diff --git a/pkgs/unit/Readme.md b/pkgs/by-name/README.md
similarity index 100%
rename from pkgs/unit/Readme.md
rename to pkgs/by-name/README.md
diff --git a/pkgs/unit/he/hello/package.nix b/pkgs/by-name/he/hello/package.nix
similarity index 100%
rename from pkgs/unit/he/hello/package.nix
rename to pkgs/by-name/he/hello/package.nix
diff --git a/pkgs/unit/he/hello/test.nix b/pkgs/by-name/he/hello/test.nix
similarity index 100%
rename from pkgs/unit/he/hello/test.nix
rename to pkgs/by-name/he/hello/test.nix
diff --git a/pkgs/test/default.nix b/pkgs/test/default.nix
index 5783f33be8292ef..b0c09fd0c929d55 100644
--- a/pkgs/test/default.nix
+++ b/pkgs/test/default.nix
@@ -100,5 +100,5 @@ with pkgs;
 
   pkgs-lib = recurseIntoAttrs (import ../pkgs-lib/tests { inherit pkgs; });
 
-  units = callPackage ./units { };
+  namedHierarchy = callPackage ./named-hierarchy { };
 }
diff --git a/pkgs/test/units/default.nix b/pkgs/test/named-hierarchy/default.nix
similarity index 61%
rename from pkgs/test/units/default.nix
rename to pkgs/test/named-hierarchy/default.nix
index fc9128d3e0a28fd..bba1958c1c2297f 100644
--- a/pkgs/test/units/default.nix
+++ b/pkgs/test/named-hierarchy/default.nix
@@ -5,12 +5,12 @@
   callPackage,
 }:
 let
-  unitBaseDirectory = ../../unit;
+  baseDirectory = ../../by-name;
 
   /*
   Directory structure:
 
-  pkgs/unit
+  pkgs/by-name
   - bar
     - bar (regular)
   - fo
@@ -20,17 +20,17 @@ let
 
   Expected output:
 
-  Structural checks for pkgs/unit failed:
-  - pkgs/unit/bar: Invalid name "bar", must be at most 2 ASCII characters consisting of lowercase letters, numbers or `-`/`_`
-  - pkgs/unit/fo: Duplicate case-sensitive entries:
-    - pkgs/unit/fo/foo
-    - pkgs/unit/fo/FOO
-  - pkgs/unit/fo/@:
+  Structural checks for pkgs/by-name failed:
+  - pkgs/by-name/bar: Invalid name "bar", must be at most 2 ASCII characters consisting of lowercase letters, numbers or `-`/`_`
+  - pkgs/by-name/fo: Duplicate case-sensitive entries:
+    - pkgs/by-name/fo/foo
+    - pkgs/by-name/fo/FOO
+  - pkgs/by-name/fo/@:
     - Is a file, but should be a directory
     - Invalid name "@": Must be ASCII characters consisting of letters, numbers or `-`/`_`
     - Missing required `package.nix` file
-  - pkgs/unit/fo/bar:
-    - Incorrect directory: Should be in pkgs/unit/ba instead
+  - pkgs/by-name/fo/bar:
+    - Incorrect directory: Should be in pkgs/by-name/ba instead
 
   Ensuring the shards are directories is done in stage.nix
 
@@ -40,27 +40,27 @@ let
     let
       shardNameIsValid = builtins.match "[a-z0-9_-]{1,2}" shard != null;
       optionalShardNameError = lib.optional (! shardNameIsValid)
-        "- pkgs/unit/${shard}: Invalid name \"${shard}\", must be at most 2 ASCII characters consisting of lowercase letters, numbers or `-`/`_`\n";
+        "- pkgs/by-name/${shard}: Invalid name \"${shard}\", must be at most 2 ASCII characters consisting of lowercase letters, numbers or `-`/`_`\n";
 
-      entries = builtins.readDir (lib.path.append unitBaseDirectory shard);
+      entries = builtins.readDir (lib.path.append baseDirectory shard);
       duplicates = lib.filterAttrs (name: values: lib.length values > 1) (lib.groupBy lib.toLower (lib.attrNames entries));
       duplicateErrors = lib.mapAttrsToList (name: values: ''
-        - pkgs/unit/${shard}: Duplicate case-sensitive entries:
-        ${lib.concatMapStrings (value: "  - pkgs/unit/${shard}/${value}\n") values}''
+        - pkgs/by-name/${shard}: Duplicate case-sensitive entries:
+        ${lib.concatMapStrings (value: "  - pkgs/by-name/${shard}/${value}\n") values}''
       ) duplicates;
 
-      unitErrors = lib.concatLists (lib.mapAttrsToList (unit: type:
+      packageErrors = lib.concatLists (lib.mapAttrsToList (attr: type:
         let
-          unitNameIsValid = builtins.match "[a-zA-Z0-9_-]+" unit != null;
-          optionalUnitNameError = lib.optional (! unitNameIsValid)
-            "  - Invalid name \"${unit}\": Must be ASCII characters consisting of letters, numbers or `-`/`_`\n";
+          attrNameIsValid = builtins.match "[a-zA-Z0-9_-]+" attr != null;
+          optionalAttrNameError = lib.optional (! attrNameIsValid)
+            "  - Invalid name \"${attr}\": Must be ASCII characters consisting of letters, numbers or `-`/`_`\n";
 
-          correctShard = lib.toLower (lib.substring 0 2 unit);
+          correctShard = lib.toLower (lib.substring 0 2 attr);
           directoryIsCorrect = shard == correctShard;
-          optionalDirectoryError = lib.optional (shardNameIsValid && unitNameIsValid && ! directoryIsCorrect)
-            "  - Incorrect directory: Should be pkgs/unit/${correctShard}/${unit} instead\n";
+          optionalDirectoryError = lib.optional (shardNameIsValid && attrNameIsValid && ! directoryIsCorrect)
+            "  - Incorrect directory: Should be pkgs/by-name/${correctShard}/${attr} instead\n";
 
-          packageNixPath = (lib.path.append unitBaseDirectory (lib.path.subpath.join [ shard unit "package.nix" ]));
+          packageNixPath = (lib.path.append baseDirectory (lib.path.subpath.join [ shard attr "package.nix" ]));
           hasPackageNix = builtins.pathExists packageNixPath;
           optionalPackageNixError = lib.optional (! hasPackageNix)
             "  - Missing required `package.nix` file\n";
@@ -69,37 +69,37 @@ let
 
           errors =
             if type == "directory" then
-              optionalUnitNameError
+              optionalAttrNameError
               ++ optionalDirectoryError
               ++ optionalPackageNixError
             else
               [ fileError ];
         in
         lib.optional (errors != []) ''
-          - pkgs/unit/${shard}/${unit}:
+          - pkgs/by-name/${shard}/${attr}:
           ${lib.concatStrings errors}''
       ) entries);
     in
     if type == "directory" then
       optionalShardNameError
       ++ duplicateErrors
-      ++ unitErrors
+      ++ packageErrors
     else
-      [ "- pkgs/unit/${shard}: Is a file, but should be a directory.\n" ];
+      [ "- pkgs/by-name/${shard}: Is a file, but should be a directory.\n" ];
 
-  shards = builtins.removeAttrs (builtins.readDir unitBaseDirectory) [ "Readme.md" ];
+  shards = builtins.removeAttrs (builtins.readDir baseDirectory) [ "README.md" ];
 
   structureErrors = lib.concatLists (lib.mapAttrsToList errorPartsForShard shards);
 
   structureResult =
     if structureErrors == [] then
-      builtins.trace "Structural evaluation checks for pkgs/unit successfull" null
+      builtins.trace "Structural evaluation checks for pkgs/by-name successfull" null
     else
       throw ''
-        Structural evaluation checks for pkgs/unit failed:
+        Structural evaluation checks for pkgs/by-name failed:
         ${lib.concatStrings structureErrors}'';
 
-  unitFiles = import ../../top-level/unit-files.nix;
+  packageFiles = import ../../top-level/named-hierarchy-files.nix;
 
   overlay = self: super: {
     callPackage = fn: args:
@@ -140,21 +140,21 @@ let
       [ "${prefix}: Not a derivation" ]
     else
       [ ]
-  ) unitFiles);
+  ) packageFiles);
 
 
   # Excludes the reference check
   semanticResult =
     if semanticErrors == [] then
-      builtins.trace "Semantic evaluation checks for pkgs/unit successfull" null
+      builtins.trace "Semantic evaluation checks for pkgs/by-name successfull" null
     else
       throw ''
-        Semantic evaluation checks for pkgs/unit failed:
+        Semantic evaluation checks for pkgs/by-name failed:
         ${lib.concatStrings semanticErrors}'';
 
   refCheck = callPackage ./reference { };
 in
-runCommand "units-test" {
+runCommand "named-hierarchy-tests" {
   nativeBuildInputs = [
     structureResult
     semanticResult
@@ -163,21 +163,21 @@ runCommand "units-test" {
   passthru.reference = refCheck;
 } ''
   mkdir -p pkgs
-  cp -r ${unitBaseDirectory} pkgs/unit
+  cp -r ${baseDirectory} pkgs/by-name
 
   failed=
-  for unitDir in pkgs/unit/*/*; do
-    # echo "Check that $unitDir doesn't refer to files outside itself"
-    if ! nix-reference-check "$unitDir"; then
+  for packageDir in pkgs/by-name/*/*; do
+    # echo "Check that $packageDir doesn't refer to files outside itself"
+    if ! nix-reference-check "$packageDir"; then
       failed=1
     fi
   done
 
   if [[ -n "$failed" ]]; then
-    echo "Reference checks for pkgs/unit failed"
+    echo "Reference checks for pkgs/by-name failed"
     exit 1
   else
-    echo "Reference checks for pkgs/unit successfull"
+    echo "Reference checks for pkgs/by-name successfull"
     touch $out
   fi
 ''
diff --git a/pkgs/test/units/reference/.gitignore b/pkgs/test/named-hierarchy/reference/.gitignore
similarity index 100%
rename from pkgs/test/units/reference/.gitignore
rename to pkgs/test/named-hierarchy/reference/.gitignore
diff --git a/pkgs/test/units/reference/Cargo.lock b/pkgs/test/named-hierarchy/reference/Cargo.lock
similarity index 100%
rename from pkgs/test/units/reference/Cargo.lock
rename to pkgs/test/named-hierarchy/reference/Cargo.lock
diff --git a/pkgs/test/units/reference/Cargo.toml b/pkgs/test/named-hierarchy/reference/Cargo.toml
similarity index 100%
rename from pkgs/test/units/reference/Cargo.toml
rename to pkgs/test/named-hierarchy/reference/Cargo.toml
diff --git a/pkgs/test/units/reference/README.md b/pkgs/test/named-hierarchy/reference/README.md
similarity index 100%
rename from pkgs/test/units/reference/README.md
rename to pkgs/test/named-hierarchy/reference/README.md
diff --git a/pkgs/test/units/reference/default.nix b/pkgs/test/named-hierarchy/reference/default.nix
similarity index 100%
rename from pkgs/test/units/reference/default.nix
rename to pkgs/test/named-hierarchy/reference/default.nix
diff --git a/pkgs/test/named-hierarchy/reference/shell.nix b/pkgs/test/named-hierarchy/reference/shell.nix
new file mode 100644
index 000000000000000..8c4d4b8696c769f
--- /dev/null
+++ b/pkgs/test/named-hierarchy/reference/shell.nix
@@ -0,0 +1 @@
+(import ../../../.. {}).tests.namedHierarchy.reference
diff --git a/pkgs/test/units/reference/src/line_index.rs b/pkgs/test/named-hierarchy/reference/src/line_index.rs
similarity index 100%
rename from pkgs/test/units/reference/src/line_index.rs
rename to pkgs/test/named-hierarchy/reference/src/line_index.rs
diff --git a/pkgs/test/units/reference/src/main.rs b/pkgs/test/named-hierarchy/reference/src/main.rs
similarity index 87%
rename from pkgs/test/units/reference/src/main.rs
rename to pkgs/test/named-hierarchy/reference/src/main.rs
index fdc8f7ae9bedfad..3201e535f1ef9f5 100644
--- a/pkgs/test/units/reference/src/main.rs
+++ b/pkgs/test/named-hierarchy/reference/src/main.rs
@@ -19,7 +19,7 @@ fn resolve_reference(
     source: &PathBuf,
     line: usize,
     reference: PathBuf,
-    unit_dir: &PathBuf,
+    base_dir: &PathBuf,
 ) -> Result<PathBuf> {
     let mut rel_to_root = source.parent().unwrap().to_path_buf();
     let mut ascending = true;
@@ -35,11 +35,11 @@ fn resolve_reference(
                     )));
                 }
                 rel_to_root = match rel_to_root.parent() {
-                    Some(parent) if parent.starts_with(unit_dir) => parent.to_path_buf(),
+                    Some(parent) if parent.starts_with(base_dir) => parent.to_path_buf(),
                     _ => {
                         return Err(Error::msg(format!(
-                            "File {:?} on line {:?} refers to a path that escapes the unit directory {:?}: {:?}",
-                            source, line, unit_dir, reference
+                            "File {:?} on line {:?} refers to a path that escapes the package directory {:?}: {:?}",
+                            source, line, base_dir, reference
                         )));
                     }
                 };
@@ -66,7 +66,7 @@ fn resolve_reference(
     Ok(rel_to_root)
 }
 
-fn check_path(unit_dir: &PathBuf, file: &PathBuf, already_checked: &mut HashSet<PathBuf>) -> Result<()> {
+fn check_path(base_dir: &PathBuf, file: &PathBuf, already_checked: &mut HashSet<PathBuf>) -> Result<()> {
 
     if ! already_checked.insert(file.canonicalize()?) {
         //println!("Skipping check for file {:?} because it was already checked before", file);
@@ -75,7 +75,7 @@ fn check_path(unit_dir: &PathBuf, file: &PathBuf, already_checked: &mut HashSet<
 
     if file.is_dir() {
         for entry in file.read_dir()? {
-            check_path(&unit_dir, &entry?.path(), already_checked)?
+            check_path(&base_dir, &entry?.path(), already_checked)?
         }
         return Ok(())
     }
@@ -119,11 +119,11 @@ fn check_path(unit_dir: &PathBuf, file: &PathBuf, already_checked: &mut HashSet<
             )));
         }
 
-        let resolved = resolve_reference(&file, line, PathBuf::from(&text), &unit_dir)?;
+        let resolved = resolve_reference(&file, line, PathBuf::from(&text), &base_dir)?;
 
         //println!("Resolved reference {:?} in file {:?} line {:?} to {:?}", text, &file, line, resolved);
 
-        check_path(&unit_dir, &resolved, already_checked)?;
+        check_path(&base_dir, &resolved, already_checked)?;
     }
 
     Ok(())
@@ -138,10 +138,10 @@ fn main() -> Result<()> {
     if args.len() != 2 {
         return usage();
     }
-    let unit_dir = PathBuf::from(args[1].clone());
-    if ! unit_dir.is_dir() {
+    let base_dir = PathBuf::from(args[1].clone());
+    if ! base_dir.is_dir() {
         return usage();
     }
     let mut already_checked = HashSet::new();
-    check_path(&unit_dir, &unit_dir, &mut already_checked)
+    check_path(&base_dir, &base_dir, &mut already_checked)
 }
diff --git a/pkgs/test/units/reference/shell.nix b/pkgs/test/units/reference/shell.nix
deleted file mode 100644
index e8634a72d03997c..000000000000000
--- a/pkgs/test/units/reference/shell.nix
+++ /dev/null
@@ -1 +0,0 @@
-(import ../../../.. {}).tests.units.reference
diff --git a/pkgs/top-level/unit-files.nix b/pkgs/top-level/named-hierarchy-files.nix
similarity index 93%
rename from pkgs/top-level/unit-files.nix
rename to pkgs/top-level/named-hierarchy-files.nix
index ea14dfe41c1587f..ec1dde663b89c44 100644
--- a/pkgs/top-level/unit-files.nix
+++ b/pkgs/top-level/named-hierarchy-files.nix
@@ -1,11 +1,11 @@
 /*
 Internal Nixpkgs file, it may be removed or changed at any point without warning
 
-This file contains the mapping from attribute name to the file in pkgs/unit that contains a definition of it.
+This file contains the mapping from attribute name to the file in pkgs/by-name that contains a definition of it.
 No validity checks are performed, instead this file is optimized for performance.
 TODO: Link to manual and validity checks
 
-Example: If `pkgs/unit/he/hello` exists, the result will have a `hello = pkgs/unit/he/hello/package.nix` entry.
+Example: If `pkgs/by-name/he/hello` exists, the result will have a `hello = pkgs/by-name/he/hello/package.nix` entry.
 
 Type: AttrsOf Path
 */
@@ -20,7 +20,7 @@ let
   inherit (builtins) attrNames elemAt length mapAttrs readDir;
 
   # Warning: Do not make this configurable, otherwise the `import` evaluation cache won't work!
-  baseDirectory = ../unit;
+  baseDirectory = ../by-name;
 
   entries = readDir baseDirectory;
   shards = attrNames entries;
@@ -33,7 +33,7 @@ let
       # - Assume that Readme.md is the only file and change the condition to `shard == "Readme.md"` for a minor performance improvement.
       #   This would however cause very poor error messages if there's other files.
       # - Ensure that Readme.md is the only file, throwing a better error message if that's not the case.
-      #   However for good code architecture, all error messages relating to `pkgs/unit` should be centralized in (TODO: Link to validity checks)
+      #   However for good code architecture, all error messages relating to `pkgs/by-name` should be centralized in (TODO: Link to validity checks)
       # Additionally in either of those alternatives, we would have to duplicate the hardcoding of "Readme.md"
       { }
     else
@@ -87,7 +87,7 @@ let
 
   # We benchmark the three approaches with the following command with 300 runs:
   #
-  #   NIX_SHOW_STATS=1 nix-instantiate --eval --strict 'builtins.seq (import pkgs/top-level/unit-files.nix) null'
+  #   NIX_SHOW_STATS=1 nix-instantiate --eval --strict 'builtins.seq (import pkgs/top-level/named-hierarchy-files.nix) null'
   # Approach     | cpuTime [ms] | gc.totalBytes [MB]
   # linear merge | 33.4 ± 4.8   | 126.075
   # concatMap    | 21.9 ± 2.6   |   5.824
diff --git a/pkgs/top-level/stage.nix b/pkgs/top-level/stage.nix
index d0145edd99a06e9..91ed13b7fee069b 100644
--- a/pkgs/top-level/stage.nix
+++ b/pkgs/top-level/stage.nix
@@ -270,10 +270,10 @@ let
   };
 
   # Auto-calls packages declared in the named package hierarchy in pkgs/unit
-  unitPackages = self: super:
+  namedHierarchyPackages = self: super:
     lib.mapAttrs (name: file:
       self.callPackage file { }
-    ) (import ./unit-files.nix);
+    ) (import ./named-hierarchy-files.nix);
 
   # The complete chain of package set builders, applied from top to bottom.
   # stdenvOverlays must be last as it brings package forward from the
@@ -283,7 +283,7 @@ let
     stdenvAdapters
     trivialBuilders
     splice
-    unitPackages
+    namedHierarchyPackages
     allPackages
     otherPackageSets
     aliases