diff --git a/cmd/tools/vfmt.v b/cmd/tools/vfmt.v
index d7aad0d6e8..923c8b2e34 100644
--- a/cmd/tools/vfmt.v
+++ b/cmd/tools/vfmt.v
@@ -6,9 +6,9 @@ module main
 import (
 	os
 	os.cmdline
-	compiler
 	v.pref
 	v.fmt
+	v.util
 	v.parser
 	v.table
 	vhelp
@@ -43,7 +43,7 @@ const (
 
 fn main() {
 	toolexe := os.executable()
-	compiler.set_vroot_folder(os.dir(os.dir(os.dir(toolexe))))
+	util.set_vroot_folder(os.dir(os.dir(os.dir(toolexe))))
 	args := join_flags_and_argument()
 	foptions := FormatOptions{
 		is_2: '-2' in args
@@ -81,17 +81,17 @@ fn main() {
 	for file in possible_files {
 		if foptions.is_2 {
 			if !file.ends_with('.v') && !file.ends_with('.vv') {
-				compiler.verror('v fmt -2 can only be used on .v or .vv files.\nOffending file: "$file" .')
+				verror('v fmt -2 can only be used on .v or .vv files.\nOffending file: "$file" .')
 				continue
 			}
 		} else {
 			if !file.ends_with('.v') {
-				compiler.verror('v fmt can only be used on .v files.\nOffending file: "$file" .')
+				verror('v fmt can only be used on .v files.\nOffending file: "$file" .')
 				continue
 			}
 		}
 		if !os.exists(file) {
-			compiler.verror('"$file" does not exist.')
+			verror('"$file" does not exist.')
 			continue
 		}
 		files << file
@@ -151,89 +151,20 @@ fn main() {
 }
 
 fn (foptions &FormatOptions) format_file(file string) {
-	if foptions.is_2 {
-		if foptions.is_verbose {
-			eprintln('vfmt2 running fmt.fmt over file: $file')
-		}
-		table := table.new_table()
-		file_ast := parser.parse_file(file, table, .parse_comments, &pref.Preferences{})
-		formatted_content := fmt.fmt(file_ast, table)
-		file_name := os.file_name(file)
-		vfmt_output_path := os.join_path(os.temp_dir(), 'vfmt_' + file_name)
-		os.write_file(vfmt_output_path, formatted_content )
-		if foptions.is_verbose {
-			eprintln('vfmt2 fmt.fmt worked and ${formatted_content.len} bytes were written to ${vfmt_output_path} .')
-		}
-		eprintln('${FORMATTED_FILE_TOKEN}${vfmt_output_path}')
-		return
-	}
-	tmpfolder := os.temp_dir()
-	mut compiler_params := &pref.Preferences{}
-	target_os := file_to_target_os(file)
-	if target_os != '' {
-		//TODO Remove temporary variable once it compiles correctly in C
-		tmp := pref.os_from_string(target_os) or {
-			eprintln('unknown operating system $target_os')
-			return
-		}
-		compiler_params.os = tmp
-	}
-	mut cfile := file
-	mut mod_folder_parent := tmpfolder
-	is_test_file := file.ends_with('_test.v')
-	mod_name,is_module_file := file_to_mod_name_and_is_module_file(file)
-	use_tmp_main_program := is_module_file && !is_test_file
-	mod_folder := os.base_dir(file)
-	if use_tmp_main_program {
-		// TODO: remove the need for this
-		// This makes a small program that imports the module,
-		// so that the module files will get processed by the
-		// vfmt implementation.
-		mod_folder_parent = os.base_dir(mod_folder)
-		mut main_program_content := if mod_name == 'builtin' || mod_name == 'main' { 'fn main(){}\n' } else { 'import ${mod_name}\n' + 'fn main(){}\n' }
-		main_program_file := os.join_path(tmpfolder,'vfmt_tmp_${mod_name}_program.v')
-		if os.exists(main_program_file) {
-			os.rm(main_program_file)
-		}
-		os.write_file(main_program_file, main_program_content)
-		cfile = main_program_file
-		compiler_params.lookup_path = [mod_folder_parent, '@vlib', '@vmodule']
-	}
-	if !is_test_file && mod_name == 'main' {
-		// NB: here, file is guaranteed to be a main. We do not know however
-		// whether it is a standalone v program, or is it a part of a bigger
-		// project, like vorum or vid.
-		cfile = get_compile_name_of_potential_v_project(cfile)
-	}
-	compiler_params.path = cfile
-	compiler_params.mod = mod_name
-	compiler_params.is_test = is_test_file
-	compiler_params.is_script = file.ends_with('.v') || file.ends_with('.vsh')
+	prefs := pref.new_preferences()
 	if foptions.is_verbose {
-		eprintln('vfmt format_file: file: $file')
-		eprintln('vfmt format_file: cfile: $cfile')
-		eprintln('vfmt format_file: is_test_file: $is_test_file')
-		eprintln('vfmt format_file: is_module_file: $is_module_file')
-		eprintln('vfmt format_file: mod_name: $mod_name')
-		eprintln('vfmt format_file: mod_folder: $mod_folder')
-		eprintln('vfmt format_file: mod_folder_parent: $mod_folder_parent')
-		eprintln('vfmt format_file: use_tmp_main_program: $use_tmp_main_program')
-		eprintln('vfmt format_file: compiler_params: ')
-		print_compiler_options( compiler_params )
-		eprintln('-------------------------------------------')
+		eprintln('vfmt2 running fmt.fmt over file: $file')
 	}
-	compiler_params.fill_with_defaults()
+	table := table.new_table()
+	file_ast := parser.parse_file(file, table, .parse_comments, prefs)
+	formatted_content := fmt.fmt(file_ast, table)
+	file_name := os.file_name(file)
+	vfmt_output_path := os.join_path(os.temp_dir(), 'vfmt_' + file_name)
+	os.write_file(vfmt_output_path, formatted_content )
 	if foptions.is_verbose {
-		eprintln('vfmt format_file: compiler_params: AFTER fill_with_defaults() ')
-		print_compiler_options( compiler_params )
+		eprintln('vfmt2 fmt.fmt worked and ${formatted_content.len} bytes were written to ${vfmt_output_path} .')
 	}
-	formatted_file_path := foptions.compile_file(file, compiler_params)
-	if use_tmp_main_program {
-		if !foptions.is_debug {
-			os.rm(cfile)
-		}
-	}
-	eprintln('${FORMATTED_FILE_TOKEN}${formatted_file_path}')
+	eprintln('${FORMATTED_FILE_TOKEN}${vfmt_output_path}')
 }
 
 fn print_compiler_options( compiler_params &pref.Preferences ) {
@@ -311,21 +242,6 @@ fn find_working_diff_command() ?string {
 	return error('no working diff command found')
 }
 
-fn (foptions &FormatOptions) compile_file(file string, compiler_params &pref.Preferences) string {
-	if foptions.is_verbose {
-		eprintln('> new_v_compiler_with_args            file: $file')
-		eprintln('> new_v_compiler_with_args compiler_params:')
-		print_compiler_options( compiler_params )
-	}
-	mut v := compiler.new_v(compiler_params)
-	v.v_fmt_file = file
-	if foptions.is_all {
-		v.v_fmt_all = true
-	}
-	v.compile()
-	return v.v_fmt_file_result
-}
-
 pub fn (f FormatOptions) str() string {
 	return 'FormatOptions{ ' + ' is_2: $f.is_2' + ' is_l: $f.is_l' + ' is_w: $f.is_w' + ' is_diff: $f.is_diff' + ' is_verbose: $f.is_verbose' + ' is_all: $f.is_all' + ' is_worker: $f.is_worker' + ' is_debug: $f.is_debug' + ' }'
 }
@@ -435,3 +351,7 @@ fn join_flags_and_argument() []string {
 fn non_empty(arg []string) []string {
 	return arg.filter(it != '')
 }
+
+fn verror(s string){
+	util.verror('vfmt error', s)
+}
diff --git a/cmd/tools/vtest-compiler.v b/cmd/tools/vtest-compiler.v
index 4d7cfa8157..82edca4fcf 100644
--- a/cmd/tools/vtest-compiler.v
+++ b/cmd/tools/vtest-compiler.v
@@ -7,10 +7,6 @@ import (
 	v.pref
 )
 
-pub const (
-	v_modules_path = os.home_dir() + '.vmodules'
-)
-
 fn main() {
 	args := os.args
 	args_string := args[1..].join(' ')
@@ -62,7 +58,8 @@ fn v_test_compiler(vargs string) {
 	if ret != 0 {
 		eprintln('failed to run v install')
 	}
-	if !os.exists(v_modules_path + '/nedpals/args') {
+	desired_path :=  os.join_path(pref.default_module_path, 'nedpals', 'args')
+	if !(os.exists( desired_path ) && os.is_dir( desired_path )) {
 		eprintln('v failed to install a test module')
 	}
 	vmark.stop()
diff --git a/cmd/v/internal/compile/cc.v b/cmd/v/internal/compile/cc.v
index 347b98179c..fd40288b88 100644
--- a/cmd/v/internal/compile/cc.v
+++ b/cmd/v/internal/compile/cc.v
@@ -11,10 +11,6 @@ import (
 	term
 )
 
-const (
-	v_modules_path = pref.default_module_path
-)
-
 fn todo() {
 }
 
@@ -157,7 +153,7 @@ fn (v mut V) cc() {
 	}
 	if v.pref.build_mode == .build_module {
 		// Create the modules & out directory if it's not there.
-		mut out_dir := if v.pref.path.starts_with('vlib') { '$v_modules_path${os.path_separator}cache${os.path_separator}$v.pref.path' } else { '$v_modules_path${os.path_separator}$v.pref.path' }
+		mut out_dir := if v.pref.path.starts_with('vlib') { '${pref.default_module_path}${os.path_separator}cache${os.path_separator}$v.pref.path' } else { '${pref.default_module_path}${os.path_separator}$v.pref.path' }
 		pdir := out_dir.all_before_last(os.path_separator)
 		if !os.is_dir(pdir) {
 			os.mkdir_all(pdir)
@@ -226,7 +222,7 @@ fn (v mut V) cc() {
 	else if v.pref.is_cache {
 		/*
 		QTODO
-		builtin_o_path := os.join_path(v_modules_path, 'cache', 'vlib', 'builtin.o')
+		builtin_o_path := os.join_path(pref.default_module_path, 'cache', 'vlib', 'builtin.o')
 		a << builtin_o_path.replace('builtin.o', 'strconv.o') // TODO hack no idea why this is needed
 		if os.exists(builtin_o_path) {
 			libs = builtin_o_path
@@ -243,7 +239,7 @@ fn (v mut V) cc() {
 				continue
 			}
 			imp_path := imp.replace('.', os.path_separator)
-			path := '$v_modules_path${os.path_separator}cache${os.path_separator}vlib${os.path_separator}${imp_path}.o'
+			path := '${pref.default_module_path}${os.path_separator}cache${os.path_separator}vlib${os.path_separator}${imp_path}.o'
 			// println('adding ${imp_path}.o')
 			if os.exists(path) {
 				libs += ' ' + path
@@ -255,7 +251,7 @@ fn (v mut V) cc() {
 					os.cp('$vdir/thirdparty/ui/ui.o', path)or{
 						panic('error copying ui files')
 					}
-					os.cp('$vdir/thirdparty/ui/ui.vh', v_modules_path + '/vlib/ui.vh')or{
+					os.cp('$vdir/thirdparty/ui/ui.vh', pref.default_module_path + '/vlib/ui.vh')or{
 						panic('error copying ui files')
 					}
 				}
@@ -484,13 +480,13 @@ fn (c mut V) cc_windows_cross() {
 	args += if c.pref.ccompiler == 'msvc' { cflags.c_options_before_target_msvc() } else { cflags.c_options_before_target() }
 	mut libs := ''
 	if false && c.pref.build_mode == .default_mode {
-		libs = '"$v_modules_path/vlib/builtin.o"'
+		libs = '"${pref.default_module_path}/vlib/builtin.o"'
 		if !os.exists(libs) {
 			println('`$libs` not found')
 			exit(1)
 		}
 		for imp in c.table.imports {
-			libs += ' "$v_modules_path/vlib/${imp}.o"'
+			libs += ' "${pref.default_module_path}/vlib/${imp}.o"'
 		}
 	}
 	args += ' $c.out_name_c '
@@ -498,11 +494,11 @@ fn (c mut V) cc_windows_cross() {
 	args += if c.pref.ccompiler == 'msvc' { cflags.c_options_after_target_msvc() } else { cflags.c_options_after_target() }
 
 	/*
-	winroot := '$v_modules_path/winroot'
+	winroot := '${pref.default_module_path}/winroot'
 	if !os.is_dir(winroot) {
 		winroot_url := 'https://github.com/vlang/v/releases/download/v0.1.10/winroot.zip'
 		println('"$winroot" not found.')
-		println('Download it from $winroot_url and save it in $v_modules_path')
+		println('Download it from $winroot_url and save it in ${pref.default_module_path}')
 		println('Unzip it afterwards.\n')
 		println('winroot.zip contains all library and header files needed ' + 'to cross-compile for Windows.')
 		exit(1)
@@ -522,7 +518,7 @@ fn (c mut V) cc_windows_cross() {
 	}
 
 	println(cmd)
-	//cmd := 'clang -o $obj_name -w $include -m32 -c -target x86_64-win32 $v_modules_path/$c.out_name_c'
+	//cmd := 'clang -o $obj_name -w $include -m32 -c -target x86_64-win32 ${pref.default_module_path}/$c.out_name_c'
 	if c.pref.verbosity.is_higher_or_equal(.level_one) {
 		println(cmd)
 	}
diff --git a/cmd/v/internal/compile/compile.v b/cmd/v/internal/compile/compile.v
index 46b31303f8..069e5cf636 100644
--- a/cmd/v/internal/compile/compile.v
+++ b/cmd/v/internal/compile/compile.v
@@ -8,6 +8,7 @@ import (
 	os
 	v.builder
 	v.pref
+	v.util
 	strings
 )
 
@@ -216,13 +217,6 @@ fn (v mut V) set_module_lookup_paths() {
         }
 }
 
-
- pub fn verror(s string) {
-         println('V error: $s')
-         os.flush()
-         exit(1)
- }
-
 pub fn (v &V) get_builtin_files() []string {
         // Lookup for built-in folder in lookup path.
         // Assumption: `builtin/` folder implies usable implementation of builtin
@@ -405,4 +399,6 @@ pub fn (v &V) v_files_from_dir(dir string) []string {
         return res
 }
 
-
+pub fn verror(s string) {
+	util.verror('compiler error', s)
+}
diff --git a/cmd/v/internal/compile/compile_options.v b/cmd/v/internal/compile/compile_options.v
index 16f85030f5..982592da5e 100644
--- a/cmd/v/internal/compile/compile_options.v
+++ b/cmd/v/internal/compile/compile_options.v
@@ -7,6 +7,7 @@ import (
 	internal.flag
 	os.cmdline
 	v.pref
+	v.util
 )
 
 fn parse_arguments(args []string) (pref.Preferences, []string) {
@@ -72,6 +73,14 @@ fn parse_arguments(args []string) (pref.Preferences, []string) {
 
 fn parse_options(flag string, f mut flag.Instance, prefs mut pref.Preferences) {
 	match flag {
+		'color' {
+		    f.is_equivalent_to(['color','nocolor'])
+			util.emanager.set_support_color(true)
+		}
+		'nocolor' {
+		    f.is_equivalent_to(['color','nocolor'])
+			util.emanager.set_support_color(false)
+		}
 		'path' {
 			// -path
 			path_str := f.string() or {
diff --git a/cmd/v/internal/compile/msvc.v b/cmd/v/internal/compile/msvc.v
index 9a2572efbb..b882e3c818 100644
--- a/cmd/v/internal/compile/msvc.v
+++ b/cmd/v/internal/compile/msvc.v
@@ -1,6 +1,7 @@
 module compile
 
 import os
+import v.pref
 
 #flag windows -l shell32
 #flag windows -l dbghelp
@@ -225,7 +226,7 @@ pub fn (v mut V) cc_msvc() {
 	}
 	else if v.pref.build_mode == .default_mode {
 		/*
-		b := os.real_path( '$v_modules_path/vlib/builtin.obj' )
+		b := os.real_path( '${pref.default_module_path}/vlib/builtin.obj' )
 		alibs << '"$b"'
 		if !os.exists(b) {
 			println('`builtin.obj` not found')
@@ -235,7 +236,7 @@ pub fn (v mut V) cc_msvc() {
 			if imp == 'webview' {
 				continue
 			}
-			alibs << '"' + os.real_path( '$v_modules_path/vlib/${imp}.obj' ) + '"'
+			alibs << '"' + os.real_path( '${pref.default_module_path}/vlib/${imp}.obj' ) + '"'
 		}
 		*/
 	}
diff --git a/cmd/v/simple_tool.v b/cmd/v/simple_tool.v
deleted file mode 100644
index 10b30d39a4..0000000000
--- a/cmd/v/simple_tool.v
+++ /dev/null
@@ -1,91 +0,0 @@
-// Copyright (c) 2019-2020 Alexander Medvednikov. All rights reserved.
-// Use of this source code is governed by an MIT license
-// that can be found in the LICENSE file.
-module main
-
-import (
-	os
-	v.pref
-)
-
-fn set_vroot_folder(vroot_path string) {
-        // Preparation for the compiler module:
-        // VEXE env variable is needed so that compiler.vexe_path()
-        // can return it later to whoever needs it:
-        vname := if os.user_os() == 'windows' { 'v.exe' } else { 'v' }
-        os.setenv('VEXE', os.real_path([vroot_path, vname].join(os.path_separator)), true)
-}
-
-
-fn launch_tool(is_verbose bool, tool_name string) {
-	vexe := pref.vexe_path()
-	vroot := os.dir(vexe)
-	set_vroot_folder(vroot)
-
-	tool_args := os.args[1..].join(' ')
-	tool_exe := path_of_executable(os.real_path('$vroot/cmd/tools/$tool_name'))
-	tool_source := os.real_path('$vroot/cmd/tools/${tool_name}.v')
-	tool_command := '"$tool_exe" $tool_args'
-	if is_verbose {
-		eprintln('launch_tool vexe        : $vroot')
-		eprintln('launch_tool vroot       : $vroot')
-		eprintln('launch_tool tool_args   : $tool_args')
-		eprintln('launch_tool tool_command: $tool_command')
-	}
-
-	// TODO Caching should be done on the `vlib/v` level.
-	mut should_compile := false
-	if !os.exists(tool_exe) {
-		should_compile = true
-	} else {
-		if os.file_last_mod_unix(tool_exe) <= os.file_last_mod_unix(vexe) {
-			// v was recompiled, maybe after v up ...
-			// rebuild the tool too just in case
-			should_compile = true
-
-			if tool_name == 'vself' || tool_name == 'vup' {
-				// The purpose of vself/up is to update and recompile v itself.
-				// After the first 'v self' execution, v will be modified, so
-				// then a second 'v self' will detect, that v is newer than the
-				// vself executable, and try to recompile vself/up again, which
-				// will slow down the next v recompilation needlessly.
-				should_compile = false
-			}
-		}
-		if os.file_last_mod_unix(tool_exe) <= os.file_last_mod_unix(tool_source) {
-			// the user changed the source code of the tool, or git updated it:
-			should_compile = true
-		}
-	}
-	if is_verbose {
-		eprintln('launch_tool should_compile: $should_compile')
-	}
-
-	if should_compile {
-		mut compilation_command := '"$vexe" '
-		if tool_name == 'vfmt' {
-			// TODO Remove when it's no longer required by fmt
-			compilation_command += '-d vfmt '
-		}
-		compilation_command += '"$tool_source"'
-		if is_verbose {
-			eprintln('Compiling $tool_name with: "$compilation_command"')
-		}
-		tool_compilation := os.exec(compilation_command) or { panic(err) }
-		if tool_compilation.exit_code != 0 {
-			panic('V tool "$tool_source" could not be compiled\n' + tool_compilation.output)
-		}
-	}
-	if is_verbose {
-		eprintln('launch_tool running tool command: $tool_command ...')
-	}
-
-	exit(os.system(tool_command))
-}
-
-fn path_of_executable(path string) string {
-	$if windows {
-		return path + '.exe'
-	}
-	return path
-}
diff --git a/cmd/v/v.v b/cmd/v/v.v
index eeeab99d21..b0efa46df0 100644
--- a/cmd/v/v.v
+++ b/cmd/v/v.v
@@ -30,7 +30,7 @@ fn main() {
 	if args.len == 0 || args[0] in ['-', 'repl'] {
 		// Running `./v` without args launches repl
 		println('For usage information, quit V REPL using `exit` and use `v help`')
-		launch_tool(false, 'vrepl')
+		util.launch_tool(false, 'vrepl')
 		return
 	}
 	if args.len > 0 && (args[0] in ['version', '-V', '-version', '--version'] || (args[0] == '-v' && args.len == 1) ) {
@@ -53,7 +53,7 @@ fn main() {
 	// Note for future contributors: Please add new subcommands in the `match` block below.
 	if command in simple_cmd {
 		// External tools
-		launch_tool(prefs2.is_verbose, 'v' + command)
+		util.launch_tool(prefs2.is_verbose, 'v' + command)
 		return
 	}
 	match command {
@@ -61,7 +61,7 @@ fn main() {
 			invoke_help_and_exit(args)
 		}
 		'create', 'init' {
-			launch_tool(prefs2.is_verbose, 'vcreate')
+			util.launch_tool(prefs2.is_verbose, 'vcreate')
 			return
 		}
 		'translate' {
@@ -69,7 +69,7 @@ fn main() {
 			return
 		}
 		'search', 'install', 'update', 'remove' {
-			launch_tool(prefs2.is_verbose, 'vpm')
+			util.launch_tool(prefs2.is_verbose, 'vpm')
 			return
 		}
 		'get' {
diff --git a/vlib/v/builder/builder.v b/vlib/v/builder/builder.v
index 76b071766f..d69ca8f8dc 100644
--- a/vlib/v/builder/builder.v
+++ b/vlib/v/builder/builder.v
@@ -6,6 +6,7 @@ import (
 	v.ast
 	v.table
 	v.pref
+	v.util
 	v.checker
 	v.parser
 	v.gen
@@ -195,10 +196,6 @@ pub fn (b &Builder) v_files_from_dir(dir string) []string {
 	return res
 }
 
-fn verror(err string) {
-	panic('v error: $err')
-}
-
 pub fn (b &Builder) log(s string) {
 	if b.pref.verbosity.is_higher_or_equal(.level_two) {
 		println(s)
@@ -233,3 +230,7 @@ pub fn (b &Builder) find_module_path(mod string) ?string {
 	}
 	return error('module "$mod" not found')
 }
+
+fn verror(s string) {
+	util.verror('builder error', s)
+}
diff --git a/vlib/v/checker/checker.v b/vlib/v/checker/checker.v
index c0dde923ae..1e9a725536 100644
--- a/vlib/v/checker/checker.v
+++ b/vlib/v/checker/checker.v
@@ -8,6 +8,7 @@ import (
 	v.table
 	v.token
 	v.pref
+	v.util
 	os
 )
 
@@ -922,15 +923,6 @@ pub fn (c mut Checker) ident(ident mut ast.Ident) table.Type {
 		if !name.contains('.') && !(c.file.mod.name in ['builtin', 'main']) {
 			name = '${c.file.mod.name}.$ident.name'
 		}
-		// hack - const until consts are fixed properly
-		if ident.name == 'v_modules_path' {
-			ident.name = name
-			ident.kind = .constant
-			ident.info = ast.IdentVar{
-				typ: table.string_type
-			}
-			return table.string_type
-		}
 		// constant
 		if constant := c.table.find_const(name) {
 			ident.name = name
@@ -1180,28 +1172,17 @@ pub fn (c mut Checker) error(s string, pos token.Position) {
 	if c.pref.verbosity.is_higher_or_equal(.level_one) {
 		print_backtrace()
 	}
-	mut path := c.file.path
-	// Get relative path
-	workdir := os.getwd() + os.path_separator
-	if path.starts_with(workdir) {
-		path = path.replace(workdir, '')
+	kind := if c.pref.verbosity.is_higher_or_equal(.level_one) {
+		'checker error #$c.nr_errors:'
+	} else {
+		'error:'
 	}
-	mut final_msg_line := '$path:$pos.line_nr: $s'
-	if c.pref.verbosity.is_higher_or_equal(.level_one) {
-		final_msg_line = '$path:$pos.line_nr: checker error #$c.nr_errors: $s'
-	}
-	c.errors << final_msg_line
+	ferror := util.formated_error(kind, s, c.file.path, pos)
+	c.errors << ferror
 	if !(pos.line_nr in c.error_lines) {
-		eprintln(final_msg_line)
+		eprintln(ferror)
 	}
 	c.error_lines << pos.line_nr
-	/*
-	if colored_output {
-		eprintln(term.bold(term.red(final_msg_line)))
-	}else{
-		eprintln(final_msg_line)
-	}
-	*/
 	if c.pref.verbosity.is_higher_or_equal(.level_one) {
 		println('\n\n')
 	}
diff --git a/vlib/v/gen/cgen.v b/vlib/v/gen/cgen.v
index eddef7814e..e9bc06b1d1 100644
--- a/vlib/v/gen/cgen.v
+++ b/vlib/v/gen/cgen.v
@@ -2022,8 +2022,7 @@ fn (g mut Gen) ref_or_deref_arg(arg ast.CallArg, expected_type table.Type) {
 }
 
 fn verror(s string) {
-	println('cgen error: $s')
-	exit(1)
+	util.verror('cgen error', s)
 }
 
 fn (g mut Gen) write_init_function() {
diff --git a/vlib/v/gen/x64/gen.v b/vlib/v/gen/x64/gen.v
index 64ce718dec..f914ca6fd3 100644
--- a/vlib/v/gen/x64/gen.v
+++ b/vlib/v/gen/x64/gen.v
@@ -5,6 +5,7 @@ module x64
 
 import (
 	v.ast
+	v.util
 	// term
 )
 
@@ -387,11 +388,10 @@ fn (g mut Gen) expr(node ast.Expr) {
 		ast.IfExpr {}
 		else {
 			// println(term.red('x64.expr(): bad node'))
-			}
-	}
+		}
 	}
+}
 
-	fn verror(s string) {
-		println(s)
-		exit(1)
-	}
+fn verror(s string) {
+	util.verror('x64 gen error', s)
+}
diff --git a/vlib/v/parser/parser.v b/vlib/v/parser/parser.v
index baf11d29f5..1945c9696f 100644
--- a/vlib/v/parser/parser.v
+++ b/vlib/v/parser/parser.v
@@ -9,6 +9,7 @@ import (
 	v.token
 	v.table
 	v.pref
+	v.util
 	term
 	os
 	// runtime
@@ -16,10 +17,6 @@ import (
 	// time
 )
 
-const (
-	colored_output = term.can_show_color_on_stderr()
-)
-
 struct Parser {
 	scanner     &scanner.Scanner
 	file_name   string
@@ -235,7 +232,7 @@ fn (p mut Parser) check(expected token.Kind) {
 	// p.next()
 	// }
 	if p.tok.kind != expected {
-		s := 'syntax error: unexpected `${p.tok.kind.str()}`, expecting `${expected.str()}`'
+		s := 'unexpected `${p.tok.kind.str()}`, expecting `${expected.str()}`'
 		p.error(s)
 	}
 	p.next()
@@ -328,7 +325,7 @@ pub fn (p mut Parser) top_stmt() ast.Stmt {
 		}
 		else {
 			// #printf("");
-			p.error('parser: bad top level statement ' + p.tok.str())
+			p.error('bad top level statement ' + p.tok.str())
 			return ast.Stmt{}
 		}
 	}
@@ -499,42 +496,19 @@ fn (p mut Parser) range_expr(low ast.Expr) ast.Expr {
 
 
 pub fn (p &Parser) error(s string) {
-	print_backtrace()
-	mut path := p.file_name
-	// Get relative path
-	workdir := os.getwd() + os.path_separator
-	if path.starts_with(workdir) {
-		path = path.replace(workdir, '')
-	}
-	final_msg_line := '$path:$p.tok.line_nr: error: $s'
-	if colored_output {
-		eprintln(term.bold(term.red(final_msg_line)))
-	}
-	else {
-		eprintln(final_msg_line)
-	}
-	exit(1)
-}
-
-pub fn (p &Parser) error_at_line(s string, line_nr int) {
-	final_msg_line := '$p.file_name:$line_nr: error: $s'
-	if colored_output {
-		eprintln(term.bold(term.red(final_msg_line)))
-	}
-	else {
-		eprintln(final_msg_line)
+	mut kind := 'error:'
+	if p.pref.verbosity.is_higher_or_equal(.level_one) {
+		print_backtrace()
+		kind = 'parser error:'
 	}
+	ferror := util.formated_error(kind, s, p.file_name, p.tok.position())
+	eprintln(ferror)
 	exit(1)
 }
 
 pub fn (p &Parser) warn(s string) {
-	final_msg_line := '$p.file_name:$p.tok.line_nr: warning: $s'
-	if colored_output {
-		eprintln(term.bold(term.blue(final_msg_line)))
-	}
-	else {
-		eprintln(final_msg_line)
-	}
+	ferror := util.formated_error('warning:', s, p.file_name, p.tok.position())
+	eprintln(ferror)
 }
 
 pub fn (p mut Parser) parse_ident(is_c bool) ast.Ident {
@@ -839,7 +813,7 @@ pub fn (p mut Parser) expr(precedence int) ast.Expr {
 			p.check(.rcbr)
 		}
 		else {
-			p.error('parser: expr(): bad token `$p.tok.str()`')
+			p.error('expr(): bad token `$p.tok.str()`')
 		}
 	}
 	// Infix
@@ -2003,6 +1977,5 @@ fn (p &Parser) new_true_expr() ast.Expr {
 }
 
 fn verror(s string) {
-	println(s)
-	exit(1)
+	util.verror('parser error', s)
 }
diff --git a/vlib/v/pref/default.v b/vlib/v/pref/default.v
index a79cbb6cd9..71e82f5e56 100644
--- a/vlib/v/pref/default.v
+++ b/vlib/v/pref/default.v
@@ -4,11 +4,22 @@
 module pref
 
 import os
+import term
 
 pub const (
-	default_module_path = os.home_dir() + '.vmodules'
+	default_module_path = mpath()
 )
 
+fn mpath() string {
+	return os.home_dir() + '.vmodules'
+}
+
+pub fn new_preferences() Preferences {
+	p := Preferences{}
+	p.fill_with_defaults()
+	return p
+}
+
 pub fn (p mut Preferences) fill_with_defaults() {
 	if p.vroot == '' {
 		// Location of all vlib files
@@ -22,7 +33,7 @@ pub fn (p mut Preferences) fill_with_defaults() {
 		p.lookup_path[i] = path.replace('@vlib', vlib_path).replace('@vmodules', default_module_path)
 	}
 	rpath := os.real_path(p.path)
-	if p.out_name == ''{
+	if p.out_name == '' {
 		filename := os.file_name(rpath).trim_space()
 		mut base := filename.all_before_last('.')
 		if base == '' {
@@ -60,6 +71,7 @@ pub fn (p mut Preferences) fill_with_defaults() {
 			}
 		}
 	}
+	p.enable_globals = true
 }
 
 fn default_c_compiler() string {
diff --git a/vlib/v/scanner/scanner.v b/vlib/v/scanner/scanner.v
index 39b7a335a6..36c0cbe31e 100644
--- a/vlib/v/scanner/scanner.v
+++ b/vlib/v/scanner/scanner.v
@@ -13,8 +13,6 @@ import (
 const (
 	single_quote = `\'`
 	double_quote = `"`
-	error_context_before = 2 // how many lines of source context to print before the pointer line
-	error_context_after = 2 // ^^^ same, but after
 	is_fmt = os.getenv('VEXE').contains('vfmt')
 	num_sep = `_` // char used as number separator
 )
@@ -1027,9 +1025,7 @@ pub fn (s &Scanner) error(msg string) {
 }
 
 pub fn verror(s string) {
-	println('V error: $s')
-	os.flush()
-	exit(1)
+	util.verror('scanner error', s)
 }
 
 pub fn cescaped_path(s string) string {
diff --git a/vlib/v/util/errors.v b/vlib/v/util/errors.v
new file mode 100644
index 0000000000..eabd54dcc4
--- /dev/null
+++ b/vlib/v/util/errors.v
@@ -0,0 +1,88 @@
+// Copyright (c) 2019-2020 Alexander Medvednikov. All rights reserved.
+// Use of this source code is governed by an MIT license
+// that can be found in the LICENSE file.
+module util
+
+import os
+import term
+import v.token
+import v.util
+
+// The filepath:line:col: format is the default C compiler error output format.
+// It allows editors and IDE's like emacs to quickly find the errors in the
+// output and jump to their source with a keyboard shortcut.
+// NB: using only the filename may lead to inability of IDE/editors
+// to find the source file, when the IDE has a different working folder than
+// v itself.
+
+const (
+	error_context_before = 2 // how many lines of source context to print before the pointer line
+	error_context_after = 2 // ^^^ same, but after
+)
+
+pub const (
+	emanager = new_error_manager()
+)
+
+//
+
+pub struct EManager {
+pub mut:
+	support_color bool // should the error and other messages
+	// have ANSI terminal escape color codes in them.
+	// By default, v tries to autodetect, if the terminal supports colors.
+	// Use -color and -nocolor options to override the detection decision.
+}
+
+pub fn (e &EManager) set_support_color(b bool) {
+	e.support_color = b
+}
+
+pub fn new_error_manager() &EManager {
+	return &EManager{ support_color: term.can_show_color_on_stderr() }
+}
+
+pub fn formated_error(kind string /*error or warn*/, emsg string, filepath string, pos token.Position) string {
+	mut path := filepath
+	verror_paths_override := os.getenv('VERROR_PATHS')
+	if verror_paths_override == 'absolute' {
+		path = os.real_path( path )
+	}else{
+		// Get relative path
+		workdir := os.getwd() + os.path_separator
+		if path.starts_with(workdir) {
+			path = path.replace(workdir, '')
+		}
+	}
+	column := 0
+	position := '${path}:${pos.line_nr+1}:$column:'
+	// QTODO: retrieve source lines around pos.line_nr and add them here
+	mut source_context := ''
+	//
+	final_position := if emanager.support_color {
+		term.bold(term.white(position))
+	} else {
+		position
+	}
+	mut final_kind := kind
+	if emanager.support_color {
+		final_kind = if kind.contains('error') {
+			term.bold(term.red(kind))
+		}else{
+			term.bold(term.bright_blue(kind))
+		}
+	}
+	final_msg := emsg
+	final_context := if source_context.len > 0 { '\n$source_context' } else { '' }
+	//
+	return '$final_position $final_kind $final_msg $final_context'.trim_space()
+}
+
+pub fn verror(kind string, s string) {
+	if emanager.support_color {
+		eprintln( term.bold(term.red(kind)) + ': $s' )
+	}else{
+		eprintln('${kind}: $s')
+	}
+	exit(1)
+}
diff --git a/vlib/v/util/util.v b/vlib/v/util/util.v
index e0ee866be4..af49f7fa15 100644
--- a/vlib/v/util/util.v
+++ b/vlib/v/util/util.v
@@ -4,6 +4,7 @@
 module util
 
 import os
+import v.pref
 
 pub const (
 	v_version = '0.1.26'
@@ -75,3 +76,82 @@ pub fn githash(should_get_from_filesystem bool) string {
 	C.snprintf(charptr(buf), 50, '%s', C.V_CURRENT_COMMIT_HASH)
 	return tos_clone(buf)
 }
+
+//
+
+fn set_vroot_folder(vroot_path string) {
+	// Preparation for the compiler module:
+	// VEXE env variable is needed so that compiler.vexe_path()
+	// can return it later to whoever needs it:
+	vname := if os.user_os() == 'windows' { 'v.exe' } else { 'v' }
+	os.setenv('VEXE', os.real_path(os.join_path( vroot_path, vname)), true)
+}
+
+pub fn launch_tool(is_verbose bool, tool_name string) {
+	vexe := pref.vexe_path()
+	vroot := os.dir(vexe)
+	set_vroot_folder(vroot)
+
+	tool_args := os.args[1..].join(' ')
+	tool_exe := path_of_executable(os.real_path('$vroot/cmd/tools/$tool_name'))
+	tool_source := os.real_path('$vroot/cmd/tools/${tool_name}.v')
+	tool_command := '"$tool_exe" $tool_args'
+	if is_verbose {
+		eprintln('launch_tool vexe        : $vroot')
+		eprintln('launch_tool vroot       : $vroot')
+		eprintln('launch_tool tool_args   : $tool_args')
+		eprintln('launch_tool tool_command: $tool_command')
+	}
+
+	// TODO Caching should be done on the `vlib/v` level.
+	mut should_compile := false
+	if !os.exists(tool_exe) {
+		should_compile = true
+	} else {
+		if os.file_last_mod_unix(tool_exe) <= os.file_last_mod_unix(vexe) {
+			// v was recompiled, maybe after v up ...
+			// rebuild the tool too just in case
+			should_compile = true
+
+			if tool_name == 'vself' || tool_name == 'vup' {
+				// The purpose of vself/up is to update and recompile v itself.
+				// After the first 'v self' execution, v will be modified, so
+				// then a second 'v self' will detect, that v is newer than the
+				// vself executable, and try to recompile vself/up again, which
+				// will slow down the next v recompilation needlessly.
+				should_compile = false
+			}
+		}
+		if os.file_last_mod_unix(tool_exe) <= os.file_last_mod_unix(tool_source) {
+			// the user changed the source code of the tool, or git updated it:
+			should_compile = true
+		}
+	}
+	if is_verbose {
+		eprintln('launch_tool should_compile: $should_compile')
+	}
+
+	if should_compile {
+		mut compilation_command := '"$vexe" '
+		compilation_command += '"$tool_source"'
+		if is_verbose {
+			eprintln('Compiling $tool_name with: "$compilation_command"')
+		}
+		tool_compilation := os.exec(compilation_command) or { panic(err) }
+		if tool_compilation.exit_code != 0 {
+			panic('V tool "$tool_source" could not be compiled\n' + tool_compilation.output)
+		}
+	}
+	if is_verbose {
+		eprintln('launch_tool running tool command: $tool_command ...')
+	}
+
+	exit(os.system(tool_command))
+}
+
+pub fn path_of_executable(path string) string {
+	$if windows {
+		return path + '.exe'
+	}
+	return path
+}