diff --git a/lib/cli/main.js b/lib/cli/main.js
index 4cb76041..86ef3053 100644
--- a/lib/cli/main.js
+++ b/lib/cli/main.js
@@ -23,6 +23,7 @@ function main(servicesPath, additionalServices) {
     .command('create <directory>')
     .description('Create a new node')
     .option('-d, --datadir <dir>', 'Specify the bitcoin database directory')
+    .option('-t, --testnet', 'Enable testnet as the network')
     .action(function(dirname, cmd){
       if (cmd.datadir) {
         cmd.datadir = path.resolve(process.cwd(), cmd.datadir);
@@ -33,6 +34,9 @@ function main(servicesPath, additionalServices) {
         datadir: cmd.datadir || './data',
         isGlobal: false
       };
+      if (cmd.testnet) {
+        opts.network = 'testnet';
+      }
       create(opts, function(err) {
         if (err) {
           throw err;
diff --git a/lib/scaffold/create.js b/lib/scaffold/create.js
index 28343091..aa9a3084 100644
--- a/lib/scaffold/create.js
+++ b/lib/scaffold/create.js
@@ -48,21 +48,21 @@ function createBitcoinDirectory(datadir, done) {
 
 /**
  * Will create a base Bitcore Node configuration directory and files.
+ * @param {Object} options
+ * @param {String} options.network - "testnet" or "livenet"
+ * @param {String} options.datadir - The bitcoin database directory
  * @param {String} configDir - The absolute path
- * @param {String} datadir - The bitcoin database directory
  * @param {Boolean} isGlobal - If the configuration depends on globally installed node services.
  * @param {Function} done - The callback function called when finished
  */
-function createConfigDirectory(configDir, datadir, isGlobal, done) {
+function createConfigDirectory(options, configDir, isGlobal, done) {
   mkdirp(configDir, function(err) {
     if (err) {
       throw err;
     }
-
-    var configInfo = defaultBaseConfig();
+    var configInfo = defaultBaseConfig(options);
     var config = configInfo.config;
 
-    config.datadir = datadir;
     var configJSON = JSON.stringify(config, null, 2);
     var packageJSON = JSON.stringify(BASE_PACKAGE, null, 2);
     try {
@@ -110,7 +110,11 @@ function create(options, done) {
     function(next) {
       // Setup the the bitcore-node directory and configuration
       if (!fs.existsSync(absConfigDir)) {
-        createConfigDirectory(absConfigDir, datadir, isGlobal, next);
+        var createOptions = {
+          network: options.network,
+          datadir: datadir
+        };
+        createConfigDirectory(createOptions, absConfigDir, isGlobal, next);
       } else {
         next(new Error('Directory "' + absConfigDir+ '" already exists.'));
       }
diff --git a/lib/scaffold/default-base-config.js b/lib/scaffold/default-base-config.js
index e8b66696..6bb0babc 100644
--- a/lib/scaffold/default-base-config.js
+++ b/lib/scaffold/default-base-config.js
@@ -5,13 +5,18 @@ var path = require('path');
 /**
  * Will return the path and default bitcore-node configuration on environment variables
  * or default locations.
+ * @param {Object} options
+ * @param {String} options.network - "testnet" or "livenet"
  */
-function getDefaultBaseConfig() {
+function getDefaultBaseConfig(options) {
+  if (!options) {
+    options = {};
+  }
   return {
     path: process.cwd(),
     config: {
-      datadir: path.resolve(process.env.HOME, '.bitcoin'),
-      network: 'livenet',
+      datadir: options.datadir || path.resolve(process.env.HOME, '.bitcoin'),
+      network: options.network || 'livenet',
       port: 3001,
       services: ['bitcoind', 'db', 'address', 'web']
     }
diff --git a/test/scaffold/default-base-config.integration.js b/test/scaffold/default-base-config.integration.js
index 8b23a9fa..5b09b3cd 100644
--- a/test/scaffold/default-base-config.integration.js
+++ b/test/scaffold/default-base-config.integration.js
@@ -3,7 +3,7 @@
 var should = require('chai').should();
 var defaultBaseConfig = require('../../lib/scaffold/default-base-config');
 
-describe('#defaultConfig', function() {
+describe('#defaultBaseConfig', function() {
   it('will return expected configuration', function() {
     var cwd = process.cwd();
     var home = process.env.HOME;
@@ -14,4 +14,24 @@ describe('#defaultConfig', function() {
     info.config.port.should.equal(3001);
     info.config.services.should.deep.equal(['bitcoind', 'db', 'address', 'web']);
   });
+  it('be able to specify a network', function() {
+    var cwd = process.cwd();
+    var home = process.env.HOME;
+    var info = defaultBaseConfig({network: 'testnet'});
+    info.path.should.equal(cwd);
+    info.config.datadir.should.equal(home + '/.bitcoin');
+    info.config.network.should.equal('testnet');
+    info.config.port.should.equal(3001);
+    info.config.services.should.deep.equal(['bitcoind', 'db', 'address', 'web']);
+  });
+  it('be able to specify a datadir', function() {
+    var cwd = process.cwd();
+    var home = process.env.HOME;
+    var info = defaultBaseConfig({datadir: './data2', network: 'testnet'});
+    info.path.should.equal(cwd);
+    info.config.datadir.should.equal('./data2');
+    info.config.network.should.equal('testnet');
+    info.config.port.should.equal(3001);
+    info.config.services.should.deep.equal(['bitcoind', 'db', 'address', 'web']);
+  });
 });