diff --git a/itests/config.ini b/itests/config.ini
index 5b5682db..7148a3fc 100644
--- a/itests/config.ini
+++ b/itests/config.ini
@@ -2,7 +2,7 @@
 network=simnet
 price=1000
 max_squeaks_per_address_per_hour=5
-database=postgresql
+database=sqlite
 sqk_dir=
 enable_sync=false
 
diff --git a/itests/run_itest.sh b/itests/run_itest.sh
index 341f4d43..551e6150 100755
--- a/itests/run_itest.sh
+++ b/itests/run_itest.sh
@@ -14,7 +14,7 @@ function mine_blocks {
 
 cd itests
 docker-compose down --volumes
-# docker-compose build
+docker-compose build
 docker-compose up -d
 
 # Initialize the blockchain with miner rewards going to the test client.
diff --git a/squeakserver/db/db_engine.py b/squeakserver/db/db_engine.py
index 3cb1ee8c..0adb8f0b 100644
--- a/squeakserver/db/db_engine.py
+++ b/squeakserver/db/db_engine.py
@@ -17,11 +17,14 @@ def get_postgres_connection_string(user, password, host, database):
     )
 
 
-def get_sqlite_engine():
+def get_sqlite_engine(squeak_dir, network):
     return create_engine(
-        get_sqlite_connection_string()
+        get_sqlite_connection_string(squeak_dir, network)
     )
 
 
-def get_sqlite_connection_string():
-    return "sqlite:///squeakdb.db".format()
+def get_sqlite_connection_string(squeak_dir, network):
+    return "sqlite:////{}/{}.db".format(
+        squeak_dir,
+        network,
+    )
diff --git a/squeakserver/main.py b/squeakserver/main.py
index 1a761d85..df59b016 100644
--- a/squeakserver/main.py
+++ b/squeakserver/main.py
@@ -4,6 +4,8 @@ import sys
 import threading
 from configparser import ConfigParser
 
+from pathlib import Path
+
 from squeak.params import SelectParams
 
 from squeakserver.admin.squeak_admin_server_handler import SqueakAdminServerHandler
@@ -79,6 +81,7 @@ def load_admin_handler(lightning_client, squeak_node):
 
 def load_db(config, network):
     database = load_database(config)
+    logger.info("database: " + database)
     if database == "postgresql":
         engine = get_postgres_engine(
             config["postgresql"]["user"],
@@ -88,7 +91,8 @@ def load_db(config, network):
         )
         return SqueakDb(engine, schema=network)
     elif database == "sqlite":
-        engine = get_sqlite_engine()
+        Path("/squeak").mkdir(parents=True, exist_ok=True)
+        engine = get_sqlite_engine("squeak", network)
         return SqueakDb(engine)