diff --git a/chain/src/chain.rs b/chain/src/chain.rs
index 2aa80c9d0..4fedb62ff 100644
--- a/chain/src/chain.rs
+++ b/chain/src/chain.rs
@@ -30,8 +30,8 @@ use pipe;
 use store;
 use txhashset;
 use types::*;
-use util::LOGGER;
 use util::secp::pedersen::{Commitment, RangeProof};
+use util::LOGGER;
 
 /// Orphan pool size is limited by MAX_ORPHAN_SIZE
 pub const MAX_ORPHAN_SIZE: usize = 200;
@@ -460,25 +460,25 @@ impl Chain {
 		txhashset.is_unspent(output_ref)
 	}
 
+	fn next_block_height(&self) -> Result<u64, Error> {
+		let bh = self.head_header()?;
+		Ok(bh.height + 1)
+	}
+
 	/// Validate a vector of "raw" transactions against the current chain state.
 	pub fn validate_raw_txs(
 		&self,
 		txs: Vec<Transaction>,
 		pre_tx: Option<Transaction>,
 	) -> Result<Vec<Transaction>, Error> {
-		let bh = self.head_header()?;
+		let height = self.next_block_height()?;
 		let mut txhashset = self.txhashset.write().unwrap();
 		txhashset::extending_readonly(&mut txhashset, |extension| {
-			let valid_txs = extension.validate_raw_txs(txs, pre_tx, bh.height)?;
+			let valid_txs = extension.validate_raw_txs(txs, pre_tx, height)?;
 			Ok(valid_txs)
 		})
 	}
 
-	fn next_block_height(&self) -> Result<u64, Error> {
-		let bh = self.head_header()?;
-		Ok(bh.height + 1)
-	}
-
 	/// Verify we are not attempting to spend a coinbase output
 	/// that has not yet sufficiently matured.
 	pub fn verify_coinbase_maturity(&self, tx: &Transaction) -> Result<(), Error> {
diff --git a/chain/src/txhashset.rs b/chain/src/txhashset.rs
index 6616b11cf..2081a01d5 100644
--- a/chain/src/txhashset.rs
+++ b/chain/src/txhashset.rs
@@ -422,25 +422,27 @@ impl<'a> Extension<'a> {
 		let output_pos = self.output_pmmr.unpruned_size();
 		let kernel_pos = self.kernel_pmmr.unpruned_size();
 
+		let rewind_to_height = height - 1;
+
 		// When applying blocks we can apply the coinbase output first
 		// but we cannot do this here, so we need to apply outputs first.
 		for ref output in &tx.outputs {
 			if let Err(e) = self.apply_output(output) {
-				self.rewind_to_pos(output_pos, kernel_pos, height)?;
+				self.rewind_to_pos(output_pos, kernel_pos, rewind_to_height)?;
 				return Err(e);
 			}
 		}
 
 		for ref input in &tx.inputs {
 			if let Err(e) = self.apply_input(input, height) {
-				self.rewind_to_pos(output_pos, kernel_pos, height)?;
+				self.rewind_to_pos(output_pos, kernel_pos, rewind_to_height)?;
 				return Err(e);
 			}
 		}
 
 		for ref kernel in &tx.kernels {
 			if let Err(e) = self.apply_kernel(kernel) {
-				self.rewind_to_pos(output_pos, kernel_pos, height)?;
+				self.rewind_to_pos(output_pos, kernel_pos, rewind_to_height)?;
 				return Err(e);
 			}
 		}
@@ -474,13 +476,13 @@ impl<'a> Extension<'a> {
 		let mut height = height;
 		let mut valid_txs = vec![];
 		if let Some(tx) = pre_tx {
-			height += 1;
 			self.apply_raw_tx(&tx, height)?;
+			height += 1;
 		}
 		for tx in txs {
-			height += 1;
 			if self.apply_raw_tx(&tx, height).is_ok() {
 				valid_txs.push(tx);
+				height += 1;
 			}
 		}
 		Ok(valid_txs)