258,7 @@ func createTx(
 			msgtx.AddTxIn(wire.NewTxIn(input.OutPoint(), nil))
 			szEst += txInEstimate
 			totalAdded += input.Amount()
-			feeEst = minimumFee(feeIncrement, szEst, msgtx.TxOut, inputs, bs.Height)
+			feeEst = minimumFee(feeIncrement, szEst, msgtx.TxOut, inputs, bs.Height, disallowFree)
 		}
 	}
 
@@ -270,9 +267,9 @@ func createTx(
 	}
 
 	info := &CreatedTx{
-		tx:          btcutil.NewTx(msgtx),
-		changeAddr:  changeAddr,
-		changeIndex: changeIdx,
+		Tx:          btcutil.NewTx(msgtx),
+		ChangeAddr:  changeAddr,
+		ChangeIndex: changeIdx,
 	}
 	return info, nil
 }
@@ -296,14 +293,14 @@ func addChange(msgtx *wire.MsgTx, change btcutil.Amount, changeAddr btcutil.Addr
 
 // addOutputs adds the given address/amount pairs as outputs to msgtx,
 // returning their total amount.
-func addOutputs(msgtx *wire.MsgTx, pairs map[string]btcutil.Amount) (btcutil.Amount, error) {
+func addOutputs(msgtx *wire.MsgTx, pairs map[string]btcutil.Amount, chainParams *chaincfg.Params) (btcutil.Amount, error) {
 	var minAmount btcutil.Amount
 	for addrStr, amt := range pairs {
 		if amt <= 0 {
 			return minAmount, ErrNonPositiveAmount
 		}
 		minAmount += amt
-		addr, err := btcutil.DecodeAddress(addrStr, activeNet.Params)
+		addr, err := btcutil.DecodeAddress(addrStr, chainParams)
 		if err != nil {
 			return minAmount, fmt.Errorf("cannot decode address: %s", err)
 		}
@@ -364,7 +361,7 @@ func (w *Wallet) findEligibleOutputs(account uint32, minconf int, bs *waddrmgr.B
 // signMsgTx sets the SignatureScript for every item in msgtx.TxIn.
 // It must be called every time a msgtx is changed.
 // Only P2PKH outputs are supported at this point.
-func signMsgTx(msgtx *wire.MsgTx, prevOutputs []txstore.Credit, mgr *waddrmgr.Manager) error {
+func signMsgTx(msgtx *wire.MsgTx, prevOutputs []txstore.Credit, mgr *waddrmgr.Manager, chainParams *chaincfg.Params) error {
 	if len(prevOutputs) != len(msgtx.TxIn) {
 		return fmt.Errorf(
 			"Number of prevOutputs (%d) does not match number of tx inputs (%d)",
@@ -373,7 +370,7 @@ func signMsgTx(msgtx *wire.MsgTx, prevOutputs []txstore.Credit, mgr *waddrmgr.Ma
 	for i, output := range prevOutputs {
 		// Errors don't matter here, as we only consider the
 		// case where len(addrs) == 1.
-		_, addrs, _, _ := output.Addresses(activeNet.Params)
+		_, addrs, _, _ := output.Addresses(chainParams)
 		if len(addrs) != 1 {
 			continue
 		}
@@ -425,9 +422,9 @@ func validateMsgTx(msgtx *wire.MsgTx, prevOutputs []txstore.Credit) error {
 // s less than 1 kilobyte and none of the outputs contain a value
 // less than 1 bitcent. Otherwise, the fee will be calculated using
 // incr, incrementing the fee for each kilobyte of transaction.
-func minimumFee(incr btcutil.Amount, txLen int, outputs []*wire.TxOut, prevOutputs []txstore.Credit, height int32) btcutil.Amount {
+func minimumFee(incr btcutil.Amount, txLen int, outputs []*wire.TxOut, prevOutputs []txstore.Credit, height int32, disallowFree bool) btcutil.Amount {
 	allowFree := false
-	if !cfg.DisallowFree {
+	if !disallowFree {
 		allowFree = allowNoFeeTx(height, prevOutputs, txLen)
 	}
 	fee := feeForSize(incr, txLen)
diff --git a/createtx_test.go b/wallet/createtx_test.go
similarity index 92%
rename from createtx_test.go
rename to wallet/createtx_test.go
index b1fb46d..94bc105 100644
--- a/createtx_test.go
+++ b/wallet/createtx_test.go
@@ -1,4 +1,4 @@
-package main
+package wallet
 
 import (
 	"encoding/hex"
@@ -8,6 +8,7 @@ import (
 	"sort"
 	"testing"
 
+	"github.com/btcsuite/btcd/chaincfg"
 	"github.com/btcsuite/btcd/txscript"
 	"github.com/btcsuite/btcd/wire"
 	"github.com/btcsuite/btcutil"
@@ -56,7 +57,7 @@ var fastScrypt = &waddrmgr.Options{
 func Test_addOutputs(t *testing.T) {
 	msgtx := wire.NewMsgTx()
 	pairs := map[string]btcutil.Amount{outAddr1: 10, outAddr2: 1}
-	if _, err := addOutputs(msgtx, pairs); err != nil {
+	if _, err := addOutputs(msgtx, pairs, &chaincfg.TestNet3Params); err != nil {
 		t.Fatal(err)
 	}
 	if len(msgtx.TxOut) != 2 {
@@ -70,11 +71,10 @@ func Test_addOutputs(t *testing.T) {
 }
 
 func TestCreateTx(t *testing.T) {
-	cfg = &config{DisallowFree: false}
 	bs := &waddrmgr.BlockStamp{Height: 11111}
 	mgr := newManager(t, txInfo.privKeys, bs)
 	account := uint32(0)
-	changeAddr, _ := btcutil.DecodeAddress("muqW4gcixv58tVbSKRC5q6CRKy8RmyLgZ5", activeNet.Params)
+	changeAddr, _ := btcutil.DecodeAddress("muqW4gcixv58tVbSKRC5q6CRKy8RmyLgZ5", &chaincfg.TestNet3Params)
 	var tstChangeAddress = func(account uint32) (btcutil.Address, error) {
 		return changeAddr, nil
 	}
@@ -83,17 +83,17 @@ func TestCreateTx(t *testing.T) {
 	eligible := eligibleInputsFromTx(t, txInfo.hex, []uint32{1, 2, 3, 4, 5})
 	// Now create a new TX sending 25e6 satoshis to the following addresses:
 	outputs := map[string]btcutil.Amount{outAddr1: 15e6, outAddr2: 10e6}
-	tx, err := createTx(eligible, outputs, bs, defaultFeeIncrement, mgr, account, tstChangeAddress)
+	tx, err := createTx(eligible, outputs, bs, defaultFeeIncrement, mgr, account, tstChangeAddress, &chaincfg.TestNet3Params, false)
 	if err != nil {
 		t.Fatal(err)
 	}
 
-	if tx.changeAddr.String() != changeAddr.String() {
+	if tx.ChangeAddr.String() != changeAddr.String() {
 		t.Fatalf("Unexpected change address; got %v, want %v",
-			tx.changeAddr.String(), changeAddr.String())
+			tx.ChangeAddr.String(), changeAddr.String())
 	}
 
-	msgTx := tx.tx.MsgTx()
+	msgTx := tx.Tx.MsgTx()
 	if len(msgTx.TxOut) != 3 {
 		t.Fatalf("Unexpected number of outputs; got %d, want 3", len(msgTx.TxOut))
 	}
@@ -121,17 +121,16 @@ func TestCreateTx(t *testing.T) {
 }
 
 func TestCreateTxInsufficientFundsError(t *testing.T) {
-	cfg = &config{DisallowFree: false}
 	outputs := map[string]btcutil.Amount{outAddr1: 10, outAddr2: 1e9}
 	eligible := eligibleInputsFromTx(t, txInfo.hex, []uint32{1})
 	bs := &waddrmgr.BlockStamp{Height: 11111}
 	account := uint32(0)
-	changeAddr, _ := btcutil.DecodeAddress("muqW4gcixv58tVbSKRC5q6CRKy8RmyLgZ5", activeNet.Params)
+	changeAddr, _ := btcutil.DecodeAddress("muqW4gcixv58tVbSKRC5q6CRKy8RmyLgZ5", &chaincfg.TestNet3Params)
 	var tstChangeAddress = func(account uint32) (btcutil.Address, error) {
 		return changeAddr, nil
 	}
 
-	_, err := createTx(eligible, outputs, bs, defaultFeeIncrement, nil, account, tstChangeAddress)
+	_, err := createTx(eligible, outputs, bs, defaultFeeIncrement, nil, account, tstChangeAddress, &chaincfg.TestNet3Params, false)
 
 	if err == nil {
 		t.Error("Expected InsufficientFundsError, got no error")
@@ -144,7 +143,7 @@ func TestCreateTxInsufficientFundsError(t *testing.T) {
 func checkOutputsMatch(t *testing.T, msgtx *wire.MsgTx, expected map[string]btcutil.Amount) {
 	// This is a bit convoluted because the index of the change output is randomized.
 	for addrStr, v := range expected {
-		addr, err := btcutil.DecodeAddress(addrStr, activeNet.Params)
+		addr, err := btcutil.DecodeAddress(addrStr, &chaincfg.TestNet3Params)
 		if err != nil {
 			t.Fatalf("Cannot decode address: %v", err)
 		}
@@ -187,7 +186,7 @@ func newManager(t *testing.T, privKeys []string, bs *waddrmgr.BlockStamp) *waddr
 	pubPassphrase := []byte("pub")
 	privPassphrase := []byte("priv")
 	mgr, err := waddrmgr.Create(namespace, seed, pubPassphrase,
-		privPassphrase, activeNet.Params, fastScrypt)
+		privPassphrase, &chaincfg.TestNet3Params, fastScrypt)
 	if err != nil {
 		t.Fatal(err)
 	}
diff --git a/createtx_test_disabled.go b/wallet/createtx_test_disabled.go
similarity index 99%
rename from createtx_test_disabled.go
rename to wallet/createtx_test_disabled.go
index 5ee5749..11f7b66 100644
--- a/createtx_test_disabled.go
+++ b/wallet/createtx_test_disabled.go
@@ -7,7 +7,7 @@
 //
 // +build ignore
 
-package main
+package wallet
 
 import (
 	"testing"
@@ -19,7 +19,7 @@ import (
 )
 
 func init() {
-	cfg = &config{
+	cfg = &Config{
 		KeypoolSize: 100,
 	}
 }
diff --git a/wallet/disksync.go b/wallet/disksync.go
new file mode 100644
index 0000000..87da801
--- /dev/null
+++ b/wallet/disksync.go
@@ -0,0 +1,43 @@
+/*
+ * Copyright (c) 2015 Conformal Systems LLC <info@conformal.com>
+ *
+ * Permission to use, copy, modify, and distribute this software for any
+ * purpose with or without fee is hereby granted, provided that the above
+ * copyright notice and this permission notice appear in all copies.
+ *
+ * THE SOFTWARE IS PROVIDED "AS IS" AND THE AUTHOR DISCLAIMS ALL WARRANTIES
+ * WITH REGARD TO THIS SOFTWARE INCLUDING ALL IMPLIED WARRANTIES OF
+ * MERCHANTABILITY AND FITNESS. IN NO EVENT SHALL THE AUTHOR BE LIABLE FOR
+ * ANY SPECIAL, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES
+ * WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN
+ * ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF
+ * OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
+ */
+
+package wallet
+
+import (
+	"fmt"
+	"os"
+)
+
+// checkCreateDir checks that the path exists and is a directory.
+// If path does not exist, it is created.
+func checkCreateDir(path string) error {
+	if fi, err := os.Stat(path); err != nil {
+		if os.IsNotExist(err) {
+			// Attempt data directory creation
+			if err = os.MkdirAll(path, 0700); err != nil {
+				return fmt.Errorf("cannot create directory: %s", err)
+			}
+		} else {
+			return fmt.Errorf("error checking directory: %s", err)
+		}
+	} else {
+		if !fi.IsDir() {
+			return fmt.Errorf("path '%s' is not a directory", path)
+		}
+	}
+
+	return nil
+}
diff --git a/wallet/doc.go b/wallet/doc.go
new file mode 100644
index 0000000..198a33b
--- /dev/null
+++ b/wallet/doc.go
@@ -0,0 +1,24 @@
+/*
+ * Copyright (c) 2015 Conformal Systems LLC <info@conformal.com>
+ *
+ * Permission to use, copy, modify, and distribute this software for any
+ * purpose with or without fee is hereby granted, provided that the above
+ * copyright notice and this permission notice appear in all copies.
+ *
+ * THE SOFTWARE IS PROVIDED "AS IS" AND THE AUTHOR DISCLAIMS ALL WARRANTIES
+ * WITH REGARD TO THIS SOFTWARE INCLUDING ALL IMPLIED WARRANTIES OF
+ * MERCHANTABILITY AND FITNESS. IN NO EVENT SHALL THE AUTHOR BE LIABLE FOR
+ * ANY SPECIAL, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES
+ * WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN
+ * ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF
+ * OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
+ */
+
+/*
+Package wallet provides ...
+TODO: Flesh out this section
+
+Overview
+
+*/
+package wallet
diff --git a/wallet/log.go b/wallet/log.go
new file mode 100644
index 0000000..cd3dd95
--- /dev/null
+++ b/wallet/log.go
@@ -0,0 +1,68 @@
+/*
+ * Copyright (c) 2015 Conformal Systems LLC <info@conformal.com>
+ *
+ * Permission to use, copy, modify, and distribute this software for any
+ * purpose with or without fee is hereby granted, provided that the above
+ * copyright notice and this permission notice appear in all copies.
+ *
+ * THE SOFTWARE IS PROVIDED "AS IS" AND THE AUTHOR DISCLAIMS ALL WARRANTIES
+ * WITH REGARD TO THIS SOFTWARE INCLUDING ALL IMPLIED WARRANTIES OF
+ * MERCHANTABILITY AND FITNESS. IN NO EVENT SHALL THE AUTHOR BE LIABLE FOR
+ * ANY SPECIAL, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES
+ * WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN
+ * ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF
+ * OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
+ */
+
+package wallet
+
+import "github.com/btcsuite/btclog"
+
+// log is a logger that is initialized with no output filters.  This
+// means the package will not perform any logging by default until the caller
+// requests it.
+var log btclog.Logger
+
+// The default amount of logging is none.
+func init() {
+	DisableLog()
+}
+
+// DisableLog disables all library log output.  Logging output is disabled
+// by default until either UseLogger or SetLogWriter are called.
+func DisableLog() {
+	log = btclog.Disabled
+}
+
+// UseLogger uses a specified Logger to output package logging info.
+// This should be used in preference to SetLogWriter if the caller is also
+// using btclog.
+func UseLogger(logger btclog.Logger) {
+	log = logger
+}
+
+// LogClosure is a closure that can be printed with %v to be used to
+// generate expensive-to-create data for a detailed log level and avoid doing
+// the work if the data isn't printed.
+type logClosure func() string
+
+// String invokes the log closure and returns the results string.
+func (c logClosure) String() string {
+	return c()
+}
+
+// newLogClosure returns a new closure over the passed function which allows
+// it to be used as a parameter in a logging function that is only invoked when
+// the logging level is such that the message will actually be logged.
+func newLogClosure(c func() string) logClosure {
+	return logClosure(c)
+}
+
+// pickNoun returns the singular or plural form of a noun depending
+// on the count n.
+func pickNoun(n int, singular, plural string) string {
+	if n == 1 {
+		return singular
+	}
+	return plural
+}
diff --git a/rescan.go b/wallet/rescan.go
similarity index 99%
rename from rescan.go
rename to wallet/rescan.go
index 9269917..b94eea0 100644
--- a/rescan.go
+++ b/wallet/rescan.go
@@ -14,7 +14,7 @@
  * OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
  */
 
-package main
+package wallet
 
 import (
 	"github.com/btcsuite/btcd/wire"
diff --git a/wallet.go b/wallet/wallet.go
similarity index 89%
rename from wallet.go
rename to wallet/wallet.go
index a7027c0..c7609e2 100644
--- a/wallet.go
+++ b/wallet/wallet.go
@@ -14,10 +14,9 @@
  * OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
  */
 
-package main
+package wallet
 
 import (
-	"bufio"
 	"bytes"
 	"encoding/base64"
 	"encoding/hex"
@@ -27,7 +26,6 @@ import (
 	"os"
 	"path/filepath"
 	"sort"
-	"strings"
 	"sync"
 	"time"
 
@@ -36,12 +34,14 @@ import (
 	"github.com/btcsuite/btcd/chaincfg"
 	"github.com/btcsuite/btcd/wire"
 	"github.com/btcsuite/btcutil"
-	"github.com/btcsuite/btcutil/hdkeychain"
 	"github.com/btcsuite/btcwallet/chain"
 	"github.com/btcsuite/btcwallet/txstore"
 	"github.com/btcsuite/btcwallet/waddrmgr"
 	"github.com/btcsuite/btcwallet/walletdb"
-	"github.com/btcsuite/golangcrypto/ssh/terminal"
+)
+
+const (
+	walletDbWatchingOnlyName = "wowallet.db"
 )
 
 // ErrNotSynced describes an error where an operation cannot complete
@@ -54,82 +54,10 @@ var (
 	waddrmgrNamespaceKey = []byte("waddrmgr")
 )
 
-const (
-	// defaultPubPassphrase is the default public wallet passphrase which is
-	// used when the user indicates they do not want additional protection
-	// provided by having all public data in the wallet encrypted by a
-	// passphrase only known to them.
-	defaultPubPassphrase = "public"
+type noopLocker struct{}
 
-	// maxEmptyAccounts is the number of accounts to scan even if they have no
-	// transaction history. This is a deviation from BIP044 to make account
-	// creation more easier by allowing a limited number of empty accounts.
-	maxEmptyAccounts = 100
-)
-
-// promptSeed is used to prompt for the wallet seed which maybe required during
-// upgrades.
-func promptSeed() ([]byte, error) {
-	reader := bufio.NewReader(os.Stdin)
-	for {
-		fmt.Print("Enter existing wallet seed: ")
-		seedStr, err := reader.ReadString('\n')
-		if err != nil {
-			return nil, err
-		}
-		seedStr = strings.TrimSpace(strings.ToLower(seedStr))
-
-		seed, err := hex.DecodeString(seedStr)
-		if err != nil || len(seed) < hdkeychain.MinSeedBytes ||
-			len(seed) > hdkeychain.MaxSeedBytes {
-
-			fmt.Printf("Invalid seed specified.  Must be a "+
-				"hexadecimal value that is at least %d bits and "+
-				"at most %d bits\n", hdkeychain.MinSeedBytes*8,
-				hdkeychain.MaxSeedBytes*8)
-			continue
-		}
-
-		return seed, nil
-	}
-}
-
-// promptPrivPassPhrase is used to prompt for the private passphrase which maybe
-// required during upgrades.
-func promptPrivPassPhrase() ([]byte, error) {
-	prompt := "Enter the private passphrase of your wallet: "
-	for {
-		fmt.Print(prompt)
-		pass, err := terminal.ReadPassword(int(os.Stdin.Fd()))
-		if err != nil {
-			return nil, err
-		}
-		fmt.Print("\n")
-		pass = bytes.TrimSpace(pass)
-		if len(pass) == 0 {
-			continue
-		}
-
-		return pass, nil
-	}
-}
-
-// networkDir returns the directory name of a network directory to hold wallet
-// files.
-func networkDir(dataDir string, chainParams *chaincfg.Params) string {
-	netname := chainParams.Name
-
-	// For now, we must always name the testnet data directory as "testnet"
-	// and not "testnet3" or any other version, as the chaincfg testnet3
-	// paramaters will likely be switched to being named "testnet3" in the
-	// future.  This is done to future proof that change, and an upgrade
-	// plan to move the testnet3 data directory can be worked out later.
-	if chainParams.Net == wire.TestNet3 {
-		netname = "testnet"
-	}
-
-	return filepath.Join(dataDir, netname)
-}
+func (noopLocker) Lock()   {}
+func (noopLocker) Unlock() {}
 
 // Wallet is a structure containing all the components for a
 // complete wallet.  It contains the Armory-style key store
@@ -147,6 +75,7 @@ type Wallet struct {
 
 	lockedOutpoints map[wire.OutPoint]struct{}
 	FeeIncrement    btcutil.Amount
+	DisallowFree    bool
 
 	// Channels for rescan processing.  Requests are added and merged with
 	// any waiting requests, before being sent to another goroutine to
@@ -177,14 +106,17 @@ type Wallet struct {
 	unconfirmedBalance chan btcutil.Amount
 	notificationLock   sync.Locker
 
-	wg   sync.WaitGroup
-	quit chan struct{}
+	chainParams *chaincfg.Params
+	Config      *Config
+	wg          sync.WaitGroup
+	quit        chan struct{}
 }
 
 // newWallet creates a new Wallet structure with the provided address manager
 // and transaction store.
-func newWallet(mgr *waddrmgr.Manager, txs *txstore.Store) *Wallet {
+func newWallet(mgr *waddrmgr.Manager, txs *txstore.Store, db *walletdb.DB) *Wallet {
 	return &Wallet{
+		db:                  *db,
 		Manager:             mgr,
 		TxStore:             txs,
 		chainSvrLock:        new(sync.Mutex),
@@ -231,7 +163,7 @@ func (w *Wallet) updateNotificationLock() {
 // with the given credit.
 // If no account is found, ErrAccountNotFound is returned.
 func (w *Wallet) CreditAccount(c txstore.Credit) (uint32, error) {
-	_, addrs, _, _ := c.Addresses(activeNet.Params)
+	_, addrs, _, _ := c.Addresses(w.chainParams)
 	addr := addrs[0]
 	return w.Manager.AddrAccount(addr)
 }
@@ -328,7 +260,7 @@ func (w *Wallet) markAddrsUsed(t *txstore.TxRecord) error {
 	for _, c := range t.Credits() {
 		// Errors don't matter here.  If addrs is nil, the
 		// range below does nothing.
-		_, addrs, _, _ := c.Addresses(activeNet.Params)
+		_, addrs, _, _ := c.Addresses(w.chainParams)
 		for _, addr := range addrs {
 			addressID := addr.ScriptAddress()
 			if err := w.Manager.MarkUsed(addressID); err != nil {
@@ -942,7 +874,7 @@ func (w *Wallet) ListAddressTransactions(pkHashes map[string]struct{}) (
 		for _, c := range r.Credits() {
 			// We only care about the case where len(addrs) == 1,
 			// and err will never be non-nil in that case.
-			_, addrs, _, _ := c.Addresses(activeNet.Params)
+			_, addrs, _, _ := c.Addresses(w.chainParams)
 			if len(addrs) != 1 {
 				continue
 			}
@@ -1032,7 +964,7 @@ func (w *Wallet) ListUnspent(minconf, maxconf int,
 			return nil, err
 		}
 
-		_, addrs, _, _ := credit.Addresses(activeNet.Params)
+		_, addrs, _, _ := credit.Addresses(w.chainParams)
 		if filter {
 			for _, addr := range addrs {
 				_, ok := addresses[addr.EncodeAddress()]
@@ -1131,7 +1063,7 @@ func (w *Wallet) ImportPrivateKey(wif *btcutil.WIF, bs *waddrmgr.BlockStamp,
 	// specified.
 	if bs == nil {
 		bs = &waddrmgr.BlockStamp{
-			Hash:   *activeNet.Params.GenesisHash,
+			Hash:   *w.chainParams.GenesisHash,
 			Height: 0,
 		}
 	}
@@ -1167,7 +1099,7 @@ func (w *Wallet) ImportPrivateKey(wif *btcutil.WIF, bs *waddrmgr.BlockStamp,
 
 // ExportWatchingWallet returns a watching-only version of the wallet serialized
 // in a map.
-func (w *Wallet) ExportWatchingWallet() (map[string]string, error) {
+func (w *Wallet) ExportWatchingWallet(pubPass string) (map[string]string, error) {
 	tmpDir, err := ioutil.TempDir("", "btcwallet")
 	if err != nil {
 		return nil, err
@@ -1200,8 +1132,8 @@ func (w *Wallet) ExportWatchingWallet() (map[string]string, error) {
 	if err != nil {
 		return nil, err
 	}
-	woMgr, err := waddrmgr.Open(namespace, []byte(cfg.WalletPass),
-		activeNet.Params, nil)
+	woMgr, err := waddrmgr.Open(namespace, []byte(pubPass),
+		w.chainParams, nil)
 	if err != nil {
 		return nil, err
 	}
@@ -1408,7 +1340,7 @@ func (w *Wallet) TotalReceivedForAddr(addr btcutil.Address, confirms int) (btcut
 				continue
 			}
 
-			_, addrs, _, err := c.Addresses(activeNet.Params)
+			_, addrs, _, err := c.Addresses(w.chainParams)
 			// An error creating addresses from the output script only
 			// indicates a non-standard script, so ignore this credit.
 			if err != nil {
@@ -1437,60 +1369,15 @@ func (w *Wallet) TxRecord(txSha *wire.ShaHash) (r *txstore.TxRecord, ok bool) {
 	return nil, false
 }
 
-// openWallet opens a wallet from disk.
-func openWallet() (*Wallet, error) {
-	netdir := networkDir(cfg.DataDir, activeNet.Params)
-	dbPath := filepath.Join(netdir, walletDbName)
-
-	// Ensure that the network directory exists.
-	if err := checkCreateDir(netdir); err != nil {
-		return nil, err
-	}
-
-	// Open the database using the boltdb backend.
-	db, err := walletdb.Open("bdb", dbPath)
-	if err != nil {
-		return nil, err
-	}
-
-	// Get the namespace for the address manager.
-	namespace, err := db.Namespace(waddrmgrNamespaceKey)
-	if err != nil {
-		return nil, err
-	}
-
-	// Open address manager and transaction store.
-	var txs *txstore.Store
-	config := &waddrmgr.Options{
-		ObtainSeed:        promptSeed,
-		ObtainPrivatePass: promptPrivPassPhrase,
-	}
-	mgr, err := waddrmgr.Open(namespace, []byte(cfg.WalletPass),
-		activeNet.Params, config)
-	if err == nil {
-		txs, err = txstore.OpenDir(netdir)
-	}
-	if err != nil {
-		// Special case: if the address manager was successfully read
-		// (mgr != nil) but the transaction store was not, create a
-		// new txstore and write it out to disk.  Write an unsynced
-		// manager back to disk so on future opens, the empty txstore
-		// is not considered fully synced.
-		if mgr == nil {
-			return nil, err
-		}
-
-		txs = txstore.New(netdir)
-		txs.MarkDirty()
-		err = txs.WriteIfDirty()
-		if err != nil {
-			return nil, err
-		}
-		mgr.SetSyncedTo(nil)
-	}
-
-	log.Infof("Opened wallet files") // TODO: log balance? last sync height?
-	wallet := newWallet(mgr, txs)
-	wallet.db = db
-	return wallet, nil
+// Db returns wallet db being used by a wallet
+func (w *Wallet) Db() walletdb.DB {
+	return w.db
+}
+
+// Open opens a wallet from disk.
+func Open(config *Config) *Wallet {
+	wallet := newWallet(config.Waddrmgr, config.TxStore, config.Db)
+	wallet.chainParams = config.ChainParams
+
+	return wallet
 }
diff --git a/walletsetup.go b/walletsetup.go
index 7950978..3d481fd 100644
--- a/walletsetup.go
+++ b/walletsetup.go
@@ -26,15 +26,88 @@ import (
 	"strings"
 
 	"github.com/btcsuite/btcd/btcec"
+	"github.com/btcsuite/btcd/chaincfg"
+	"github.com/btcsuite/btcd/wire"
 	"github.com/btcsuite/btcutil"
 	"github.com/btcsuite/btcutil/hdkeychain"
 	"github.com/btcsuite/btcwallet/legacy/keystore"
+	"github.com/btcsuite/btcwallet/txstore"
 	"github.com/btcsuite/btcwallet/waddrmgr"
+	"github.com/btcsuite/btcwallet/wallet"
 	"github.com/btcsuite/btcwallet/walletdb"
 	_ "github.com/btcsuite/btcwallet/walletdb/bdb"
 	"github.com/btcsuite/golangcrypto/ssh/terminal"
 )
 
+var (
+	// waddrmgrNamespaceKey is the namespace key for the waddrmgr package.
+	waddrmgrNamespaceKey = []byte("waddrmgr")
+)
+
+// networkDir returns the directory name of a network directory to hold wallet
+// files.
+func networkDir(dataDir string, chainParams *chaincfg.Params) string {
+	netname := chainParams.Name
+
+	// For now, we must always name the testnet data directory as "testnet"
+	// and not "testnet3" or any other version, as the chaincfg testnet3
+	// paramaters will likely be switched to being named "testnet3" in the
+	// future.  This is done to future proof that change, and an upgrade
+	// plan to move the testnet3 data directory can be worked out later.
+	if chainParams.Net == wire.TestNet3 {
+		netname = "testnet"
+	}
+
+	return filepath.Join(dataDir, netname)
+}
+
+// promptSeed is used to prompt for the wallet seed which maybe required during
+// upgrades.
+func promptSeed() ([]byte, error) {
+	reader := bufio.NewReader(os.Stdin)
+	for {
+		fmt.Print("Enter existing wallet seed: ")
+		seedStr, err := reader.ReadString('\n')
+		if err != nil {
+			return nil, err
+		}
+		seedStr = strings.TrimSpace(strings.ToLower(seedStr))
+
+		seed, err := hex.DecodeString(seedStr)
+		if err != nil || len(seed) < hdkeychain.MinSeedBytes ||
+			len(seed) > hdkeychain.MaxSeedBytes {
+
+			fmt.Printf("Invalid seed specified.  Must be a "+
+				"hexadecimal value that is at least %d bits and "+
+				"at most %d bits\n", hdkeychain.MinSeedBytes*8,
+				hdkeychain.MaxSeedBytes*8)
+			continue
+		}
+
+		return seed, nil
+	}
+}
+
+// promptPrivPassPhrase is used to prompt for the private passphrase which maybe
+// required during upgrades.
+func promptPrivPassPhrase() ([]byte, error) {
+	prompt := "Enter the private passphrase of your wallet: "
+	for {
+		fmt.Print(prompt)
+		pass, err := terminal.ReadPassword(int(os.Stdin.Fd()))
+		if err != nil {
+			return nil, err
+		}
+		fmt.Print("\n")
+		pass = bytes.TrimSpace(pass)
+		if len(pass) == 0 {
+			continue
+		}
+
+		return pass, nil
+	}
+}
+
 // promptConsoleList prompts the user with the given prefix, list of valid
 // responses, and default list entry to use.  The function will repeat the
 // prompt to the user until they enter a valid response.
@@ -484,3 +557,94 @@ func createSimulationWallet(cfg *config) error {
 	fmt.Println("The wallet has been created successfully.")
 	return nil
 }
+
+// openDb opens and returns a *walletdb.DB (boltdb here) given the
+// directory and dbname
+func openDb(directory string, dbname string) (*walletdb.DB, error) {
+	dbPath := filepath.Join(directory, dbname)
+
+	// Ensure that the network directory exists.
+	if err := checkCreateDir(directory); err != nil {
+		return nil, err
+	}
+
+	// Open the database using the boltdb backend.
+	db, err := walletdb.Open("bdb", dbPath)
+	if err != nil {
+		return nil, err
+	}
+	return &db, nil
+}
+
+// openWaddrmgr returns an address manager given a database, namespace,
+// public pass and the chain params
+// It prompts for seed and private passphrase required in case of upgrades
+func openWaddrmgr(db *walletdb.DB, namespaceKey []byte, pass string,
+	chainParams *chaincfg.Params) (*waddrmgr.Manager, error) {
+
+	// Get the namespace for the address manager.
+	namespace, err := (*db).Namespace(namespaceKey)
+	if err != nil {
+		return nil, err
+	}
+
+	config := &waddrmgr.Options{
+		ObtainSeed:        promptSeed,
+		ObtainPrivatePass: promptPrivPassPhrase,
+	}
+	// Open address manager and transaction store.
+	//	var txs *txstore.Store
+	return waddrmgr.Open(namespace, []byte(pass),
+		chainParams, config)
+}
+
+// openWallet returns a wallet. The function handles opening an existing wallet
+// database, the address manager and the transaction store and uses the values
+// to open a wallet.Wallet
+func openWallet() (*wallet.Wallet, error) {
+	netdir := networkDir(cfg.DataDir, activeNet.Params)
+
+	db, err := openDb(netdir, walletDbName)
+	if err != nil {
+		log.Errorf("%v", err)
+		return nil, err
+	}
+
+	var txs *txstore.Store
+	mgr, err := openWaddrmgr(db, waddrmgrNamespaceKey, cfg.WalletPass,
+		activeNet.Params)
+	if err == nil {
+		txs, err = txstore.OpenDir(netdir)
+	}
+	if err != nil {
+		// Special case: if the address manager was successfully read
+		// (mgr != nil) but the transaction store was not, create a
+		// new txstore and write it out to disk.  Write an unsynced
+		// manager back to disk so on future opens, the empty txstore
+		// is not considered fully synced.
+		if mgr == nil {
+			log.Errorf("%v", err)
+			return nil, err
+		}
+
+		txs = txstore.New(netdir)
+		txs.MarkDirty()
+		err = txs.WriteIfDirty()
+		if err != nil {
+			log.Errorf("%v", err)
+			return nil, err
+		}
+		mgr.SetSyncedTo(nil)
+	}
+
+	walletConfig := &wallet.Config{
+		Db:          db,
+		TxStore:     txs,
+		Waddrmgr:    mgr,
+		ChainParams: activeNet.Params,
+	}
+	log.Infof("Opened wallet files") // TODO: log balance? last sync height?
+	w := wallet.Open(walletConfig)
+
+	return w, nil
+}