diff --git a/New/Shorewall/Hosts.pm b/New/Shorewall/Hosts.pm
new file mode 100644
index 000000000..ec80ea4ba
--- /dev/null
+++ b/New/Shorewall/Hosts.pm
@@ -0,0 +1,85 @@
+package Shorewall::Hosts;
+require Exporter;
+use Shorewall::Common;
+use Shorewall::Config;
+use Shorewall::Zones;
+use Shorewall::Interfaces;
+
+our @ISA = qw(Exporter);
+our @EXPORT = qw( validate_hosts_file );
+our @EXPORT_OK = ();
+our @VERSION = 1.00;
+
+#
+# Validates the hosts file. Generates entries in %zone{..}{hosts} 
+#
+sub validate_hosts_file()
+{
+    my %validoptions = (
+			blacklist => 1,
+			maclist => 1,
+			norfc1918 => 1,
+			nosmurfs => 1,
+			routeback => 1,		
+			routefilter => 1,
+			tcpflags => 1,
+			);
+
+    open HOSTS, "$ENV{TMP_DIR}/hosts" or fatal_error "Unable to open stripped hosts file: $!";
+
+    while ( $line = <HOSTS> ) {
+
+	chomp $line;
+	$line =~ s/\s+/ /g;
+
+	my ($zone, $hosts, $options, $extra) = split /\s+/, $line;
+
+	fatal_error "Invalid hosts file entry: $line" if $extra;
+
+	my $zoneref = $zones{$zone};
+	my $type    = $zoneref->{type};
+
+	fatal_error "Unknown ZONE ($zone)" unless $type;
+	fatal_error 'Firewall zone not allowed in ZONE column of hosts record' if $type eq 'firewall';
+
+	my $interface;
+
+	if ( $hosts =~ /^([\w.@%-]+):(.*)$/ ) {
+	    $interface = $1;
+	    $hosts = $2;
+	    $zoneref->{options}{complex} = 1 if $hosts =~ /^\+/;
+	    fatal_error "Unknown interface ($interface)" unless $interfaces{$interface}{root};
+	} else {
+	    fatal_error "Invalid HOSTS(S) column contents: $hosts";
+	}
+
+	my $optionsref;
+	
+	if ( $options && $options ne '-' ) {
+	    my @options = split ',', $options;
+	    my %options;
+
+	    for my $option ( @options )
+	    {
+		if ( $option eq 'ipsec' ) {
+		    $type = 'ipsec';
+		    $zoneref->{options}{complex} = 1;
+		} elsif ( $validoptions{$option}) {
+		    $options{$option} = 1;
+		} else {
+		    fatal_error "Invalid option ($option)";
+		}
+	    }
+
+	    $optionsref = \%options;
+	}
+
+	my @h = split ',', $hosts;
+
+	add_group_to_zone( $zone, $type , $interface, \@h , $optionsref);
+
+	progress_message "   Host \"$line\" validated";
+    }
+
+    close HOSTS;
+}
diff --git a/New/Shorewall/Zones.pm b/New/Shorewall/Zones.pm
index 338c076f6..e2d0edd7f 100644
--- a/New/Shorewall/Zones.pm
+++ b/New/Shorewall/Zones.pm
@@ -4,7 +4,7 @@ use Shorewall::Common;
 use Shorewall::Config;
 
 our @ISA = qw(Exporter);
-our @EXPORT = qw( determine_zones validate_hosts_file add_group_to_zone dump_zone_info zone_report @zones %zones $firewall_zone );
+our @EXPORT = qw( determine_zones add_group_to_zone dump_zone_info zone_report @zones %zones $firewall_zone );
 our @EXPORT_OK = ();
 our @VERSION = 1.00;
 
@@ -383,78 +383,4 @@ sub zone_report()
     }
 }
 
-#
-# Validates the hosts file. Generates entries in %zone{..}{hosts} 
-#
-sub validate_hosts_file()
-{
-    my %validoptions = (
-			blacklist => 1,
-			maclist => 1,
-			norfc1918 => 1,
-			nosmurfs => 1,
-			routeback => 1,		
-			routefilter => 1,
-			tcpflags => 1,
-			);
-
-    open HOSTS, "$ENV{TMP_DIR}/hosts" or fatal_error "Unable to open stripped hosts file: $!";
-
-    while ( $line = <HOSTS> ) {
-
-	chomp $line;
-	$line =~ s/\s+/ /g;
-
-	my ($zone, $hosts, $options, $extra) = split /\s+/, $line;
-
-	fatal_error "Invalid hosts file entry: $line" if $extra;
-
-	my $zoneref = $zones{$zone};
-	my $type    = $zoneref->{type};
-
-	fatal_error "Unknown ZONE ($zone)" unless $type;
-	fatal_error 'Firewall zone not allowed in ZONE column of hosts record' if $type eq 'firewall';
-
-	my $interface;
-
-	if ( $hosts =~ /^([\w.@%-]+):(.*)$/ ) {
-	    $interface = $1;
-	    $hosts = $2;
-	    $zoneref->{options}{complex} = 1 if $hosts =~ /^\+/;
-	    fatal_error "Unknown interface ($interface)" unless $interfaces{$interface}{root};
-	} else {
-	    fatal_error "Invalid HOSTS(S) column contents: $hosts";
-	}
-
-	my $optionsref;
-	
-	if ( $options && $options ne '-' ) {
-	    my @options = split ',', $options;
-	    my %options;
-
-	    for my $option ( @options )
-	    {
-		if ( $option eq 'ipsec' ) {
-		    $type = 'ipsec';
-		    $zoneref->{options}{complex} = 1;
-		} elsif ( $validoptions{$option}) {
-		    $options{$option} = 1;
-		} else {
-		    fatal_error "Invalid option ($option)";
-		}
-	    }
-
-	    $optionsref = \%options;
-	}
-
-	my @h = split ',', $hosts;
-
-	add_group_to_zone( $zone, $type , $interface, \@h , $optionsref);
-
-	progress_message "   Host \"$line\" validated";
-    }
-
-    close HOSTS;
-}
-
 1;
diff --git a/New/compiler.pl b/New/compiler.pl
index 66e3c693b..a08638247 100755
--- a/New/compiler.pl
+++ b/New/compiler.pl
@@ -9,6 +9,7 @@ use Shorewall::Config;
 use Shorewall::Chains;
 use Shorewall::Zones;
 use Shorewall::Interfaces;
+use Shorewall::Hosts;
 
 #
 # IPSEC Option types
@@ -4624,6 +4625,7 @@ sub compile_firewall( $ ) {
 	generate_matrix;                       
 	dump_chain_table               if $ENV{DEBUG};
 	generate_script_3;
+	
 	$file = "$dir/$file";
 	rename $tempfile, $file;
 	chmod 0700, $file;