diff --git a/lightningd/lightningd.c b/lightningd/lightningd.c
index bd9b365fe..8c011ea2c 100644
--- a/lightningd/lightningd.c
+++ b/lightningd/lightningd.c
@@ -34,10 +34,6 @@
 
 char *bitcoin_datadir;
 
-#if DEVELOPER
-bool dev_no_backtrace;
-#endif
-
 struct backtrace_state *backtrace_state;
 
 void db_resolve_invoice(struct lightningd *ld,
@@ -245,7 +241,8 @@ int main(int argc, char *argv[])
 	err_set_progname(argv[0]);
 
 #if DEVELOPER
-	if (!dev_no_backtrace)
+	/* Suppresses backtrace (breaks valgrind) */
+	if (!getenv("LIGHTNINGD_DEV_NO_BACKTRACE"))
 #endif
 	backtrace_state = backtrace_create_state(argv[0], 0, NULL, NULL);
 
diff --git a/lightningd/lightningd.h b/lightningd/lightningd.h
index 949eb221f..74822022d 100644
--- a/lightningd/lightningd.h
+++ b/lightningd/lightningd.h
@@ -175,7 +175,4 @@ struct chainparams *get_chainparams(const struct lightningd *ld);
 /* State for performing backtraces. */
 struct backtrace_state *backtrace_state;
 
-#if DEVELOPER
-extern bool dev_no_backtrace;
-#endif
 #endif /* LIGHTNING_LIGHTNINGD_LIGHTNINGD_H */
diff --git a/lightningd/options.c b/lightningd/options.c
index 75810bf3f..f15a0adec 100644
--- a/lightningd/options.c
+++ b/lightningd/options.c
@@ -298,9 +298,6 @@ static void dev_register_opts(struct lightningd *ld)
 			 NULL, ld, "File containing disconnection points");
 	opt_register_arg("--dev-hsm-seed=<seed>", opt_set_hsm_seed,
 			 NULL, ld, "Hex-encoded seed for HSM");
-	opt_register_noarg("--dev-no-backtrace", opt_set_bool,
-			   &dev_no_backtrace,
-			   "Disable backtrace (crashes under valgrind)");
 }
 #endif
 
diff --git a/tests/test_lightningd.py b/tests/test_lightningd.py
index d8a9ea213..c6fe7950f 100644
--- a/tests/test_lightningd.py
+++ b/tests/test_lightningd.py
@@ -109,7 +109,7 @@ class NodeFactory(object):
         if DEVELOPER:
             daemon.cmd_line.append("--dev-fail-on-subdaemon-fail")
             if VALGRIND:
-                daemon.cmd_line.append("--dev-no-backtrace")
+                daemon.env["LIGHTNINGD_DEV_NO_BACKTRACE"] = "1"
         opts = [] if options is None else options
         for opt in opts:
             daemon.cmd_line.append(opt)
diff --git a/tests/utils.py b/tests/utils.py
index fda6a7891..57d6e2922 100644
--- a/tests/utils.py
+++ b/tests/utils.py
@@ -44,6 +44,7 @@ class TailableProc(object):
         self.logs = []
         self.logs_cond = threading.Condition(threading.RLock())
         self.cmd_line = None
+        self.env = os.environ
         self.running = False
         self.proc = None
         self.outputDir = outputDir
@@ -53,7 +54,7 @@ class TailableProc(object):
         """Start the underlying process and start monitoring it.
         """
         logging.debug("Starting '%s'", " ".join(self.cmd_line))
-        self.proc = subprocess.Popen(self.cmd_line, stdout=subprocess.PIPE)
+        self.proc = subprocess.Popen(self.cmd_line, stdout=subprocess.PIPE, env=self.env)
         self.thread = threading.Thread(target=self.tail)
         self.thread.daemon = True
         self.thread.start()