diff --git a/common/lib/xmodule/setup.py b/common/lib/xmodule/setup.py
index e45e6654c2..3a380b12e7 100644
--- a/common/lib/xmodule/setup.py
+++ b/common/lib/xmodule/setup.py
@@ -3,7 +3,7 @@ from setuptools import setup, find_packages
 setup(
     name="XModule",
     version="0.1",
-    packages=find_packages(),
+    packages=find_packages(exclude=["tests"]),
     install_requires=['distribute'],
     package_data={
         '': ['js/*']
diff --git a/common/lib/xmodule/__init__.py b/common/lib/xmodule/xmodule/__init__.py
similarity index 100%
rename from common/lib/xmodule/__init__.py
rename to common/lib/xmodule/xmodule/__init__.py
diff --git a/common/lib/xmodule/abtest_module.py b/common/lib/xmodule/xmodule/abtest_module.py
similarity index 100%
rename from common/lib/xmodule/abtest_module.py
rename to common/lib/xmodule/xmodule/abtest_module.py
diff --git a/common/lib/xmodule/capa_module.py b/common/lib/xmodule/xmodule/capa_module.py
similarity index 100%
rename from common/lib/xmodule/capa_module.py
rename to common/lib/xmodule/xmodule/capa_module.py
diff --git a/common/lib/xmodule/exceptions.py b/common/lib/xmodule/xmodule/exceptions.py
similarity index 100%
rename from common/lib/xmodule/exceptions.py
rename to common/lib/xmodule/xmodule/exceptions.py
diff --git a/common/lib/xmodule/graders.py b/common/lib/xmodule/xmodule/graders.py
similarity index 100%
rename from common/lib/xmodule/graders.py
rename to common/lib/xmodule/xmodule/graders.py
diff --git a/common/lib/xmodule/hidden_module.py b/common/lib/xmodule/xmodule/hidden_module.py
similarity index 100%
rename from common/lib/xmodule/hidden_module.py
rename to common/lib/xmodule/xmodule/hidden_module.py
diff --git a/common/lib/xmodule/html_module.py b/common/lib/xmodule/xmodule/html_module.py
similarity index 100%
rename from common/lib/xmodule/html_module.py
rename to common/lib/xmodule/xmodule/html_module.py
diff --git a/common/lib/xmodule/js/module/html.coffee b/common/lib/xmodule/xmodule/js/module/html.coffee
similarity index 100%
rename from common/lib/xmodule/js/module/html.coffee
rename to common/lib/xmodule/xmodule/js/module/html.coffee
diff --git a/common/lib/xmodule/js/module/raw.coffee b/common/lib/xmodule/xmodule/js/module/raw.coffee
similarity index 100%
rename from common/lib/xmodule/js/module/raw.coffee
rename to common/lib/xmodule/xmodule/js/module/raw.coffee
diff --git a/common/lib/xmodule/mako_module.py b/common/lib/xmodule/xmodule/mako_module.py
similarity index 100%
rename from common/lib/xmodule/mako_module.py
rename to common/lib/xmodule/xmodule/mako_module.py
diff --git a/common/lib/xmodule/modulestore/__init__.py b/common/lib/xmodule/xmodule/modulestore/__init__.py
similarity index 100%
rename from common/lib/xmodule/modulestore/__init__.py
rename to common/lib/xmodule/xmodule/modulestore/__init__.py
diff --git a/common/lib/xmodule/modulestore/django.py b/common/lib/xmodule/xmodule/modulestore/django.py
similarity index 100%
rename from common/lib/xmodule/modulestore/django.py
rename to common/lib/xmodule/xmodule/modulestore/django.py
diff --git a/common/lib/xmodule/modulestore/exceptions.py b/common/lib/xmodule/xmodule/modulestore/exceptions.py
similarity index 100%
rename from common/lib/xmodule/modulestore/exceptions.py
rename to common/lib/xmodule/xmodule/modulestore/exceptions.py
diff --git a/common/lib/xmodule/modulestore/mongo.py b/common/lib/xmodule/xmodule/modulestore/mongo.py
similarity index 100%
rename from common/lib/xmodule/modulestore/mongo.py
rename to common/lib/xmodule/xmodule/modulestore/mongo.py
diff --git a/common/lib/xmodule/modulestore/tests/test_location.py b/common/lib/xmodule/xmodule/modulestore/tests/test_location.py
similarity index 100%
rename from common/lib/xmodule/modulestore/tests/test_location.py
rename to common/lib/xmodule/xmodule/modulestore/tests/test_location.py
diff --git a/common/lib/xmodule/modulestore/xml.py b/common/lib/xmodule/xmodule/modulestore/xml.py
similarity index 100%
rename from common/lib/xmodule/modulestore/xml.py
rename to common/lib/xmodule/xmodule/modulestore/xml.py
diff --git a/common/lib/xmodule/progress.py b/common/lib/xmodule/xmodule/progress.py
similarity index 100%
rename from common/lib/xmodule/progress.py
rename to common/lib/xmodule/xmodule/progress.py
diff --git a/common/lib/xmodule/raw_module.py b/common/lib/xmodule/xmodule/raw_module.py
similarity index 100%
rename from common/lib/xmodule/raw_module.py
rename to common/lib/xmodule/xmodule/raw_module.py
diff --git a/common/lib/xmodule/schematic_module.py b/common/lib/xmodule/xmodule/schematic_module.py
similarity index 100%
rename from common/lib/xmodule/schematic_module.py
rename to common/lib/xmodule/xmodule/schematic_module.py
diff --git a/common/lib/xmodule/seq_module.py b/common/lib/xmodule/xmodule/seq_module.py
similarity index 100%
rename from common/lib/xmodule/seq_module.py
rename to common/lib/xmodule/xmodule/seq_module.py
diff --git a/common/lib/xmodule/template_module.py b/common/lib/xmodule/xmodule/template_module.py
similarity index 100%
rename from common/lib/xmodule/template_module.py
rename to common/lib/xmodule/xmodule/template_module.py
diff --git a/common/lib/xmodule/translation_module.py b/common/lib/xmodule/xmodule/translation_module.py
similarity index 100%
rename from common/lib/xmodule/translation_module.py
rename to common/lib/xmodule/xmodule/translation_module.py
diff --git a/common/lib/xmodule/vertical_module.py b/common/lib/xmodule/xmodule/vertical_module.py
similarity index 100%
rename from common/lib/xmodule/vertical_module.py
rename to common/lib/xmodule/xmodule/vertical_module.py
diff --git a/common/lib/xmodule/video_module.py b/common/lib/xmodule/xmodule/video_module.py
similarity index 100%
rename from common/lib/xmodule/video_module.py
rename to common/lib/xmodule/xmodule/video_module.py
diff --git a/common/lib/xmodule/x_module.py b/common/lib/xmodule/xmodule/x_module.py
similarity index 100%
rename from common/lib/xmodule/x_module.py
rename to common/lib/xmodule/xmodule/x_module.py
diff --git a/common/lib/xmodule/xml_module.py b/common/lib/xmodule/xmodule/xml_module.py
similarity index 100%
rename from common/lib/xmodule/xml_module.py
rename to common/lib/xmodule/xmodule/xml_module.py