diff --git a/gossipd/gossip.c b/gossipd/gossip.c
index 0524cc599..2eeda1d44 100644
--- a/gossipd/gossip.c
+++ b/gossipd/gossip.c
@@ -2355,11 +2355,99 @@ static struct io_plan *peer_important(struct io_conn *conn,
 	return daemon_conn_read_next(conn, &daemon->master);
 }
 
+static void gossip_disable_channel(struct routing_state *rstate, struct chan *chan)
+{
+	struct short_channel_id scid;
+	u8 direction;
+	struct half_chan *hc;
+	u16 flags, cltv_expiry_delta;
+	u32 timestamp, fee_base_msat, fee_proportional_millionths;
+	struct bitcoin_blkid chain_hash;
+	secp256k1_ecdsa_signature sig;
+	u64 htlc_minimum_msat;
+	u8 *err, *msg;
+
+	direction = pubkey_eq(&chan->nodes[0]->id, &rstate->local_id)?0:1;
+
+	assert(chan);
+	hc = &chan->half[direction];
+
+	status_trace("Disabling channel %s/%d, active %d -> %d",
+		     type_to_string(tmpctx, struct short_channel_id, &chan->scid),
+		     direction, is_halfchan_enabled(hc), 0);
+
+	if (!is_halfchan_defined(hc)) {
+		status_trace(
+		    "Channel %s/%d doesn't have a channel_update yet, can't "
+		    "disable",
+		    type_to_string(tmpctx, struct short_channel_id, &scid),
+		    direction);
+		return;
+	}
+
+	if (!fromwire_channel_update(
+		hc->channel_update, &sig, &chain_hash, &scid, &timestamp,
+		&flags, &cltv_expiry_delta, &htlc_minimum_msat, &fee_base_msat,
+		&fee_proportional_millionths)) {
+		status_failed(
+		    STATUS_FAIL_INTERNAL_ERROR,
+		    "Unable to parse previously accepted channel_update");
+	}
+
+	status_trace("Disabling channel %s", type_to_string(tmpctx, struct short_channel_id, &scid));
+
+	timestamp = time_now().ts.tv_sec;
+	if (timestamp <= hc->last_timestamp)
+		timestamp = hc->last_timestamp + 1;
+
+	status_trace("Disabling channel %s: %d", type_to_string(tmpctx, struct short_channel_id, &scid), 0);
+
+	flags = flags | ROUTING_FLAGS_DISABLED;
+
+	msg = towire_channel_update(tmpctx, &sig, &chain_hash, &scid, timestamp,
+				    flags, cltv_expiry_delta, htlc_minimum_msat,
+				    fee_base_msat, fee_proportional_millionths);
+
+	if (!wire_sync_write(HSM_FD,
+			     towire_hsm_cupdate_sig_req(tmpctx, msg))) {
+		status_failed(STATUS_FAIL_HSM_IO, "Writing cupdate_sig_req: %s",
+			      strerror(errno));
+	}
+
+	msg = wire_sync_read(tmpctx, HSM_FD);
+	if (!msg || !fromwire_hsm_cupdate_sig_reply(tmpctx, msg, &msg)) {
+		status_failed(STATUS_FAIL_HSM_IO,
+			      "Reading cupdate_sig_req: %s",
+			      strerror(errno));
+	}
+
+	err = handle_channel_update(rstate, msg, "disable_channel");
+	if (err)
+		status_failed(STATUS_FAIL_INTERNAL_ERROR,
+			      "rejected disabling channel_update: %s",
+			      tal_hex(tmpctx, err));
+}
+
+static void peer_disable_channels(struct routing_state *rstate, struct node *node)
+{
+	struct chan *c;
+	size_t i;
+	for (i=0; i<tal_count(node->chans); i++) {
+		c = node->chans[i];
+		if (pubkey_eq(&other_node(node, c)->id, &rstate->local_id)) {
+			c->half[0].flags |= ROUTING_FLAGS_DISABLED;
+			c->half[1].flags |= ROUTING_FLAGS_DISABLED;
+			gossip_disable_channel(rstate, c);
+		}
+	}
+}
+
 static struct io_plan *peer_disconnected(struct io_conn *conn,
 					 struct daemon *daemon, const u8 *msg)
 {
 	struct pubkey id;
 	struct peer *peer;
+	struct node *node;
 
 	if (!fromwire_gossipctl_peer_disconnected(msg, &id))
 		master_badmsg(WIRE_GOSSIPCTL_PEER_DISCONNECTED, msg);
@@ -2375,6 +2463,11 @@ static struct io_plan *peer_disconnected(struct io_conn *conn,
 	status_trace("Forgetting remote peer %s",
 		     type_to_string(tmpctx, struct pubkey, &peer->id));
 
+	/* Disable any channels to and from this peer */
+	node = get_node(daemon->rstate, &id);
+	if (node)
+		peer_disable_channels(daemon->rstate, node);
+
 	tal_free(peer);
 
 	/* If there was a connecting peer waiting, wake it now */
@@ -2440,92 +2533,6 @@ static struct io_plan *handle_txout_reply(struct io_conn *conn,
 	return daemon_conn_read_next(conn, &daemon->master);
 }
 
-static struct io_plan *handle_disable_channel(struct io_conn *conn,
-					      struct daemon *daemon, u8 *msg)
-{
-	struct short_channel_id scid;
-	u8 direction;
-	struct chan *chan;
-	struct half_chan *hc;
-	bool active;
-	u16 flags, cltv_expiry_delta;
-	u32 timestamp, fee_base_msat, fee_proportional_millionths;
-	struct bitcoin_blkid chain_hash;
-	secp256k1_ecdsa_signature sig;
-	u64 htlc_minimum_msat;
-	u8 *err;
-
-	if (!fromwire_gossip_disable_channel(msg, &scid, &direction, &active) ) {
-		status_unusual("Unable to parse %s",
-			      gossip_wire_type_name(fromwire_peektype(msg)));
-		goto fail;
-	}
-
-	chan = get_channel(daemon->rstate, &scid);
-	if (!chan) {
-		status_trace(
-		    "Unable to find channel %s",
-		    type_to_string(msg, struct short_channel_id, &scid));
-		goto fail;
-	}
-	hc = &chan->half[direction];
-
-	status_trace("Disabling channel %s/%d, active %d -> %d",
-		     type_to_string(msg, struct short_channel_id, &scid),
-		     direction, is_halfchan_enabled(hc), active);
-
-	if (!is_halfchan_defined(hc)) {
-		status_trace(
-		    "Channel %s/%d doesn't have a channel_update yet, can't "
-		    "disable",
-		    type_to_string(msg, struct short_channel_id, &scid),
-		    direction);
-		goto fail;
-	}
-
-	if (!fromwire_channel_update(
-		hc->channel_update, &sig, &chain_hash, &scid, &timestamp,
-		&flags, &cltv_expiry_delta, &htlc_minimum_msat, &fee_base_msat,
-		&fee_proportional_millionths)) {
-		status_failed(
-		    STATUS_FAIL_INTERNAL_ERROR,
-		    "Unable to parse previously accepted channel_update");
-	}
-
-	timestamp = time_now().ts.tv_sec;
-	if (timestamp <= hc->last_timestamp)
-		timestamp = hc->last_timestamp + 1;
-
-	flags = direction;
-	if (!active)
-		flags |= ROUTING_FLAGS_DISABLED;
-
-	msg = towire_channel_update(tmpctx, &sig, &chain_hash, &scid, timestamp,
-				    flags, cltv_expiry_delta, htlc_minimum_msat,
-				    fee_base_msat, fee_proportional_millionths);
-
-	if (!wire_sync_write(HSM_FD,
-			     towire_hsm_cupdate_sig_req(tmpctx, msg))) {
-		status_failed(STATUS_FAIL_HSM_IO, "Writing cupdate_sig_req: %s",
-			      strerror(errno));
-	}
-
-	msg = wire_sync_read(tmpctx, HSM_FD);
-	if (!msg || !fromwire_hsm_cupdate_sig_reply(tmpctx, msg, &msg)) {
-		status_failed(STATUS_FAIL_HSM_IO,
-			      "Reading cupdate_sig_req: %s",
-			      strerror(errno));
-	}
-
-	err = handle_channel_update(daemon->rstate, msg, "disable_channel");
-	if (err)
-		status_failed(STATUS_FAIL_INTERNAL_ERROR,
-			      "rejected disabling channel_update: %s",
-			      tal_hex(tmpctx, err));
-
-fail:
-	return daemon_conn_read_next(conn, &daemon->master);
-}
 static struct io_plan *handle_routing_failure(struct io_conn *conn,
 					      struct daemon *daemon,
 					      const u8 *msg)
@@ -2615,6 +2622,7 @@ static struct io_plan *handle_local_channel_close(struct io_conn *conn,
 	if (chan) {
 		chan->half[0].flags |= ROUTING_FLAGS_DISABLED;
 		chan->half[1].flags |= ROUTING_FLAGS_DISABLED;
+		gossip_disable_channel(rstate, chan);
 	}
 	return daemon_conn_read_next(conn, &daemon->master);
 }
@@ -2670,9 +2678,6 @@ static struct io_plan *recv_req(struct io_conn *conn, struct daemon_conn *master
 	case WIRE_GOSSIP_GET_TXOUT_REPLY:
 		return handle_txout_reply(conn, daemon, master->msg_in);
 
-	case WIRE_GOSSIP_DISABLE_CHANNEL:
-		return handle_disable_channel(conn, daemon, master->msg_in);
-
 	case WIRE_GOSSIP_ROUTING_FAILURE:
 		return handle_routing_failure(conn, daemon, master->msg_in);
 
diff --git a/gossipd/gossip_wire.csv b/gossipd/gossip_wire.csv
index 9019fbebf..53acd72df 100644
--- a/gossipd/gossip_wire.csv
+++ b/gossipd/gossip_wire.csv
@@ -220,12 +220,6 @@ gossip_get_txout_reply,,satoshis,u64
 gossip_get_txout_reply,,len,u16
 gossip_get_txout_reply,,outscript,len*u8
 
-# client->gossipd: Disable the channel matching the short_channel_id
-gossip_disable_channel,3019
-gossip_disable_channel,,short_channel_id,struct short_channel_id
-gossip_disable_channel,,direction,u8
-gossip_disable_channel,,active,bool
-
 # master->gossipd a routing failure occurred
 gossip_routing_failure,3021
 gossip_routing_failure,,erring_node,struct pubkey
diff --git a/lightningd/channel.c b/lightningd/channel.c
index 26d74a368..d20d4036f 100644
--- a/lightningd/channel.c
+++ b/lightningd/channel.c
@@ -329,14 +329,6 @@ void channel_fail_permanent(struct channel *channel, const char *fmt, ...)
 	why = tal_vfmt(channel, fmt, ap);
 	va_end(ap);
 
-	if (channel->scid) {
-		u8 *msg = towire_gossip_disable_channel(NULL,
-						    channel->scid,
-						    channel->peer->direction,
-						    false);
-		subd_send_msg(ld->gossip, take(msg));
-	}
-
 	log_unusual(channel->log, "Peer permanent failure in %s: %s",
 		    channel_state_name(channel), why);
 
diff --git a/lightningd/gossip_control.c b/lightningd/gossip_control.c
index 85073118d..39e553bd4 100644
--- a/lightningd/gossip_control.c
+++ b/lightningd/gossip_control.c
@@ -133,7 +133,6 @@ static unsigned gossip_msg(struct subd *gossip, const u8 *msg, const int *fds)
 	case WIRE_GOSSIP_GET_UPDATE:
 	case WIRE_GOSSIP_SEND_GOSSIP:
 	case WIRE_GOSSIP_GET_TXOUT_REPLY:
-	case WIRE_GOSSIP_DISABLE_CHANNEL:
 	case WIRE_GOSSIP_OUTPOINT_SPENT:
 	case WIRE_GOSSIP_ROUTING_FAILURE:
 	case WIRE_GOSSIP_MARK_CHANNEL_UNROUTABLE:
diff --git a/wallet/test/run-wallet.c b/wallet/test/run-wallet.c
index ed26dd16c..73e5c9929 100644
--- a/wallet/test/run-wallet.c
+++ b/wallet/test/run-wallet.c
@@ -52,7 +52,7 @@ bool channel_tell_funding_locked(struct lightningd *ld UNNEEDED,
 { fprintf(stderr, "channel_tell_funding_locked called!\n"); abort(); }
 /* Generated stub for command_fail */
 void  command_fail(struct command *cmd UNNEEDED, int code UNNEEDED,
-		   const char *fmt UNNEEDED, ...)
+				   const char *fmt UNNEEDED, ...)
 { fprintf(stderr, "command_fail called!\n"); abort(); }
 /* Generated stub for command_still_pending */
 void command_still_pending(struct command *cmd UNNEEDED)
@@ -388,9 +388,6 @@ u8 *towire_gossipctl_peer_disconnected(const tal_t *ctx UNNEEDED, const struct p
 /* Generated stub for towire_gossipctl_peer_important */
 u8 *towire_gossipctl_peer_important(const tal_t *ctx UNNEEDED, const struct pubkey *id UNNEEDED, bool important UNNEEDED)
 { fprintf(stderr, "towire_gossipctl_peer_important called!\n"); abort(); }
-/* Generated stub for towire_gossip_disable_channel */
-u8 *towire_gossip_disable_channel(const tal_t *ctx UNNEEDED, const struct short_channel_id *short_channel_id UNNEEDED, u8 direction UNNEEDED, bool active UNNEEDED)
-{ fprintf(stderr, "towire_gossip_disable_channel called!\n"); abort(); }
 /* Generated stub for towire_gossip_getpeers_request */
 u8 *towire_gossip_getpeers_request(const tal_t *ctx UNNEEDED, const struct pubkey *id UNNEEDED)
 { fprintf(stderr, "towire_gossip_getpeers_request called!\n"); abort(); }