diff --git a/baseapp/baseapp.go b/baseapp/baseapp.go
index 941c0eaf49..63bf6f764f 100644
--- a/baseapp/baseapp.go
+++ b/baseapp/baseapp.go
@@ -16,30 +16,28 @@ import (
 
 	"github.com/cosmos/cosmos-sdk/store"
 	sdk "github.com/cosmos/cosmos-sdk/types"
-	"github.com/cosmos/cosmos-sdk/x/auth"
 )
 
 var mainHeaderKey = []byte("header")
 
 // The ABCI application
 type BaseApp struct {
-	logger             log.Logger
-	name               string               // application name from abci.Info
-	db                 dbm.DB               // common DB backend
-	cms                sdk.CommitMultiStore // Main (uncached) state
-	txDecoder          sdk.TxDecoder        // unmarshal []byte into sdk.Tx
-	InitStater         sdk.InitStater       // TODO unexpose
-	defaultAnteHandler sdk.AnteHandler      // ante handler for fee and auth
-	router             Router               // handle any kind of message
+	logger      log.Logger
+	name        string               // application name from abci.Info
+	db          dbm.DB               // common DB backend
+	cms         sdk.CommitMultiStore // Main (uncached) state
+	txDecoder   sdk.TxDecoder        // unmarshal []byte into sdk.Tx
+	InitStater  sdk.InitStater       // TODO unexpose
+	anteHandler sdk.AnteHandler      // ante handler for fee and auth
+	router      Router               // handle any kind of message
 
 	//--------------------
 	// Volatile
 
-	accountMapper sdk.AccountMapper   // Manage getting and setting accounts
-	msCheck       sdk.CacheMultiStore // CheckTx state, a cache-wrap of `.cms`
-	msDeliver     sdk.CacheMultiStore // DeliverTx state, a cache-wrap of `.cms`
-	header        *abci.Header        // current block header
-	valUpdates    []abci.Validator    // cached validator changes from DeliverTx
+	msCheck    sdk.CacheMultiStore // CheckTx state, a cache-wrap of `.cms`
+	msDeliver  sdk.CacheMultiStore // DeliverTx state, a cache-wrap of `.cms`
+	header     *abci.Header        // current block header
+	valUpdates []abci.Validator    // cached validator changes from DeliverTx
 }
 
 var _ abci.Application = &BaseApp{}
@@ -59,40 +57,6 @@ func NewBaseApp(name string) *BaseApp {
 	return baseapp
 }
 
-// Create and name new BaseApp
-func NewBaseAppExpanded(name string, accountMapper sdk.AccountMapper, keys []*sdk.KVStoreKey) *BaseApp {
-	var baseapp = &BaseApp{
-		logger:             makeDefaultLogger(),
-		name:               name,
-		db:                 nil,
-		cms:                nil,
-		defaultAnteHandler: auth.NewAnteHandler(app.AccountMapper()),
-		router:             NewRouter(),
-		accountMapper:      accountMapper,
-	}
-	baseapp.initDB()
-	baseapp.initMultiStore()
-	baseapp.initAccountMapper()
-
-	for _, key := range keys {
-		baseApp.MountStore(key, sdk.StoreTypeIAVL)
-	}
-
-	return baseapp
-}
-
-// Initialize the AccountMapper.
-func (app *BaseApp) initAccountMapper() {
-
-	// Register all interfaces and concrete types that
-	// implement those interfaces, here.
-	cdc := accountMapper.WireCodec()
-	auth.RegisterWireBaseAccount(cdc)
-
-	// Make accountMapper's WireCodec() inaccessible.
-	app.accountMapper = accountMapper.Seal()
-}
-
 // Create the underlying leveldb datastore which will
 // persist the Merkle tree inner & leaf nodes.
 func (app *BaseApp) initDB() {
@@ -114,6 +78,13 @@ func (app *BaseApp) Name() string {
 	return app.name
 }
 
+// Mount a store to the provided key in the BaseApp multistore
+func (app *BaseApp) MountStoresIAVL(keys ...*sdk.KVStoreKey) {
+	for _, key := range keys {
+		app.MountStore(key, sdk.StoreTypeIAVL)
+	}
+}
+
 // Mount a store to the provided key in the BaseApp multistore
 func (app *BaseApp) MountStore(key sdk.StoreKey, typ sdk.StoreType) {
 	app.cms.MountStoreWithDB(key, typ, app.db)
@@ -126,14 +97,13 @@ func (app *BaseApp) SetTxDecoder(txDecoder sdk.TxDecoder) {
 func (app *BaseApp) SetInitStater(initStater sdk.InitStater) {
 	app.InitStater = initStater
 }
-func (app *BaseApp) SetDefaultAnteHandler(ah sdk.AnteHandler) {
+func (app *BaseApp) SetAnteHandler(ah sdk.AnteHandler) {
 	// deducts fee from payer, verifies signatures and nonces, sets Signers to ctx.
-	app.defaultAnteHandler = ah
+	app.anteHandler = ah
 }
 
 // nolint - Get functions
-func (app *BaseApp) Router() Router                   { return app.router }
-func (app *BaseApp) AccountMapper() sdk.AccountMapper { return app.accountMapper }
+func (app *BaseApp) Router() Router { return app.router }
 
 /* TODO consider:
 func (app *BaseApp) SetBeginBlocker(...) {}
@@ -224,7 +194,15 @@ func (app *BaseApp) SetOption(req abci.RequestSetOption) (res abci.ResponseSetOp
 // Implements ABCI
 func (app *BaseApp) InitChain(req abci.RequestInitChain) (res abci.ResponseInitChain) {
 	// TODO: Use req.Validators
-	// TODO: Use req.AppState
+	// TODO: Use req.AppState in InitStater
+
+	app.msDeliver = app.cms.CacheMultiStore()
+	ctx := app.GenesisContext(nil)
+
+	err := app.InitStater(ctx, nil)
+	if err != nil {
+		cmn.Exit(fmt.Sprintf("error initializing application genesis state: %v", err))
+	}
 	return
 }
 
@@ -338,7 +316,7 @@ func (app *BaseApp) runTx(isCheckTx bool, txBytes []byte, tx sdk.Tx) (result sdk
 	// TODO: override default ante handler w/ custom ante handler.
 
 	// Run the ante handler.
-	newCtx, result, abort := app.defaultAnteHandler(ctx, tx)
+	newCtx, result, abort := app.anteHandler(ctx, tx)
 	if isCheckTx || abort {
 		return result
 	}
diff --git a/baseapp/baseapp_test.go b/baseapp/baseapp_test.go
index 7ceaacd203..695115729d 100644
--- a/baseapp/baseapp_test.go
+++ b/baseapp/baseapp_test.go
@@ -44,7 +44,7 @@ func TestBasic(t *testing.T) {
 		return ttx, nil
 	})
 
-	app.SetDefaultAnteHandler(func(ctx sdk.Context, tx sdk.Tx) (newCtx sdk.Context, res sdk.Result, abort bool) { return })
+	app.SetAnteHandler(func(ctx sdk.Context, tx sdk.Tx) (newCtx sdk.Context, res sdk.Result, abort bool) { return })
 	app.Router().AddRoute(msgType, func(ctx sdk.Context, msg sdk.Msg) sdk.Result {
 		// TODO
 		return sdk.Result{}
diff --git a/baseapp/context.go b/baseapp/context.go
index e5a60f9674..8ac10bce7d 100644
--- a/baseapp/context.go
+++ b/baseapp/context.go
@@ -2,6 +2,7 @@ package baseapp
 
 import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
+	abci "github.com/tendermint/abci/types"
 )
 
 // NewContext returns a new Context suitable for AnteHandler (and indirectly Handler) processing.
@@ -22,12 +23,14 @@ func (app *BaseApp) NewContext(isCheckTx bool, txBytes []byte) sdk.Context {
 		panic("BaseApp.NewContext() requires BeginBlock(): missing header")
 	}
 
-	// Initialize arguments to Handler.
-	var ctx = sdk.NewContext(
-		store,
-		*app.header,
-		isCheckTx,
-		txBytes,
-	)
-	return ctx
+	return sdk.NewContext(store, *app.header, isCheckTx, txBytes)
+}
+
+// context used during genesis
+func (app *BaseApp) GenesisContext(txBytes []byte) sdk.Context {
+	store := app.msDeliver
+	if store == nil {
+		panic("BaseApp.NewContext() requires BeginBlock(): missing store")
+	}
+	return sdk.NewContext(store, abci.Header{}, false, txBytes)
 }
diff --git a/baseapp/genesis.go b/baseapp/genesis.go
index c18d5e3589..acd7d76888 100644
--- a/baseapp/genesis.go
+++ b/baseapp/genesis.go
@@ -13,7 +13,7 @@ type GenesisDoc struct {
 }
 
 // GenesisDocFromFile reads JSON data from a file and unmarshalls it into a GenesisDoc.
-func ReadGenesisAppState(genesisPath string) (state json.RawMessage, err error) {
+func LoadGenesisAppState(genesisPath string) (state json.RawMessage, err error) {
 	if genesisPath == "" {
 		return
 	}
diff --git a/baseapp/testapp.go b/baseapp/testapp/testapp.go
similarity index 77%
rename from baseapp/testapp.go
rename to baseapp/testapp/testapp.go
index c4067ef3c7..a80c494f43 100644
--- a/baseapp/testapp.go
+++ b/baseapp/testapp/testapp.go
@@ -1,23 +1,24 @@
-package baseapp
+package testapp
 
 import (
 	abci "github.com/tendermint/abci/types"
-	"github.com/tendermint/go-crypto"
 
+	bam "github.com/cosmos/cosmos-sdk/baseapp"
+	x "github.com/cosmos/cosmos-sdk/baseapp/testapp/x"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 )
 
 // TestApp wraps BaseApp with helper methods,
 // and exposes more functionality than otherwise needed.
 type TestApp struct {
-	*BaseApp
+	*bam.BaseApp
 
 	// These get set as we receive them.
 	*abci.ResponseBeginBlock
 	*abci.ResponseEndBlock
 }
 
-func NewTestApp(bapp *BaseApp) *TestApp {
+func NewTestApp(bapp *bam.BaseApp) *TestApp {
 	app := &TestApp{
 		BaseApp: bapp,
 	}
@@ -75,16 +76,16 @@ func (tapp *TestApp) RunDeliverTx(tx sdk.Tx) sdk.Result {
 }
 
 // run tx through CheckTx of TestApp
-// NOTE: Skips authentication by wrapping msg in testTx{}.
+// NOTE: Skips authentication by wrapping msg in TestTx{}.
 func (tapp *TestApp) RunCheckMsg(msg sdk.Msg) sdk.Result {
-	var tx = testTx{msg}
+	var tx = x.TestTx{msg}
 	return tapp.RunCheckTx(tx)
 }
 
 // run tx through DeliverTx of TestApp
-// NOTE: Skips authentication by wrapping msg in testTx{}.
+// NOTE: Skips authentication by wrapping msg in TestTx{}.
 func (tapp *TestApp) RunDeliverMsg(msg sdk.Msg) sdk.Result {
-	var tx = testTx{msg}
+	var tx = x.TestTx{msg}
 	return tapp.RunDeliverTx(tx)
 }
 
@@ -102,20 +103,3 @@ func (tapp *TestApp) MultiStoreCheck() sdk.MultiStore {
 func (tapp *TestApp) MultiStoreDeliver() sdk.MultiStore {
 	return tapp.BaseApp.msDeliver
 }
-
-//----------------------------------------
-// testTx
-
-type testTx struct {
-	sdk.Msg
-}
-
-// nolint
-func (tx testTx) GetMsg() sdk.Msg                   { return tx.Msg }
-func (tx testTx) GetSigners() []crypto.Address      { return nil }
-func (tx testTx) GetFeePayer() crypto.Address       { return nil }
-func (tx testTx) GetSignatures() []sdk.StdSignature { return nil }
-func IsTestAppTx(tx sdk.Tx) bool {
-	_, ok := tx.(testTx)
-	return ok
-}
diff --git a/baseapp/testapp/x/tx.go b/baseapp/testapp/x/tx.go
new file mode 100644
index 0000000000..d99e56049b
--- /dev/null
+++ b/baseapp/testapp/x/tx.go
@@ -0,0 +1,22 @@
+package baseapp
+
+import (
+	"github.com/tendermint/go-crypto"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+)
+
+// testing transaction
+type TestTx struct {
+	sdk.Msg
+}
+
+// nolint
+func (tx TestTx) GetMsg() sdk.Msg                   { return tx.Msg }
+func (tx TestTx) GetSigners() []crypto.Address      { return nil }
+func (tx TestTx) GetFeePayer() crypto.Address       { return nil }
+func (tx TestTx) GetSignatures() []sdk.StdSignature { return nil }
+func IsTestAppTx(tx sdk.Tx) bool {
+	_, ok := tx.(TestTx)
+	return ok
+}
diff --git a/examples/basecoin/app/app.go b/examples/basecoin/app/app.go
index ead962e12a..b420021310 100644
--- a/examples/basecoin/app/app.go
+++ b/examples/basecoin/app/app.go
@@ -11,7 +11,6 @@ import (
 	"github.com/cosmos/cosmos-sdk/x/bank"
 	"github.com/cosmos/cosmos-sdk/x/sketchy"
 
-	abci "github.com/tendermint/abci/types"
 	crypto "github.com/tendermint/go-crypto"
 	"github.com/tendermint/go-wire"
 	cmn "github.com/tendermint/tmlibs/common"
@@ -27,27 +26,43 @@ type BasecoinApp struct {
 	// keys to access the substores
 	capKeyMainStore *sdk.KVStoreKey
 	capKeyIBCStore  *sdk.KVStoreKey
+
+	// Manage getting and setting accounts
+	accountMapper sdk.AccountMapper
 }
 
 func NewBasecoinApp(genesisPath string) *BasecoinApp {
 
-	var app = &BasecoinApp{
-		cdc:             makeCodex(),
-		capKeyMainStore: sdk.NewKVStoreKey("main"),
-		capKeyIBCStore:  sdk.NewKVStoreKey("ibc"),
-	}
+	// define some keys
+	mainKey := sdk.NewKVStoreKey("main")
+	ibcKey := sdk.NewKVStoreKey("ibc")
 
-	var accMapper = auth.NewAccountMapper(
-		app.capKeyMainStore, // target store
+	// define a mapper
+	accountMapper := auth.NewAccountMapper(
+		mainKey,             // target store
 		&types.AppAccount{}, // prototype
 	)
+	cdc := accountMapper.WireCodec()
+	auth.RegisterWireBaseAccount(cdc)
+	// Make accountMapper's WireCodec() inaccessible.
+	app.accountMapper = accountMapper.Seal()
+
+	// create your application object
+	var app = &BasecoinApp{
+		BaseApp:         bam.NewBaseApp(appName, accountMapper),
+		cdc:             makeTxCodec(),
+		capKeyMainStore: mainKey,
+		capKeyIBCStore:  ibcKey,
+	}
 
-	app.BaseApp = bam.NewBaseAppExpanded(appName, accMapper)
 	app.initBaseAppTxDecoder()
 	app.initBaseAppInitStater(genesisPath)
 
-	// Add the handlers
-	app.Router().AddRoute("bank", bank.NewHandler(bank.NewCoinKeeper(app.AccountMapper())))
+	app.MountStoresIAVL(app.capKeyMainStore, app.capKeyIBCStore)
+
+	// add handlers
+	app.SetAnteHandler(auth.NewAnteHandler(accountMapper))
+	app.Router().AddRoute("bank", bank.NewHandler(bank.NewCoinKeeper(accountMapper)))
 	app.Router().AddRoute("sketchy", sketchy.NewHandler())
 
 	// load the stores
@@ -89,20 +104,11 @@ func (app *BasecoinApp) initBaseAppTxDecoder() {
 // define the custom logic for basecoin initialization
 func (app *BasecoinApp) initBaseAppInitStater(genesisPath string) {
 
-	genesisAppState, err := bam.ReadGenesisAppState(genesisPath)
+	genesisAppState, err := bam.LoadGenesisAppState(genesisPath)
 	if err != nil {
 		panic(fmt.Errorf("error loading genesis state: %v", err))
 	}
 
-	// set up the cache store for ctx, get ctx
-	// TODO: combine with InitChain and let tendermint invoke it.
-	app.BaseApp.BeginBlock(abci.RequestBeginBlock{Header: abci.Header{}})
-	ctx := app.BaseApp.NewContext(false, nil) // context for DeliverTx
-	err = app.BaseApp.InitStater(ctx, genesisAppState)
-	if err != nil {
-		cmn.Exit(fmt.Sprintf("error initializing application genesis state: %v", err))
-	}
-
 	app.BaseApp.SetInitStater(func(ctx sdk.Context, state json.RawMessage) sdk.Error {
 		if state == nil {
 			return nil
@@ -119,7 +125,7 @@ func (app *BasecoinApp) initBaseAppInitStater(genesisPath string) {
 			if err != nil {
 				return sdk.ErrGenesisParse("").TraceCause(err, "")
 			}
-			app.AccountMapper().SetAccount(ctx, acc)
+			app.accountMapper.SetAccount(ctx, acc)
 		}
 		return nil
 	})
diff --git a/examples/basecoin/app/app_test.go b/examples/basecoin/app/app_test.go
index 2014fef7c8..83e6edbd04 100644
--- a/examples/basecoin/app/app_test.go
+++ b/examples/basecoin/app/app_test.go
@@ -26,7 +26,7 @@ func newTestBasecoinApp() *testBasecoinApp {
 	tba := &testBasecoinApp{
 		BasecoinApp: app,
 	}
-	tba.TestApp = bam.NewTestApp(app.BaseApp)
+	tba.TestApp = testapp.NewTestApp(app.BaseApp)
 	return tba
 }
 
diff --git a/x/auth/ante.go b/x/auth/ante.go
index a91fa55c28..0c0012522e 100644
--- a/x/auth/ante.go
+++ b/x/auth/ante.go
@@ -1,7 +1,7 @@
 package auth
 
 import (
-	bam "github.com/cosmos/cosmos-sdk/baseapp"
+	tax "github.com/cosmos/cosmos-sdk/baseapp/testapp/x"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 )
 
@@ -25,14 +25,14 @@ func NewAnteHandler(accountMapper sdk.AccountMapper) sdk.AnteHandler {
 			// TODO: accountMapper.SetAccount(ctx, payerAddr)
 		} else {
 			// TODO: Ensure that some other spam prevention is used.
-			// NOTE: bam.TestApp.RunDeliverMsg/RunCheckMsg will
-			// create a Tx with no payer.
+			// NOTE: testapp.TestApp.RunDeliverMsg/RunCheckMsg will
+			//       create a Tx with no payer.
 		}
 
 		var sigs = tx.GetSignatures()
 
 		// Assert that there are signatures.
-		if !bam.IsTestAppTx(tx) {
+		if !tax.IsTestAppTx(tx) {
 			if len(sigs) == 0 {
 				return ctx,
 					sdk.ErrUnauthorized("no signers").Result(),
@@ -46,7 +46,7 @@ func NewAnteHandler(accountMapper sdk.AccountMapper) sdk.AnteHandler {
 		var signerAccs = make([]sdk.Account, len(signerAddrs))
 
 		// Assert that number of signatures is correct.
-		if !bam.IsTestAppTx(tx) {
+		if !tax.IsTestAppTx(tx) {
 			if len(sigs) != len(signerAddrs) {
 				return ctx,
 					sdk.ErrUnauthorized("wrong number of signers").Result(),