diff --git a/edb/testbase/connection.py b/edb/testbase/connection.py
index 658118044e1..906181cdb16 100644
--- a/edb/testbase/connection.py
+++ b/edb/testbase/connection.py
@@ -92,7 +92,10 @@ def _make_start_query(self):
         if self._state is TransactionState.STARTED:
             raise errors.InterfaceError(
                 'cannot start; the transaction is already started')
-        return self._make_start_query_inner()
+        qry = self._make_start_query_inner()
+        if self._connection._top_xact is None:
+            self._connection._top_xact = self
+        return qry
 
     @abc.abstractmethod
     def _make_start_query_inner(self):
@@ -101,6 +104,9 @@ def _make_start_query_inner(self):
     def _make_commit_query(self):
         self.__check_state('commit')
 
+        if self._connection._top_xact is self:
+            self._connection._top_xact = None
+
         return 'COMMIT;'
 
     def _make_rollback_query(self):
@@ -163,9 +169,7 @@ class RawTransaction(BaseTransaction):
     def _make_start_query_inner(self):
         con = self._connection
 
-        if con._top_xact is None:
-            con._top_xact = self
-        else:
+        if con._top_xact is not None:
             # Nested transaction block
             self._nested = True
 
@@ -179,9 +183,6 @@ def _make_start_query_inner(self):
     def _make_commit_query(self):
         query = super()._make_commit_query()
 
-        if self._connection._top_xact is self:
-            self._connection._top_xact = None
-
         if self._nested:
             query = f'RELEASE SAVEPOINT {self._id};'
 
@@ -190,9 +191,6 @@ def _make_commit_query(self):
     def _make_rollback_query(self):
         query = super()._make_rollback_query()
 
-        if self._connection._top_xact is self:
-            self._connection._top_xact = None
-
         if self._nested:
             query = f'ROLLBACK TO SAVEPOINT {self._id};'
 
@@ -222,7 +220,7 @@ def __init__(self, retry, connection, iteration):
         self._options = retry._options.transaction_options
         self.__retry = retry
         self.__iteration = iteration
-        self._started = False
+        self.__started = False
 
     async def __aenter__(self):
         if self._managed:
@@ -233,7 +231,7 @@ async def __aenter__(self):
 
     async def __aexit__(self, extype, ex, tb):
         self._managed = False
-        if not self._started:
+        if not self.__started:
             return False
 
         try:
@@ -283,8 +281,8 @@ async def _ensure_transaction(self):
                 "Only managed retriable transactions are supported. "
                 "Use `async with transaction:`"
             )
-        if not self._started:
-            self._started = True
+        if not self.__started:
+            self.__started = True
             if self._connection.is_closed():
                 await self._connection.connect(
                     single_attempt=self.__iteration != 0
@@ -292,12 +290,6 @@ async def _ensure_transaction(self):
             await self.start()
 
 
-class RawIteration(RawTransaction, Iteration):
-    async def _ensure_transaction(self):
-        self._started = True
-        await super()._ensure_transaction()
-
-
 class Retry:
     def __init__(self, connection, raw=False):
         self._connection = connection
@@ -305,7 +297,6 @@ def __init__(self, connection, raw=False):
         self._done = False
         self._next_backoff = 0
         self._options = connection._options
-        self._raw = raw
 
     def _retry(self, exc):
         self._last_exception = exc
@@ -327,8 +318,7 @@ async def __anext__(self):
         if self._next_backoff:
             await asyncio.sleep(self._next_backoff)
         self._done = True
-        cls = RawIteration if self._raw else Iteration
-        iteration = cls(self, self._connection, self._iteration)
+        iteration = Iteration(self, self._connection, self._iteration)
         self._iteration += 1
         return iteration
 
@@ -606,9 +596,6 @@ async def connect_addr(self):
     def retrying_transaction(self) -> Retry:
         return Retry(self)
 
-    def raw_retrying_transaction(self) -> Retry:
-        return Retry(self, raw=True)
-
     def transaction(self) -> RawTransaction:
         return RawTransaction(self)
 
diff --git a/edb/testbase/server.py b/edb/testbase/server.py
index b45e585a73e..c9c858da608 100644
--- a/edb/testbase/server.py
+++ b/edb/testbase/server.py
@@ -959,12 +959,13 @@ async def _run_and_rollback_retrying(self):
         async def cm(tx):
             try:
                 async with tx:
+                    await tx._ensure_transaction()
                     yield tx
                     raise RollbackException
             except RollbackException:
                 pass
 
-        async for tx in self.con.raw_retrying_transaction():
+        async for tx in self.con.retrying_transaction():
             yield cm(tx)
 
     def assert_data_shape(self, data, shape, message=None):