diff --git a/repository.c b/repository.c
index 58a13f7c4f..2c2395105f 100644
--- a/repository.c
+++ b/repository.c
@@ -181,12 +181,6 @@ void repo_set_gitdir(struct repository *repo,
 	free(old_gitdir);
 
 	repo_set_commondir(repo, o->commondir);
-
-	if (!repo->objects)
-		repo->objects = odb_new(repo, o->object_dir, o->alternate_db);
-	else if (!o->skip_initializing_odb)
-		BUG("cannot reinitialize an already-initialized object directory");
-
 	repo->disable_ref_updates = o->disable_ref_updates;
 
 	expand_base_dir(&repo->graft_file, o->graft_file,
@@ -302,6 +296,8 @@ int repo_init(struct repository *repo,
 		goto error;
 	}
 
+	repo->objects = odb_new(repo, NULL, NULL);
+
 	if (worktree)
 		repo_set_worktree(repo, worktree);
 
diff --git a/repository.h b/repository.h
index c3ec0f4b79..36e2db2633 100644
--- a/repository.h
+++ b/repository.h
@@ -221,12 +221,9 @@ const char *repo_get_work_tree(struct repository *repo);
  */
 struct set_gitdir_args {
 	const char *commondir;
-	const char *object_dir;
 	const char *graft_file;
 	const char *index_file;
-	const char *alternate_db;
 	bool disable_ref_updates;
-	bool skip_initializing_odb;
 };
 
 void repo_set_gitdir(struct repository *repo, const char *root,
diff --git a/setup.c b/setup.c
index c5015923f1..3bd3f6c592 100644
--- a/setup.c
+++ b/setup.c
@@ -1045,17 +1045,18 @@ static void setup_git_env_internal(struct repository *repo,
 	struct strvec to_free = STRVEC_INIT;
 
 	args.commondir = getenv_safe(&to_free, GIT_COMMON_DIR_ENVIRONMENT);
-	args.object_dir = getenv_safe(&to_free, DB_ENVIRONMENT);
 	args.graft_file = getenv_safe(&to_free, GRAFT_ENVIRONMENT);
 	args.index_file = getenv_safe(&to_free, INDEX_ENVIRONMENT);
-	args.alternate_db = getenv_safe(&to_free, ALTERNATE_DB_ENVIRONMENT);
 	if (getenv(GIT_QUARANTINE_ENVIRONMENT))
 		args.disable_ref_updates = true;
-	args.skip_initializing_odb = skip_initializing_odb;
 
 	repo_set_gitdir(repo, git_dir, &args);
 	strvec_clear(&to_free);
 
+	if (!skip_initializing_odb)
+		repo->objects = odb_new(repo, getenv_safe(&to_free, DB_ENVIRONMENT),
+					getenv_safe(&to_free, ALTERNATE_DB_ENVIRONMENT));
+
 	if (getenv(NO_REPLACE_OBJECTS_ENVIRONMENT))
 		disable_replace_refs();
 	replace_ref_base = getenv(GIT_REPLACE_REF_BASE_ENVIRONMENT);