diff --git a/builtin/clone.c b/builtin/clone.c
index 5b25cca510..0a67492ebd 100644
--- a/builtin/clone.c
+++ b/builtin/clone.c
@@ -1184,11 +1184,14 @@ int cmd_clone(int argc,
 	 * database. We do not yet know about the object format of the
 	 * repository, and reference backends may persist that information into
 	 * their on-disk data structures.
+	 *
+	 * Furthermore, we skip initializing the object database so that we can
+	 * first resolve potential alternates before creating it.
 	 */
 	init_db(the_repository, git_dir, real_git_dir, work_tree, option_template,
 		GIT_HASH_UNKNOWN, ref_storage_format, NULL,
 		do_not_override_repo_unix_permissions,
-		INIT_DB_QUIET | INIT_DB_SKIP_REFDB);
+		INIT_DB_QUIET | INIT_DB_SKIP_REFDB | INIT_DB_SKIP_ODB);
 
 	if (real_git_dir) {
 		free((char *)git_dir);
@@ -1311,9 +1314,6 @@ int cmd_clone(int argc,
 		strbuf_reset(&key);
 	}
 
-	if (option_required_reference.nr || option_optional_reference.nr)
-		setup_reference();
-
 	remote = remote_get_early(remote_name);
 
 	if (!option_rev)
@@ -1342,6 +1342,10 @@ int cmd_clone(int argc,
 	if (option_local > 0 && !is_local)
 		warning(_("--local is ignored"));
 
+	create_object_database(the_repository);
+	if (option_required_reference.nr || option_optional_reference.nr)
+		setup_reference();
+
 	transport = transport_get(remote, path ? path : remote->url.v[0]);
 	transport_set_verbosity(transport, option_verbosity, option_progress);
 	transport->family = family;
diff --git a/setup.c b/setup.c
index d90654f584..e654e27d05 100644
--- a/setup.c
+++ b/setup.c
@@ -2647,7 +2647,7 @@ static int create_default_files(struct repository *repo,
 	return reinit;
 }
 
-static void create_object_database(struct repository *repo)
+void create_object_database(struct repository *repo)
 {
 	/*
 	 * Create the "objects" directory in the common directory. This is done
@@ -2829,7 +2829,8 @@ int init_db(struct repository *repo,
 	    const char *template_dir, int hash,
 	    enum ref_storage_format ref_storage_format,
 	    const char *initial_branch,
-	    int init_shared_repository, unsigned int flags)
+	    int init_shared_repository,
+	    enum init_db_flags flags)
 {
 	int reinit;
 	int exist_ok = flags & INIT_DB_EXIST_OK;
@@ -2903,7 +2904,8 @@ int init_db(struct repository *repo,
 
 	if (!(flags & INIT_DB_SKIP_REFDB))
 		create_reference_database(repo, initial_branch, flags & INIT_DB_QUIET);
-	create_object_database(repo);
+	if (!(flags & INIT_DB_SKIP_ODB))
+		create_object_database(repo);
 
 	startup_info->have_repository = 1;
 
diff --git a/setup.h b/setup.h
index 763fd384e8..570ebcd150 100644
--- a/setup.h
+++ b/setup.h
@@ -256,9 +256,12 @@ int apply_repository_format(struct repository *repo,
 
 const char *get_template_dir(const char *option_template);
 
-#define INIT_DB_QUIET      (1 << 0)
-#define INIT_DB_EXIST_OK   (1 << 1)
-#define INIT_DB_SKIP_REFDB (1 << 2)
+enum init_db_flags {
+	INIT_DB_QUIET = (1 << 0),
+	INIT_DB_EXIST_OK = (1 << 1),
+	INIT_DB_SKIP_REFDB = (1 << 2),
+	INIT_DB_SKIP_ODB = (1 << 3),
+};
 
 int init_db(struct repository *repo,
 	    const char *git_dir,
@@ -266,13 +269,15 @@ int init_db(struct repository *repo,
 	    const char *worktree,
 	    const char *template_dir, int hash_algo,
 	    enum ref_storage_format ref_storage_format,
-	    const char *initial_branch, int init_shared_repository,
-	    unsigned int flags);
+	    const char *initial_branch,
+	    int init_shared_repository,
+	    enum init_db_flags flags);
 void initialize_repository_version(struct repository *repo,
 				   int hash_algo,
 				   enum ref_storage_format ref_storage_format,
 				   int reinit);
 void create_reference_database(struct repository *repo, const char *initial_branch, int quiet);
+void create_object_database(struct repository *repo);
 
 /*
  * NOTE NOTE NOTE!!