diff --git a/cmd/commands/relay.go b/cmd/commands/relay.go
index 137e2c9a8e..573a53bbfc 100644
--- a/cmd/commands/relay.go
+++ b/cmd/commands/relay.go
@@ -2,6 +2,7 @@ package commands
 
 import (
 	"fmt"
+	"io/ioutil"
 	"strconv"
 	"time"
 
@@ -73,13 +74,7 @@ func init() {
 	RelayCmd.AddCommand(RelayInitCmd)
 }
 
-func relayInitCmd(cmd *cobra.Command, args []string) error {
-	fmt.Println("not implemented")
-	return nil
-}
-
 func relayStartCmd(cmd *cobra.Command, args []string) error {
-
 	go loop(chain1AddrFlag, chain2AddrFlag, chain1IDFlag, chain2IDFlag)
 	go loop(chain2AddrFlag, chain1AddrFlag, chain2IDFlag, chain1IDFlag)
 
@@ -87,7 +82,36 @@ func relayStartCmd(cmd *cobra.Command, args []string) error {
 		// TODO: Cleanup
 	})
 	return nil
+}
 
+func relayInitCmd(cmd *cobra.Command, args []string) error {
+	err := registerChain(chain1IDFlag, chain1AddrFlag, chain2IDFlag, genesisFile2Flag, fromFileFlag)
+	if err != nil {
+		return err
+	}
+	err = registerChain(chain2IDFlag, chain2AddrFlag, chain1IDFlag, genesisFile1Flag, fromFileFlag)
+	return err
+}
+
+func registerChain(chainID, node, registerChainID, registerGenesis, keyFile string) error {
+	genesisBytes, err := ioutil.ReadFile(registerGenesis)
+	if err != nil {
+		return errors.Errorf("Error reading genesis file %v: %v\n", registerGenesis, err)
+	}
+
+	ibcTx := ibc.IBCRegisterChainTx{
+		ibc.BlockchainGenesis{
+			ChainID: registerChainID,
+			Genesis: string(genesisBytes),
+		},
+	}
+
+	privKey, err := LoadKey(keyFile)
+	if err != nil {
+		return err
+	}
+	relay := newRelayer(privKey, chainID, node)
+	return relay.appTx(ibcTx)
 }
 
 func loop(addr1, addr2, id1, id2 string) {
diff --git a/tests/cli/ibc.sh b/tests/cli/ibc.sh
index 69ccb2856d..dcb70e64fa 100755
--- a/tests/cli/ibc.sh
+++ b/tests/cli/ibc.sh
@@ -108,7 +108,7 @@ test01SendIBCTx() {
   # start the relay and wait a few blocks...
   # (already sent a tx on chain1, so use higher sequence)
   startRelay 2 1
-  if [ $? != 0 ]; then echo "can't start relay!"; return 1; fi
+  if [ $? != 0 ]; then echo "can't start relay"; cat ${BASE_DIR_1}/../relay.log; return 1; fi
 
   # give it a little time, then make sure the money arrived
   echo "waiting for relay..."
@@ -148,21 +148,14 @@ startRelay() {
   txSucceeded $? "$RES"
   if [ $? != 0 ]; then echo "can't pay chain2!"; return 1; fi
 
-  # now we need to register the chains
-  # TODO: do this with basecli!!!!
-  basecoin tx ibc --amount 10mycoin --from=$RELAY_KEY --chain_id=$CHAIN_ID_2 \
-    --node=tcp://localhost:${PORT_2} \
-    register --ibc_chain_id=$CHAIN_ID_1 --genesis=$BASE_DIR_1/server/genesis.json \
-    >/dev/null
-  if [ $? != 0 ]; then echo "can't register chain1 on chain 2"; return 1; fi
+  # initialize the relay (register both chains)
+  ${SERVER_EXE} relay init --chain1-id=$CHAIN_ID_1 --chain2-id=$CHAIN_ID_2 \
+    --chain1-addr=tcp://localhost:${PORT_1} --chain2-addr=tcp://localhost:${PORT_2} \
+    --genesis1=${BASE_DIR_1}/server/genesis.json --genesis2=${BASE_DIR_2}/server/genesis.json \
+    --home=${BASE_DIR_1}/server --from=$RELAY_KEY > ${BASE_DIR_1}/../relay.log &
+  if [ $? != 0 ]; then echo "can't initialize relays"; cat ${BASE_DIR_1}/../relay.log; return 1; fi
 
-  basecoin tx ibc --amount 10mycoin --from=$RELAY_KEY --chain_id=$CHAIN_ID_1 \
-    --node=tcp://localhost:${PORT_1} \
-    register --ibc_chain_id=$CHAIN_ID_2 --genesis=$BASE_DIR_2/server/genesis.json \
-    >/dev/null
-  if [ $? != 0 ]; then echo "can't register chain2 on chain 1"; return 1; fi
-
-  # now start the relay! (this remains a server command)
+  # now start the relay (constantly send packets)
   # TODO: bucky, why does this die if I don't provide home???
   # It doesn't use the --from flag????
   ${SERVER_EXE} relay start --chain1-id=$CHAIN_ID_1 --chain2-id=$CHAIN_ID_2 \