diff --git a/docs/GettingStarted.md b/docs/GettingStarted.md
index 38ba3b785..04cbaf406 100644
--- a/docs/GettingStarted.md
+++ b/docs/GettingStarted.md
@@ -362,8 +362,6 @@ If everything is set up correctly, you should see your new app running in your A
 
 <block class="windows android" />
 
-> If you hit a `ERROR  Watcher took too long to load`, try increasing the timeout in [this file](https://github.com/facebook/react-native/blob/5fa33f3d07f8595a188f6fe04d6168a6ede1e721/packager/react-packager/src/DependencyResolver/FileWatcher/index.js#L16) (under your `node_modules/react-native/`).
-
 > If you're targeting API level 23, the app might crash on first launch with an error smilar to `Unable to add window android.view.ViewRootImpl$W@c51fa6 -- permission denied for this window type`. To fix this, you need to go to `System settings > Apps > Configure apps > Draw over other apps` and grant the permission for the app.
 
 NOTE: Many React Native modules haven't been tested on Marshmallow and might break. Please throughly test the app if you target API level 23 and file a bug report if you find that something is broken.
@@ -467,7 +465,7 @@ if (window.location.hash !== '' && window.location.hash !== 'content') { // cont
           }
           // We would have broken out if both targetPlatform and devOS hadn't been filled.
           display('os', devOS);
-          display('platform', targetPlatform);      
+          display('platform', targetPlatform);
           foundHash = true;
           break;
         }
diff --git a/local-cli/bundle/buildBundle.js b/local-cli/bundle/buildBundle.js
index 047ec2ac5..d950ff802 100644
--- a/local-cli/bundle/buildBundle.js
+++ b/local-cli/bundle/buildBundle.js
@@ -55,8 +55,8 @@ function buildBundle(args, config, output = outputBundle, packagerInstance) {
       getTransformOptionsModulePath: config.getTransformOptionsModulePath,
       transformModulePath: transformModulePath,
       extraNodeModules: config.extraNodeModules,
-      nonPersistent: true,
       resetCache: args.resetCache,
+      watch: false,
     };
 
     packagerInstance = new Server(options);
diff --git a/local-cli/server/runServer.js b/local-cli/server/runServer.js
index 5d2ae1730..46526abdf 100644
--- a/local-cli/server/runServer.js
+++ b/local-cli/server/runServer.js
@@ -8,12 +8,14 @@
  */
 'use strict';
 
+const InspectorProxy = require('./util/inspectorProxy.js');
 const ReactPackager = require('../../packager/react-packager');
 
 const attachHMRServer = require('./util/attachHMRServer');
 const connect = require('connect');
 const copyToClipBoardMiddleware = require('./middleware/copyToClipBoardMiddleware');
 const cpuProfilerMiddleware = require('./middleware/cpuProfilerMiddleware');
+const defaultAssetExts = require('../../packager/defaults').assetExts;
 const getDevToolsMiddleware = require('./middleware/getDevToolsMiddleware');
 const heapCaptureMiddleware = require('./middleware/heapCaptureMiddleware.js');
 const http = require('http');
@@ -25,10 +27,8 @@ const openStackFrameInEditorMiddleware = require('./middleware/openStackFrameInE
 const path = require('path');
 const statusPageMiddleware = require('./middleware/statusPageMiddleware.js');
 const systraceProfileMiddleware = require('./middleware/systraceProfileMiddleware.js');
-const webSocketProxy = require('./util/webSocketProxy.js');
-const InspectorProxy = require('./util/inspectorProxy.js');
-const defaultAssetExts = require('../../packager/defaults').assetExts;
 const unless = require('./middleware/unless');
+const webSocketProxy = require('./util/webSocketProxy.js');
 
 function runServer(args, config, readyCallback) {
   var wsProxy = null;
@@ -86,17 +86,17 @@ function getPackagerServer(args, config) {
     undefined;
 
   return ReactPackager.createServer({
-    nonPersistent: args.nonPersistent,
-    projectRoots: args.projectRoots,
+    assetExts: defaultAssetExts.concat(args.assetExts),
+    assetRoots: args.assetRoots,
     blacklistRE: config.getBlacklistRE(),
     cacheVersion: '3',
-    getTransformOptionsModulePath: config.getTransformOptionsModulePath,
-    transformModulePath: transformModulePath,
     extraNodeModules: config.extraNodeModules,
-    assetRoots: args.assetRoots,
-    assetExts: defaultAssetExts.concat(args.assetExts),
+    getTransformOptionsModulePath: config.getTransformOptionsModulePath,
+    projectRoots: args.projectRoots,
     resetCache: args.resetCache,
+    transformModulePath: transformModulePath,
     verbose: args.verbose,
+    watch: !args.nonPersistent,
   });
 }
 
diff --git a/packager/package.json b/packager/package.json
index 700d9715c..126696df9 100644
--- a/packager/package.json
+++ b/packager/package.json
@@ -5,32 +5,5 @@
   "repository": {
     "type": "git",
     "url": "git@github.com:facebook/react-native.git"
-  },
-  "engines": {
-    "node": ">=4"
-  },
-  "jest": {
-    "setupEnvScriptFile": "jest/setup.js",
-    "testPathIgnorePatterns": [
-      "/node_modules/"
-    ],
-    "testFileExtensions": [
-      "js"
-    ],
-    "unmockedModulePathPatterns": [
-      "source-map"
-    ]
-  },
-  "scripts": {
-    "test": "jest",
-    "lint": "node linter.js Examples/",
-    "start": "./packager.sh"
-  },
-  "dependencies": {
-    "wordwrap": "^1.0.0"
-  },
-  "devDependencies": {
-    "jest-cli": "git://github.com/facebook/jest#0.5.x",
-    "eslint": "0.9.2"
   }
 }
diff --git a/packager/react-packager/index.js b/packager/react-packager/index.js
index e8f31d07a..2df2fff0b 100644
--- a/packager/react-packager/index.js
+++ b/packager/react-packager/index.js
@@ -45,26 +45,14 @@ function createServer(options) {
     enableDebug();
   }
 
+  options = Object.assign({}, options);
+  delete options.verbose;
   var Server = require('./src/Server');
-  return new Server(omit(options, ['verbose']));
+  return new Server(options);
 }
 
 function createNonPersistentServer(options) {
   Logger.disablePrinting();
-  // Don't start the filewatcher or the cache.
-  if (options.nonPersistent == null) {
-    options.nonPersistent = true;
-  }
-
+  options.watch = !options.nonPersistent;
   return createServer(options);
 }
-
-function omit(obj, blacklistedKeys) {
-  return Object.keys(obj).reduce((clone, key) => {
-    if (blacklistedKeys.indexOf(key) === -1) {
-      clone[key] = obj[key];
-    }
-
-    return clone;
-  }, {});
-}
diff --git a/packager/react-packager/src/AssetServer/__tests__/AssetServer-test.js b/packager/react-packager/src/AssetServer/__tests__/AssetServer-test.js
index 7e70d6bc4..69b442bf7 100644
--- a/packager/react-packager/src/AssetServer/__tests__/AssetServer-test.js
+++ b/packager/react-packager/src/AssetServer/__tests__/AssetServer-test.js
@@ -15,17 +15,15 @@ jest.mock('fs');
 
 const AssetServer = require('../');
 const crypto = require('crypto');
-const {EventEmitter} = require('events');
 const fs = require('fs');
 
 const {objectContaining} = jasmine;
 
 describe('AssetServer', () => {
-  let fileWatcher;
   beforeEach(() => {
     const NodeHaste = require('../../node-haste');
-    NodeHaste.getAssetDataFromName = require.requireActual('../../node-haste/lib/getAssetDataFromName');
-    fileWatcher = new EventEmitter();
+    NodeHaste.getAssetDataFromName =
+      require.requireActual('../../node-haste/lib/getAssetDataFromName');
   });
 
   describe('assetServer.get', () => {
@@ -33,7 +31,6 @@ describe('AssetServer', () => {
       const server = new AssetServer({
         projectRoots: ['/root'],
         assetExts: ['png'],
-        fileWatcher,
       });
 
       fs.__setMockFilesystem({
@@ -59,7 +56,6 @@ describe('AssetServer', () => {
       const server = new AssetServer({
         projectRoots: ['/root'],
         assetExts: ['png'],
-        fileWatcher,
       });
 
       fs.__setMockFilesystem({
@@ -97,7 +93,6 @@ describe('AssetServer', () => {
       const server = new AssetServer({
         projectRoots: ['/root'],
         assetExts: ['png', 'jpg'],
-        fileWatcher,
       });
 
       fs.__setMockFilesystem({
@@ -124,7 +119,6 @@ describe('AssetServer', () => {
       const server = new AssetServer({
         projectRoots: ['/root'],
         assetExts: ['png'],
-        fileWatcher,
       });
 
       fs.__setMockFilesystem({
@@ -147,7 +141,6 @@ describe('AssetServer', () => {
       const server = new AssetServer({
         projectRoots: ['/root'],
         assetExts: ['png'],
-        fileWatcher,
       });
 
       fs.__setMockFilesystem({
@@ -179,7 +172,6 @@ describe('AssetServer', () => {
       const server = new AssetServer({
         projectRoots: ['/root', '/root2'],
         assetExts: ['png'],
-        fileWatcher,
       });
 
       fs.__setMockFilesystem({
@@ -208,7 +200,6 @@ describe('AssetServer', () => {
       const server = new AssetServer({
         projectRoots: ['/root'],
         assetExts: ['png'],
-        fileWatcher,
       });
 
       fs.__setMockFilesystem({
@@ -241,7 +232,6 @@ describe('AssetServer', () => {
       const server = new AssetServer({
         projectRoots: ['/root'],
         assetExts: ['png', 'jpeg'],
-        fileWatcher,
       });
 
       fs.__setMockFilesystem({
@@ -271,15 +261,14 @@ describe('AssetServer', () => {
     });
 
     describe('hash:', () => {
-      let server, fileSystem;
+      let server, mockFS;
       beforeEach(() => {
         server = new AssetServer({
           projectRoots: ['/root'],
           assetExts: ['jpg'],
-          fileWatcher,
         });
 
-        fileSystem = {
+        mockFS = {
           'root': {
             imgs: {
               'b@1x.jpg': 'b1 image',
@@ -290,13 +279,13 @@ describe('AssetServer', () => {
           }
         };
 
-       fs.__setMockFilesystem(fileSystem);
+       fs.__setMockFilesystem(mockFS);
       });
 
       it('uses the file contents to build the hash', () => {
         const hash = crypto.createHash('md5');
-        for (const name in fileSystem.root.imgs) {
-          hash.update(fileSystem.root.imgs[name]);
+        for (const name in mockFS.root.imgs) {
+          hash.update(mockFS.root.imgs[name]);
         }
 
         return server.getAssetData('imgs/b.jpg').then(data =>
@@ -306,8 +295,8 @@ describe('AssetServer', () => {
 
       it('changes the hash when the passed-in file watcher emits an `all` event', () => {
         return server.getAssetData('imgs/b.jpg').then(initialData => {
-          fileSystem.root.imgs['b@4x.jpg'] = 'updated data';
-          fileWatcher.emit('all', 'arbitrary', '/root', 'imgs/b@4x.jpg');
+          mockFS.root.imgs['b@4x.jpg'] = 'updated data';
+          server.onFileChange('all', '/root/imgs/b@4x.jpg');
           return server.getAssetData('imgs/b.jpg').then(data =>
             expect(data.hash).not.toEqual(initialData.hash)
           );
diff --git a/packager/react-packager/src/AssetServer/index.js b/packager/react-packager/src/AssetServer/index.js
index e1a02f654..a267eea6b 100644
--- a/packager/react-packager/src/AssetServer/index.js
+++ b/packager/react-packager/src/AssetServer/index.js
@@ -42,10 +42,6 @@ const validateOpts = declareOpts({
     type: 'array',
     required: true,
   },
-  fileWatcher: {
-    type: 'object',
-    required: true,
-  }
 });
 
 class AssetServer {
@@ -55,9 +51,6 @@ class AssetServer {
     this._assetExts = opts.assetExts;
     this._hashes = new Map();
     this._files = new Map();
-
-    opts.fileWatcher
-      .on('all', (type, root, file) => this._onFileChange(type, root, file));
   }
 
   get(assetPath, platform = null) {
@@ -84,7 +77,6 @@ class AssetServer {
       data.scales = record.scales;
       data.files = record.files;
 
-
       if (this._hashes.has(assetPath)) {
         data.hash = this._hashes.get(assetPath);
         return data;
@@ -106,9 +98,8 @@ class AssetServer {
     });
   }
 
-  _onFileChange(type, root, file) {
-    const asset = this._files.get(path.join(root, file));
-    this._hashes.delete(asset);
+  onFileChange(type, filePath) {
+    this._hashes.delete(this._files.get(filePath));
   }
 
   /**
@@ -187,7 +178,10 @@ class AssetServer {
       }
 
       const rootsString = roots.map(s => `'${s}'`).join(', ');
-      throw new Error(`'${debugInfoFile}' could not be found, because '${dir}' is not a subdirectory of any of the roots  (${rootsString})`);
+      throw new Error(
+        `'${debugInfoFile}' could not be found, because '${dir}' is not a ` +
+        `subdirectory of any of the roots  (${rootsString})`,
+      );
     });
   }
 
diff --git a/packager/react-packager/src/Bundler/index.js b/packager/react-packager/src/Bundler/index.js
index 4165edcd9..26e9b6646 100644
--- a/packager/react-packager/src/Bundler/index.js
+++ b/packager/react-packager/src/Bundler/index.js
@@ -79,10 +79,6 @@ const validateOpts = declareOpts({
     type: 'object',
     required: false,
   },
-  nonPersistent: {
-    type: 'boolean',
-    default: false,
-  },
   assetRoots: {
     type: 'array',
     required: false,
@@ -91,9 +87,9 @@ const validateOpts = declareOpts({
     type: 'array',
     default: ['png'],
   },
-  fileWatcher: {
-    type: 'object',
-    required: true,
+  watch: {
+    type: 'boolean',
+    default: false,
   },
   assetServer: {
     type: 'object',
@@ -124,10 +120,9 @@ type Options = {
   resetCache: boolean,
   transformModulePath: string,
   extraNodeModules: {},
-  nonPersistent: boolean,
   assetRoots: Array<string>,
   assetExts: Array<string>,
-  fileWatcher: {},
+  watch: boolean,
   assetServer: AssetServer,
   transformTimeoutInterval: ?number,
   allowBundleUpdates: boolean,
@@ -191,7 +186,7 @@ class Bundler {
       blacklistRE: opts.blacklistRE,
       cache: this._cache,
       extraNodeModules: opts.extraNodeModules,
-      fileWatcher: opts.fileWatcher,
+      watch: opts.watch,
       minifyCode: this._transformer.minify,
       moduleFormat: opts.moduleFormat,
       polyfillModuleNames: opts.polyfillModuleNames,
@@ -217,9 +212,12 @@ class Bundler {
     }
   }
 
-  kill() {
+  end() {
     this._transformer.kill();
-    return this._cache.end();
+    return Promise.all([
+      this._cache.end(),
+      this.getResolver().getDependencyGraph().getWatcher().end(),
+    ]);
   }
 
   bundle(options: {
diff --git a/packager/react-packager/src/Resolver/index.js b/packager/react-packager/src/Resolver/index.js
index 7588d2384..47c28123e 100644
--- a/packager/react-packager/src/Resolver/index.js
+++ b/packager/react-packager/src/Resolver/index.js
@@ -35,9 +35,9 @@ const validateOpts = declareOpts({
     type: 'array',
     default: [],
   },
-  fileWatcher: {
-    type: 'object',
-    required: true,
+  watch: {
+    type: 'boolean',
+    default: false,
   },
   assetExts: {
     type: 'array',
@@ -101,14 +101,13 @@ class Resolver {
       providesModuleNodeModules: defaults.providesModuleNodeModules,
       platforms: defaults.platforms,
       preferNativePlatform: true,
-      fileWatcher: opts.fileWatcher,
+      watch: opts.watch,
       cache: opts.cache,
       shouldThrowOnUnresolvedErrors: (_, platform) => platform !== 'android',
       transformCode: opts.transformCode,
       transformCacheKey: opts.transformCacheKey,
       extraNodeModules: opts.extraNodeModules,
       assetDependencies: ['react-native/Libraries/Image/AssetRegistry'],
-      // for jest-haste-map
       resetCache: options.resetCache,
       moduleOptions: {
         cacheTransformResults: true,
@@ -260,7 +259,7 @@ class Resolver {
     return this._minifyCode(path, code, map);
   }
 
-  getDependecyGraph() {
+  getDependencyGraph() {
     return this._depGraph;
   }
 }
diff --git a/packager/react-packager/src/Server/__tests__/Server-test.js b/packager/react-packager/src/Server/__tests__/Server-test.js
index d7dfc2aa2..44f0cddf2 100644
--- a/packager/react-packager/src/Server/__tests__/Server-test.js
+++ b/packager/react-packager/src/Server/__tests__/Server-test.js
@@ -21,8 +21,6 @@ jest.setMock('worker-farm', function() { return () => {}; })
     .mock('../../node-haste')
     .mock('../../Logger');
 
-let FileWatcher;
-
 describe('processRequest', () => {
   let SourceMapConsumer, Bundler, Server, AssetServer, Promise;
   beforeEach(() => {
@@ -62,12 +60,9 @@ describe('processRequest', () => {
   );
 
   const invalidatorFunc = jest.fn();
-  const watcherFunc = jest.fn();
   let requestHandler;
-  let triggerFileChange;
 
   beforeEach(() => {
-    FileWatcher = require('../../node-haste').FileWatcher;
     Bundler.prototype.bundle = jest.fn(() =>
       Promise.resolve({
         getSource: () => 'this is the source',
@@ -75,19 +70,10 @@ describe('processRequest', () => {
         getEtag: () => 'this is an etag',
       }));
 
-    FileWatcher.prototype.on = function(eventType, callback) {
-      if (eventType !== 'all') {
-        throw new Error('Can only handle "all" event in watcher.');
-      }
-      watcherFunc.apply(this, arguments);
-      triggerFileChange = callback;
-      return this;
-    };
-
     Bundler.prototype.invalidateFile = invalidatorFunc;
     Bundler.prototype.getResolver =
       jest.fn().mockReturnValue({
-        getDependecyGraph: jest.fn().mockReturnValue({
+        getDependencyGraph: jest.fn().mockReturnValue({
           getHasteMap: jest.fn().mockReturnValue({on: jest.fn()}),
           load: jest.fn(() => Promise.resolve()),
         }),
@@ -97,7 +83,7 @@ describe('processRequest', () => {
     requestHandler = server.processRequest.bind(server);
   });
 
-  pit('returns JS bundle source on request of *.bundle', () => {
+  it('returns JS bundle source on request of *.bundle', () => {
     return makeRequest(
       requestHandler,
       'mybundle.bundle?runModule=true',
@@ -107,7 +93,7 @@ describe('processRequest', () => {
     );
   });
 
-  pit('returns JS bundle source on request of *.bundle (compat)', () => {
+  it('returns JS bundle source on request of *.bundle (compat)', () => {
     return makeRequest(
       requestHandler,
       'mybundle.runModule.bundle'
@@ -116,7 +102,7 @@ describe('processRequest', () => {
     );
   });
 
-  pit('returns ETag header on request of *.bundle', () => {
+  it('returns ETag header on request of *.bundle', () => {
     return makeRequest(
       requestHandler,
       'mybundle.bundle?runModule=true'
@@ -125,7 +111,7 @@ describe('processRequest', () => {
     });
   });
 
-  pit('returns 304 on request of *.bundle when if-none-match equals the ETag', () => {
+  it('returns 304 on request of *.bundle when if-none-match equals the ETag', () => {
     return makeRequest(
       requestHandler,
       'mybundle.bundle?runModule=true',
@@ -135,7 +121,7 @@ describe('processRequest', () => {
     });
   });
 
-  pit('returns sourcemap on request of *.map', () => {
+  it('returns sourcemap on request of *.map', () => {
     return makeRequest(
       requestHandler,
       'mybundle.map?runModule=true'
@@ -144,7 +130,7 @@ describe('processRequest', () => {
     );
   });
 
-  pit('works with .ios.js extension', () => {
+  it('works with .ios.js extension', () => {
     return makeRequest(
       requestHandler,
       'index.ios.includeRequire.bundle'
@@ -169,7 +155,7 @@ describe('processRequest', () => {
     });
   });
 
-  pit('passes in the platform param', function() {
+  it('passes in the platform param', function() {
     return makeRequest(
       requestHandler,
       'index.bundle?platform=ios'
@@ -194,7 +180,7 @@ describe('processRequest', () => {
     });
   });
 
-  pit('passes in the assetPlugin param', function() {
+  it('passes in the assetPlugin param', function() {
     return makeRequest(
       requestHandler,
       'index.bundle?assetPlugin=assetPlugin1&assetPlugin=assetPlugin2'
@@ -219,24 +205,13 @@ describe('processRequest', () => {
     });
   });
 
-  pit('watches all files in projectRoot', () => {
-    return makeRequest(
-      requestHandler,
-      'mybundle.bundle?runModule=true'
-    ).then(() => {
-      expect(watcherFunc.mock.calls[0][0]).toEqual('all');
-      expect(watcherFunc.mock.calls[0][1]).not.toBe(null);
-    });
-  });
-
   describe('file changes', () => {
-    pit('invalides files in bundle when file is updated', () => {
+    it('invalides files in bundle when file is updated', () => {
       return makeRequest(
         requestHandler,
         'mybundle.bundle?runModule=true'
       ).then(() => {
-        const onFileChange = watcherFunc.mock.calls[0][1];
-        onFileChange('all','path/file.js', options.projectRoots[0]);
+        server.onFileChange('all', options.projectRoots[0] + '/path/file.js');
         expect(invalidatorFunc.mock.calls[0][0]).toEqual('root/path/file.js');
       });
     });
@@ -273,7 +248,7 @@ describe('processRequest', () => {
 
       jest.runAllTicks();
 
-      triggerFileChange('all','path/file.js', options.projectRoots[0]);
+      server.onFileChange('all', options.projectRoots[0] + 'path/file.js');
       jest.runAllTimers();
       jest.runAllTicks();
 
@@ -322,7 +297,7 @@ describe('processRequest', () => {
 
         jest.runAllTicks();
 
-        triggerFileChange('all','path/file.js', options.projectRoots[0]);
+        server.onFileChange('all', options.projectRoots[0] + 'path/file.js');
         jest.runAllTimers();
         jest.runAllTicks();
 
@@ -355,7 +330,7 @@ describe('processRequest', () => {
 
     it('should hold on to request and inform on change', () => {
       server.processRequest(req, res);
-      triggerFileChange('all', 'path/file.js', options.projectRoots[0]);
+      server.onFileChange('all', options.projectRoots[0] + 'path/file.js');
       jest.runAllTimers();
       expect(res.end).toBeCalledWith(JSON.stringify({changed: true}));
     });
@@ -364,7 +339,7 @@ describe('processRequest', () => {
       server.processRequest(req, res);
       req.emit('close');
       jest.runAllTimers();
-      triggerFileChange('all', 'path/file.js', options.projectRoots[0]);
+      server.onFileChange('all', options.projectRoots[0] + 'path/file.js');
       jest.runAllTimers();
       expect(res.end).not.toBeCalled();
     });
@@ -428,7 +403,7 @@ describe('processRequest', () => {
   });
 
   describe('buildbundle(options)', () => {
-    pit('Calls the bundler with the correct args', () => {
+    it('Calls the bundler with the correct args', () => {
       return server.buildBundle({
         entryFile: 'foo file'
       }).then(() =>
@@ -451,7 +426,7 @@ describe('processRequest', () => {
   });
 
   describe('buildBundleFromUrl(options)', () => {
-    pit('Calls the bundler with the correct args', () => {
+    it('Calls the bundler with the correct args', () => {
       return server.buildBundleFromUrl('/path/to/foo.bundle?dev=false&runModule=false')
         .then(() =>
           expect(Bundler.prototype.bundle).toBeCalledWith({
@@ -474,7 +449,7 @@ describe('processRequest', () => {
   });
 
   describe('/symbolicate endpoint', () => {
-    pit('should symbolicate given stack trace', () => {
+    it('should symbolicate given stack trace', () => {
       const body = JSON.stringify({stack: [{
         file: 'http://foo.bundle?platform=ios',
         lineNumber: 2100,
@@ -508,7 +483,7 @@ describe('processRequest', () => {
       });
     });
 
-    pit('ignores `/debuggerWorker.js` stack frames', () => {
+    it('ignores `/debuggerWorker.js` stack frames', () => {
       const body = JSON.stringify({stack: [{
         file: 'http://localhost:8081/debuggerWorker.js',
         lineNumber: 123,
@@ -532,7 +507,7 @@ describe('processRequest', () => {
   });
 
   describe('/symbolicate handles errors', () => {
-    pit('should symbolicate given stack trace', () => {
+    it('should symbolicate given stack trace', () => {
       const body = 'clearly-not-json';
       console.error = jest.fn();
 
diff --git a/packager/react-packager/src/Server/index.js b/packager/react-packager/src/Server/index.js
index cf63c47e3..7fdcffa92 100644
--- a/packager/react-packager/src/Server/index.js
+++ b/packager/react-packager/src/Server/index.js
@@ -9,7 +9,6 @@
 'use strict';
 
 const AssetServer = require('../AssetServer');
-const FileWatcher = require('../node-haste').FileWatcher;
 const getPlatformExtension = require('../node-haste').getPlatformExtension;
 const Bundler = require('../Bundler');
 const MultipartResponse = require('./MultipartResponse');
@@ -76,7 +75,7 @@ const validateOpts = declareOpts({
     type: 'object',
     required: false,
   },
-  nonPersistent: {
+  watch: {
     type: 'boolean',
     default: false,
   },
@@ -200,57 +199,32 @@ const NODE_MODULES = `${path.sep}node_modules${path.sep}`;
 class Server {
   constructor(options) {
     const opts = this._opts = validateOpts(options);
+    const processFileChange =
+      ({type, filePath, stat}) => this.onFileChange(type, filePath, stat);
 
     this._projectRoots = opts.projectRoots;
     this._bundles = Object.create(null);
     this._changeWatchers = [];
     this._fileChangeListeners = [];
 
-    const assetGlobs = opts.assetExts.map(ext => '**/*.' + ext);
-
-    let watchRootConfigs = opts.projectRoots.map(dir => {
-      return {
-        dir: dir,
-        globs: [
-          '**/*.js',
-          '**/*.json',
-        ].concat(assetGlobs),
-      };
-    });
-
-    if (opts.assetRoots != null) {
-      watchRootConfigs = watchRootConfigs.concat(
-        opts.assetRoots.map(dir => {
-          return {
-            dir: dir,
-            globs: assetGlobs,
-          };
-        })
-      );
-    }
-
-    this._fileWatcher = options.nonPersistent
-      ? FileWatcher.createDummyWatcher()
-      : new FileWatcher(watchRootConfigs, {useWatchman: true});
-
     this._assetServer = new AssetServer({
       assetExts: opts.assetExts,
-      fileWatcher: this._fileWatcher,
       projectRoots: opts.projectRoots,
     });
 
     const bundlerOpts = Object.create(opts);
-    bundlerOpts.fileWatcher = this._fileWatcher;
     bundlerOpts.assetServer = this._assetServer;
-    bundlerOpts.allowBundleUpdates = !options.nonPersistent;
+    bundlerOpts.allowBundleUpdates = options.watch;
+    bundlerOpts.watch = options.watch;
     this._bundler = new Bundler(bundlerOpts);
 
-    this._fileWatcher.on('all', this._onFileChange.bind(this));
-
     // changes to the haste map can affect resolution of files in the bundle
-    const dependencyGraph = this._bundler.getResolver().getDependecyGraph();
-
+    const dependencyGraph = this._bundler.getResolver().getDependencyGraph();
     dependencyGraph.load().then(() => {
+      dependencyGraph.getWatcher().on(
+        'change',
+        ({eventsQueue}) => eventsQueue.forEach(processFileChange),
+      );
       dependencyGraph.getHasteMap().on('change', () => {
         debug('Clearing bundle cache due to haste map change');
         this._clearBundles();
@@ -282,10 +256,7 @@ class Server {
   }
 
   end() {
-    Promise.all([
-      this._fileWatcher.end(),
-      this._bundler.kill(),
-    ]);
+    return this._bundler.end();
   }
 
   setHMRFileChangeListener(listener) {
@@ -299,7 +270,7 @@ class Server {
   }
 
   buildBundle(options) {
-    return this._bundler.getResolver().getDependecyGraph().load().then(() => {
+    return this._bundler.getResolver().getDependencyGraph().load().then(() => {
       if (!options.platform) {
         options.platform = getPlatformExtension(options.entryFile);
       }
@@ -370,9 +341,9 @@ class Server {
     });
   }
 
-  _onFileChange(type, filepath, root) {
-    const absPath = path.join(root, filepath);
-    this._bundler.invalidateFile(absPath);
+  onFileChange(type, filePath, stat) {
+    this._assetServer.onFileChange(type, filePath, stat);
+    this._bundler.invalidateFile(filePath);
 
     // If Hot Loading is enabled avoid rebuilding bundles and sending live
     // updates. Instead, send the HMR updates right away and clear the bundles
@@ -380,26 +351,26 @@ class Server {
     if (this._hmrFileChangeListener) {
       // Clear cached bundles in case user reloads
       this._clearBundles();
-      this._hmrFileChangeListener(absPath, this._bundler.stat(absPath));
+      this._hmrFileChangeListener(filePath, this._bundler.stat(filePath));
       return;
-    } else if (type !== 'change' && absPath.indexOf(NODE_MODULES) !== -1) {
+    } else if (type !== 'change' && filePath.indexOf(NODE_MODULES) !== -1) {
       // node module resolution can be affected by added or removed files
       debug('Clearing bundles due to potential node_modules resolution change');
       this._clearBundles();
     }
 
     Promise.all(
-      this._fileChangeListeners.map(listener => listener(absPath))
+      this._fileChangeListeners.map(listener => listener(filePath))
     ).then(
-      () => this._onFileChangeComplete(absPath),
-      () => this._onFileChangeComplete(absPath)
+      () => this._onFileChangeComplete(filePath),
+      () => this._onFileChangeComplete(filePath)
     );
   }
 
-  _onFileChangeComplete(absPath) {
+  _onFileChangeComplete(filePath) {
     // Make sure the file watcher event runs through the system before
     // we rebuild the bundles.
-    this._debouncedFileChangeHandler(absPath);
+    this._debouncedFileChangeHandler(filePath);
   }
 
   _clearBundles() {
diff --git a/packager/react-packager/src/node-haste/DependencyGraph/DeprecatedAssetMap.js b/packager/react-packager/src/node-haste/DependencyGraph/DeprecatedAssetMap.js
index fc24c994f..e72829a0c 100644
--- a/packager/react-packager/src/node-haste/DependencyGraph/DeprecatedAssetMap.js
+++ b/packager/react-packager/src/node-haste/DependencyGraph/DeprecatedAssetMap.js
@@ -54,14 +54,14 @@ class DeprecatedAssetMap {
     }
   }
 
-  processFileChange(type, filePath, root, fstat) {
+  processFileChange(type, filePath, fstat) {
     const name = assetName(filePath);
     if (type === 'change' || type === 'delete') {
       delete this._map[name];
     }
 
     if (type === 'change' || type === 'add') {
-      this._processAsset(path.join(root, filePath));
+      this._processAsset(filePath);
     }
   }
 }
diff --git a/packager/react-packager/src/node-haste/FileWatcher/__mocks__/sane.js b/packager/react-packager/src/node-haste/FileWatcher/__mocks__/sane.js
deleted file mode 100644
index f59fa9104..000000000
--- a/packager/react-packager/src/node-haste/FileWatcher/__mocks__/sane.js
+++ /dev/null
@@ -1,14 +0,0 @@
-/**
- * Copyright (c) 2015-present, Facebook, Inc.
- * All rights reserved.
- *
- * This source code is licensed under the BSD-style license found in the
- * LICENSE file in the root directory of this source tree. An additional grant
- * of patent rights can be found in the PATENTS file in the same directory.
- */
-'use strict';
-
-module.exports = {
-  WatchmanWatcher: jest.genMockFromModule('sane/src/watchman_watcher'),
-  NodeWatcher: jest.genMockFromModule('sane/src/node_watcher'),
-};
diff --git a/packager/react-packager/src/node-haste/FileWatcher/__tests__/FileWatcher-test.js b/packager/react-packager/src/node-haste/FileWatcher/__tests__/FileWatcher-test.js
deleted file mode 100644
index 03f2ad036..000000000
--- a/packager/react-packager/src/node-haste/FileWatcher/__tests__/FileWatcher-test.js
+++ /dev/null
@@ -1,75 +0,0 @@
-/**
- * Copyright (c) 2015-present, Facebook, Inc.
- * All rights reserved.
- *
- * This source code is licensed under the BSD-style license found in the
- * LICENSE file in the root directory of this source tree. An additional grant
- * of patent rights can be found in the PATENTS file in the same directory.
- */
-'use strict';
-
-jest
-  .dontMock('util')
-  .dontMock('events')
-  .dontMock('../')
-  .setMock('child_process', {
-    execSync: () => '/usr/bin/watchman',
-  });
-
-describe('FileWatcher', () => {
-  let WatchmanWatcher;
-  let FileWatcher;
-  let config;
-
-  beforeEach(() => {
-    jest.resetModules();
-    const sane = require('sane');
-    WatchmanWatcher = sane.WatchmanWatcher;
-    WatchmanWatcher.prototype.once.mockImplementation(
-      (type, callback) => callback()
-    );
-
-    FileWatcher = require('../');
-
-    config = [{
-      dir: 'rootDir',
-      globs: [
-        '**/*.js',
-        '**/*.json',
-      ],
-    }];
-  });
-
-  pit('gets the watcher instance when ready', () => {
-    const fileWatcher = new FileWatcher(config);
-    return fileWatcher.getWatchers().then(watchers => {
-      watchers.forEach(watcher => {
-        expect(watcher instanceof WatchmanWatcher).toBe(true);
-      });
-    });
-  });
-
-  pit('emits events', () => {
-    let cb;
-    WatchmanWatcher.prototype.on.mockImplementation((type, callback) => {
-      cb = callback;
-    });
-    const fileWatcher = new FileWatcher(config);
-    const handler = jest.genMockFn();
-    fileWatcher.on('all', handler);
-    return fileWatcher.getWatchers().then(watchers => {
-      cb(1, 2, 3, 4);
-      jest.runAllTimers();
-      expect(handler.mock.calls[0]).toEqual([1, 2, 3, 4]);
-    });
-  });
-
-  pit('ends the watcher', () => {
-    const fileWatcher = new FileWatcher(config);
-    WatchmanWatcher.prototype.close.mockImplementation(callback => callback());
-
-    return fileWatcher.end().then(() => {
-      expect(WatchmanWatcher.prototype.close).toBeCalled();
-    });
-  });
-});
diff --git a/packager/react-packager/src/node-haste/FileWatcher/index.js b/packager/react-packager/src/node-haste/FileWatcher/index.js
deleted file mode 100644
index 782aed442..000000000
--- a/packager/react-packager/src/node-haste/FileWatcher/index.js
+++ /dev/null
@@ -1,123 +0,0 @@
-/**
- * Copyright (c) 2015-present, Facebook, Inc.
- * All rights reserved.
- *
- * This source code is licensed under the BSD-style license found in the
- * LICENSE file in the root directory of this source tree. An additional grant
- * of patent rights can be found in the PATENTS file in the same directory.
- */
-'use strict';
-
-const EventEmitter  = require('events').EventEmitter;
-const denodeify = require('denodeify');
-const sane = require('sane');
-const execSync = require('child_process').execSync;
-
-const MAX_WAIT_TIME = 360000;
-
-const detectWatcherClass = () => {
-  try {
-    execSync('watchman version', {stdio: 'ignore'});
-    return sane.WatchmanWatcher;
-  } catch (e) {}
-  return sane.NodeWatcher;
-};
-
-const WatcherClass = detectWatcherClass();
-
-let inited = false;
-
-class FileWatcher extends EventEmitter {
-
-  constructor(rootConfigs) {
-    if (inited) {
-      throw new Error('FileWatcher can only be instantiated once');
-    }
-    inited = true;
-
-    super();
-    this._watcherByRoot = Object.create(null);
-
-    const watcherPromises = rootConfigs.map((rootConfig) => {
-      return this._createWatcher(rootConfig);
-    });
-
-    this._loading = Promise.all(watcherPromises).then(watchers => {
-      watchers.forEach((watcher, i) => {
-        this._watcherByRoot[rootConfigs[i].dir] = watcher;
-        watcher.on(
-          'all',
-          // args = (type, filePath, root, stat)
-          (...args) => this.emit('all', ...args)
-        );
-      });
-      return watchers;
-    });
-  }
-
-  getWatchers() {
-    return this._loading;
-  }
-
-  getWatcherForRoot(root) {
-    return this._loading.then(() => this._watcherByRoot[root]);
-  }
-
-  isWatchman() {
-    return Promise.resolve(FileWatcher.canUseWatchman());
-  }
-
-  end() {
-    inited = false;
-    return this._loading.then(
-      (watchers) => watchers.map(
-        watcher => denodeify(watcher.close).call(watcher)
-      )
-    );
-  }
-
-  _createWatcher(rootConfig) {
-    const watcher = new WatcherClass(rootConfig.dir, {
-      glob: rootConfig.globs,
-      dot: false,
-    });
-
-    return new Promise((resolve, reject) => {
-      const rejectTimeout = setTimeout(
-        () => reject(new Error(timeoutMessage(WatcherClass))),
-        MAX_WAIT_TIME
-      );
-
-      watcher.once('ready', () => {
-        clearTimeout(rejectTimeout);
-        resolve(watcher);
-      });
-    });
-  }
-
-  static createDummyWatcher() {
-    return Object.assign(new EventEmitter(), {
-      isWatchman: () => Promise.resolve(false),
-      end: () => Promise.resolve(),
-    });
-  }
-
-  static canUseWatchman() {
-    return WatcherClass == sane.WatchmanWatcher;
-  }
-}
-
-function timeoutMessage(Watcher) {
-  const lines = [
-    'Watcher took too long to load (' + Watcher.name + ')',
-  ];
-  if (Watcher === sane.WatchmanWatcher) {
-    lines.push(
-      'Try running `watchman version` from your terminal',
-      'https://facebook.github.io/watchman/docs/troubleshooting.html',
-    );
-  }
-  return lines.join('\n');
-}
-
-module.exports = FileWatcher;
diff --git a/packager/react-packager/src/node-haste/ModuleCache.js b/packager/react-packager/src/node-haste/ModuleCache.js
index 655b01d15..a963c24af 100644
--- a/packager/react-packager/src/node-haste/ModuleCache.js
+++ b/packager/react-packager/src/node-haste/ModuleCache.js
@@ -16,8 +16,6 @@ const Module = require('./Module');
 const Package = require('./Package');
 const Polyfill = require('./Polyfill');
 
-const path = require('path');
-
 import type Cache from './Cache';
 import type {
   DepGraphHelpers,
@@ -69,8 +67,6 @@ class ModuleCache {
     this._assetDependencies = assetDependencies;
     this._moduleOptions = moduleOptions;
     this._packageModuleMap = new WeakMap();
-
-    fastfs.on('change', this._processFileChange.bind(this));
   }
 
   getModule(filePath: string) {
@@ -149,16 +145,14 @@ class ModuleCache {
     });
   }
 
-  _processFileChange(type, filePath, root) {
-    const absPath = path.join(root, filePath);
-
-    if (this._moduleCache[absPath]) {
-      this._moduleCache[absPath].invalidate();
-      delete this._moduleCache[absPath];
+  processFileChange(type: string, filePath: string) {
+    if (this._moduleCache[filePath]) {
+      this._moduleCache[filePath].invalidate();
+      delete this._moduleCache[filePath];
     }
-    if (this._packageCache[absPath]) {
-      this._packageCache[absPath].invalidate();
-      delete this._packageCache[absPath];
+    if (this._packageCache[filePath]) {
+      this._packageCache[filePath].invalidate();
+      delete this._packageCache[filePath];
     }
   }
 }
diff --git a/packager/react-packager/src/node-haste/__tests__/DependencyGraph-test.js b/packager/react-packager/src/node-haste/__tests__/DependencyGraph-test.js
index 8e58f3875..be472c9a8 100644
--- a/packager/react-packager/src/node-haste/__tests__/DependencyGraph-test.js
+++ b/packager/react-packager/src/node-haste/__tests__/DependencyGraph-test.js
@@ -61,12 +61,6 @@ describe('DependencyGraph', function() {
     jest.resetModules();
 
     Module = require('../Module');
-    const fileWatcher = {
-      on: function() {
-        return this;
-      },
-      isWatchman: () => Promise.resolve(false),
-    };
 
     const Cache = jest.genMockFn().mockImplementation(function() {
       this._maps = Object.create(null);
@@ -109,7 +103,6 @@ describe('DependencyGraph', function() {
     defaults = {
       assetExts: ['png', 'jpg'],
       cache: new Cache(),
-      fileWatcher,
       forceNodeFilesystemAPI: true,
       providesModuleNodeModules: [
         'haste-fbjs',
@@ -4825,7 +4818,6 @@ describe('DependencyGraph', function() {
   });
 
   describe('file watch updating', function() {
-    var triggerFileChange;
     var mockStat = {
       isDirectory: () => false,
     };
@@ -4836,21 +4828,6 @@ describe('DependencyGraph', function() {
     beforeEach(function() {
       process.platform = 'linux';
       DependencyGraph = require('../index');
-
-      var callbacks = [];
-      triggerFileChange = (...args) =>
-        callbacks.map(callback => callback(...args));
-
-      defaults.fileWatcher = {
-        on: function(eventType, callback) {
-          if (eventType !== 'all') {
-            throw new Error('Can only handle "all" event in watcher.');
-          }
-          callbacks.push(callback);
-          return this;
-        },
-        isWatchman: () => Promise.resolve(false),
-      };
     });
 
     afterEach(function() {
@@ -4891,7 +4868,7 @@ describe('DependencyGraph', function() {
       return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function() {
         filesystem.root['index.js'] =
           filesystem.root['index.js'].replace('require("foo")', '');
-        triggerFileChange('change', 'index.js', root, mockStat);
+        dgraph.processFileChange('change', root + '/index.js', mockStat);
         return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function(deps) {
           expect(deps)
             .toEqual([
@@ -4954,7 +4931,7 @@ describe('DependencyGraph', function() {
       return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function() {
         filesystem.root['index.js'] =
           filesystem.root['index.js'].replace('require("foo")', '');
-        triggerFileChange('change', 'index.js', root, mockStat);
+        dgraph.processFileChange('change', root + '/index.js', mockStat);
         return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function(deps) {
           expect(deps)
             .toEqual([
@@ -5016,7 +4993,7 @@ describe('DependencyGraph', function() {
       });
       return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function() {
         delete filesystem.root.foo;
-        triggerFileChange('delete', 'foo.js', root);
+        dgraph.processFileChange('delete', root + '/foo.js');
         return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function(deps) {
           expect(deps)
             .toEqual([
@@ -5083,10 +5060,10 @@ describe('DependencyGraph', function() {
           ' */',
           'require("foo")',
         ].join('\n');
-        triggerFileChange('add', 'bar.js', root, mockStat);
+        dgraph.processFileChange('add', root + '/bar.js', mockStat);
 
         filesystem.root.aPackage['main.js'] = 'require("bar")';
-        triggerFileChange('change', 'aPackage/main.js', root, mockStat);
+        dgraph.processFileChange('change', root + '/aPackage/main.js', mockStat);
 
         return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function(deps) {
           expect(deps)
@@ -5175,7 +5152,7 @@ describe('DependencyGraph', function() {
           ]);
 
         filesystem.root['foo.png'] = '';
-        triggerFileChange('add', 'foo.png', root, mockStat);
+        dgraph.processFileChange('add', root + '/foo.png', mockStat);
 
         return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function(deps2) {
           expect(deps2)
@@ -5245,7 +5222,7 @@ describe('DependencyGraph', function() {
           ]);
 
         filesystem.root['foo.png'] = '';
-        triggerFileChange('add', 'foo.png', root, mockStat);
+        dgraph.processFileChange('add', root + '/foo.png', mockStat);
 
         return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function(deps2) {
           expect(deps2)
@@ -5277,171 +5254,6 @@ describe('DependencyGraph', function() {
       });
     });
 
-    it('runs changes through ignore filter', function() {
-      var root = '/root';
-      var filesystem = setMockFileSystem({
-        'root': {
-          'index.js': [
-            '/**',
-            ' * @providesModule index',
-            ' */',
-            'require("aPackage")',
-            'require("foo")',
-          ].join('\n'),
-          'foo.js': [
-            '/**',
-            ' * @providesModule foo',
-            ' */',
-            'require("aPackage")',
-          ].join('\n'),
-          'aPackage': {
-            'package.json': JSON.stringify({
-              name: 'aPackage',
-              main: 'main.js',
-            }),
-            'main.js': 'main',
-          },
-        },
-      });
-
-      var dgraph = new DependencyGraph({
-        ...defaults,
-        roots: [root],
-        ignoreFilePath: function(filePath) {
-          if (filePath === '/root/bar.js') {
-            return true;
-          }
-          return false;
-        },
-      });
-      return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function() {
-        filesystem.root['bar.js'] = [
-          '/**',
-          ' * @providesModule bar',
-          ' */',
-          'require("foo")',
-        ].join('\n');
-        triggerFileChange('add', 'bar.js', root, mockStat);
-
-        filesystem.root.aPackage['main.js'] = 'require("bar")';
-        triggerFileChange('change', 'aPackage/main.js', root, mockStat);
-
-        return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function(deps) {
-          expect(deps)
-            .toEqual([
-              {
-                id: 'index',
-                path: '/root/index.js',
-                dependencies: ['aPackage', 'foo'],
-                isAsset: false,
-                isAsset_DEPRECATED: false,
-                isJSON: false,
-                isPolyfill: false,
-                resolution: undefined,
-                resolveDependency: undefined,
-              },
-              {
-                id: 'aPackage/main.js',
-                path: '/root/aPackage/main.js',
-                dependencies: ['bar'],
-                isAsset: false,
-                isAsset_DEPRECATED: false,
-                isJSON: false,
-                isPolyfill: false,
-                resolution: undefined,
-                resolveDependency: undefined,
-              },
-              {
-                id: 'foo',
-                path: '/root/foo.js',
-                dependencies: ['aPackage'],
-                isAsset: false,
-                isAsset_DEPRECATED: false,
-                isJSON: false,
-                isPolyfill: false,
-                resolution: undefined,
-                resolveDependency: undefined,
-              },
-            ]);
-        });
-      });
-    });
-
-    it('should ignore directory updates', function() {
-      var root = '/root';
-      setMockFileSystem({
-        'root': {
-          'index.js': [
-            '/**',
-            ' * @providesModule index',
-            ' */',
-            'require("aPackage")',
-            'require("foo")',
-          ].join('\n'),
-          'foo.js': [
-            '/**',
-            ' * @providesModule foo',
-            ' */',
-            'require("aPackage")',
-          ].join('\n'),
-          'aPackage': {
-            'package.json': JSON.stringify({
-              name: 'aPackage',
-              main: 'main.js',
-            }),
-            'main.js': 'main',
-          },
-        },
-      });
-      var dgraph = new DependencyGraph({
-        ...defaults,
-        roots: [root],
-      });
-      return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function() {
-        triggerFileChange('change', 'aPackage', '/root', {
-          isDirectory: () => true,
-        });
-        return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function(deps) {
-          expect(deps)
-            .toEqual([
-              {
-                id: 'index',
-                path: '/root/index.js',
-                dependencies: ['aPackage', 'foo'],
-                isAsset: false,
-                isAsset_DEPRECATED: false,
-                isJSON: false,
-                isPolyfill: false,
-                resolution: undefined,
-                resolveDependency: undefined,
-              },
-              {
-                id: 'aPackage/main.js',
-                path: '/root/aPackage/main.js',
-                dependencies: [],
-                isAsset: false,
-                isAsset_DEPRECATED: false,
-                isJSON: false,
-                isPolyfill: false,
-                resolution: undefined,
-                resolveDependency: undefined,
-              },
-              {
-                id: 'foo',
-                path: '/root/foo.js',
-                dependencies: ['aPackage'],
-                isAsset: false,
-                isAsset_DEPRECATED: false,
-                isJSON: false,
-                isPolyfill: false,
-                resolution: undefined,
-                resolveDependency: undefined,
-              },
-            ]);
-        });
-      });
-    });
-
     it('changes to browser field', function() {
       var root = '/root';
       var filesystem = setMockFileSystem({
@@ -5473,7 +5285,7 @@ describe('DependencyGraph', function() {
           main: 'main.js',
           browser: 'browser.js',
         });
-        triggerFileChange('change', 'package.json', '/root/aPackage', mockStat);
+        dgraph.processFileChange('change', root + '/aPackage/package.json', mockStat);
 
         return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function(deps) {
           expect(deps)
@@ -5535,7 +5347,7 @@ describe('DependencyGraph', function() {
           name: 'bPackage',
           main: 'main.js',
         });
-        triggerFileChange('change', 'package.json', '/root/aPackage', mockStat);
+        dgraph.processFileChange('change', root + '/aPackage/package.json', mockStat);
 
         return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function(deps) {
           expect(deps)
@@ -5630,7 +5442,7 @@ describe('DependencyGraph', function() {
           ]);
 
         filesystem.root.node_modules.foo['main.js'] = 'lol';
-        triggerFileChange('change', 'main.js', '/root/node_modules/foo', mockStat);
+        dgraph.processFileChange('change', root + '/node_modules/foo/main.js', mockStat);
 
         return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function(deps2) {
           expect(deps2)
@@ -5695,7 +5507,7 @@ describe('DependencyGraph', function() {
           main: 'main.js',
           browser: 'browser.js',
         });
-        triggerFileChange('change', 'package.json', '/root/node_modules/foo', mockStat);
+        dgraph.processFileChange('change', root + '/node_modules/foo/package.json', mockStat);
 
         return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function(deps2) {
           expect(deps2)
@@ -5752,7 +5564,7 @@ describe('DependencyGraph', function() {
       });
 
       return getOrderedDependenciesAsJSON(dgraph, '/root/index.js').then(function() {
-        triggerFileChange('add', 'index.js', root, mockStat);
+        dgraph.processFileChange('add', root + '/index.js', mockStat);
         return getOrderedDependenciesAsJSON(dgraph, '/root/index.js');
       });
     });
diff --git a/packager/react-packager/src/node-haste/__tests__/Module-test.js b/packager/react-packager/src/node-haste/__tests__/Module-test.js
index f7aad9a09..53afd8a56 100644
--- a/packager/react-packager/src/node-haste/__tests__/Module-test.js
+++ b/packager/react-packager/src/node-haste/__tests__/Module-test.js
@@ -47,10 +47,6 @@ function mockIndexFile(indexJs) {
 }
 
 describe('Module', () => {
-  const fileWatcher = {
-    on: () =>  this,
-    isWatchman: () => Promise.resolve(false),
-  };
   const fileName = '/root/index.js';
 
   let cache, fastfs;
@@ -85,7 +81,6 @@ describe('Module', () => {
     new Fastfs(
       'test',
       ['/root'],
-      fileWatcher,
       ['/root/index.js', '/root/package.json'],
       {ignore: []},
     );
@@ -119,22 +114,22 @@ describe('Module', () => {
         mockIndexFile(source);
       });
 
-      pit('extracts the module name from the header', () =>
+      it('extracts the module name from the header', () =>
         module.getName().then(name => expect(name).toEqual(moduleId))
       );
 
-      pit('identifies the module as haste module', () =>
+      it('identifies the module as haste module', () =>
         module.isHaste().then(isHaste => expect(isHaste).toBe(true))
       );
 
-      pit('does not transform the file in order to access the name', () => {
+      it('does not transform the file in order to access the name', () => {
         const transformCode =
           jest.genMockFn().mockReturnValue(Promise.resolve());
         return createModule({transformCode}).getName()
           .then(() => expect(transformCode).not.toBeCalled());
       });
 
-      pit('does not transform the file in order to access the haste status', () => {
+      it('does not transform the file in order to access the haste status', () => {
         const transformCode =
           jest.genMockFn().mockReturnValue(Promise.resolve());
         return createModule({transformCode}).isHaste()
@@ -147,22 +142,22 @@ describe('Module', () => {
         mockIndexFile(source.replace(/@providesModule/, '@provides'));
       });
 
-      pit('extracts the module name from the header if it has a @provides annotation', () =>
+      it('extracts the module name from the header if it has a @provides annotation', () =>
         module.getName().then(name => expect(name).toEqual(moduleId))
       );
 
-      pit('identifies the module as haste module', () =>
+      it('identifies the module as haste module', () =>
         module.isHaste().then(isHaste => expect(isHaste).toBe(true))
       );
 
-      pit('does not transform the file in order to access the name', () => {
+      it('does not transform the file in order to access the name', () => {
         const transformCode =
           jest.genMockFn().mockReturnValue(Promise.resolve());
         return createModule({transformCode}).getName()
           .then(() => expect(transformCode).not.toBeCalled());
       });
 
-      pit('does not transform the file in order to access the haste status', () => {
+      it('does not transform the file in order to access the haste status', () => {
         const transformCode =
           jest.genMockFn().mockReturnValue(Promise.resolve());
         return createModule({transformCode}).isHaste()
@@ -175,22 +170,22 @@ describe('Module', () => {
         mockIndexFile('arbitrary(code);');
       });
 
-      pit('uses the file name as module name', () =>
+      it('uses the file name as module name', () =>
         module.getName().then(name => expect(name).toEqual(fileName))
       );
 
-      pit('does not identify the module as haste module', () =>
+      it('does not identify the module as haste module', () =>
         module.isHaste().then(isHaste => expect(isHaste).toBe(false))
       );
 
-      pit('does not transform the file in order to access the name', () => {
+      it('does not transform the file in order to access the name', () => {
         const transformCode =
           jest.genMockFn().mockReturnValue(Promise.resolve());
         return createModule({transformCode}).getName()
           .then(() => expect(transformCode).not.toBeCalled());
       });
 
-      pit('does not transform the file in order to access the haste status', () => {
+      it('does not transform the file in order to access the haste status', () => {
         const transformCode =
           jest.genMockFn().mockReturnValue(Promise.resolve());
         return createModule({transformCode}).isHaste()
@@ -205,12 +200,12 @@ describe('Module', () => {
       mockIndexFile(fileContents);
     });
 
-    pit('exposes file contents as `code` property on the data exposed by `read()`', () =>
+    it('exposes file contents as `code` property on the data exposed by `read()`', () =>
       createModule().read().then(({code}) =>
         expect(code).toBe(fileContents))
     );
 
-    pit('exposes file contents via the `getCode()` method', () =>
+    it('exposes file contents via the `getCode()` method', () =>
       createModule().getCode().then(code =>
         expect(code).toBe(fileContents))
     );
@@ -241,7 +236,7 @@ describe('Module', () => {
       mockIndexFile(fileContents);
     });
 
-    pit('passes the module and file contents to the transform function when reading', () => {
+    it('passes the module and file contents to the transform function when reading', () => {
       const module = createModule({transformCode});
       return module.read()
         .then(() => {
@@ -249,7 +244,7 @@ describe('Module', () => {
         });
     });
 
-    pit('passes any additional options to the transform function when reading', () => {
+    it('passes any additional options to the transform function when reading', () => {
       const module = createModule({transformCode});
       const transformOptions = {arbitrary: Object()};
       return module.read(transformOptions)
@@ -258,7 +253,7 @@ describe('Module', () => {
         );
     });
 
-    pit('passes the module and file contents to the transform if the file is annotated with @extern', () => {
+    it('passes module and file contents if the file is annotated with @extern', () => {
       const module = createModule({transformCode});
       const customFileContents = `
         /**
@@ -271,7 +266,7 @@ describe('Module', () => {
       });
     });
 
-    pit('passes the module and file contents to the transform for JSON files', () => {
+    it('passes the module and file contents to the transform for JSON files', () => {
       mockPackageFile();
       const module = createJSONModule({transformCode});
       return module.read().then(() => {
@@ -279,7 +274,7 @@ describe('Module', () => {
       });
     });
 
-    pit('does not extend the passed options object if the file is annotated with @extern', () => {
+    it('does not extend the passed options object if the file is annotated with @extern', () => {
       const module = createModule({transformCode});
       const customFileContents = `
         /**
@@ -295,7 +290,7 @@ describe('Module', () => {
       });
     });
 
-    pit('does not extend the passed options object for JSON files', () => {
+    it('does not extend the passed options object for JSON files', () => {
       mockPackageFile();
       const module = createJSONModule({transformCode});
       const options = {arbitrary: 'foo'};
@@ -306,7 +301,7 @@ describe('Module', () => {
       });
     });
 
-    pit('uses dependencies that `transformCode` resolves to, instead of extracting them', () => {
+    it('uses dependencies that `transformCode` resolves to, instead of extracting them', () => {
       const mockedDependencies = ['foo', 'bar'];
       transformResult = {
         code: exampleCode,
@@ -319,7 +314,7 @@ describe('Module', () => {
       });
     });
 
-    pit('forwards all additional properties of the result provided by `transformCode`', () => {
+    it('forwards all additional properties of the result provided by `transformCode`', () => {
       transformResult = {
         code: exampleCode,
         arbitrary: 'arbitrary',
@@ -334,7 +329,7 @@ describe('Module', () => {
       });
     });
 
-    pit('does not store anything but dependencies if the `cacheTransformResults` option is disabled', () => {
+    it('only stores dependencies if `cacheTransformResults` option is disabled', () => {
       transformResult = {
         code: exampleCode,
         arbitrary: 'arbitrary',
@@ -354,7 +349,7 @@ describe('Module', () => {
       });
     });
 
-    pit('stores all things if options is undefined', () => {
+    it('stores all things if options is undefined', () => {
       transformResult = {
         code: exampleCode,
         arbitrary: 'arbitrary',
@@ -370,7 +365,7 @@ describe('Module', () => {
       });
     });
 
-    pit('exposes the transformed code rather than the raw file contents', () => {
+    it('exposes the transformed code rather than the raw file contents', () => {
       transformResult = {code: exampleCode};
       const module = createModule({transformCode});
       return Promise.all([module.read(), module.getCode()])
@@ -380,13 +375,13 @@ describe('Module', () => {
         });
     });
 
-    pit('exposes the raw file contents as `source` property', () => {
+    it('exposes the raw file contents as `source` property', () => {
       const module = createModule({transformCode});
       return module.read()
         .then(data => expect(data.source).toBe(fileContents));
     });
 
-    pit('exposes a source map returned by the transform', () => {
+    it('exposes a source map returned by the transform', () => {
       const map = {version: 3};
       transformResult = {map, code: exampleCode};
       const module = createModule({transformCode});
@@ -397,7 +392,7 @@ describe('Module', () => {
         });
     });
 
-    pit('caches the transform result for the same transform options', () => {
+    it('caches the transform result for the same transform options', () => {
       let module = createModule({transformCode});
       return module.read()
         .then(() => {
@@ -412,7 +407,7 @@ describe('Module', () => {
         });
     });
 
-    pit('triggers a new transform for different transform options', () => {
+    it('triggers a new transform for different transform options', () => {
       const module = createModule({transformCode});
       return module.read({foo: 1})
         .then(() => {
@@ -424,7 +419,7 @@ describe('Module', () => {
         });
     });
 
-    pit('triggers a new transform for different source code', () => {
+    it('triggers a new transform for different source code', () => {
       let module = createModule({transformCode});
       return module.read()
         .then(() => {
@@ -440,7 +435,7 @@ describe('Module', () => {
         });
     });
 
-    pit('triggers a new transform for different transform cache key', () => {
+    it('triggers a new transform for different transform cache key', () => {
       let module = createModule({transformCode});
       return module.read()
         .then(() => {
diff --git a/packager/react-packager/src/node-haste/fastfs.js b/packager/react-packager/src/node-haste/fastfs.js
index e8e8220b5..58f381e2a 100644
--- a/packager/react-packager/src/node-haste/fastfs.js
+++ b/packager/react-packager/src/node-haste/fastfs.js
@@ -18,10 +18,6 @@ const {EventEmitter} = require('events');
 
 const NOT_FOUND_IN_ROOTS = 'NotFoundInRootsError';
 
-interface FileWatcher {
-  on(event: 'all', handler: (type: string, filePath: string, rootPath: string, fstat: fs.Stats) => void): void,
-}
-
 const {
   createActionStartEntry,
   createActionEndEntry,
@@ -32,7 +28,6 @@ const {
 class Fastfs extends EventEmitter {
 
   _name: string;
-  _fileWatcher: FileWatcher;
   _ignore: (filePath: string) => boolean;
   _roots: Array<File>;
   _fastPaths: {[filePath: string]: File};
@@ -40,7 +35,6 @@ class Fastfs extends EventEmitter {
   constructor(
     name: string,
     roots: Array<string>,
-    fileWatcher: FileWatcher,
     files: Array<string>,
     {ignore}: {
       ignore: (filePath: string) => boolean,
@@ -48,7 +42,6 @@ class Fastfs extends EventEmitter {
   ) {
     super();
     this._name = name;
-    this._fileWatcher = fileWatcher;
     this._ignore = ignore;
     this._roots = roots.map(root => {
       // If the path ends in a separator ("/"), remove it to make string
@@ -82,10 +75,6 @@ class Fastfs extends EventEmitter {
     });
 
     print(log(createActionEndEntry(buildingInMemoryFSLogEntry)));
-
-    if (this._fileWatcher) {
-      this._fileWatcher.on('all', this._processFileChange.bind(this));
-    }
   }
 
   stat(filePath: string) {
@@ -205,33 +194,23 @@ class Fastfs extends EventEmitter {
     return this._fastPaths[filePath];
   }
 
-  _processFileChange(type, filePath, rootPath, fstat) {
-    const absPath = path.join(rootPath, filePath);
-    if (this._ignore(absPath) || (fstat && fstat.isDirectory())) {
-      return;
-    }
-
-    // Make sure this event belongs to one of our roots.
-    const root = this._getRoot(absPath);
-    if (!root) {
-      return;
-    }
-
+  processFileChange(type: string, filePath: string) {
     if (type === 'delete' || type === 'change') {
-      const file = this._getFile(absPath);
+      const file = this._getFile(filePath);
       if (file) {
         file.remove();
       }
     }
 
-    delete this._fastPaths[path.resolve(absPath)];
+    delete this._fastPaths[path.resolve(filePath)];
 
     if (type !== 'delete') {
-      const file = new File(absPath, false);
-      root.addChild(file, this._fastPaths);
+      const file = new File(filePath, false);
+      const root = this._getRoot(filePath);
+      if (root) {
+        root.addChild(file, this._fastPaths);
+      }
     }
-
-    this.emit('change', type, filePath, rootPath, fstat);
   }
 }
 
diff --git a/packager/react-packager/src/node-haste/index.js b/packager/react-packager/src/node-haste/index.js
index 9946e90aa..1397723bd 100644
--- a/packager/react-packager/src/node-haste/index.js
+++ b/packager/react-packager/src/node-haste/index.js
@@ -15,7 +15,6 @@ const Cache = require('./Cache');
 const DependencyGraphHelpers = require('./DependencyGraph/DependencyGraphHelpers');
 const DeprecatedAssetMap = require('./DependencyGraph/DeprecatedAssetMap');
 const Fastfs = require('./fastfs');
-const FileWatcher = require('./FileWatcher');
 const HasteMap = require('./DependencyGraph/HasteMap');
 const JestHasteMap = require('jest-haste-map');
 const Module = require('./Module');
@@ -47,12 +46,16 @@ const {
   print,
 } = require('../Logger');
 
+const escapePath = (p: string) => {
+  return (path.sep === '\\')  ? p.replace(/(\/|\\(?!\.))/g, '\\\\') : p;
+};
+
 class DependencyGraph {
 
   _opts: {
     roots: Array<string>,
     ignoreFilePath: (filePath: string) => boolean,
-    fileWatcher: FileWatcher,
+    watch: boolean,
     forceNodeFilesystemAPI: boolean,
     assetRoots_DEPRECATED: Array<string>,
     assetExts: Array<string>,
@@ -71,21 +74,23 @@ class DependencyGraph {
     maxWorkers: number,
     resetCache: boolean,
   };
-  _cache: Cache;
   _assetDependencies: mixed;
-  _helpers: DependencyGraphHelpers;
-  _fastfs: Fastfs;
-  _moduleCache: ModuleCache;
-  _hasteMap: HasteMap;
+  _assetPattern: RegExp;
+  _cache: Cache;
   _deprecatedAssetMap: DeprecatedAssetMap;
+  _fastfs: Fastfs;
+  _haste: JestHasteMap;
+  _hasteMap: HasteMap;
   _hasteMapError: ?Error;
+  _helpers: DependencyGraphHelpers;
+  _moduleCache: ModuleCache;
 
-  _loading: ?Promise<mixed>;
+  _loading: Promise<mixed>;
 
   constructor({
     roots,
     ignoreFilePath,
-    fileWatcher,
+    watch,
     forceNodeFilesystemAPI,
     assetRoots_DEPRECATED,
     assetExts,
@@ -109,7 +114,7 @@ class DependencyGraph {
   }: {
     roots: Array<string>,
     ignoreFilePath: (filePath: string) => boolean,
-    fileWatcher: FileWatcher,
+    watch: boolean,
     forceNodeFilesystemAPI?: boolean,
     assetRoots_DEPRECATED: Array<string>,
     assetExts: Array<string>,
@@ -133,7 +138,7 @@ class DependencyGraph {
     this._opts = {
       roots,
       ignoreFilePath: ignoreFilePath || (() => {}),
-      fileWatcher,
+      watch: !!watch,
       forceNodeFilesystemAPI: !!forceNodeFilesystemAPI,
       assetRoots_DEPRECATED: assetRoots_DEPRECATED || [],
       assetExts: assetExts || [],
@@ -155,6 +160,9 @@ class DependencyGraph {
       maxWorkers,
       resetCache,
     };
+    this._assetPattern =
+      new RegExp('^' + this._opts.assetRoots_DEPRECATED.map(escapePath).join('|'));
+
     this._cache = cache;
     this._assetDependencies = assetDependencies;
     this._helpers = new DependencyGraphHelpers(this._opts);
@@ -167,7 +175,7 @@ class DependencyGraph {
     }
 
     const mw = this._opts.maxWorkers;
-    const haste = new JestHasteMap({
+    this._haste = new JestHasteMap({
       extensions: this._opts.extensions.concat(this._opts.assetExts),
       forceNodeFilesystemAPI: this._opts.forceNodeFilesystemAPI,
       ignorePattern: {test: this._opts.ignoreFilePath},
@@ -180,9 +188,10 @@ class DependencyGraph {
       retainAllFiles: true,
       roots: this._opts.roots.concat(this._opts.assetRoots_DEPRECATED),
       useWatchman: this._opts.useWatchman,
+      watch: this._opts.watch,
     });
 
-    this._loading = haste.build().then(hasteMap => {
+    this._loading = this._haste.build().then(hasteMap => {
       const initializingPackagerLogEntry =
         print(log(createActionStartEntry('Initializing Packager')));
 
@@ -191,15 +200,12 @@ class DependencyGraph {
       this._fastfs = new Fastfs(
         'JavaScript',
         this._opts.roots,
-        this._opts.fileWatcher,
         hasteFSFiles,
         {
           ignore: this._opts.ignoreFilePath,
         }
       );
 
-      this._fastfs.on('change', this._processFileChange.bind(this));
-
       this._moduleCache = new ModuleCache({
         fastfs: this._fastfs,
         cache: this._cache,
@@ -219,14 +225,7 @@ class DependencyGraph {
         platforms: this._opts.platforms,
       });
 
-      const escapePath = (p: string) => {
-        return (path.sep === '\\')  ? p.replace(/(\/|\\(?!\.))/g, '\\\\') : p;
-      };
-
-      const assetPattern =
-        new RegExp('^' + this._opts.assetRoots_DEPRECATED.map(escapePath).join('|'));
-
-      const assetFiles = hasteMap.hasteFS.matchFiles(assetPattern);
+      const assetFiles = hasteMap.hasteFS.matchFiles(this._assetPattern);
 
       this._deprecatedAssetMap = new DeprecatedAssetMap({
         helpers: this._helpers,
@@ -235,11 +234,11 @@ class DependencyGraph {
         files: assetFiles,
       });
 
-      this._fastfs.on('change', (type, filePath, root, fstat) => {
-        if (assetPattern.test(path.join(root, filePath))) {
-          this._deprecatedAssetMap.processFileChange(type, filePath, root, fstat);
-        }
-      });
+      this._haste.on('change', ({eventsQueue}) =>
+        eventsQueue.forEach(({type, filePath, stat}) =>
+          this.processFileChange(type, filePath, stat)
+        )
+      );
 
       const buildingHasteMapLogEntry =
         print(log(createActionStartEntry('Building Haste Map')));
@@ -279,6 +278,10 @@ class DependencyGraph {
     return this._fastfs;
   }
 
+  getWatcher() {
+    return this._haste;
+  }
+
   /**
    * Returns the module object for the given path.
    */
@@ -365,21 +368,16 @@ class DependencyGraph {
     );
   }
 
-  _processFileChange(type, filePath, root, fstat) {
-    const absPath = path.join(root, filePath);
-    if (fstat && fstat.isDirectory() ||
-        this._opts.ignoreFilePath(absPath) ||
-        this._helpers.isNodeModulesDir(absPath)) {
-      return;
+  processFileChange(type: string, filePath: string, stat: Object) {
+    this._fastfs.processFileChange(type, filePath, stat);
+    this._moduleCache.processFileChange(type, filePath, stat);
+    if (this._assetPattern.test(filePath)) {
+      this._deprecatedAssetMap.processFileChange(type, filePath, stat);
     }
 
-    // Ok, this is some tricky promise code. Our requirements are:
-    // * we need to report back failures
-    // * failures shouldn't block recovery
-    // * Errors can leave `hasteMap` in an incorrect state, and we need to rebuild
-    // After we process a file change we record any errors which will also be
-    // reported via the next request. On the next file change, we'll see that
-    // we are in an error state and we should decide to do a full rebuild.
+    // This code reports failures but doesn't block recovery in the dev server
+    // mode. When the hasteMap is left in an incorrect state, we'll rebuild when
+    // the next file changes.
     const resolve = () => {
       if (this._hasteMapError) {
         console.warn(
@@ -391,13 +389,14 @@ class DependencyGraph {
         // Rebuild the entire map if last change resulted in an error.
         this._loading = this._hasteMap.build();
       } else {
-        this._loading = this._hasteMap.processFileChange(type, absPath);
-        this._loading.catch((e) => {this._hasteMapError = e;});
+        this._loading = this._hasteMap.processFileChange(type, filePath);
+        this._loading.catch(error => {
+          this._hasteMapError = error;
+        });
       }
       return this._loading;
     };
-    /* $FlowFixMe: there is a risk this happen before we assign that
-     * variable in the load() function. */
+
     this._loading = this._loading.then(resolve, resolve);
   }
 
@@ -411,7 +410,6 @@ class DependencyGraph {
 
   static Cache;
   static Fastfs;
-  static FileWatcher;
   static Module;
   static Polyfill;
   static getAssetDataFromName;
@@ -424,7 +422,6 @@ class DependencyGraph {
 Object.assign(DependencyGraph, {
   Cache,
   Fastfs,
-  FileWatcher,
   Module,
   Polyfill,
   getAssetDataFromName,