diff --git a/Makefile b/Makefile
index 3a53f19446..e9565084d6 100644
--- a/Makefile
+++ b/Makefile
@@ -78,9 +78,7 @@ test_unit:
 
 test_cover:
 	@rm -rf examples/basecoin/vendor/
-	@rm -rf client/lcd/keys.db ~/.tendermint_test
 	@bash tests/test_cover.sh
-	@rm -rf client/lcd/keys.db ~/.tendermint_test
 
 benchmark:
 	@go test -bench=. $(PACKAGES)
diff --git a/client/keys/utils.go b/client/keys/utils.go
index c6239002ca..eed7abc6cc 100644
--- a/client/keys/utils.go
+++ b/client/keys/utils.go
@@ -2,6 +2,7 @@ package keys
 
 import (
 	"fmt"
+	"path/filepath"
 
 	"github.com/spf13/viper"
 
@@ -31,8 +32,8 @@ type KeyOutput struct {
 // GetKeyBase initializes a keybase based on the configuration
 func GetKeyBase() (keys.Keybase, error) {
 	if keybase == nil {
-		rootDir := viper.GetString(cli.HomeFlag)
-		db, err := dbm.NewGoLevelDB(KeyDBName, rootDir)
+		rootDir := filepath.Join(viper.GetString(cli.HomeFlag), ".basecoind")
+		db, err := dbm.NewGoLevelDB(KeyDBName, filepath.Join(rootDir, "data"))
 		if err != nil {
 			return nil, err
 		}
diff --git a/client/lcd/lcd_test.go b/client/lcd/lcd_test.go
index 1e7104dae2..1e956d768c 100644
--- a/client/lcd/lcd_test.go
+++ b/client/lcd/lcd_test.go
@@ -25,6 +25,7 @@ import (
 	ctypes "github.com/tendermint/tendermint/rpc/core/types"
 	tmrpc "github.com/tendermint/tendermint/rpc/lib/server"
 	tmtypes "github.com/tendermint/tendermint/types"
+	"github.com/tendermint/tmlibs/cli"
 	dbm "github.com/tendermint/tmlibs/db"
 	"github.com/tendermint/tmlibs/log"
 
@@ -294,6 +295,7 @@ func TestTxs(t *testing.T) {
 // strt TM and the LCD in process, listening on their respective sockets
 func startTMAndLCD() (*nm.Node, net.Listener, error) {
 
+	viper.Set(cli.HomeFlag, os.ExpandEnv("$HOME"))
 	kb, err := keys.GetKeyBase() // dbm.NewMemDB()) // :(
 	if err != nil {
 		return nil, nil, err
diff --git a/examples/kvstore/main.go b/examples/kvstore/main.go
index 9bcabb306a..31e4def8e3 100644
--- a/examples/kvstore/main.go
+++ b/examples/kvstore/main.go
@@ -3,8 +3,12 @@ package main
 import (
 	"fmt"
 	"os"
+	"path/filepath"
+
+	"github.com/spf13/viper"
 
 	"github.com/tendermint/abci/server"
+	"github.com/tendermint/tmlibs/cli"
 	cmn "github.com/tendermint/tmlibs/common"
 	dbm "github.com/tendermint/tmlibs/db"
 	"github.com/tendermint/tmlibs/log"
@@ -17,7 +21,8 @@ func main() {
 
 	logger := log.NewTMLogger(log.NewSyncWriter(os.Stdout)).With("module", "main")
 
-	db, err := dbm.NewGoLevelDB("basecoind", "data")
+	rootDir := viper.GetString(cli.HomeFlag)
+	db, err := dbm.NewGoLevelDB("basecoind", filepath.Join(rootDir, "data"))
 	if err != nil {
 		fmt.Println(err)
 		os.Exit(1)