diff --git a/CHANGELOG.md b/CHANGELOG.md
index effe33f3252..b7e870e2eda 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -64,7 +64,6 @@ Ref: https://keepachangelog.com/en/1.0.0/
 * (apps) [#3149](https://github.com/cosmos/ibc-go/pull/3149) Remove legacy interface function `RandomizedParams`, which is no longer used.
 * (light-clients/06-solomachine) [#2941](https://github.com/cosmos/ibc-go/pull/2941) Remove solomachine header sequence.
 * (core) [#2982](https://github.com/cosmos/ibc-go/pull/2982) Moved the ibc module name into the exported package.
-* (testing) [\#3295](https://github.com/cosmos/ibc-go/pull/3295) The function to initialize the `TestingApp` takes now the chain ID as parameter.
  
 ### State Machine Breaking
 
@@ -122,6 +121,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Bug Fixes
 
+* (testing) [\#3295](https://github.com/cosmos/ibc-go/pull/3295) The function `SetupWithGenesisValSet` will set the baseapp chainID before running `InitChain`
 * (light-clients/solomachine) [#1839](https://github.com/cosmos/ibc-go/pull/1839) Fixed usage of the new diversifier in validation of changing diversifiers for the solo machine. The current diversifier must sign over the new diversifier.
 * (light-clients/07-tendermint) [\#1674](https://github.com/cosmos/ibc-go/pull/1674) Submitted ClientState is zeroed out before checking the proof in order to prevent the proposal from containing information governance is not actually voting on.
 * (modules/core/02-client)[\#1676](https://github.com/cosmos/ibc-go/pull/1676) ClientState must be zeroed out for `UpgradeProposals` to pass validation. This prevents a proposal containing information governance is not actually voting on.
diff --git a/docs/migrations/v6-to-v7.md b/docs/migrations/v6-to-v7.md
index aa203d093f5..ba9a053a267 100644
--- a/docs/migrations/v6-to-v7.md
+++ b/docs/migrations/v6-to-v7.md
@@ -95,15 +95,6 @@ It may be useful to reference the [PR](https://github.com/cosmos/ibc-go/pull/282
 
 The `SetChannelClosed` utility method in `testing/endpoint.go` has been updated to `SetChannelState`, which will take a `channeltypes.State` argument so that the `ChannelState` can be set to any of the possible channel states.
 
-The function to initialize the `TestingApp` takes now the chain ID as parameter:
-
- ```go
-- func SetupTestingApp() (TestingApp, map[string]json.RawMessage)
-+ func SetupTestingApp(chainID string) (TestingApp, map[string]json.RawMessage)
-```
-
-The chain ID should then be pass to `SetChainID` and used as a `baseapp` option in the `NewSimApp` constructor.
-
 ## IBC Apps
 
 - No relevant changes were made in this release.
diff --git a/testing/README.md b/testing/README.md
index 9bb7a28818e..c00eb19af4e 100644
--- a/testing/README.md
+++ b/testing/README.md
@@ -117,7 +117,7 @@ It is assumed your application contains an embedded BaseApp and thus implements
 The testing package requires that you provide a function to initialize your TestingApp. This is how ibc-go implements the initialize function with its `SimApp`:
 
 ```go
-func SetupTestingApp(chainID string) (TestingApp, map[string]json.RawMessage) {
+func SetupTestingApp() (TestingApp, map[string]json.RawMessage) {
   db := dbm.NewMemDB()
   encCdc := simapp.MakeTestEncodingConfig()
   app := simapp.NewSimApp(
@@ -130,7 +130,6 @@ func SetupTestingApp(chainID string) (TestingApp, map[string]json.RawMessage) {
     5,
     encCdc, 
     simapp.EmptyAppOptions{},
-    baseapp.SetChainID(chainID),
   )
   return app, simapp.NewDefaultGenesisState(encCdc.Marshaler)
 }
@@ -276,7 +275,7 @@ import (
   ibctesting "github.com/cosmos/ibc-go/v7/testing"
 )
 
-func SetupTransferTestingApp(chainID string) (ibctesting.TestingApp, map[string]json.RawMessage) {
+func SetupTransferTestingApp() (ibctesting.TestingApp, map[string]json.RawMessage) {
   db := dbm.NewMemDB()
   encCdc := simapp.MakeTestEncodingConfig()
   app := simapp.NewSimApp(
@@ -289,7 +288,6 @@ func SetupTransferTestingApp(chainID string) (ibctesting.TestingApp, map[string]
     5,
     encCdc,
     simapp.EmptyAppOptions{},
-    baseapp.SetChainID(chainID),
   )
   return app, simapp.NewDefaultGenesisState(encCdc.Marshaler)
 }
diff --git a/testing/app.go b/testing/app.go
index 8eda31d2853..f277a5cd98a 100644
--- a/testing/app.go
+++ b/testing/app.go
@@ -50,10 +50,10 @@ type TestingApp interface {
 	LastBlockHeight() int64
 }
 
-func SetupTestingApp(chainID string) (TestingApp, map[string]json.RawMessage) {
+func SetupTestingApp() (TestingApp, map[string]json.RawMessage) {
 	db := dbm.NewMemDB()
 	encCdc := simapp.MakeTestEncodingConfig()
-	app := simapp.NewSimApp(log.NewNopLogger(), db, nil, true, map[int64]bool{}, simapp.DefaultNodeHome, 5, encCdc, simtestutil.EmptyAppOptions{}, baseapp.SetChainID(chainID))
+	app := simapp.NewSimApp(log.NewNopLogger(), db, nil, true, map[int64]bool{}, simapp.DefaultNodeHome, 5, encCdc, simtestutil.EmptyAppOptions{})
 	return app, simapp.NewDefaultGenesisState(encCdc.Marshaler)
 }
 
@@ -62,7 +62,10 @@ func SetupTestingApp(chainID string) (TestingApp, map[string]json.RawMessage) {
 // of one consensus engine unit (10^6) in the default token of the simapp from first genesis
 // account. A Nop logger is set in SimApp.
 func SetupWithGenesisValSet(t testing.TB, valSet *tmtypes.ValidatorSet, genAccs []authtypes.GenesisAccount, chainID string, powerReduction math.Int, balances ...banktypes.Balance) TestingApp {
-	app, genesisState := DefaultTestingAppInit(chainID)
+	app, genesisState := DefaultTestingAppInit()
+
+	// ensure baseapp has a chain-id set before running InitChain
+	baseapp.SetChainID(chainID)(app.GetBaseApp())
 
 	// set genesis accounts
 	authGenesis := authtypes.NewGenesisState(authtypes.DefaultParams(), genAccs)