diff --git a/app/__init__.py b/app/__init__.py
index 192eab708..6e571a0c0 100644
--- a/app/__init__.py
+++ b/app/__init__.py
@@ -77,18 +77,7 @@ class SQLAlchemy(_SQLAlchemy):
         return (sa_url, options)
 
 
-# Set db engine settings here for now.
-# They were not being set previous (despite environmental variables with appropriate
-# sounding names) and were defaulting to low values
-db = SQLAlchemy(
-    engine_options={
-        "pool_size": config.Config.SQLALCHEMY_POOL_SIZE,
-        "max_overflow": 10,
-        "pool_timeout": config.Config.SQLALCHEMY_POOL_TIMEOUT,
-        "pool_recycle": config.Config.SQLALCHEMY_POOL_RECYCLE,
-        "pool_pre_ping": True,
-    }
-)
+db = None
 migrate = None
 notify_celery = NotifyCelery()
 aws_ses_client = None
@@ -189,10 +178,24 @@ def create_app(application):
     init_app(application)
 
     request_helper.init_app(application)
-    db.init_app(application)
     logging.init_app(application)
 
     # start lazy initialization for gevent
+
+    # Set db engine settings here for now.
+    # They were not being set previous (despite environmental variables with appropriate
+    # sounding names) and were defaulting to low values
+    db = SQLAlchemy(
+        engine_options={
+            "pool_size": config.Config.SQLALCHEMY_POOL_SIZE,
+            "max_overflow": 10,
+            "pool_timeout": config.Config.SQLALCHEMY_POOL_TIMEOUT,
+            "pool_recycle": config.Config.SQLALCHEMY_POOL_RECYCLE,
+            "pool_pre_ping": True,
+        }
+    )
+    db.init_app(application)
+
     migrate = Migrate()
     migrate.init_app(application, db=db)
     if zendesk_client is None:
diff --git a/tests/app/dao/test_annual_billing_dao.py b/tests/app/dao/test_annual_billing_dao.py
index 72a7d3a3a..f585ab614 100644
--- a/tests/app/dao/test_annual_billing_dao.py
+++ b/tests/app/dao/test_annual_billing_dao.py
@@ -2,7 +2,8 @@ import pytest
 from freezegun import freeze_time
 from sqlalchemy import select
 
-from app import db
+import application
+from app import create_app, db
 from app.dao.annual_billing_dao import (
     dao_create_or_update_annual_billing_for_year,
     dao_get_all_free_sms_fragment_limit,
@@ -18,6 +19,7 @@ from tests.app.db import create_annual_billing, create_service
 
 
 def test_dao_update_free_sms_fragment_limit(notify_db_session, sample_service):
+    create_app(application)
     new_limit = 9999
     year = get_current_calendar_year_start_year()
     dao_create_or_update_annual_billing_for_year(sample_service.id, new_limit, year)