diff --git a/Android.mk b/Android.mk
index c3b0fda..56e2514 100644
--- a/Android.mk
+++ b/Android.mk
@@ -127,7 +127,6 @@
     action_processor.cc \
     boot_control_android.cc \
     boot_control_stub.cc \
-    bzip.cc \
     bzip_extent_writer.cc \
     certificate_checker.cc \
     chrome_browser_proxy_resolver.cc \
@@ -272,6 +271,7 @@
     payload_generator/annotated_operation.cc \
     payload_generator/blob_file_writer.cc \
     payload_generator/block_mapping.cc \
+    payload_generator/bzip.cc \
     payload_generator/cycle_breaker.cc \
     payload_generator/delta_diff_generator.cc \
     payload_generator/delta_diff_utils.cc \
diff --git a/delta_performer_unittest.cc b/delta_performer_unittest.cc
index db19729..119ad5f 100644
--- a/delta_performer_unittest.cc
+++ b/delta_performer_unittest.cc
@@ -29,12 +29,12 @@
 #include <google/protobuf/repeated_field.h>
 #include <gtest/gtest.h>
 
-#include "update_engine/bzip.h"
 #include "update_engine/constants.h"
 #include "update_engine/fake_hardware.h"
 #include "update_engine/fake_prefs.h"
 #include "update_engine/fake_system_state.h"
 #include "update_engine/payload_constants.h"
+#include "update_engine/payload_generator/bzip.h"
 #include "update_engine/payload_generator/extent_ranges.h"
 #include "update_engine/payload_generator/payload_file.h"
 #include "update_engine/payload_generator/payload_signer.h"
diff --git a/bzip.cc b/payload_generator/bzip.cc
similarity index 98%
rename from bzip.cc
rename to payload_generator/bzip.cc
index b329adc..287b69c 100644
--- a/bzip.cc
+++ b/payload_generator/bzip.cc
@@ -14,17 +14,17 @@
 // limitations under the License.
 //
 
-#include "update_engine/bzip.h"
+#include "update_engine/payload_generator/bzip.h"
 
-#include <stdlib.h>
-#include <algorithm>
 #include <bzlib.h>
+#include <stdlib.h>
+
+#include <algorithm>
 #include <limits>
 
 #include "update_engine/utils.h"
 
 using std::string;
-using std::vector;
 
 namespace chromeos_update_engine {
 
diff --git a/bzip.h b/payload_generator/bzip.h
similarity index 87%
rename from bzip.h
rename to payload_generator/bzip.h
index 4293526..ca9956e 100644
--- a/bzip.h
+++ b/payload_generator/bzip.h
@@ -14,8 +14,8 @@
 // limitations under the License.
 //
 
-#ifndef UPDATE_ENGINE_BZIP_H_
-#define UPDATE_ENGINE_BZIP_H_
+#ifndef UPDATE_ENGINE_PAYLOAD_GENERATOR_BZIP_H_
+#define UPDATE_ENGINE_PAYLOAD_GENERATOR_BZIP_H_
 
 #include <string>
 #include <vector>
@@ -32,4 +32,4 @@
 
 }  // namespace chromeos_update_engine
 
-#endif  // UPDATE_ENGINE_BZIP_H_
+#endif  // UPDATE_ENGINE_PAYLOAD_GENERATOR_BZIP_H_
diff --git a/payload_generator/full_update_generator.cc b/payload_generator/full_update_generator.cc
index f2db3a8..f9173ef 100644
--- a/payload_generator/full_update_generator.cc
+++ b/payload_generator/full_update_generator.cc
@@ -30,10 +30,9 @@
 #include <base/threading/simple_thread.h>
 #include <brillo/secure_blob.h>
 
-#include "update_engine/bzip.h"
+#include "update_engine/payload_generator/bzip.h"
 #include "update_engine/utils.h"
 
-using std::string;
 using std::vector;
 
 namespace chromeos_update_engine {
diff --git a/zip_unittest.cc b/payload_generator/zip_unittest.cc
similarity index 78%
rename from zip_unittest.cc
rename to payload_generator/zip_unittest.cc
index 4d6eb21..f2c569b 100644
--- a/zip_unittest.cc
+++ b/payload_generator/zip_unittest.cc
@@ -22,9 +22,8 @@
 
 #include <gtest/gtest.h>
 
-#include "update_engine/bzip.h"
+#include "update_engine/payload_generator/bzip.h"
 #include "update_engine/test_utils.h"
-#include "update_engine/utils.h"
 
 using chromeos_update_engine::test_utils::kRandomString;
 using std::string;
@@ -35,14 +34,10 @@
 template <typename T>
 class ZipTest : public ::testing::Test {
  public:
-  bool ZipDecompress(const brillo::Blob& in,
-                     brillo::Blob* out) const = 0;
-  bool ZipCompress(const brillo::Blob& in,
-                   brillo::Blob* out) const = 0;
-  bool ZipCompressString(const string& str,
-                         brillo::Blob* out) const = 0;
-  bool ZipDecompressString(const string& str,
-                           brillo::Blob* out) const = 0;
+  bool ZipDecompress(const brillo::Blob& in, brillo::Blob* out) const = 0;
+  bool ZipCompress(const brillo::Blob& in, brillo::Blob* out) const = 0;
+  bool ZipCompressString(const string& str, brillo::Blob* out) const = 0;
+  bool ZipDecompressString(const string& str, brillo::Blob* out) const = 0;
 };
 
 class BzipTest {};
@@ -50,20 +45,16 @@
 template <>
 class ZipTest<BzipTest> : public ::testing::Test {
  public:
-  bool ZipDecompress(const brillo::Blob& in,
-                     brillo::Blob* out) const {
+  bool ZipDecompress(const brillo::Blob& in, brillo::Blob* out) const {
     return BzipDecompress(in, out);
   }
-  bool ZipCompress(const brillo::Blob& in,
-                   brillo::Blob* out) const {
+  bool ZipCompress(const brillo::Blob& in, brillo::Blob* out) const {
     return BzipCompress(in, out);
   }
-  bool ZipCompressString(const string& str,
-                         brillo::Blob* out) const {
+  bool ZipCompressString(const string& str, brillo::Blob* out) const {
     return BzipCompressString(str, out);
   }
-  bool ZipDecompressString(const string& str,
-                           brillo::Blob* out) const {
+  bool ZipDecompressString(const string& str, brillo::Blob* out) const {
     return BzipDecompressString(str, out);
   }
 };
diff --git a/update_engine.gyp b/update_engine.gyp
index 5d229ec..52b8f0f 100644
--- a/update_engine.gyp
+++ b/update_engine.gyp
@@ -160,7 +160,6 @@
         'action_processor.cc',
         'boot_control_chromeos.cc',
         'boot_control_stub.cc',
-        'bzip.cc',
         'bzip_extent_writer.cc',
         'certificate_checker.cc',
         'chrome_browser_proxy_resolver.cc',
@@ -292,6 +291,7 @@
         'payload_generator/annotated_operation.cc',
         'payload_generator/blob_file_writer.cc',
         'payload_generator/block_mapping.cc',
+        'payload_generator/bzip.cc',
         'payload_generator/cycle_breaker.cc',
         'payload_generator/delta_diff_generator.cc',
         'payload_generator/delta_diff_utils.cc',
@@ -429,6 +429,7 @@
             'payload_generator/payload_file_unittest.cc',
             'payload_generator/tarjan_unittest.cc',
             'payload_generator/topological_sort_unittest.cc',
+            'payload_generator/zip_unittest.cc',
             'payload_state_unittest.cc',
             'postinstall_runner_action_unittest.cc',
             'prefs_unittest.cc',
@@ -453,7 +454,6 @@
             'update_manager/variable_unittest.cc',
             'utils_unittest.cc',
             'xz_extent_writer_unittest.cc',
-            'zip_unittest.cc',
             # Main entry point for runnning tests.
             'testrunner.cc',
           ],