diff --git a/lib/spack/spack/database.py b/lib/spack/spack/database.py
index 1b10965a42d..fc791595d68 100644
--- a/lib/spack/spack/database.py
+++ b/lib/spack/spack/database.py
@@ -356,10 +356,10 @@ def __init__(self, root, db_dir=None, upstream_dbs=None,
         self.prefix_fail_path = os.path.join(self._db_dir, 'prefix_failures')
 
         # Create needed directories and files
-        if not os.path.exists(self._db_dir):
+        if not is_upstream and not os.path.exists(self._db_dir):
             fs.mkdirp(self._db_dir)
 
-        if not os.path.exists(self._failure_dir) and not is_upstream:
+        if not is_upstream and not os.path.exists(self._failure_dir):
             fs.mkdirp(self._failure_dir)
 
         self.is_upstream = is_upstream