diff --git a/pkg/services/librarypanels/database_test.go b/pkg/services/librarypanels/database_test.go
index 8e3ecedce55..34207ed3921 100644
--- a/pkg/services/librarypanels/database_test.go
+++ b/pkg/services/librarypanels/database_test.go
@@ -2,6 +2,7 @@ package librarypanels
 
 import (
 	"github.com/grafana/grafana/pkg/models"
+	"github.com/grafana/grafana/pkg/registry"
 	"github.com/grafana/grafana/pkg/services/sqlstore"
 	"github.com/grafana/grafana/pkg/setting"
 	"github.com/stretchr/testify/require"
@@ -36,9 +37,29 @@ func TestAddLibraryPanel(t *testing.T) {
 }
 
 func setupTestEnv(t *testing.T, orgRole models.RoleType) (LibraryPanelService, models.SignedInUser) {
-	cfg := setting.Cfg{}
+	cfg := setting.NewCfg()
 	cfg.FeatureToggles = map[string]bool{"panelLibrary": true}
-	sqlStore := sqlstore.InitTestDBWithCfg(t, &cfg)
+
+	lps := LibraryPanelService{
+		SQLStore: nil,
+		Cfg:      cfg,
+	}
+
+	overrideServiceFunc := func(d registry.Descriptor) (*registry.Descriptor, bool) {
+		descriptor := registry.Descriptor{
+			Name:         "LibraryPanelService",
+			Instance:     &lps,
+			InitPriority: 0,
+		}
+
+		return &descriptor, true
+	}
+
+	registry.RegisterOverride(overrideServiceFunc)
+
+	sqlStore := sqlstore.InitTestDB(t)
+	lps.SQLStore = sqlStore
+
 	user := models.SignedInUser{
 		UserId:         1,
 		OrgId:          1,
@@ -55,9 +76,6 @@ func setupTestEnv(t *testing.T, orgRole models.RoleType) (LibraryPanelService, m
 		LastSeenAt:     time.Now(),
 		Teams:          nil,
 	}
-	lps := LibraryPanelService{
-		SQLStore: sqlStore,
-		Cfg:      &cfg,
-	}
+
 	return lps, user
 }
diff --git a/pkg/services/librarypanels/librarypanels.go b/pkg/services/librarypanels/librarypanels.go
index 7e4bd0cc666..3c6821d0017 100644
--- a/pkg/services/librarypanels/librarypanels.go
+++ b/pkg/services/librarypanels/librarypanels.go
@@ -25,9 +25,7 @@ func init() {
 func (lps *LibraryPanelService) Init() error {
 	lps.log = log.New("librarypanels")
 
-	if lps.IsEnabled() {
-		lps.registerAPIEndpoints()
-	}
+	lps.registerAPIEndpoints()
 
 	return nil
 }
@@ -35,7 +33,7 @@ func (lps *LibraryPanelService) Init() error {
 // IsEnabled returns true if the Panel Library feature is enabled for this instance.
 func (lps *LibraryPanelService) IsEnabled() bool {
 	if lps.Cfg == nil {
-		return true // used for test purposes only
+		return false
 	}
 
 	return lps.Cfg.IsPanelLibraryEnabled()
diff --git a/pkg/services/sqlstore/sqlstore.go b/pkg/services/sqlstore/sqlstore.go
index 0731b2f2623..2585041bcee 100644
--- a/pkg/services/sqlstore/sqlstore.go
+++ b/pkg/services/sqlstore/sqlstore.go
@@ -346,15 +346,6 @@ var testSQLStore *SQLStore
 
 // InitTestDB initializes the test DB.
 func InitTestDB(t ITestDB) *SQLStore {
-	return initTestDB(t, nil)
-}
-
-// InitTestDBWithCfg initializes the test DB with Cfg.
-func InitTestDBWithCfg(t ITestDB, cfg *setting.Cfg) *SQLStore {
-	return initTestDB(t, nil)
-}
-
-func initTestDB(t ITestDB, cfg *setting.Cfg) *SQLStore {
 	t.Helper()
 	if testSQLStore == nil {
 		testSQLStore = &SQLStore{}
@@ -371,13 +362,7 @@ func initTestDB(t ITestDB, cfg *setting.Cfg) *SQLStore {
 		}
 
 		// set test db config
-		if cfg == nil {
-			testSQLStore.Cfg = setting.NewCfg()
-		}
-
-		if cfg != nil {
-			testSQLStore.Cfg = cfg
-		}
+		testSQLStore.Cfg = setting.NewCfg()
 
 		sec, err := testSQLStore.Cfg.Raw.NewSection("database")
 		if err != nil {