diff --git a/tests/net_hosted/README b/tests/net_hosted/README
new file mode 100644
index 000000000..724dd6158
--- /dev/null
+++ b/tests/net_hosted/README
@@ -0,0 +1,11 @@
+This directory contains network tests which require just "peer to peer"
+network connection between test host and device under test, instead of
+full Internet connection.
+
+Note that setup for these tests and tests themselves are WIP, and may
+not yet fully correspond to the functional specification above.
+
+So far, these tests are not run as part of the main testsuite and need
+to be run seperately (from the main test/ directory):
+
+    ./run-tests net_hosted/*.py
diff --git a/tests/net_inet/accept_nonblock.py b/tests/net_hosted/accept_nonblock.py
similarity index 100%
rename from tests/net_inet/accept_nonblock.py
rename to tests/net_hosted/accept_nonblock.py
diff --git a/tests/net_inet/accept_nonblock.py.exp b/tests/net_hosted/accept_nonblock.py.exp
similarity index 100%
rename from tests/net_inet/accept_nonblock.py.exp
rename to tests/net_hosted/accept_nonblock.py.exp
diff --git a/tests/net_inet/accept_timeout.py b/tests/net_hosted/accept_timeout.py
similarity index 100%
rename from tests/net_inet/accept_timeout.py
rename to tests/net_hosted/accept_timeout.py
diff --git a/tests/net_inet/accept_timeout.py.exp b/tests/net_hosted/accept_timeout.py.exp
similarity index 100%
rename from tests/net_inet/accept_timeout.py.exp
rename to tests/net_hosted/accept_timeout.py.exp
diff --git a/tests/net_inet/connect_nonblock.py b/tests/net_hosted/connect_nonblock.py
similarity index 100%
rename from tests/net_inet/connect_nonblock.py
rename to tests/net_hosted/connect_nonblock.py
diff --git a/tests/net_inet/connect_nonblock.py.exp b/tests/net_hosted/connect_nonblock.py.exp
similarity index 100%
rename from tests/net_inet/connect_nonblock.py.exp
rename to tests/net_hosted/connect_nonblock.py.exp
diff --git a/tests/net_inet/README b/tests/net_inet/README
index cdd49259a..9a5614efa 100644
--- a/tests/net_inet/README
+++ b/tests/net_inet/README
@@ -1,4 +1,4 @@
-This direcctory contains network tests which require Internet connection.
+This directory contains network tests which require Internet connection.
 Note that these tests are not run as part of the main testsuite and need
 to be run seperately (from the main test/ directory):