diff --git a/src/config.rs b/src/config.rs
index 56547b8..1c6e820 100644
--- a/src/config.rs
+++ b/src/config.rs
@@ -64,20 +64,21 @@ impl Config {
                     .takes_value(true),
             )
             .arg(
-                Arg::with_name("testnet")
-                    .long("testnet")
-                    .help("Connect to a testnet bitcoind instance"),
+                Arg::with_name("network")
+                    .long("network")
+                    .help("Select Bitcoin network type ('mainnet', 'testnet' or 'regtest')")
+                    .takes_value(true),
             )
             .arg(
                 Arg::with_name("electrum_rpc_addr")
                     .long("electrum-rpc-addr")
-                    .help("Electrum server JSONRPC 'addr:port' to listen on (default: '127.0.0.1:50001' for mainnet and '127.0.0.1:60001' for testnet)")
+                    .help("Electrum server JSONRPC 'addr:port' to listen on (default: '127.0.0.1:50001' for mainnet, '127.0.0.1:60001' for testnet and '127.0.0.1:60401' for regtest)")
                     .takes_value(true),
             )
             .arg(
                 Arg::with_name("daemon_rpc_addr")
                     .long("daemon-rpc-addr")
-                    .help("Bitcoin daemon JSONRPC 'addr:port' to connect (default: 127.0.0.1:8332 for mainnet and 127.0.0.1:18332 for testnet)")
+                    .help("Bitcoin daemon JSONRPC 'addr:port' to connect (default: 127.0.0.1:8332 for mainnet, 127.0.0.1:18332 for testnet and 127.0.0.1:18443 for regtest)")
                     .takes_value(true),
             )
             .arg(
@@ -88,22 +89,25 @@ impl Config {
             )
             .get_matches();
 
-        let db_dir = Path::new(m.value_of("db_dir").unwrap_or("./db"));
-        let network_type = match m.is_present("testnet") {
-            false => Network::Mainnet,
-            true => Network::Testnet,
-        };
-        let db_path = match network_type {
-            Network::Mainnet => db_dir.join("mainnet"),
-            Network::Testnet => db_dir.join("testnet"),
+        let network_name = m.value_of("network").unwrap_or("mainnet");
+        let network_type = match network_name {
+            "mainnet" => Network::Mainnet,
+            "testnet" => Network::Testnet,
+            "regtest" => Network::Regtest,
+            _ => panic!("unsupported Bitcoin network: {:?}", network_name),
         };
+        let db_dir = Path::new(m.value_of("db_dir").unwrap_or("./db"));
+        let db_path = db_dir.join(network_name);
+
         let default_daemon_port = match network_type {
             Network::Mainnet => 8332,
             Network::Testnet => 18332,
+            Network::Regtest => 18443,
         };
         let default_electrum_port = match network_type {
             Network::Mainnet => 50001,
             Network::Testnet => 60001,
+            Network::Regtest => 60401,
         };
 
         let daemon_rpc_addr: SocketAddr = m.value_of("daemon_rpc_addr")
@@ -126,8 +130,10 @@ impl Config {
                 default_dir.push(".bitcoin");
                 default_dir
             });
-        if let Network::Testnet = network_type {
-            daemon_dir.push("testnet3");
+        match network_type {
+            Network::Mainnet => (),
+            Network::Testnet => daemon_dir.push("testnet3"),
+            Network::Regtest => daemon_dir.push("regtest"),
         }
         let cookie = m.value_of("cookie")
             .map(|s| s.to_owned())
diff --git a/src/daemon.rs b/src/daemon.rs
index 0bfd694..8044a4d 100644
--- a/src/daemon.rs
+++ b/src/daemon.rs
@@ -22,6 +22,7 @@ use errors::*;
 pub enum Network {
     Mainnet,
     Testnet,
+    Regtest,
 }
 
 fn parse_hash(value: &Value) -> Result<Sha256dHash> {
@@ -242,6 +243,7 @@ impl Daemon {
         match self.network {
             Network::Mainnet => 0xD9B4BEF9,
             Network::Testnet => 0x0709110B,
+            Network::Regtest => 0xDAB5BFFA,
         }
     }