diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 2f732d16ab43..42ced576d2f6 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -27,7 +27,7 @@ jobs:
       - run: pnpm check
   Tests:
     runs-on: ${{ matrix.os }}
-    timeout-minutes: 10
+    timeout-minutes: 15
     strategy:
       fail-fast: false
       matrix:
diff --git a/packages/kit/.gitignore b/packages/kit/.gitignore
index e44c6ab79232..4d29456c81bc 100644
--- a/packages/kit/.gitignore
+++ b/packages/kit/.gitignore
@@ -1,8 +1,7 @@
 .DS_Store
 /node_modules
 /dist
-/assets/runtime
-/assets/kit.js
+/assets/*
 /client/**/*.d.ts
 /test/**/.svelte-kit
 /test/**/build
diff --git a/packages/kit/package.json b/packages/kit/package.json
index bc50399d64e1..19feb0bdf4f9 100644
--- a/packages/kit/package.json
+++ b/packages/kit/package.json
@@ -57,7 +57,7 @@
 		"svelte-kit.js"
 	],
 	"scripts": {
-		"build": "rollup -c",
+		"build": "rollup -c && node scripts/cp.js src/runtime/components assets/components",
 		"dev": "rollup -cw",
 		"lint": "eslint --ignore-path .gitignore --ignore-pattern \"src/packaging/test/**\" \"{src,test}/**/*.{ts,mjs,js,svelte}\" && npm run check-format",
 		"check": "tsc && svelte-check --ignore \"src/packaging/test\"",
@@ -78,9 +78,6 @@
 		".": {
 			"types": "./types/index.d.ts"
 		},
-		"./ssr": {
-			"import": "./dist/ssr.js"
-		},
 		"./node": {
 			"import": "./dist/node.js"
 		},
diff --git a/packages/kit/rollup.config.js b/packages/kit/rollup.config.js
index ec2f90f5f8f2..f979b01d511b 100644
--- a/packages/kit/rollup.config.js
+++ b/packages/kit/rollup.config.js
@@ -4,7 +4,7 @@ import replace from '@rollup/plugin-replace';
 import resolve from '@rollup/plugin-node-resolve';
 import pkg from './package.json';
 
-(fs.rmSync || fs.rmdirSync)('assets/runtime', { recursive: true, force: true });
+(fs.rmSync || fs.rmdirSync)('assets', { recursive: true, force: true });
 
 const external = [].concat(
 	Object.keys(pkg.dependencies || {}),
@@ -17,8 +17,8 @@ const external = [].concat(
 export default [
 	{
 		input: {
-			'internal/start': 'src/runtime/client/start.js',
-			'internal/singletons': 'src/runtime/client/singletons.js',
+			'client/start': 'src/runtime/client/start.js',
+			'client/singletons': 'src/runtime/client/singletons.js',
 			'app/navigation': 'src/runtime/app/navigation.js',
 			'app/stores': 'src/runtime/app/stores.js',
 			'app/paths': 'src/runtime/app/paths.js',
@@ -27,15 +27,15 @@ export default [
 			env: 'src/runtime/env.js'
 		},
 		output: {
-			dir: 'assets/runtime',
+			dir: 'assets',
 			format: 'esm',
 			chunkFileNames: 'chunks/[name].js',
 			paths: {
-				ROOT: '../../generated/root.svelte',
-				MANIFEST: '../../generated/manifest.js'
+				__ROOT__: '../../generated/root.svelte',
+				__MANIFEST__: '../../generated/manifest.js'
 			}
 		},
-		external: ['svelte', 'svelte/store', 'ROOT', 'MANIFEST'],
+		external: ['svelte', 'svelte/store', '__ROOT__', '__MANIFEST__'],
 		plugins: [
 			resolve({
 				extensions: ['.mjs', '.js', '.ts']
@@ -47,7 +47,7 @@ export default [
 		input: 'src/runtime/server/index.js',
 		output: {
 			format: 'esm',
-			file: 'assets/kit.js'
+			file: 'assets/server/index.js'
 		},
 		plugins: [
 			resolve({
@@ -59,9 +59,8 @@ export default [
 	{
 		input: {
 			cli: 'src/cli.js',
-			ssr: 'src/runtime/server/index.js',
-			node: 'src/core/node/index.js',
-			hooks: 'src/runtime/hooks.js',
+			node: 'src/node.js',
+			hooks: 'src/hooks.js',
 			'install-fetch': 'src/install-fetch.js'
 		},
 		output: {
@@ -70,13 +69,14 @@ export default [
 			chunkFileNames: 'chunks/[name].js'
 		},
 		external: (id) => {
-			return external.includes(id);
+			return id.startsWith('node:') || external.includes(id);
 		},
 		plugins: [
 			replace({
 				preventAssignment: true,
 				values: {
-					__VERSION__: pkg.version
+					__VERSION__: pkg.version,
+					'process.env.BUNDLED': 'true'
 				}
 			}),
 			resolve({
diff --git a/packages/kit/scripts/cp.js b/packages/kit/scripts/cp.js
new file mode 100755
index 000000000000..bca3e121c516
--- /dev/null
+++ b/packages/kit/scripts/cp.js
@@ -0,0 +1,5 @@
+import { copy } from '../src/utils/filesystem.js';
+
+const [src, dest] = process.argv.slice(2);
+
+copy(src, dest);
diff --git a/packages/kit/src/core/build/build_client.js b/packages/kit/src/core/build/build_client.js
index 41e974eaca47..b7198f1fd51e 100644
--- a/packages/kit/src/core/build/build_client.js
+++ b/packages/kit/src/core/build/build_client.js
@@ -4,8 +4,10 @@ import { svelte } from '@sveltejs/vite-plugin-svelte';
 import { deep_merge } from '../../utils/object.js';
 import { print_config_conflicts } from '../config/index.js';
 import { create_app } from '../create_app/index.js';
-import { copy_assets, posixify } from '../utils.js';
+import { copy_assets, get_aliases } from '../utils.js';
 import { create_build, find_deps } from './utils.js';
+import { SVELTE_KIT } from '../constants.js';
+import { posixify } from '../../utils/filesystem.js';
 
 /**
  * @param {{
@@ -13,7 +15,6 @@ import { create_build, find_deps } from './utils.js';
  *   assets_base: string;
  *   config: import('types/config').ValidatedConfig
  *   manifest_data: import('types/internal').ManifestData
- *   build_dir: string;
  *   output_dir: string;
  *   client_entry_file: string;
  *   service_worker_entry_file: string | null;
@@ -25,17 +26,16 @@ export async function build_client({
 	assets_base,
 	config,
 	manifest_data,
-	build_dir,
 	output_dir,
 	client_entry_file
 }) {
 	create_app({
 		manifest_data,
-		output: build_dir,
+		output: `${SVELTE_KIT}/generated`,
 		cwd
 	});
 
-	copy_assets(build_dir);
+	copy_assets(`${SVELTE_KIT}/runtime`);
 
 	process.env.VITE_SVELTEKIT_AMP = config.kit.amp ? 'true' : '';
 
@@ -80,10 +80,7 @@ export async function build_client({
 			}
 		},
 		resolve: {
-			alias: {
-				$app: path.resolve(`${build_dir}/runtime/app`),
-				$lib: config.kit.files.lib
-			}
+			alias: get_aliases(config)
 		},
 		plugins: [
 			svelte({
@@ -103,15 +100,16 @@ export async function build_client({
 	/** @type {import('vite').Manifest} */
 	const vite_manifest = JSON.parse(fs.readFileSync(`${client_out_dir}/manifest.json`, 'utf-8'));
 
+	const entry = posixify(client_entry_file);
 	const entry_js = new Set();
 	const entry_css = new Set();
-	find_deps(client_entry_file, vite_manifest, entry_js, entry_css);
+	find_deps(entry, vite_manifest, entry_js, entry_css);
 
 	return {
 		assets,
 		chunks,
 		entry: {
-			file: vite_manifest[client_entry_file].file,
+			file: vite_manifest[entry].file,
 			js: Array.from(entry_js),
 			css: Array.from(entry_css)
 		},
diff --git a/packages/kit/src/core/build/build_server.js b/packages/kit/src/core/build/build_server.js
index 8f685ebc0619..355ca8c2cfc6 100644
--- a/packages/kit/src/core/build/build_server.js
+++ b/packages/kit/src/core/build/build_server.js
@@ -1,10 +1,10 @@
 import fs from 'fs';
 import path from 'path';
 import { svelte } from '@sveltejs/vite-plugin-svelte';
-import { mkdirp } from '../../utils/filesystem.js';
+import { mkdirp, posixify } from '../../utils/filesystem.js';
 import { deep_merge } from '../../utils/object.js';
 import { load_template, print_config_conflicts } from '../config/index.js';
-import { posixify, resolve_entry } from '../utils.js';
+import { get_aliases, resolve_entry } from '../utils.js';
 import { create_build, find_deps } from './utils.js';
 import { SVELTE_KIT } from '../constants.js';
 import { s } from '../../utils/misc.js';
@@ -12,18 +12,18 @@ import { s } from '../../utils/misc.js';
 /**
  * @param {{
  *   cwd: string;
- *   runtime: string;
  *   hooks: string;
  *   config: import('types/config').ValidatedConfig;
  *   has_service_worker: boolean;
+ *   runtime: string;
  * }} opts
  * @returns
  */
-const template = ({ cwd, config, hooks, runtime, has_service_worker }) => `
-import { respond } from '${runtime}';
-import root from './generated/root.svelte';
-import { set_paths, assets, base } from './runtime/paths.js';
-import { set_prerendering } from './runtime/env.js';
+const template = ({ cwd, config, hooks, has_service_worker, runtime }) => `
+import { respond } from '${runtime}/server/index.js';
+import root from '../generated/root.svelte';
+import { set_paths, assets, base } from '${runtime}/paths.js';
+import { set_prerendering } from '${runtime}/env.js';
 import * as user_hooks from ${s(hooks)};
 
 const template = ({ head, body, assets }) => ${s(load_template(cwd, config))
@@ -122,7 +122,6 @@ export class App {
  *   service_worker_entry_file: string | null;
  *   service_worker_register: boolean;
  * }} options
- * @param {string} runtime
  * @param {{ vite_manifest: import('vite').Manifest, assets: import('rollup').OutputAsset[] }} client
  */
 export async function build_server(
@@ -136,7 +135,6 @@ export async function build_server(
 		service_worker_entry_file,
 		service_worker_register
 	},
-	runtime,
 	client
 ) {
 	let hooks_file = resolve_entry(config.kit.files.hooks);
@@ -184,8 +182,8 @@ export async function build_server(
 			cwd,
 			config,
 			hooks: app_relative(hooks_file),
-			runtime,
-			has_service_worker: service_worker_register && !!service_worker_entry_file
+			has_service_worker: service_worker_register && !!service_worker_entry_file,
+			runtime: '../runtime'
 		})
 	);
 
@@ -231,10 +229,7 @@ export async function build_server(
 			})
 		],
 		resolve: {
-			alias: {
-				$app: path.resolve(`${build_dir}/runtime/app`),
-				$lib: config.kit.files.lib
-			}
+			alias: get_aliases(config)
 		}
 	});
 
diff --git a/packages/kit/src/core/build/build_service_worker.js b/packages/kit/src/core/build/build_service_worker.js
index d19744b1d076..adf4d1a51982 100644
--- a/packages/kit/src/core/build/build_service_worker.js
+++ b/packages/kit/src/core/build/build_service_worker.js
@@ -1,9 +1,9 @@
 import fs from 'fs';
-import path from 'path';
 import vite from 'vite';
 import { s } from '../../utils/misc.js';
 import { deep_merge } from '../../utils/object.js';
 import { print_config_conflicts } from '../config/index.js';
+import { SVELTE_KIT } from '../constants.js';
 
 /**
  * @param {{
@@ -11,15 +11,13 @@ import { print_config_conflicts } from '../config/index.js';
  *   assets_base: string;
  *   config: import('types/config').ValidatedConfig
  *   manifest_data: import('types/internal').ManifestData
- *   build_dir: string;
  *   output_dir: string;
- *   client_entry_file: string;
  *   service_worker_entry_file: string | null;
  * }} options
  * @param {import('vite').Manifest} client_manifest
  */
 export async function build_service_worker(
-	{ cwd, assets_base, config, manifest_data, build_dir, output_dir, service_worker_entry_file },
+	{ cwd, assets_base, config, manifest_data, output_dir, service_worker_entry_file },
 	client_manifest
 ) {
 	// TODO add any assets referenced in template .html file, e.g. favicon?
@@ -34,8 +32,10 @@ export async function build_service_worker(
 		}
 	}
 
+	const service_worker = `${cwd}/${SVELTE_KIT}/generated/service-worker.js`;
+
 	fs.writeFileSync(
-		`${build_dir}/runtime/service-worker.js`,
+		service_worker,
 		`
 			export const timestamp = ${Date.now()};
 
@@ -76,7 +76,7 @@ export async function build_service_worker(
 		},
 		resolve: {
 			alias: {
-				'$service-worker': path.resolve(`${build_dir}/runtime/service-worker`),
+				'$service-worker': service_worker,
 				$lib: config.kit.files.lib
 			}
 		}
diff --git a/packages/kit/src/core/build/index.js b/packages/kit/src/core/build/index.js
index 2b2b403ff416..0c6751ae0712 100644
--- a/packages/kit/src/core/build/index.js
+++ b/packages/kit/src/core/build/index.js
@@ -1,9 +1,9 @@
 import fs from 'fs';
 import path from 'path';
-import { rimraf } from '../../utils/filesystem.js';
+import { mkdirp, rimraf, posixify } from '../../utils/filesystem.js';
 import create_manifest_data from '../create_manifest_data/index.js';
 import { SVELTE_KIT } from '../constants.js';
-import { posixify, resolve_entry } from '../utils.js';
+import { runtime, resolve_entry } from '../utils.js';
 import { generate_manifest } from '../generate_manifest/index.js';
 import { build_service_worker } from './build_service_worker.js';
 import { build_client } from './build_client.js';
@@ -11,18 +11,18 @@ import { build_server } from './build_server.js';
 
 /**
  * @param {import('types/config').ValidatedConfig} config
- * @param {{
- *   cwd?: string;
- *   runtime?: string;
- * }} [opts]
  * @returns {Promise<import('types/internal').BuildData>}
  */
-export async function build(config, { cwd = process.cwd(), runtime = './kit.js' } = {}) {
-	const build_dir = path.resolve(cwd, `${SVELTE_KIT}/build`);
+export async function build(config) {
+	const cwd = process.cwd(); // TODO is this necessary?
 
+	const build_dir = path.resolve(`${SVELTE_KIT}/build`);
 	rimraf(build_dir);
+	mkdirp(build_dir);
 
-	const output_dir = path.resolve(cwd, `${SVELTE_KIT}/output`);
+	const output_dir = path.resolve(`${SVELTE_KIT}/output`);
+	rimraf(output_dir);
+	mkdirp(output_dir);
 
 	const options = {
 		cwd,
@@ -35,17 +35,16 @@ export async function build(config, { cwd = process.cwd(), runtime = './kit.js'
 		assets_base: `${config.kit.paths.assets || config.kit.paths.base}/${config.kit.appDir}/`,
 		manifest_data: create_manifest_data({
 			config,
-			output: build_dir,
 			cwd
 		}),
 		output_dir,
-		client_entry_file: `${SVELTE_KIT}/build/runtime/internal/start.js`,
+		client_entry_file: path.relative(cwd, `${runtime}/client/start.js`),
 		service_worker_entry_file: resolve_entry(config.kit.files.serviceWorker),
 		service_worker_register: config.kit.serviceWorker.register
 	};
 
 	const client = await build_client(options);
-	const server = await build_server(options, runtime, client);
+	const server = await build_server(options, client);
 
 	if (options.service_worker_entry_file) {
 		if (config.kit.paths.assets) {
diff --git a/packages/kit/src/core/create_app/index.js b/packages/kit/src/core/create_app/index.js
index 7367d5d19d42..6dd144706183 100644
--- a/packages/kit/src/core/create_app/index.js
+++ b/packages/kit/src/core/create_app/index.js
@@ -28,11 +28,10 @@ export function write_if_changed(file, code) {
  * }} options
  */
 export function create_app({ manifest_data, output, cwd = process.cwd() }) {
-	const dir = `${output}/generated`;
-	const base = path.relative(cwd, dir);
+	const base = path.relative(cwd, output);
 
-	write_if_changed(`${dir}/manifest.js`, generate_client_manifest(manifest_data, base));
-	write_if_changed(`${dir}/root.svelte`, generate_app(manifest_data));
+	write_if_changed(`${output}/manifest.js`, generate_client_manifest(manifest_data, base));
+	write_if_changed(`${output}/root.svelte`, generate_app(manifest_data));
 }
 
 /**
@@ -89,6 +88,7 @@ function generate_client_manifest(manifest_data, base) {
 					return `// ${route.a[route.a.length - 1]}\n\t\t[${tuple.join(', ')}]`;
 				}
 			})
+			.filter(Boolean)
 			.join(',\n\n\t\t')}
 	]`.replace(/^\t/gm, '');
 
diff --git a/packages/kit/src/core/create_manifest_data/index.js b/packages/kit/src/core/create_manifest_data/index.js
index 1ed531177da4..12eafda7d940 100644
--- a/packages/kit/src/core/create_manifest_data/index.js
+++ b/packages/kit/src/core/create_manifest_data/index.js
@@ -1,7 +1,8 @@
 import fs from 'fs';
 import path from 'path';
 import mime from 'mime';
-import { posixify } from '../utils.js';
+import { runtime } from '../utils.js';
+import { posixify } from '../../utils/filesystem.js';
 
 /**
  * A portion of a file or directory name where the name has been split into
@@ -28,12 +29,16 @@ const specials = new Set(['__layout', '__layout.reset', '__error']);
 /**
  * @param {{
  *   config: import('types/config').ValidatedConfig;
- *   output: string;
+ *   fallback?: string;
  *   cwd?: string;
  * }} opts
  * @returns {import('types/internal').ManifestData}
  */
-export default function create_manifest_data({ config, output, cwd = process.cwd() }) {
+export default function create_manifest_data({
+	config,
+	fallback = `${runtime}/components`,
+	cwd = process.cwd()
+}) {
 	/**
 	 * @param {string} file_name
 	 * @param {string} dir
@@ -49,8 +54,8 @@ export default function create_manifest_data({ config, output, cwd = process.cwd
 	/** @type {import('types/internal').RouteData[]} */
 	const routes = [];
 
-	const default_layout = posixify(path.relative(cwd, `${output}/components/layout.svelte`));
-	const default_error = posixify(path.relative(cwd, `${output}/components/error.svelte`));
+	const default_layout = posixify(path.relative(cwd, `${fallback}/layout.svelte`));
+	const default_error = posixify(path.relative(cwd, `${fallback}/error.svelte`));
 
 	/**
 	 * @param {string} dir
diff --git a/packages/kit/src/core/create_manifest_data/index.spec.js b/packages/kit/src/core/create_manifest_data/index.spec.js
index 88c010dd9038..349237633d5e 100644
--- a/packages/kit/src/core/create_manifest_data/index.spec.js
+++ b/packages/kit/src/core/create_manifest_data/index.spec.js
@@ -29,13 +29,13 @@ const create = (dir, extensions = ['.svelte']) => {
 
 	return create_manifest_data({
 		config: /** @type {import('types/config').ValidatedConfig} */ (initial),
-		cwd,
-		output: cwd
+		fallback: cwd,
+		cwd
 	});
 };
 
-const layout = 'components/layout.svelte';
-const error = 'components/error.svelte';
+const layout = 'layout.svelte';
+const error = 'error.svelte';
 
 test('creates routes', () => {
 	const { components, routes } = create('samples/basic');
@@ -230,8 +230,8 @@ test('disallows rest parameters inside segments', () => {
 			pattern: /^\/prefix-(.*?)\/?$/,
 			params: ['...rest'],
 			path: '',
-			a: ['components/layout.svelte', 'samples/rest-prefix-suffix/prefix-[...rest].svelte'],
-			b: ['components/error.svelte']
+			a: [layout, 'samples/rest-prefix-suffix/prefix-[...rest].svelte'],
+			b: [error]
 		},
 		{
 			type: 'endpoint',
diff --git a/packages/kit/src/core/dev/index.js b/packages/kit/src/core/dev/index.js
index 83c416dcc967..33eb6e81a478 100644
--- a/packages/kit/src/core/dev/index.js
+++ b/packages/kit/src/core/dev/index.js
@@ -1,11 +1,10 @@
 import path from 'path';
 import { svelte } from '@sveltejs/vite-plugin-svelte';
 import vite from 'vite';
-import { rimraf } from '../../utils/filesystem.js';
 import { deep_merge } from '../../utils/object.js';
 import { print_config_conflicts } from '../config/index.js';
 import { SVELTE_KIT } from '../constants.js';
-import { copy_assets } from '../utils.js';
+import { copy_assets, get_aliases, runtime } from '../utils.js';
 import { create_plugin } from './plugin.js';
 
 /**
@@ -21,10 +20,7 @@ import { create_plugin } from './plugin.js';
 
 /** @param {Options} opts */
 export async function dev({ cwd, port, host, https, config }) {
-	const output = path.resolve(cwd, `${SVELTE_KIT}/dev`);
-
-	rimraf(output);
-	copy_assets(output);
+	copy_assets(`${SVELTE_KIT}/runtime`);
 
 	const [vite_config] = deep_merge(
 		{
@@ -53,16 +49,13 @@ export async function dev({ cwd, port, host, https, config }) {
 		configFile: false,
 		root: cwd,
 		resolve: {
-			alias: {
-				$app: path.resolve(`${output}/runtime/app`),
-				$lib: config.kit.files.lib
-			}
+			alias: get_aliases(config)
 		},
 		build: {
 			rollupOptions: {
 				// Vite dependency crawler needs an explicit JS entry point
 				// eventhough server otherwise works without it
-				input: path.resolve(`${output}/runtime/internal/start.js`)
+				input: `${runtime}/client/start.js`
 			}
 		},
 		plugins: [
@@ -73,7 +66,7 @@ export async function dev({ cwd, port, host, https, config }) {
 					hydratable: !!config.kit.hydrate
 				}
 			}),
-			await create_plugin(config, output, cwd)
+			await create_plugin(config, cwd)
 		],
 		publicDir: config.kit.files.assets,
 		base: '/'
diff --git a/packages/kit/src/core/dev/plugin.js b/packages/kit/src/core/dev/plugin.js
index 7d03f05b4657..cf25246ebebd 100644
--- a/packages/kit/src/core/dev/plugin.js
+++ b/packages/kit/src/core/dev/plugin.js
@@ -6,7 +6,7 @@ import { respond } from '../../runtime/server/index.js';
 import { __fetch_polyfill } from '../../install-fetch.js';
 import { create_app } from '../create_app/index.js';
 import create_manifest_data from '../create_manifest_data/index.js';
-import { getRawBody } from '../node/index.js';
+import { getRawBody } from '../../node.js';
 import { SVELTE_KIT, SVELTE_KIT_ASSETS } from '../constants.js';
 import { get_mime_lookup, resolve_entry } from '../utils.js';
 import { coalesce_to_error } from '../../utils/error.js';
@@ -14,11 +14,10 @@ import { load_template } from '../config/index.js';
 
 /**
  * @param {import('types/config').ValidatedConfig} config
- * @param {string} output
  * @param {string} cwd
  * @returns {Promise<import('vite').Plugin>}
  */
-export async function create_plugin(config, output, cwd) {
+export async function create_plugin(config, cwd) {
 	/** @type {import('amphtml-validator').Validator} */
 	let amp;
 
@@ -37,9 +36,9 @@ export async function create_plugin(config, output, cwd) {
 			let manifest;
 
 			function update_manifest() {
-				const manifest_data = create_manifest_data({ config, output, cwd });
+				const manifest_data = create_manifest_data({ config, cwd });
 
-				create_app({ manifest_data, output, cwd });
+				create_app({ manifest_data, output: `${SVELTE_KIT}/generated`, cwd });
 
 				manifest = {
 					appDir: config.kit.appDir,
@@ -47,7 +46,7 @@ export async function create_plugin(config, output, cwd) {
 					_: {
 						mime: get_mime_lookup(manifest_data),
 						entry: {
-							file: `/${SVELTE_KIT}/dev/runtime/internal/start.js`,
+							file: `/${SVELTE_KIT}/runtime/client/start.js`,
 							css: [],
 							js: []
 						},
@@ -173,9 +172,8 @@ export async function create_plugin(config, output, cwd) {
 							throw new Error('The serverFetch hook has been renamed to externalFetch.');
 						}
 
-						const root = (await vite.ssrLoadModule(`/${output}/generated/root.svelte`)).default;
-
-						const paths = await vite.ssrLoadModule(`/${SVELTE_KIT}/dev/runtime/paths.js`);
+						const root = (await vite.ssrLoadModule(`/${SVELTE_KIT}/generated/root.svelte`)).default;
+						const paths = await vite.ssrLoadModule(`/${SVELTE_KIT}/runtime/paths.js`);
 
 						paths.set_paths({
 							base: config.kit.paths.base,
diff --git a/packages/kit/src/core/preview/index.js b/packages/kit/src/core/preview/index.js
index d04ea8da1506..b833d4eee0a6 100644
--- a/packages/kit/src/core/preview/index.js
+++ b/packages/kit/src/core/preview/index.js
@@ -4,7 +4,7 @@ import https from 'https';
 import { join, resolve } from 'path';
 import sirv from 'sirv';
 import { pathToFileURL } from 'url';
-import { getRawBody } from '../node/index.js';
+import { getRawBody } from '../../node.js';
 import { __fetch_polyfill } from '../../install-fetch.js';
 import { SVELTE_KIT, SVELTE_KIT_ASSETS } from '../constants.js';
 
diff --git a/packages/kit/src/core/utils.js b/packages/kit/src/core/utils.js
index 00fc70029611..fba2108ed68a 100644
--- a/packages/kit/src/core/utils.js
+++ b/packages/kit/src/core/utils.js
@@ -3,10 +3,13 @@ import path from 'path';
 import colors from 'kleur';
 import { copy } from '../utils/filesystem.js';
 import { fileURLToPath } from 'url';
+import { SVELTE_KIT } from './constants.js';
 
 const __filename = fileURLToPath(import.meta.url);
 const __dirname = path.dirname(__filename);
 
+export const runtime = path.posix.resolve(`${SVELTE_KIT}/runtime`);
+
 /** @param {string} dest */
 export function copy_assets(dest) {
 	let prefix = '..';
@@ -73,11 +76,6 @@ export function resolve_entry(entry) {
 	return null;
 }
 
-/** @param {string} str */
-export function posixify(str) {
-	return str.replace(/\\/g, '/');
-}
-
 /** @param {import('./create_app/index.js').ManifestData} manifest_data */
 export function get_mime_lookup(manifest_data) {
 	/** @type {Record<string, string>} */
@@ -92,3 +90,13 @@ export function get_mime_lookup(manifest_data) {
 
 	return mime;
 }
+
+/** @param {import('@sveltejs/kit').ValidatedConfig} config */
+export function get_aliases(config) {
+	return {
+		__ROOT__: path.resolve(`${SVELTE_KIT}/generated/root.svelte`),
+		__MANIFEST__: path.resolve(`${SVELTE_KIT}/generated/manifest.js`),
+		$app: `${runtime}/app`,
+		$lib: config.kit.files.lib
+	};
+}
diff --git a/packages/kit/src/runtime/hooks.js b/packages/kit/src/hooks.js
similarity index 100%
rename from packages/kit/src/runtime/hooks.js
rename to packages/kit/src/hooks.js
diff --git a/packages/kit/src/core/node/index.js b/packages/kit/src/node.js
similarity index 100%
rename from packages/kit/src/core/node/index.js
rename to packages/kit/src/node.js
diff --git a/packages/kit/src/runtime/client/start.js b/packages/kit/src/runtime/client/start.js
index 852c4731cb3e..2a5a3e4ae552 100644
--- a/packages/kit/src/runtime/client/start.js
+++ b/packages/kit/src/runtime/client/start.js
@@ -1,7 +1,7 @@
 // @ts-expect-error - doesn't exist yet. generated by Rollup
-import Root from 'ROOT';
+import Root from '__ROOT__';
 // @ts-expect-error - doesn't exist yet. generated by Rollup
-import { routes, fallback } from 'MANIFEST';
+import { routes, fallback } from '__MANIFEST__';
 import { Router } from './router.js';
 import { Renderer } from './renderer.js';
 import { init } from './singletons.js';
diff --git a/packages/kit/assets/components/error.svelte b/packages/kit/src/runtime/components/error.svelte
similarity index 100%
rename from packages/kit/assets/components/error.svelte
rename to packages/kit/src/runtime/components/error.svelte
diff --git a/packages/kit/assets/components/layout.svelte b/packages/kit/src/runtime/components/layout.svelte
similarity index 100%
rename from packages/kit/assets/components/layout.svelte
rename to packages/kit/src/runtime/components/layout.svelte
diff --git a/packages/kit/src/utils/filesystem.js b/packages/kit/src/utils/filesystem.js
index bcc7f59f04c3..fbc201f401bc 100644
--- a/packages/kit/src/utils/filesystem.js
+++ b/packages/kit/src/utils/filesystem.js
@@ -1,6 +1,5 @@
 import fs from 'fs';
 import path from 'path';
-import { posixify } from '../core/utils.js';
 
 /** @param {string} dir */
 export function mkdirp(dir) {
@@ -102,3 +101,8 @@ export function walk(cwd, dirs = false) {
 
 	return walk_dir(''), all_files;
 }
+
+/** @param {string} str */
+export function posixify(str) {
+	return str.replace(/\\/g, '/');
+}
diff --git a/packages/kit/test/apps/basics/src/hooks.js b/packages/kit/test/apps/basics/src/hooks.js
index 6f2cdeeb1b6b..d82a0f8379bc 100644
--- a/packages/kit/test/apps/basics/src/hooks.js
+++ b/packages/kit/test/apps/basics/src/hooks.js
@@ -1,6 +1,6 @@
 import fs from 'fs';
 import cookie from 'cookie';
-import { sequence } from '../../../../src/runtime/hooks';
+import { sequence } from '../../../../src/hooks';
 
 /** @type {import('@sveltejs/kit').GetSession} */
 export function getSession(request) {
diff --git a/packages/kit/test/apps/basics/svelte.config.js b/packages/kit/test/apps/basics/svelte.config.js
index d5b673464b77..857b5c6b7bd6 100644
--- a/packages/kit/test/apps/basics/svelte.config.js
+++ b/packages/kit/test/apps/basics/svelte.config.js
@@ -1,3 +1,5 @@
+import path from 'path';
+
 /** @type {import('@sveltejs/kit').Config} */
 const config = {
 	kit: {
@@ -10,6 +12,11 @@ const config = {
 				// for CI, we need to explicitly prebundle deps, since
 				// the reload confuses Playwright
 				include: ['cookie', 'marked']
+			},
+			server: {
+				fs: {
+					allow: [path.resolve('../../../src')]
+				}
 			}
 		},
 		methodOverride: {
diff --git a/packages/kit/test/apps/options-2/svelte.config.js b/packages/kit/test/apps/options-2/svelte.config.js
index 5ef4ec64ac44..ae312052d2af 100644
--- a/packages/kit/test/apps/options-2/svelte.config.js
+++ b/packages/kit/test/apps/options-2/svelte.config.js
@@ -1,8 +1,17 @@
+import path from 'path';
+
 /** @type {import('@sveltejs/kit').Config} */
 const config = {
 	kit: {
 		serviceWorker: {
 			register: false
+		},
+		vite: {
+			server: {
+				fs: {
+					allow: [path.resolve('../../../src')]
+				}
+			}
 		}
 	}
 };
diff --git a/packages/kit/test/apps/options/svelte.config.js b/packages/kit/test/apps/options/svelte.config.js
index b497dc1fe625..5891eff90787 100644
--- a/packages/kit/test/apps/options/svelte.config.js
+++ b/packages/kit/test/apps/options/svelte.config.js
@@ -1,3 +1,5 @@
+import path from 'path';
+
 /** @type {import('@sveltejs/kit').Config} */
 const config = {
 	extensions: ['.jesuslivesineveryone', '.whokilledthemuffinman', '.svelte.md', '.svelte'],
@@ -20,7 +22,12 @@ const config = {
 			build: {
 				minify: false
 			},
-			clearScreen: false
+			clearScreen: false,
+			server: {
+				fs: {
+					allow: [path.resolve('../../../src')]
+				}
+			}
 		},
 		paths: {
 			base: '/path-base',