diff --git a/simapp/simd/cmd/testnet.go b/simapp/simd/cmd/testnet.go
index c90d84c30..530447bb1 100644
--- a/simapp/simd/cmd/testnet.go
+++ b/simapp/simd/cmd/testnet.go
@@ -39,7 +39,6 @@ var (
 	flagNumValidators     = "v"
 	flagOutputDir         = "output-dir"
 	flagNodeDaemonHome    = "node-daemon-home"
-	flagNodeCLIHome       = "node-cli-home"
 	flagStartingIPAddress = "starting-ip-address"
 )
 
@@ -68,14 +67,13 @@ Example:
 			minGasPrices, _ := cmd.Flags().GetString(server.FlagMinGasPrices)
 			nodeDirPrefix, _ := cmd.Flags().GetString(flagNodeDirPrefix)
 			nodeDaemonHome, _ := cmd.Flags().GetString(flagNodeDaemonHome)
-			nodeCLIHome, _ := cmd.Flags().GetString(flagNodeCLIHome)
 			startingIPAddress, _ := cmd.Flags().GetString(flagStartingIPAddress)
 			numValidators, _ := cmd.Flags().GetInt(flagNumValidators)
 			algo, _ := cmd.Flags().GetString(flags.FlagKeyAlgorithm)
 
 			return InitTestnet(
 				clientCtx, cmd, config, mbm, genBalIterator, outputDir, chainID, minGasPrices,
-				nodeDirPrefix, nodeDaemonHome, nodeCLIHome, startingIPAddress, keyringBackend, algo, numValidators,
+				nodeDirPrefix, nodeDaemonHome, startingIPAddress, keyringBackend, algo, numValidators,
 			)
 		},
 	}
@@ -84,7 +82,6 @@ Example:
 	cmd.Flags().StringP(flagOutputDir, "o", "./mytestnet", "Directory to store initialization data for the testnet")
 	cmd.Flags().String(flagNodeDirPrefix, "node", "Prefix the directory name for each node with (node results in node0, node1, ...)")
 	cmd.Flags().String(flagNodeDaemonHome, "simd", "Home directory of the node's daemon configuration")
-	cmd.Flags().String(flagNodeCLIHome, "simcli", "Home directory of the node's cli configuration")
 	cmd.Flags().String(flagStartingIPAddress, "192.168.0.1", "Starting IP address (192.168.0.1 results in persistent peers list ID0@192.168.0.1:46656, ID1@192.168.0.2:46656, ...)")
 	cmd.Flags().String(flags.FlagChainID, "", "genesis file chain-id, if left blank will be randomly created")
 	cmd.Flags().String(server.FlagMinGasPrices, fmt.Sprintf("0.000006%s", sdk.DefaultBondDenom), "Minimum gas prices to accept for transactions; All fees in a tx must meet this minimum (e.g. 0.01photino,0.001stake)")
@@ -108,7 +105,6 @@ func InitTestnet(
 	minGasPrices,
 	nodeDirPrefix,
 	nodeDaemonHome,
-	nodeCLIHome,
 	startingIPAddress,
 	keyringBackend,
 	algoStr string,
@@ -141,7 +137,6 @@ func InitTestnet(
 	for i := 0; i < numValidators; i++ {
 		nodeDirName := fmt.Sprintf("%s%d", nodeDirPrefix, i)
 		nodeDir := filepath.Join(outputDir, nodeDirName, nodeDaemonHome)
-		clientDir := filepath.Join(outputDir, nodeDirName, nodeCLIHome)
 		gentxsDir := filepath.Join(outputDir, "gentxs")
 
 		nodeConfig.SetRoot(nodeDir)
@@ -152,11 +147,6 @@ func InitTestnet(
 			return err
 		}
 
-		if err := os.MkdirAll(clientDir, nodeDirPerm); err != nil {
-			_ = os.RemoveAll(outputDir)
-			return err
-		}
-
 		nodeConfig.Moniker = nodeDirName
 
 		ip, err := getIP(i, startingIPAddress)
@@ -174,7 +164,7 @@ func InitTestnet(
 		memo := fmt.Sprintf("%s@%s:26656", nodeIDs[i], ip)
 		genFiles = append(genFiles, nodeConfig.GenesisFile())
 
-		kb, err := keyring.New(sdk.KeyringServiceName(), keyringBackend, clientDir, inBuf)
+		kb, err := keyring.New(sdk.KeyringServiceName(), keyringBackend, nodeDir, inBuf)
 		if err != nil {
 			return err
 		}
@@ -199,7 +189,7 @@ func InitTestnet(
 		}
 
 		// save private key seed words
-		if err := writeFile(fmt.Sprintf("%v.json", "key_seed"), clientDir, cliPrint); err != nil {
+		if err := writeFile(fmt.Sprintf("%v.json", "key_seed"), nodeDir, cliPrint); err != nil {
 			return err
 		}