diff --git a/lbry/blockchain/sync/steps.py b/lbry/blockchain/sync/steps.py
index 3bcafbeba..48688f272 100644
--- a/lbry/blockchain/sync/steps.py
+++ b/lbry/blockchain/sync/steps.py
@@ -150,20 +150,22 @@ def process_inputs_outputs(initial_sync=False, p=None):
 
     step = 1
     if initial_sync and p.ctx.is_postgres:
-        p.start(4)
+        p.start(6)
     else:
         p.start(2)
 
-    # 1. Update TXIs to have the address of TXO they are spending.
-    set_input_addresses(p.ctx)
-    p.step(step)
-    step += 1
+    # 0. Vacuum
     if initial_sync and p.ctx.is_postgres:
-        p.ctx.execute(text("ALTER TABLE txi ADD PRIMARY KEY (txo_hash);"))
-        p.step(step)
-        step += 1
+        with p.ctx.engine.connect() as c:
+            c.execute(text("COMMIT;"))
+            c.execute(text("VACUUM FULL ANALYZE txo;"))
+            p.step(step)
+            step += 1
+            c.execute(text("VACUUM FULL ANALYZE txi;"))
+            p.step(step)
+            step += 1
 
-    # 2. Update spent TXOs setting is_spent = True
+    # 1. Update spent TXOs setting is_spent = True
     update_spent_outputs(p.ctx)
     p.step(step)
     step += 1
@@ -172,6 +174,15 @@ def process_inputs_outputs(initial_sync=False, p=None):
         p.step(step)
         step += 1
 
+    # 2. Update TXIs to have the address of TXO they are spending.
+    set_input_addresses(p.ctx)
+    p.step(step)
+    step += 1
+    if initial_sync and p.ctx.is_postgres:
+        p.ctx.execute(text("ALTER TABLE txi ADD PRIMARY KEY (txo_hash);"))
+        p.step(step)
+        step += 1
+
 
 @sync_step(Event.BLOCK_FILTER, initial_sync=True, ongoing_sync=True)
 def process_block_filters(p=None):
diff --git a/tests/integration/blockchain/test_blockchain.py b/tests/integration/blockchain/test_blockchain.py
index 840104c76..7e735a5b0 100644
--- a/tests/integration/blockchain/test_blockchain.py
+++ b/tests/integration/blockchain/test_blockchain.py
@@ -535,11 +535,13 @@ class TestMultiBlockFileSyncing(BasicBlockchainTestCase):
         # 3 - db.sync.input
         self.assertEventsAlmostEqual(
             self.extract_events('db.sync.input', events), [
-                [0, 4],
-                [1, 4],
-                [2, 4],
-                [3, 4],
-                [4, 4],
+                [0, 6],
+                [1, 6],
+                [2, 6],
+                [3, 6],
+                [4, 6],
+                [5, 6],
+                [6, 6],
             ] if self.db_driver == 'postgresql' else [
                 [0, 2],
                 [1, 2],