diff --git a/watchtower/server/interface.go b/watchtower/wtserver/interface.go
similarity index 99%
rename from watchtower/server/interface.go
rename to watchtower/wtserver/interface.go
index 98a992136..69d4ec9cf 100644
--- a/watchtower/server/interface.go
+++ b/watchtower/wtserver/interface.go
@@ -1,4 +1,4 @@
-package server
+package wtserver
 
 import (
 	"io"
diff --git a/watchtower/server/log.go b/watchtower/wtserver/log.go
similarity index 92%
rename from watchtower/server/log.go
rename to watchtower/wtserver/log.go
index 5d5740e8f..7939bd97f 100644
--- a/watchtower/server/log.go
+++ b/watchtower/wtserver/log.go
@@ -1,4 +1,4 @@
-package server
+package wtserver
 
 import (
 	"github.com/btcsuite/btclog"
@@ -12,7 +12,7 @@ var log btclog.Logger
 
 // The default amount of logging is none.
 func init() {
-	UseLogger(build.NewSubLogger("WTSV", nil))
+	UseLogger(build.NewSubLogger("WTWR", nil))
 }
 
 // DisableLog disables all library log output.  Logging output is disabled
diff --git a/watchtower/server/mock.go b/watchtower/wtserver/mock.go
similarity index 99%
rename from watchtower/server/mock.go
rename to watchtower/wtserver/mock.go
index 54e0bf963..758e4ae2e 100644
--- a/watchtower/server/mock.go
+++ b/watchtower/wtserver/mock.go
@@ -1,6 +1,6 @@
 // +build dev
 
-package server
+package wtserver
 
 import (
 	"fmt"
diff --git a/watchtower/server/server.go b/watchtower/wtserver/server.go
similarity index 96%
rename from watchtower/server/server.go
rename to watchtower/wtserver/server.go
index 274f06d57..24483d3ac 100644
--- a/watchtower/server/server.go
+++ b/watchtower/wtserver/server.go
@@ -1,4 +1,4 @@
-package server
+package wtserver
 
 import (
 	"bytes"
@@ -108,8 +108,12 @@ func (s *Server) Start() error {
 		return nil
 	}
 
+	log.Infof("Starting watchtower server")
+
 	s.connMgr.Start()
 
+	log.Infof("Watchtower server started successfully")
+
 	return nil
 }
 
@@ -120,11 +124,15 @@ func (s *Server) Stop() error {
 		return nil
 	}
 
+	log.Infof("Stopping watchtower server")
+
 	s.connMgr.Stop()
 
 	close(s.quit)
 	s.wg.Wait()
 
+	log.Infof("Watchtower server stopped successfully")
+
 	return nil
 }
 
@@ -287,6 +295,8 @@ func (s *Server) handleClient(peer Peer) {
 	}
 }
 
+// handleInit accepts the local and remote Init messages, and verifies that the
+// client is not requesting any required features that are unknown to the tower.
 func (s *Server) handleInit(localInit, remoteInit *wtwire.Init) error {
 	remoteLocalFeatures := lnwire.NewFeatureVector(
 		remoteInit.LocalFeatures, wtwire.LocalFeatures,
@@ -312,33 +322,6 @@ func (s *Server) handleInit(localInit, remoteInit *wtwire.Init) error {
 	return nil
 }
 
-func (s *Server) readMessage(peer Peer) (wtwire.Message, error) {
-	// Set a read timeout to ensure we drop the client if not sent in a
-	// timely manner.
-	err := peer.SetReadDeadline(time.Now().Add(s.cfg.ReadTimeout))
-	if err != nil {
-		err = fmt.Errorf("unable to set read deadline: %v", err)
-		return nil, err
-	}
-
-	// Pull the next message off the wire, and parse it according to the
-	// watchtower wire specification.
-	rawMsg, err := peer.ReadNextMessage()
-	if err != nil {
-		err = fmt.Errorf("unable to read message: %v", err)
-		return nil, err
-	}
-
-	msgReader := bytes.NewReader(rawMsg)
-	nextMsg, err := wtwire.ReadMessage(msgReader, 0)
-	if err != nil {
-		err = fmt.Errorf("unable to parse message: %v", err)
-		return nil, err
-	}
-
-	return nextMsg, nil
-}
-
 // handleCreateSession processes a CreateSession message from the peer, and returns
 // a CreateSessionReply in response. This method will only succeed if no existing
 // session info is known about the session id. If an existing session is found,
@@ -550,6 +533,37 @@ func (s *Server) replyStateUpdate(peer Peer, id *wtdb.SessionID,
 	}
 }
 
+// readMessage receives and parses the next message from the given Peer. An
+// error is returned if a message is not received before the server's read
+// timeout, the read off the wire failed, or the message could not be
+// deserialized.
+func (s *Server) readMessage(peer Peer) (wtwire.Message, error) {
+	// Set a read timeout to ensure we drop the client if not sent in a
+	// timely manner.
+	err := peer.SetReadDeadline(time.Now().Add(s.cfg.ReadTimeout))
+	if err != nil {
+		err = fmt.Errorf("unable to set read deadline: %v", err)
+		return nil, err
+	}
+
+	// Pull the next message off the wire, and parse it according to the
+	// watchtower wire specification.
+	rawMsg, err := peer.ReadNextMessage()
+	if err != nil {
+		err = fmt.Errorf("unable to read message: %v", err)
+		return nil, err
+	}
+
+	msgReader := bytes.NewReader(rawMsg)
+	nextMsg, err := wtwire.ReadMessage(msgReader, 0)
+	if err != nil {
+		err = fmt.Errorf("unable to parse message: %v", err)
+		return nil, err
+	}
+
+	return nextMsg, nil
+}
+
 // sendMessage sends a watchtower wire message to the target peer.
 func (s *Server) sendMessage(peer Peer, msg wtwire.Message) error {
 	// TODO(conner): use buffer pool?
diff --git a/watchtower/server/server_test.go b/watchtower/wtserver/server_test.go
similarity index 94%
rename from watchtower/server/server_test.go
rename to watchtower/wtserver/server_test.go
index f36e26982..3ca056af2 100644
--- a/watchtower/server/server_test.go
+++ b/watchtower/wtserver/server_test.go
@@ -1,6 +1,6 @@
 // +build dev
 
-package server_test
+package wtserver_test
 
 import (
 	"bytes"
@@ -12,8 +12,8 @@ import (
 	"github.com/btcsuite/btcd/chaincfg"
 	"github.com/btcsuite/btcutil"
 	"github.com/lightningnetwork/lnd/lnwire"
-	"github.com/lightningnetwork/lnd/watchtower/server"
 	"github.com/lightningnetwork/lnd/watchtower/wtdb"
+	"github.com/lightningnetwork/lnd/watchtower/wtserver"
 	"github.com/lightningnetwork/lnd/watchtower/wtwire"
 )
 
@@ -36,8 +36,8 @@ func randPubKey(t *testing.T) *btcec.PublicKey {
 
 // initServer creates and starts a new server using the server.DB and timeout.
 // If the provided database is nil, a mock db will be used.
-func initServer(t *testing.T, db server.DB,
-	timeout time.Duration) server.Interface {
+func initServer(t *testing.T, db wtserver.DB,
+	timeout time.Duration) wtserver.Interface {
 
 	t.Helper()
 
@@ -45,7 +45,7 @@ func initServer(t *testing.T, db server.DB,
 		db = wtdb.NewMockDB()
 	}
 
-	s, err := server.New(&server.Config{
+	s, err := wtserver.New(&wtserver.Config{
 		DB:           db,
 		ReadTimeout:  timeout,
 		WriteTimeout: timeout,
@@ -79,8 +79,8 @@ func TestServerOnlyAcceptOnePeer(t *testing.T) {
 
 	// Create two peers using the same session id.
 	peerPub := randPubKey(t)
-	peer1 := server.NewMockPeer(peerPub, nil, 0)
-	peer2 := server.NewMockPeer(peerPub, nil, 0)
+	peer1 := wtserver.NewMockPeer(peerPub, nil, 0)
+	peer2 := wtserver.NewMockPeer(peerPub, nil, 0)
 
 	// Serialize a Init message to be sent by both peers.
 	init := wtwire.NewInitMessage(
@@ -106,8 +106,8 @@ func TestServerOnlyAcceptOnePeer(t *testing.T) {
 	// Try to send a message on either peer, and record the opposite peer as
 	// the one we assume to be rejected.
 	var (
-		rejectedPeer *server.MockPeer
-		acceptedPeer *server.MockPeer
+		rejectedPeer *wtserver.MockPeer
+		acceptedPeer *wtserver.MockPeer
 	)
 	select {
 	case peer1.IncomingMsgs <- msg:
@@ -192,7 +192,7 @@ func testServerCreateSession(t *testing.T, i int, test createSessionTestCase) {
 
 	// Create a new client and connect to server.
 	peerPub := randPubKey(t)
-	peer := server.NewMockPeer(peerPub, nil, 0)
+	peer := wtserver.NewMockPeer(peerPub, nil, 0)
 	connect(t, i, s, peer, test.initMsg, timeoutDuration)
 
 	// Send the CreateSession message, and wait for a reply.
@@ -220,7 +220,7 @@ func testServerCreateSession(t *testing.T, i int, test createSessionTestCase) {
 
 	// Simulate a peer with the same session id connection to the server
 	// again.
-	peer = server.NewMockPeer(peerPub, nil, 0)
+	peer = wtserver.NewMockPeer(peerPub, nil, 0)
 	connect(t, i, s, peer, test.initMsg, timeoutDuration)
 
 	// Send the _same_ CreateSession message as the first attempt.
@@ -492,7 +492,7 @@ func testServerStateUpdates(t *testing.T, i int, test stateUpdateTestCase) {
 
 	// Create a new client and connect to the server.
 	peerPub := randPubKey(t)
-	peer := server.NewMockPeer(peerPub, nil, 0)
+	peer := wtserver.NewMockPeer(peerPub, nil, 0)
 	connect(t, i, s, peer, test.initMsg, timeoutDuration)
 
 	// Register a session for this client to use in the subsequent tests.
@@ -512,7 +512,7 @@ func testServerStateUpdates(t *testing.T, i int, test stateUpdateTestCase) {
 
 	// Now that the original connection has been closed, connect a new
 	// client with the same session id.
-	peer = server.NewMockPeer(peerPub, nil, 0)
+	peer = wtserver.NewMockPeer(peerPub, nil, 0)
 	connect(t, i, s, peer, test.initMsg, timeoutDuration)
 
 	// Send the intended StateUpdate messages in series.
@@ -523,7 +523,7 @@ func testServerStateUpdates(t *testing.T, i int, test stateUpdateTestCase) {
 		if update == nil {
 			assertConnClosed(t, peer, 2*timeoutDuration)
 
-			peer = server.NewMockPeer(peerPub, nil, 0)
+			peer = wtserver.NewMockPeer(peerPub, nil, 0)
 			connect(t, i, s, peer, test.initMsg, timeoutDuration)
 
 			continue
@@ -547,7 +547,7 @@ func testServerStateUpdates(t *testing.T, i int, test stateUpdateTestCase) {
 	assertConnClosed(t, peer, 2*timeoutDuration)
 }
 
-func connect(t *testing.T, i int, s server.Interface, peer *server.MockPeer,
+func connect(t *testing.T, i int, s wtserver.Interface, peer *wtserver.MockPeer,
 	initMsg *wtwire.Init, timeout time.Duration) {
 
 	s.InboundPeerConnected(peer)
@@ -555,9 +555,9 @@ func connect(t *testing.T, i int, s server.Interface, peer *server.MockPeer,
 	recvReply(t, i, "Init", peer, timeout)
 }
 
-// sendMsg sends a wtwire.Message message via a server.MockPeer.
+// sendMsg sends a wtwire.Message message via a wtserver.MockPeer.
 func sendMsg(t *testing.T, i int, msg wtwire.Message,
-	peer *server.MockPeer, timeout time.Duration) {
+	peer *wtserver.MockPeer, timeout time.Duration) {
 
 	t.Helper()
 
@@ -579,7 +579,7 @@ func sendMsg(t *testing.T, i int, msg wtwire.Message,
 // expected reply type. The supported replies are CreateSessionReply and
 // StateUpdateReply.
 func recvReply(t *testing.T, i int, name string,
-	peer *server.MockPeer, timeout time.Duration) wtwire.Message {
+	peer *wtserver.MockPeer, timeout time.Duration) wtwire.Message {
 
 	t.Helper()
 
@@ -623,7 +623,7 @@ func recvReply(t *testing.T, i int, name string,
 
 // assertConnClosed checks that the peer's connection is closed before the
 // timeout expires.
-func assertConnClosed(t *testing.T, peer *server.MockPeer, duration time.Duration) {
+func assertConnClosed(t *testing.T, peer *wtserver.MockPeer, duration time.Duration) {
 	t.Helper()
 
 	select {