diff --git a/CMakeLists.txt b/CMakeLists.txt
index 46c3e6baf63b2..7764a05f1c6a6 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -267,6 +267,7 @@ set(WALLET_SOURCES
         ./src/legacy/stakemodifier.cpp
         ./src/wallet/wallet.cpp
         ./src/wallet/walletdb.cpp
+        ./src/wallet/walletutil.cpp
         ./src/zpiv/zpivmodule.cpp
         ./src/zpiv/zpos.cpp
         ./src/stakeinput.cpp
diff --git a/src/Makefile.am b/src/Makefile.am
index f433e718da776..cdf0e323ed988 100644
--- a/src/Makefile.am
+++ b/src/Makefile.am
@@ -305,6 +305,7 @@ BITCOIN_CORE_H = \
   wallet/init.h \
   wallet/wallet.h \
   wallet/walletdb.h \
+  wallet/walletutil.h \
   warnings.h \
   zpivchain.h \
   zpiv/zpos.h \
@@ -408,6 +409,7 @@ libbitcoin_wallet_a_SOURCES = \
   destination_io.cpp \
   wallet/wallet.cpp \
   wallet/walletdb.cpp \
+  wallet/walletutil.cpp \
   stakeinput.cpp \
   zpiv/zpos.cpp \
   $(BITCOIN_CORE_H) \
diff --git a/src/init.cpp b/src/init.cpp
index 9a80c481892be..6191de8a1d634 100644
--- a/src/init.cpp
+++ b/src/init.cpp
@@ -64,6 +64,7 @@
 #include "wallet/init.h"
 #include "wallet/wallet.h"
 #include "wallet/rpcwallet.h"
+#include "wallet/walletutil.h"
 #endif
 
 #include <atomic>
@@ -1268,6 +1269,7 @@ bool AppInitMain()
         LogPrintf("Startup time: %s\n", FormatISO8601DateTime(GetTime()));
     LogPrintf("Default data directory %s\n", GetDefaultDataDir().string());
     LogPrintf("Using data directory %s\n", GetDataDir().string());
+    LogPrintf("Using wallet directory %s\n", GetWalletDir().string());
     LogPrintf("Using config file %s\n", GetConfigFile(gArgs.GetArg("-conf", PIVX_CONF_FILENAME)).string());
     LogPrintf("Using at most %i connections (%i file descriptors available)\n", nMaxConnections, nFD);
     std::ostringstream strErrors;
diff --git a/src/pivxd.cpp b/src/pivxd.cpp
index ad02677ccc8fa..3407a07ec10d8 100644
--- a/src/pivxd.cpp
+++ b/src/pivxd.cpp
@@ -11,9 +11,12 @@
 #include "init.h"
 #include "masternodeconfig.h"
 #include "noui.h"
-#include "rpc/server.h"
 #include "util/system.h"
 
+#ifdef ENABLE_WALLET
+#include "wallet/walletutil.h"
+#endif
+
 #include <stdio.h>
 
 /* Introduction text for doxygen: */
@@ -81,6 +84,10 @@ bool AppInit(int argc, char* argv[])
             fprintf(stderr, "Error: Specified data directory \"%s\" does not exist.\n", gArgs.GetArg("-datadir", "").c_str());
             return false;
         }
+        if (gArgs.IsArgSet("-walletdir") && !fs::is_directory(GetWalletDir())) {
+            fprintf(stderr, "Error: Specified wallet directory \"%s\" does not exist.\n", gArgs.GetArg("-walletdir", "").c_str());
+            return false;
+        }
         try {
             gArgs.ReadConfigFile(gArgs.GetArg("-conf", PIVX_CONF_FILENAME));
         } catch (const std::exception& e) {
diff --git a/src/qt/pivx.cpp b/src/qt/pivx.cpp
index 5a0e35dd0ced4..218f6573e5dde 100644
--- a/src/qt/pivx.cpp
+++ b/src/qt/pivx.cpp
@@ -26,6 +26,7 @@
 #include "paymentserver.h"
 #include "walletmodel.h"
 #include "interfaces/wallet.h"
+#include "wallet/walletutil.h"
 #endif
 #include "masternodeconfig.h"
 
@@ -607,6 +608,11 @@ int main(int argc, char* argv[])
             QObject::tr("Error: Specified data directory \"%1\" does not exist.").arg(QString::fromStdString(gArgs.GetArg("-datadir", ""))));
         return 1;
     }
+    if (gArgs.IsArgSet("-walletdir") && !fs::is_directory(GetWalletDir())) {
+        QMessageBox::critical(0, QObject::tr(PACKAGE_NAME),
+                              QObject::tr("Error: Specified wallet directory \"%1\" does not exist.").arg(QString::fromStdString(gArgs.GetArg("-walletdir", ""))));
+        return EXIT_FAILURE;
+    }
     try {
         gArgs.ReadConfigFile(gArgs.GetArg("-conf", PIVX_CONF_FILENAME));
     } catch (const std::exception& e) {
diff --git a/src/wallet/db.cpp b/src/wallet/db.cpp
index 11fb68278ba4f..f0bc8e512396a 100644
--- a/src/wallet/db.cpp
+++ b/src/wallet/db.cpp
@@ -12,6 +12,7 @@
 #include "protocol.h"
 #include "util/system.h"
 #include "utilstrencodings.h"
+#include "wallet/walletutil.h"
 
 #include <stdint.h>
 
@@ -255,7 +256,7 @@ bool CDB::Recover(const std::string& filename, void *callbackDataIn, bool (*reco
     return fSuccess;
 }
 
-bool CDB::VerifyEnvironment(const std::string& walletFile, const fs::path& dataDir, std::string& errorStr)
+bool CDB::VerifyEnvironment(const std::string& walletFile, const fs::path& walletDir, std::string& errorStr)
 {
     LogPrintf("Using BerkeleyDB version %s\n", DbEnv::version(0, 0, 0));
     LogPrintf("Using wallet %s\n", walletFile);
@@ -263,12 +264,13 @@ bool CDB::VerifyEnvironment(const std::string& walletFile, const fs::path& dataD
     // Wallet file must be a plain filename without a directory
     fs::path wallet_file_path(walletFile);
     if (walletFile != wallet_file_path.filename().string())
-        return UIError(strprintf(_("Wallet %s resides outside data directory %s"), walletFile, dataDir.string()));
+        return UIError(strprintf(_("Wallet %s resides outside data directory %s"), walletFile, walletDir.string()));
 
-    if (!bitdb.Open(dataDir)) {
+    if (!bitdb.Open(walletDir))
+    {
         // try moving the database env out of the way
-        fs::path pathDatabase = dataDir / "database";
-        fs::path pathDatabaseBak = dataDir / strprintf("database.%d.bak", GetTime());
+        fs::path pathDatabase = walletDir / "database";
+        fs::path pathDatabaseBak = walletDir / strprintf("database.%d.bak", GetTime());
         try {
             fs::rename(pathDatabase, pathDatabaseBak);
             LogPrintf("Moved old %s to %s. Retrying.\n", pathDatabase.string(), pathDatabaseBak.string());
@@ -277,18 +279,19 @@ bool CDB::VerifyEnvironment(const std::string& walletFile, const fs::path& dataD
         }
 
         // try again
-        if (!bitdb.Open(dataDir)) {
+        if (!bitdb.Open(walletDir)) {
             // if it still fails, it probably means we can't even create the database env
-            errorStr = strprintf(_("Error initializing wallet database environment %s!"), GetDataDir());
+            errorStr = strprintf(_("Error initializing wallet database environment %s!"), walletDir);
             return false;
         }
     }
     return true;
 }
 
-bool CDB::VerifyDatabaseFile(const std::string& walletFile, const fs::path& dataDir, std::string& warningStr, std::string& errorStr, CDBEnv::recoverFunc_type recoverFunc)
+bool CDB::VerifyDatabaseFile(const std::string& walletFile, const fs::path& walletDir, std::string& warningStr, std::string& errorStr, CDBEnv::recoverFunc_type recoverFunc)
 {
-    if (fs::exists(dataDir / walletFile)) {
+    if (fs::exists(walletDir / walletFile))
+    {
         std::string backup_filename;
         CDBEnv::VerifyResult r = bitdb.Verify(walletFile, recoverFunc, backup_filename);
         if (r == CDBEnv::RECOVER_OK) {
@@ -296,7 +299,7 @@ bool CDB::VerifyDatabaseFile(const std::string& walletFile, const fs::path& data
                                      " Original %s saved as %s in %s; if"
                                      " your balance or transactions are incorrect you should"
                                      " restore from a backup."),
-                                   walletFile, backup_filename, dataDir);
+                                   walletFile, backup_filename, walletDir);
         }
         if (r == CDBEnv::RECOVER_FAIL) {
             errorStr = strprintf(_("%s corrupt, salvage failed"), walletFile);
@@ -399,7 +402,7 @@ CDB::CDB(CWalletDBWrapper& dbw, const char* pszMode, bool fFlushOnCloseIn) : pdb
 
     {
         LOCK(env->cs_db);
-        if (!env->Open(GetDataDir()))
+        if (!env->Open(GetWalletDir()))
             throw std::runtime_error("CDB: Failed to open database environment.");
 
         pdb = env->mapDb[strFilename];
@@ -686,7 +689,7 @@ bool CWalletDBWrapper::Backup(const std::string& strDest)
                 env->mapFileUseCount.erase(strFile);
 
                 // Copy wallet file
-                fs::path pathSrc = GetDataDir() / strFile;
+                fs::path pathSrc = GetWalletDir() / strFile;
                 fs::path pathDest(strDest);
                 if (fs::is_directory(pathDest))
                     pathDest /= strFile;
diff --git a/src/wallet/db.h b/src/wallet/db.h
index a3e0c288cdef0..168f6522f986f 100644
--- a/src/wallet/db.h
+++ b/src/wallet/db.h
@@ -169,9 +169,9 @@ class CDB
        ideal to be called periodically */
     static bool PeriodicFlush(CWalletDBWrapper& dbw);
     /* verifies the database environment */
-    static bool VerifyEnvironment(const std::string& walletFile, const fs::path& dataDir, std::string& errorStr);
+    static bool VerifyEnvironment(const std::string& walletFile, const fs::path& walletDir, std::string& errorStr);
     /* verifies the database file */
-    static bool VerifyDatabaseFile(const std::string& walletFile, const fs::path& dataDir, std::string& warningStr, std::string& errorStr, CDBEnv::recoverFunc_type recoverFunc);
+    static bool VerifyDatabaseFile(const std::string& walletFile, const fs::path& walletDir, std::string& warningStr, std::string& errorStr, CDBEnv::recoverFunc_type recoverFunc);
 
 public:
     template <typename K, typename T>
diff --git a/src/wallet/init.cpp b/src/wallet/init.cpp
index f7bfcf90e3c79..d2caf86fab8e4 100644
--- a/src/wallet/init.cpp
+++ b/src/wallet/init.cpp
@@ -12,6 +12,7 @@
 #include "utilmoneystr.h"
 #include "validation.h"
 #include "wallet/wallet.h"
+#include "wallet/walletutil.h"
 
 std::string GetWalletHelpString(bool showDebug)
 {
@@ -31,6 +32,7 @@ std::string GetWalletHelpString(bool showDebug)
     strUsage += HelpMessageOpt("-txconfirmtarget=<n>", strprintf(_("If paytxfee is not set, include enough fee so transactions begin confirmation on average within n blocks (default: %u)"), 1));
     strUsage += HelpMessageOpt("-upgradewallet", _("Upgrade wallet to latest format") + " " + _("on startup"));
     strUsage += HelpMessageOpt("-wallet=<file>", _("Specify wallet file (within data directory)") + " " + strprintf(_("(default: %s)"), DEFAULT_WALLET_DAT));
+    strUsage += HelpMessageOpt("-walletdir=<dir>", _("Specify directory to hold wallets (default: <datadir>/wallets if it exists, otherwise <datadir>)"));
     strUsage += HelpMessageOpt("-walletnotify=<cmd>", _("Execute command when a wallet transaction changes (%s in cmd is replaced by TxID)"));
     strUsage += HelpMessageOpt("-zapwallettxes=<mode>", _("Delete all wallet transactions and only recover those parts of the blockchain through -rescan on startup") +
         " " + _("(1 = keep tx meta data e.g. payment request information, 2 = drop tx meta data)"));
@@ -159,7 +161,7 @@ bool WalletVerify()
             return UIError(strprintf(_("Error loading wallet %s. Invalid characters in %s filename."), walletFile, "-wallet"));
         }
 
-        fs::path wallet_path = fs::absolute(walletFile, GetDataDir());
+        fs::path wallet_path = fs::absolute(walletFile, GetWalletDir());
 
         if (fs::exists(wallet_path) && (!fs::is_regular_file(wallet_path) || fs::is_symlink(wallet_path))) {
             return UIError(strprintf(_("Error loading wallet %s. %s filename must be a regular file."), walletFile, "-wallet"));
@@ -170,7 +172,7 @@ bool WalletVerify()
         }
 
         std::string strError;
-        if (!CWalletDB::VerifyEnvironment(walletFile, GetDataDir().string(), strError)) {
+        if (!CWalletDB::VerifyEnvironment(walletFile, GetWalletDir().string(), strError)) {
             return UIError(strError);
         }
 
@@ -189,7 +191,7 @@ bool WalletVerify()
         }
 
         std::string strWarning;
-        bool dbV = CWalletDB::VerifyDatabaseFile(walletFile, GetDataDir().string(), strWarning, strError);
+        bool dbV = CWalletDB::VerifyDatabaseFile(walletFile, GetWalletDir().string(), strWarning, strError);
         if (!strWarning.empty()) {
             UIWarning(strWarning);
         }
diff --git a/src/wallet/rpcwallet.cpp b/src/wallet/rpcwallet.cpp
index 7b683d0f23af4..0f100f2f99d5e 100644
--- a/src/wallet/rpcwallet.cpp
+++ b/src/wallet/rpcwallet.cpp
@@ -27,6 +27,7 @@
 #include "utilmoneystr.h"
 #include "wallet/wallet.h"
 #include "wallet/walletdb.h"
+#include "wallet/walletutil.h"
 #include "zpivchain.h"
 
 #include  <init.h>    // for StartShutdown
diff --git a/src/wallet/walletdb.cpp b/src/wallet/walletdb.cpp
index 1171e25be6532..fece219f49e35 100644
--- a/src/wallet/walletdb.cpp
+++ b/src/wallet/walletdb.cpp
@@ -1064,14 +1064,14 @@ bool CWalletDB::RecoverKeysOnlyFilter(void *callbackData, CDataStream ssKey, CDa
     return true;
 }
 
-bool CWalletDB::VerifyEnvironment(const std::string& walletFile, const fs::path& dataDir, std::string& errorStr)
+bool CWalletDB::VerifyEnvironment(const std::string& walletFile, const fs::path& walletDir, std::string& errorStr)
 {
-    return CDB::VerifyEnvironment(walletFile, dataDir, errorStr);
+    return CDB::VerifyEnvironment(walletFile, walletDir, errorStr);
 }
 
-bool CWalletDB::VerifyDatabaseFile(const std::string& walletFile, const fs::path& dataDir, std::string& warningStr, std::string& errorStr)
+bool CWalletDB::VerifyDatabaseFile(const std::string& walletFile, const fs::path& walletDir, std::string& warningStr, std::string& errorStr)
 {
-    return CDB::VerifyDatabaseFile(walletFile, dataDir, warningStr, errorStr, CWalletDB::Recover);
+    return CDB::VerifyDatabaseFile(walletFile, walletDir, warningStr, errorStr, CWalletDB::Recover);
 }
 
 bool CWalletDB::WriteDestData(const std::string& address, const std::string& key, const std::string& value)
diff --git a/src/wallet/walletdb.h b/src/wallet/walletdb.h
index 4ad62d9b75027..c0803404ff3a0 100644
--- a/src/wallet/walletdb.h
+++ b/src/wallet/walletdb.h
@@ -212,9 +212,9 @@ class CWalletDB
     /* Function to determin if a certain KV/key-type is a key (cryptographical key) type */
     static bool IsKeyType(const std::string& strType);
     /* verifies the database environment */
-    static bool VerifyEnvironment(const std::string& walletFile, const fs::path& dataDir, std::string& errorStr);
+    static bool VerifyEnvironment(const std::string& walletFile, const fs::path& walletDir, std::string& errorStr);
     /* verifies the database file */
-    static bool VerifyDatabaseFile(const std::string& walletFile, const fs::path& dataDir, std::string& warningStr, std::string& errorStr);
+    static bool VerifyDatabaseFile(const std::string& walletFile, const fs::path& walletDir, std::string& warningStr, std::string& errorStr);
 
     //! Begin a new transaction
     bool TxnBegin();
diff --git a/src/wallet/walletutil.cpp b/src/wallet/walletutil.cpp
new file mode 100644
index 0000000000000..edf2eb323dc35
--- /dev/null
+++ b/src/wallet/walletutil.cpp
@@ -0,0 +1,24 @@
+// Copyright (c) 2017 The Bitcoin Core developers
+// Distributed under the MIT software license, see the accompanying
+// file COPYING or http://www.opensource.org/licenses/mit-license.php.
+
+#include "wallet/walletutil.h"
+#include "util/system.h"
+
+fs::path GetWalletDir()
+{
+    fs::path path;
+
+    if (gArgs.IsArgSet("-walletdir")) {
+        path = fs::system_complete(gArgs.GetArg("-walletdir", ""));
+        if (!fs::is_directory(path)) {
+            // If the path specified doesn't exist, we return the deliberately
+            // invalid empty string.
+            path = "";
+        }
+    } else {
+        path = GetDataDir();
+    }
+
+    return path;
+}
diff --git a/src/wallet/walletutil.h b/src/wallet/walletutil.h
new file mode 100644
index 0000000000000..b1a232f494dfe
--- /dev/null
+++ b/src/wallet/walletutil.h
@@ -0,0 +1,13 @@
+// Copyright (c) 2017 The Bitcoin Core developers
+// Distributed under the MIT software license, see the accompanying
+// file COPYING or http://www.opensource.org/licenses/mit-license.php.
+
+#ifndef BITCOIN_WALLET_UTIL_H
+#define BITCOIN_WALLET_UTIL_H
+
+#include "fs.h"
+
+//! Get the path of the wallet directory.
+fs::path GetWalletDir();
+
+#endif // BITCOIN_WALLET_UTIL_H