diff --git a/.gitmodules b/.gitmodules
index 1a3fac8..7b7d24f 100644
--- a/.gitmodules
+++ b/.gitmodules
@@ -1,3 +1,3 @@
-[submodule "tools/emul/libz80"]
-	path = tools/emul/libz80
+[submodule "emul/libz80"]
+	path = emul/libz80
 	url = https://github.com/ggambetta/libz80.git
diff --git a/README.md b/README.md
index a66151a..c87b30e 100644
--- a/README.md
+++ b/README.md
@@ -34,9 +34,10 @@ path to giving Collapse OS a try.
 * `recipes`: collection of recipes that assemble parts together on a specific
              machine.
 * `doc`: User guide for when you've successfully installed Collapse OS.
-* `tools`: Tools for working with Collapse OS from "modern" environments. Mostly
-           development tools, but also contains emulated zasm, which is
-           necessary to build Collapse OS from a non-Collapse OS machine.
+* `tools`: Tools for working with Collapse OS from "modern" environments. For
+           example, tools for facilitating data upload to a Collapse OS machine
+           through a serial port.
+* `emul`: Emulated applications, such as zasm and the shell.
 * `tests`: Automated test suite for the whole project.
 
 ## Status
diff --git a/tools/emul/.gitignore b/emul/.gitignore
similarity index 100%
rename from tools/emul/.gitignore
rename to emul/.gitignore
diff --git a/tools/emul/Makefile b/emul/Makefile
similarity index 94%
rename from tools/emul/Makefile
rename to emul/Makefile
index 79b1342..102f543 100644
--- a/tools/emul/Makefile
+++ b/emul/Makefile
@@ -1,10 +1,10 @@
-CFSPACK = ../cfspack/cfspack
+CFSPACK = ../tools/cfspack/cfspack
 TARGETS = shell/shell zasm/zasm runbin/runbin
-KERNEL = ../../kernel
-APPS = ../../apps
+KERNEL = ../kernel
+APPS = ../apps
 ZASMBIN = zasm/zasm
 AVRABIN = zasm/avra
-ZASMSH = ../zasm.sh
+ZASMSH = ./zasm.sh
 SHELLAPPS = zasm ed
 SHELLTGTS = ${SHELLAPPS:%=cfsin/%}
 CFSIN_CONTENTS = $(SHELLTGTS) cfsin/user.h
@@ -52,7 +52,7 @@ emul.o: emul.c
 	$(CC) -c -o emul.o emul.c
 
 $(CFSPACK):
-	$(MAKE) -C ../cfspack
+	$(MAKE) -C ../tools/cfspack
 
 # -o in sync with USER_CODE in shell/user.h
 $(SHELLTGTS): $(ZASMBIN)
diff --git a/tools/emul/README.md b/emul/README.md
similarity index 98%
rename from tools/emul/README.md
rename to emul/README.md
index d555bb1..51c692d 100644
--- a/tools/emul/README.md
+++ b/emul/README.md
@@ -8,7 +8,7 @@ emulator.
 First, make sure that the `libz80` git submodule is checked out. If not, run
 `git submodule init && git submodule update`.
 
-After that, you can run `make` and it builds all tools.
+After that, you can run `make` and it builds all applications.
 
 ## shell
 
diff --git a/tools/emul/bin2c.sh b/emul/bin2c.sh
similarity index 100%
rename from tools/emul/bin2c.sh
rename to emul/bin2c.sh
diff --git a/tools/emul/cfsin/count.bas b/emul/cfsin/count.bas
similarity index 100%
rename from tools/emul/cfsin/count.bas
rename to emul/cfsin/count.bas
diff --git a/tools/emul/cfsin/hello.asm b/emul/cfsin/hello.asm
similarity index 100%
rename from tools/emul/cfsin/hello.asm
rename to emul/cfsin/hello.asm
diff --git a/tools/emul/cfsin/readme.txt b/emul/cfsin/readme.txt
similarity index 100%
rename from tools/emul/cfsin/readme.txt
rename to emul/cfsin/readme.txt
diff --git a/tools/emul/emul.c b/emul/emul.c
similarity index 100%
rename from tools/emul/emul.c
rename to emul/emul.c
diff --git a/tools/emul/emul.h b/emul/emul.h
similarity index 100%
rename from tools/emul/emul.h
rename to emul/emul.h
diff --git a/tools/emul/libz80 b/emul/libz80
similarity index 100%
rename from tools/emul/libz80
rename to emul/libz80
diff --git a/tools/emul/runbin/runbin.c b/emul/runbin/runbin.c
similarity index 100%
rename from tools/emul/runbin/runbin.c
rename to emul/runbin/runbin.c
diff --git a/tools/emul/shell/glue.asm b/emul/shell/glue.asm
similarity index 100%
rename from tools/emul/shell/glue.asm
rename to emul/shell/glue.asm
diff --git a/tools/emul/shell/shell.c b/emul/shell/shell.c
similarity index 100%
rename from tools/emul/shell/shell.c
rename to emul/shell/shell.c
diff --git a/tools/emul/shell/user.h b/emul/shell/user.h
similarity index 100%
rename from tools/emul/shell/user.h
rename to emul/shell/user.h
diff --git a/tools/zasm.sh b/emul/zasm.sh
similarity index 80%
rename from tools/zasm.sh
rename to emul/zasm.sh
index f3d274a..e196b61 100755
--- a/tools/zasm.sh
+++ b/emul/zasm.sh
@@ -1,6 +1,6 @@
 #!/usr/bin/env bash
 
-# Calls tools/emul/zasm/zasm in a convenient manner by wrapping specified
+# Calls emul/zasm/zasm in a convenient manner by wrapping specified
 # paths to include in a single CFS file and then pass that file to zasm.
 # Additionally, it takes a "-o" argument to set the initial ".org" of the
 # binary. For example, "zasm.sh -o 4f < foo.asm" assembles foo.asm as if it
@@ -12,7 +12,7 @@
 # so, if we can't get readlink -f to work, try python with a realpath implementation
 ABS_PATH=$(readlink -f "$0" || python -c "import os; print(os.path.realpath('$0'))")
 DIR=$(dirname "${ABS_PATH}")
-ZASMBIN="${DIR}/emul/zasm/zasm"
+ZASMBIN="${DIR}/zasm/zasm"
 
 usage() { echo "Usage: $0 [-a] [-o <hexorg>] <paths-to-include>..." 1>&2; exit 1; }
 
@@ -20,7 +20,7 @@ org='00'
 while getopts ":ao:" opt; do
     case "${opt}" in
         a)
-            ZASMBIN="${DIR}/emul/zasm/avra"
+            ZASMBIN="${DIR}/zasm/avra"
             ;;
         o)
             org=${OPTARG}
@@ -32,8 +32,8 @@ while getopts ":ao:" opt; do
 done
 shift $((OPTIND-1))
 
-# wrapper around ./emul/zasm/zasm that prepares includes CFS prior to call
-CFSPACK="${DIR}/cfspack/cfspack"
+# wrapper around ./zasm/zasm that prepares includes CFS prior to call
+CFSPACK="${DIR}/../tools/cfspack/cfspack"
 INCCFS=$(mktemp)
 
 "${CFSPACK}" -p "*.h" -p "*.asm" -p "*.bin" "$@" > "${INCCFS}" 
diff --git a/tools/emul/zasm/glue.asm b/emul/zasm/glue.asm
similarity index 100%
rename from tools/emul/zasm/glue.asm
rename to emul/zasm/glue.asm
diff --git a/tools/emul/zasm/kernel.bin b/emul/zasm/kernel.bin
similarity index 100%
rename from tools/emul/zasm/kernel.bin
rename to emul/zasm/kernel.bin
diff --git a/tools/emul/zasm/user.h b/emul/zasm/user.h
similarity index 100%
rename from tools/emul/zasm/user.h
rename to emul/zasm/user.h
diff --git a/tools/emul/zasm/zasm.bin b/emul/zasm/zasm.bin
similarity index 100%
rename from tools/emul/zasm/zasm.bin
rename to emul/zasm/zasm.bin
diff --git a/tools/emul/zasm/zasm.c b/emul/zasm/zasm.c
similarity index 100%
rename from tools/emul/zasm/zasm.c
rename to emul/zasm/zasm.c
diff --git a/runtests.sh b/runtests.sh
index 9ff61e1..fd755da 100755
--- a/runtests.sh
+++ b/runtests.sh
@@ -4,9 +4,9 @@ git submodule init
 git submodule update
 git clean -fxd
 
-make -C tools/emul
+make -C emul
 make -C tests
 
 # let's try again with an updated zasm
-make -C tools/emul updatebootstrap all
+make -C emul updatebootstrap all
 make -C tests
diff --git a/tests/Makefile b/tests/Makefile
index 5bacf33..2d24c16 100644
--- a/tests/Makefile
+++ b/tests/Makefile
@@ -1,4 +1,4 @@
-EMULDIR = ../tools/emul
+EMULDIR = ../emul
 CFSPACK = ../tools/cfspack/cfspack
 
 .PHONY: run
diff --git a/tests/avra/runtests.sh b/tests/avra/runtests.sh
index 6a047f7..1ea6e59 100755
--- a/tests/avra/runtests.sh
+++ b/tests/avra/runtests.sh
@@ -1,6 +1,6 @@
 #!/bin/sh -e
 
-ZASM=../../tools/zasm.sh
+ZASM=../../emul/zasm.sh
 AVRINC=../../avr
 
 cmpas() {
diff --git a/tests/shell/runtests.sh b/tests/shell/runtests.sh
index 8a961c6..0b962eb 100755
--- a/tests/shell/runtests.sh
+++ b/tests/shell/runtests.sh
@@ -1,6 +1,6 @@
 #!/bin/sh -e
 
-EMULDIR=../../tools/emul
+EMULDIR=../../emul
 SHELL="${EMULDIR}/shell/shell"
 
 replay() {
diff --git a/tests/unit/runtests.sh b/tests/unit/runtests.sh
index 5f3dedb..1a42d16 100755
--- a/tests/unit/runtests.sh
+++ b/tests/unit/runtests.sh
@@ -3,9 +3,8 @@ set -e
 # TODO: find POSIX substitute to that PIPESTATUS thing
 
 BASE=../..
-TOOLS="${BASE}/tools"
-ZASM="${TOOLS}/zasm.sh"
-RUNBIN="${TOOLS}/emul/runbin/runbin"
+ZASM="${BASE}/emul/zasm.sh"
+RUNBIN="${BASE}/emul/runbin/runbin"
 KERNEL="${BASE}/kernel"
 APPS="${BASE}/apps"
 
diff --git a/tests/zasm/errtests.sh b/tests/zasm/errtests.sh
index ae3d152..741afa7 100755
--- a/tests/zasm/errtests.sh
+++ b/tests/zasm/errtests.sh
@@ -2,7 +2,7 @@
 
 # no "set -e" because we test errors
 
-ZASM=../../tools/zasm.sh
+ZASM=../../emul/zasm.sh
 
 chkerr() {
     echo "Check that '$1' results in error $2"
diff --git a/tests/zasm/runtests.sh b/tests/zasm/runtests.sh
index 3e1f48b..832b972 100755
--- a/tests/zasm/runtests.sh
+++ b/tests/zasm/runtests.sh
@@ -3,8 +3,7 @@
 BASE=../..
 KERNEL="${BASE}/kernel"
 APPS="${BASE}/apps"
-ZASM="${BASE}/tools/zasm.sh"
-ASMFILE="${APPS}/zasm/instr.asm"
+ZASM="${BASE}/emul/zasm.sh"
 
 cmpas() {
     FN=$1