diff --git a/app/app.go b/app/app.go
index 6494df7f..584707d0 100644
--- a/app/app.go
+++ b/app/app.go
@@ -3,8 +3,12 @@ package app
 import (
 	"io"
 	"os"
+	"path/filepath"
+
+	"github.com/spf13/viper"
 
 	abci "github.com/tendermint/tendermint/abci/types"
+	"github.com/tendermint/tendermint/libs/cli"
 	cmn "github.com/tendermint/tendermint/libs/common"
 	"github.com/tendermint/tendermint/libs/log"
 	dbm "github.com/tendermint/tm-db"
@@ -29,6 +33,8 @@ import (
 	"github.com/cosmos/cosmos-sdk/x/slashing"
 	"github.com/cosmos/cosmos-sdk/x/staking"
 	"github.com/cosmos/cosmos-sdk/x/supply"
+
+	"github.com/cosmwasm/wasmd/x/wasm"
 )
 
 const appName = "WasmApp"
@@ -52,6 +58,7 @@ var (
 		distr.AppModuleBasic{},
 		gov.NewAppModuleBasic(paramsclient.ProposalHandler, distr.ProposalHandler),
 		params.AppModuleBasic{},
+		wasm.AppModuleBasic{},
 		crisis.AppModuleBasic{},
 		slashing.AppModuleBasic{},
 		supply.AppModuleBasic{},
@@ -106,6 +113,7 @@ type WasmApp struct {
 	crisisKeeper   crisis.Keeper
 	paramsKeeper   params.Keeper
 	evidenceKeeper *evidence.Keeper
+	wasmKeeper     wasm.Keeper
 
 	// the module manager
 	mm *module.Manager
@@ -129,7 +137,7 @@ func NewWasmApp(
 	keys := sdk.NewKVStoreKeys(
 		bam.MainStoreKey, auth.StoreKey, staking.StoreKey, supply.StoreKey,
 		mint.StoreKey, distr.StoreKey, slashing.StoreKey, gov.StoreKey,
-		params.StoreKey, evidence.StoreKey,
+		params.StoreKey, evidence.StoreKey, wasm.StoreKey,
 	)
 	tKeys := sdk.NewTransientStoreKeys(staking.TStoreKey, params.TStoreKey)
 
@@ -168,6 +176,13 @@ func NewWasmApp(
 	)
 	app.crisisKeeper = crisis.NewKeeper(crisisSubspace, invCheckPeriod, app.supplyKeeper, auth.FeeCollectorName)
 
+	// just re-use the full router - do we want to limit this more?
+	var wasmRouter = bApp.Router()
+	// better way to get this dir???
+	homeDir := viper.GetString(cli.HomeFlag)
+	wasmDir := filepath.Join(homeDir, "wasm")
+	app.wasmKeeper = wasm.NewKeeper(app.cdc, keys[wasm.StoreKey], app.accountKeeper, app.bankKeeper, wasmRouter, wasmDir)
+
 	// create evidence keeper with evidence router
 	app.evidenceKeeper = evidence.NewKeeper(
 		app.cdc, keys[evidence.StoreKey], evidenceSubspace, evidence.DefaultCodespace,
@@ -206,6 +221,7 @@ func NewWasmApp(
 		slashing.NewAppModule(app.slashingKeeper, app.stakingKeeper),
 		staking.NewAppModule(app.stakingKeeper, app.accountKeeper, app.supplyKeeper),
 		evidence.NewAppModule(*app.evidenceKeeper),
+		wasm.NewAppModule(app.wasmKeeper),
 	)
 
 	// During begin block slashing happens after distr.BeginBlocker so that
@@ -220,7 +236,7 @@ func NewWasmApp(
 	app.mm.SetOrderInitGenesis(
 		distr.ModuleName, staking.ModuleName, auth.ModuleName, bank.ModuleName,
 		slashing.ModuleName, gov.ModuleName, mint.ModuleName, supply.ModuleName,
-		crisis.ModuleName, genutil.ModuleName, evidence.ModuleName,
+		crisis.ModuleName, genutil.ModuleName, evidence.ModuleName, wasm.ModuleName,
 	)
 
 	app.mm.RegisterInvariants(&app.crisisKeeper)
diff --git a/cmd/wasmd/main.go b/cmd/wasmd/main.go
index ceee7bf7..d37ad4ca 100644
--- a/cmd/wasmd/main.go
+++ b/cmd/wasmd/main.go
@@ -60,7 +60,7 @@ func main() {
 	rootCmd.AddCommand(genutilcli.ValidateGenesisCmd(ctx, cdc, app.ModuleBasics))
 	rootCmd.AddCommand(AddGenesisAccountCmd(ctx, cdc, app.DefaultNodeHome, app.DefaultCLIHome))
 	rootCmd.AddCommand(client.NewCompletionCmd(rootCmd, true))
-	rootCmd.AddCommand(testnetCmd(ctx, cdc, app.ModuleBasics, auth.GenesisAccountIterator{}))
+	// rootCmd.AddCommand(testnetCmd(ctx, cdc, app.ModuleBasics, auth.GenesisAccountIterator{}))
 	rootCmd.AddCommand(replayCmd())
 	rootCmd.AddCommand(debug.Cmd(cdc))