diff --git a/packages/dev-utils/CHANGELOG.json b/packages/dev-utils/CHANGELOG.json
index ce6cfede53..cbeb2e74f3 100644
--- a/packages/dev-utils/CHANGELOG.json
+++ b/packages/dev-utils/CHANGELOG.json
@@ -1,4 +1,13 @@
 [
+    {
+        "version": "2.1.0",
+        "changes": [
+            {
+                "note": "Allow using the Web3Factory in-process Ganache provider with existing DB snapshot",
+                "pr": 1602
+            }
+        ]
+    },
     {
         "version": "2.0.2",
         "changes": [
diff --git a/packages/dev-utils/src/web3_factory.ts b/packages/dev-utils/src/web3_factory.ts
index 5f8981a467..3fa3c19f70 100644
--- a/packages/dev-utils/src/web3_factory.ts
+++ b/packages/dev-utils/src/web3_factory.ts
@@ -47,8 +47,11 @@ export const web3Factory = {
                 _.isUndefined(config.shouldThrowErrorsOnGanacheRPCResponse) ||
                 config.shouldThrowErrorsOnGanacheRPCResponse;
             if (!_.isUndefined(config.ganacheDatabasePath)) {
-                // Saving the snapshot to a local db. Ganache requires this directory to exist
-                fs.mkdirSync(config.ganacheDatabasePath);
+                const doesDatabaseAlreadyExist = fs.existsSync(config.ganacheDatabasePath);
+                if (!doesDatabaseAlreadyExist) {
+                    // Working with local DB snapshot. Ganache requires this directory to exist
+                    fs.mkdirSync(config.ganacheDatabasePath);
+                }
             }
             provider.addProvider(
                 new GanacheSubprovider({