diff --git a/Application.cpp b/Application.cpp
index 5ef48be03..773bf36ca 100644
--- a/Application.cpp
+++ b/Application.cpp
@@ -44,30 +44,26 @@ Application::Application() :
 {
 	theConfig.load();
 
-	uint160 rootFamily=mWallet.addFamily("This is my payphrase.", true);
-	LocalAccount::pointer rootAccount=mWallet.getLocalAccount(rootFamily, 0);
-	assert(!!rootAccount);
-	uint160 rootAddress=rootAccount->getAddress();
-	assert(!!rootAddress);
-
-	Ledger::pointer firstLedger(new Ledger(rootAddress, 1000000));
-	firstLedger->setClosed();
-	firstLedger->setAccepted();
-	mMasterLedger.pushLedger(firstLedger);
-	
-	Ledger::pointer secondLedger=firstLedger->closeLedger(time(NULL));
-	mMasterLedger.pushLedger(secondLedger);
-	mMasterLedger.setSynced();
 }
 
+extern std::string TxnDBInit, LedgerDBInit, WalletDBInit, HashNodeDBInit, NetNodeDBInit;
 
 void Application::run()
 {
 	mTxnDB=new DatabaseCon("transaction.db");
+	mTxnDB->getDB()->executeSQL(TxnDBInit.c_str());
+
 	mLedgerDB=new DatabaseCon("ledger.db");
+	mLedgerDB->getDB()->executeSQL(LedgerDBInit.c_str());
+
 	mWalletDB=new DatabaseCon("wallet.db");
+	mWalletDB->getDB()->executeSQL(WalletDBInit.c_str());
+
 	mHashNodeDB=new DatabaseCon("hashnode.db");
+	mHashNodeDB->getDB()->executeSQL(HashNodeDBInit.c_str());
+
 	mNetNodeDB=new DatabaseCon("netnode.db");
+	mNetNodeDB->getDB()->executeSQL(NetNodeDBInit.c_str());
 
 	if(theConfig.PEER_PORT)
 	{
@@ -84,6 +80,19 @@ void Application::run()
 	std::cout << "Before Run." << std::endl;
 	mIOService.run(); // This blocks
 
+	// TEMPORARY CODE
+	uint160 rootFamily=mWallet.addFamily("This is my payphrase.", true);
+	LocalAccount::pointer rootAccount=mWallet.getLocalAccount(rootFamily, 0);
+	assert(!!rootAccount);
+	uint160 rootAddress=rootAccount->getAddress();
+	assert(!!rootAddress);
+	Ledger::pointer firstLedger(new Ledger(rootAddress, 1000000));
+	firstLedger->setClosed();
+	firstLedger->setAccepted();
+	mMasterLedger.pushLedger(firstLedger);
+	Ledger::pointer secondLedger=firstLedger->closeLedger(time(NULL));
+	mMasterLedger.pushLedger(secondLedger);
+	mMasterLedger.setSynced();
 	// temporary
 	return;
 	mWallet.load();
diff --git a/Config.cpp b/Config.cpp
index f058ecb75..05edebda0 100644
--- a/Config.cpp
+++ b/Config.cpp
@@ -24,7 +24,7 @@ Config::Config()
 	RPC_USER="admin";
 	RPC_PASSWORD="pass";
 
-	DATA_DIR="";
+	DATA_DIR="db/";
 
 	TRANSACTION_FEE_BASE=1000;
 }
diff --git a/DBInit.cpp b/DBInit.cpp
new file mode 100644
index 000000000..947cb571d
--- /dev/null
+++ b/DBInit.cpp
@@ -0,0 +1,97 @@
+#include <string>
+
+// Transaction database holds transactions and public keys
+std::string TxnDBInit("							\
+	CREATE TABLE Transactions (					\
+		TransID		CHARACTER(64) PRIMARY KEY,	\
+		FromAcct	CHARACTER(40),				\
+		FromSeq		BIGINT UNSIGNED,			\
+		FromLedger	BIGINT UNSIGNED,			\
+		Identifier	BIGINT UNSIGNED,			\
+		ToAcct		CHARACTER(40),				\
+		Amount		BIGINT UNSIGNED,			\
+		Fee			BIGINT UNSIGNED,			\
+		FirstSeen	TEXT,						\
+		CommitSeq	BIGINT UNSIGNED,			\
+		Status		CHARACTER(1),				\
+		Signature	BLOB						\
+	);											\
+												\
+	CREATE TABLE PubKeys (						\
+		ID			CHARACTER(40) PRIMARY KEY,	\
+		PubKey		BLOB						\
+	);											\
+");
+
+// Ledger database holds ledgers and ledger confirmations
+std::string LedgerDBInit("							\
+	CREATE TABLE Ledgers (							\
+		LedgerHash		CHARACTER(64) PRIMARY KEY,	\
+		LedgerSeq		BIGINT UNSIGNED,			\
+		PrevHash		CHARACTER(64),				\
+		FeeHeld			BIGINT UNSIGNED,			\
+		ClosingTime		BIGINT UNSINGED,			\
+		AccountSetHash	CHARACTER(64),				\
+		TransSetHash	CHARACTER(64)				\
+	);												\
+	CREATE INDEX SeqLedger ON Ledgers(LedgerSeq);	\
+													\
+	CREATE TABLE LedgerConfirmations	(			\
+		LedgerSeq	BIGINT UNSIGNED,				\
+		LedgerHash	CHARACTER(64),					\
+		Hanko		CHARACTER(40),					\
+		Signature	BLOB							\
+	);												\
+	CREATE INDEX LedgerConfByHash ON				\
+		LedgerConfirmations(LedgerHash);			\
+");
+
+
+// Wallet database holds local accounts and trusted nodes
+std::string WalletDBInit("							\
+	CREATE TABLE LocalAcctFamilies (				\
+		FamilyName	CHARACTER(40) PRIMARY KEY,		\
+		RootPubKey	CHARACTER(66),					\
+		Seq			BIGINT UNSIGNED,				\
+		Name		TEXT,							\
+		Comment		TEXT							\
+	);												\
+													\
+	CREATE TABLE LocalAccounts (					\
+		ID			CHARACTER(40) PRIMARY KEY,		\
+		DKID		CHARACTER(40),					\
+		DKSeq		BIGINT UNSIGNED,				\
+		Seq			BIGINT UNSIGNED,				\
+		Balance		BIGINT UNSIGNED,				\
+		LedgerSeq	BIGINT UNSIGNED,				\
+		Comment		TEXT							\
+	);												\
+													\
+	CREATE TABLE TrustedNodes (					`	\
+		Hanko		CHARACTER(40) PRIMARY KEY,		\
+		TrustLevel	SMALLINT,						\
+		Comment		TEXT							\
+	);												\
+");
+
+// Hash node database holds nodes indexed by hash
+std::string HashNodeDBInit("						\
+	CREATE TABLE CommittedObjects (					\
+		Hash		CHARACTER(64) PRIMARY KEY,		\
+		ObjType		CHAR(1)	NOT	NULL,				\
+		LedgerIndex	BIGINT UNSIGNED,				\
+		Object		BLOB							\
+	);												\
+	CREATE INDEX ObjectLocate ON					\
+		CommittedObjects(LedgerIndex, ObjType);		\
+");
+
+// Net node database holds nodes seen on the network
+std::string NetNodeDBInit("							\
+	CREATE TABLE KnownNodes	(						\
+		Hanko			CHARACTER(40) PRIMARY KEY,	\
+		LastSeen		TEXT,						\
+		HaveContactInfo	CHARACTER(1),				\
+		ContactObject	BLOB						\
+		);											\
+");
diff --git a/SQLiteDatabases.sql b/SQLiteDatabases.sql
index e3ff911de..f098d1ca8 100644
--- a/SQLiteDatabases.sql
+++ b/SQLiteDatabases.sql
@@ -1,5 +1,4 @@
 
-
 CREATE TABLE Transactions (			-- transactions in all states
 	TransID		CHARACTER(64) PRIMARY KEY,	-- in hex
 	FromAcct	CHARACTER(40),		-- 20 byte hash of pub key in hex
@@ -15,13 +14,14 @@ CREATE TABLE Transactions (			-- transactions in all states
 	Signature	BLOB
 );
 
-
 CREATE TABLE PubKeys ( -- holds pub keys for nodes and accounts
  	ID			CHARACTER(40) PRIMARY KEY,
 	PubKey		BLOB
 );
 
 
+
+
 CREATE TABLE Ledgers ( -- closed/accepted ledgers
 	LedgerHash		CHARACTER(64) PRIMARY KEY,
 	LedgerSeq		BIGINT UNSIGNED,
@@ -29,12 +29,11 @@ CREATE TABLE Ledgers ( -- closed/accepted ledgers
 	FeeHeld			BIGINT UNSIGNED,
 	ClosingTime		BIGINT UNSINGED,
 	AccountSetHash	CHARACTER(64),
-	TransSetHash	CHARACTER(64),
+	TransSetHash	CHARACTER(64)
 );
 
 CREATE INDEX SeqLedger ON Ledgers(LedgerSeq);
 
-
 CREATE TABLE LedgerConfirmations (
 	LedgerSeq	BIGINT UNSIGNED,
 	LedgerHash	CHARACTER(64),
@@ -45,6 +44,8 @@ CREATE TABLE LedgerConfirmations (
 CREATE INDEX LedgerConfByHash ON LedgerConfirmations(LedgerHash);
 
 
+
+
 CREATE TABLE TrustedNodes (
 	Hanko		CHARACTER(40) PRIMARY KEY,
 	TrustLevel	SMALLINT,
@@ -74,7 +75,7 @@ CREATE TABLE LocalAcctFamilies (		-- a family of accounts that share a payphrase
 	Seq			BIGINT UNSIGNED,		-- next one to issue
 	Name		TEXT,
 	Comment		TEXT
-)
+);
 
 CREATE TABLE LocalAccounts (			-- an individual account
 	ID			CHARACTER(40) PRIMARY KEY,
@@ -85,5 +86,3 @@ CREATE TABLE LocalAccounts (			-- an individual account
 	LedgerSeq	BIGINT UNSIGNED,	-- ledger this balance is from
 	Comment		TEXT
 );
-
-CREATE UNIQUE INDEX AccountLocate ON LocalAccounts(DKID, DKSeq);