diff --git a/src/bitcoind.cpp b/src/bitcoind.cpp
--- a/src/bitcoind.cpp
+++ b/src/bitcoind.cpp
@@ -118,6 +118,16 @@
             return false;
         }
 
+        // Make sure we create the net-specific data directory early on: if it
+        // is new, this has a side effect of also creating
+        // <datadir>/<net>/wallets/.
+        //
+        // TODO: this should be removed once GetDataDir() no longer creates the
+        // wallets/ subdirectory.
+        // See more info at:
+        // https://reviews.bitcoinabc.org/D3312
+        GetDataDir(true);
+
         // Error out when loose non-argument tokens are encountered on command
         // line
         for (int i = 1; i < argc; i++) {
diff --git a/src/util.cpp b/src/util.cpp
--- a/src/util.cpp
+++ b/src/util.cpp
@@ -806,6 +806,12 @@
 
     if (fs::create_directories(path)) {
         // This is the first run, create wallets subdirectory too
+        //
+        // TODO: this is an ugly way to create the wallets/ directory and
+        // really shouldn't be done here. Once this is fixed, please
+        // also remove the corresponding line in bitcoind.cpp AppInit.
+        // See more info at:
+        // https://reviews.bitcoinabc.org/D3312
         fs::create_directories(path / "wallets");
     }