diff --git a/manifest-schema.graphql b/manifest-schema.graphql
index 5c0416261..5fb89323f 100644
--- a/manifest-schema.graphql
+++ b/manifest-schema.graphql
@@ -6,6 +6,7 @@ type Schema {
 }
 
 union DataSource = EthereumContractDataSource
+union DataSourceTemplate = EthereumContractDataSourceTemplate
 
 type EthereumContractDataSource {
   kind: String!
@@ -13,7 +14,6 @@ type EthereumContractDataSource {
   network: String
   source: EthereumContractSource!
   mapping: EthereumContractMapping!
-  templates: [EthereumContractDataSourceTemplate!]
 }
 
 type EthereumContractSource {
@@ -64,6 +64,7 @@ type SubgraphManifest {
   description: String
   repository: String
   dataSources: [DataSource!]!
+  templates: [DataSourceTemplate!]
 }
 
 type EthereumContractDataSourceTemplate {
diff --git a/src/compiler.js b/src/compiler.js
index 14e2d501e..7710865b3 100644
--- a/src/compiler.js
+++ b/src/compiler.js
@@ -169,29 +169,22 @@ class Compiler {
       async spinner => {
         subgraph = subgraph.update('dataSources', dataSources =>
           dataSources.map(dataSource =>
-            dataSource
-              .updateIn(['mapping', 'file'], mappingPath =>
-                this._compileDataSourceMapping(dataSource, mappingPath, spinner),
-              )
-              .update(
-                'templates',
-                templates =>
-                  templates === undefined
-                    ? templates
-                    : templates.map(template =>
-                        template.updateIn(['mapping', 'file'], mappingPath =>
-                          this._compileDataSourceTemplateMapping(
-                            dataSource,
-                            template,
-                            mappingPath,
-                            spinner,
-                          ),
-                        ),
-                      ),
-              ),
+            dataSource.updateIn(['mapping', 'file'], mappingPath =>
+              this._compileDataSourceMapping(dataSource, mappingPath, spinner),
+            ),
           ),
         )
 
+        subgraph = subgraph.update('templates', templates =>
+          templates === undefined
+            ? templates
+            : templates.map(template =>
+                template.updateIn(['mapping', 'file'], mappingPath =>
+                  this._compileTemplateMapping(template, mappingPath, spinner),
+                ),
+              ),
+        )
+
         return subgraph
       },
     )
@@ -230,7 +223,17 @@ class Compiler {
       global = path.relative(baseDir, global)
 
       asc.main(
-        [inputFile, global, '--baseDir', baseDir, '--lib', libs, '--outFile', outputFile, '--optimize'],
+        [
+          inputFile,
+          global,
+          '--baseDir',
+          baseDir,
+          '--lib',
+          libs,
+          '--outFile',
+          outputFile,
+          '--optimize',
+        ],
         {
           stdout: process.stdout,
           stderr: process.stdout,
@@ -247,13 +250,12 @@ class Compiler {
     }
   }
 
-  _compileDataSourceTemplateMapping(dataSource, template, mappingPath, spinner) {
+  _compileTemplateMapping(template, mappingPath, spinner) {
     try {
-      let dataSourceName = dataSource.get('name')
       let templateName = template.get('name')
 
       let outFile = path.join(
-        this.subgraphDir(this.options.outputDir, dataSource),
+        this.options.outputDir,
         'templates',
         templateName,
         this.options.outputFormat == 'wasm'
@@ -264,7 +266,7 @@ class Compiler {
       step(
         spinner,
         'Compile data source template:',
-        `${dataSourceName} > ${templateName} => ${this.displayPath(outFile)}`,
+        `${templateName} => ${this.displayPath(outFile)}`,
       )
 
       let baseDir = this.sourceDir
@@ -283,7 +285,17 @@ class Compiler {
       global = path.relative(baseDir, global)
 
       asc.main(
-        [inputFile, global, '--baseDir', baseDir, '--lib', libs, '--outFile', outputFile, '--optimize'],
+        [
+          inputFile,
+          global,
+          '--baseDir',
+          baseDir,
+          '--lib',
+          libs,
+          '--outFile',
+          outputFile,
+          '--optimize',
+        ],
         {
           stdout: process.stdout,
           stderr: process.stdout,
@@ -350,51 +362,43 @@ class Compiler {
               // directory by the AssemblyScript compiler
               .updateIn(['mapping', 'file'], mappingFile =>
                 path.relative(this.options.outputDir, mappingFile),
-              )
-
-              .update(
-                'templates',
-                templates =>
-                  templates === undefined
-                    ? templates
-                    : templates.map(template =>
-                        template
-                          // Write data source template ABIs to the output directory
-                          .updateIn(['mapping', 'abis'], abis =>
-                            abis.map(abi =>
-                              abi.update('file', abiFile => {
-                                let abiData = ABI.load(abi.get('name'), abiFile)
-                                return path.relative(
-                                  this.options.outputDir,
-                                  this._writeSubgraphFile(
-                                    abiFile,
-                                    JSON.stringify(abiData.data.toJS(), null, 2),
-                                    this.sourceDir,
-                                    path.join(
-                                      this.subgraphDir(
-                                        this.options.outputDir,
-                                        dataSource,
-                                      ),
-                                      'templates',
-                                      template.get('name'),
-                                    ),
-                                    spinner,
-                                  ),
-                                )
-                              }),
-                            ),
-                          )
-
-                          // The mapping file is already being written to the output
-                          // directory by the AssemblyScript compiler
-                          .updateIn(['mapping', 'file'], mappingFile =>
-                            path.relative(this.options.outputDir, mappingFile),
-                          ),
-                      ),
               ),
           )
         })
 
+        // Copy template files and update their paths
+        subgraph = subgraph.update('templates', templates => {
+          return templates === undefined
+            ? templates
+            : templates.map(template =>
+                template
+                  // Write template ABIs to the output directory
+                  .updateIn(['mapping', 'abis'], abis =>
+                    abis.map(abi =>
+                      abi.update('file', abiFile => {
+                        let abiData = ABI.load(abi.get('name'), abiFile)
+                        return path.relative(
+                          this.options.outputDir,
+                          this._writeSubgraphFile(
+                            abiFile,
+                            JSON.stringify(abiData.data.toJS(), null, 2),
+                            this.sourceDir,
+                            this.subgraphDir(this.options.outputDir, template),
+                            spinner,
+                          ),
+                        )
+                      }),
+                    ),
+                  )
+
+                  // The mapping file is already being written to the output
+                  // directory by the AssemblyScript compiler
+                  .updateIn(['mapping', 'file'], mappingFile =>
+                    path.relative(this.options.outputDir, mappingFile),
+                  ),
+              )
+        })
+
         // Write the subgraph manifest itself
         let outputFilename = path.join(this.options.outputDir, 'subgraph.yaml')
         step(spinner, 'Write subgraph manifest', this.displayPath(outputFilename))
@@ -453,38 +457,27 @@ class Compiler {
           })
         }
 
-        // Upload the ABIs of all data source templates to IPFS
-        for (let [i, dataSource] of subgraph.get('dataSources').entries()) {
-          for (let [j, template] of dataSource
-            .get('templates', immutable.List())
-            .entries()) {
-            for (let [k, abi] of template.getIn(['mapping', 'abis']).entries()) {
-              updates.push({
-                keyPath: ['dataSources', i, 'templates', j, 'mapping', 'abis', k, 'file'],
-                value: await this._uploadFileToIPFS(
-                  abi.get('file'),
-                  uploadedFiles,
-                  spinner,
-                ),
-              })
-            }
-          }
-        }
-
-        // Upload all template mappings
-        for (let [i, dataSource] of subgraph.get('dataSources').entries()) {
-          for (let [j, template] of dataSource
-            .get('templates', immutable.List())
-            .entries()) {
+        // Upload the mapping and ABIs of all data source templates
+        for (let [i, template] of subgraph.get('templates', immutable.List()).entries()) {
+          for (let [j, abi] of template.getIn(['mapping', 'abis']).entries()) {
             updates.push({
-              keyPath: ['dataSources', i, 'templates', j, 'mapping', 'file'],
+              keyPath: ['templates', i, 'mapping', 'abis', j, 'file'],
               value: await this._uploadFileToIPFS(
-                template.getIn(['mapping', 'file']),
+                abi.get('file'),
                 uploadedFiles,
                 spinner,
               ),
             })
           }
+
+          updates.push({
+            keyPath: ['templates', i, 'mapping', 'file'],
+            value: await this._uploadFileToIPFS(
+              template.getIn(['mapping', 'file']),
+              uploadedFiles,
+              spinner,
+            ),
+          })
         }
 
         // Apply all updates to the subgraph
diff --git a/src/migrations.js b/src/migrations.js
index 22cf79703..e38199855 100644
--- a/src/migrations.js
+++ b/src/migrations.js
@@ -3,6 +3,7 @@ const { withSpinner, step } = require('./command-helpers/spinner')
 const MIGRATIONS = [
   require('./migrations/mapping_api_version_0_0_1'),
   require('./migrations/mapping_api_version_0_0_2'),
+  require('./migrations/spec_version_0_0_2'),
 ]
 
 const applyMigrations = async options =>
diff --git a/src/migrations/spec_version_0_0_2.js b/src/migrations/spec_version_0_0_2.js
new file mode 100644
index 000000000..6816f5631
--- /dev/null
+++ b/src/migrations/spec_version_0_0_2.js
@@ -0,0 +1,35 @@
+const fs = require('fs-extra')
+const toolbox = require('gluegun/toolbox')
+const yaml = require('js-yaml')
+
+// Spec version to 0.0.2 uses top level templates. graph-cli no longer supports
+// 0.0.1 which used nested templates.
+module.exports = {
+  name: 'Bump mapping specVersion from 0.0.1 to 0.0.2',
+  predicate: async ({ sourceDir, manifestFile }) => {
+    let manifest = yaml.safeLoad(fs.readFileSync(manifestFile, 'utf-8'))
+    return (
+      manifest &&
+      typeof manifest === 'object' &&
+      manifest.specVersion &&
+      manifest.specVersion === '0.0.1'
+    )
+  },
+  apply: async ({ manifestFile }) => {
+    await toolbox.patching.replace(
+      manifestFile,
+      'specVersion: 0.0.1',
+      'specVersion: 0.0.2',
+    )
+    await toolbox.patching.replace(
+      manifestFile,
+      "specVersion: '0.0.1'",
+      "specVersion: '0.0.2'",
+    )
+    await toolbox.patching.replace(
+      manifestFile,
+      'specVersion: "0.0.1"',
+      'specVersion: "0.0.2"',
+    )
+  },
+}
diff --git a/src/subgraph.js b/src/subgraph.js
index 9921f52e9..798b2107d 100644
--- a/src/subgraph.js
+++ b/src/subgraph.js
@@ -6,7 +6,6 @@ let { strOptions } = require('yaml/types')
 let graphql = require('graphql/language')
 let validation = require('./validation')
 let ABI = require('./abi')
-const toolbox = require('gluegun/toolbox')
 
 const throwCombinedError = (filename, errors) => {
   throw new Error(
@@ -98,20 +97,16 @@ module.exports = class Subgraph {
   }
 
   static collectDataSourceTemplates(manifest) {
-    return manifest.get('dataSources').reduce(
-      (templates, dataSource, dataSourceIndex) =>
-        dataSource.get('templates', immutable.List()).reduce(
-          (templates, template, templateIndex) =>
-            template.get('kind') === 'ethereum/contract'
-              ? templates.push(
-                  immutable.Map({
-                    path: ['dataSources', dataSourceIndex, 'templates', templateIndex],
-                    dataSource: template,
-                  }),
-                )
-              : templates,
-          templates,
-        ),
+    return manifest.get('templates', immutable.List()).reduce(
+      (templates, template, templateIndex) =>
+        template.get('kind') === 'ethereum/contract'
+          ? templates.push(
+              immutable.Map({
+                path: ['templates', templateIndex],
+                dataSource: template,
+              }),
+            )
+          : templates,
       immutable.List(),
     )
   }
diff --git a/src/type-generator.js b/src/type-generator.js
index 0c00441e6..a829e6a23 100644
--- a/src/type-generator.js
+++ b/src/type-generator.js
@@ -46,10 +46,9 @@ module.exports = class TypeGenerator {
       let abis = await this.loadABIs(subgraph)
       await this.generateTypesForABIs(abis)
 
-      let dataSources = subgraph.get('dataSources')
-      await this.generateTypesForAllDataSourceTemplates(dataSources)
+      await this.generateTypesForDataSourceTemplates(subgraph)
 
-      let templateAbis = await this.loadDataSourceTemplateABIs(dataSources)
+      let templateAbis = await this.loadDataSourceTemplateABIs(subgraph)
       await this.generateTypesForDataSourceTemplateABIs(templateAbis)
 
       let schema = await this.loadSchema(subgraph)
@@ -131,7 +130,7 @@ module.exports = class TypeGenerator {
     }
   }
 
-  _loadDataSourceTemplateABI(dataSource, template, name, maybeRelativePath, spinner) {
+  _loadDataSourceTemplateABI(template, name, maybeRelativePath, spinner) {
     try {
       if (this.sourceDir) {
         let absolutePath = path.resolve(this.sourceDir, maybeRelativePath)
@@ -140,9 +139,9 @@ module.exports = class TypeGenerator {
           `Load data source template ABI from`,
           this.displayPath(absolutePath),
         )
-        return { dataSource, template, abi: ABI.load(name, absolutePath) }
+        return { template, abi: ABI.load(name, absolutePath) }
       } else {
-        return { dataSource, template, abi: ABI.load(name, maybeRelativePath) }
+        return { template, abi: ABI.load(name, maybeRelativePath) }
       }
     } catch (e) {
       throw Error(`Failed to load data source template ABI: ${e.message}`)
@@ -200,9 +199,9 @@ module.exports = class TypeGenerator {
       step(
         spinner,
         `Generate types for data source template ABI:`,
-        `${abi.dataSource.get('name')} > ${abi.template.get('name')} > ${
-          abi.abi.name
-        } (${this.displayPath(abi.abi.file)})`,
+        `${abi.template.get('name')} > ${abi.abi.name} (${this.displayPath(
+          abi.abi.file,
+        )})`,
       )
 
       let codeGenerator = abi.abi.codeGenerator()
@@ -219,7 +218,6 @@ module.exports = class TypeGenerator {
 
       let outputFile = path.join(
         this.options.outputDir,
-        abi.dataSource.get('name'),
         'templates',
         abi.template.get('name'),
         `${abi.abi.name}.ts`,
@@ -274,94 +272,67 @@ module.exports = class TypeGenerator {
     )
   }
 
-  async generateTypesForDataSourceTemplates(dataSource, spinner) {
-    // Combine the generated code for all templates in the date source
-    let codeSegments = dataSource
-      .get('templates', immutable.List())
-      .reduce((codeSegments, template) => {
-        step(
-          spinner,
-          'Generate types for data source template',
-          `${dataSource.get('name')} > ${template.get('name')}`,
-        )
-
-        let codeGenerator = new DataSourceTemplateCodeGenerator(template)
-
-        // Only generate module imports once, because they are identical for all
-        // types generate for data source templates
-        if (codeSegments.isEmpty()) {
-          codeSegments = codeSegments.concat(codeGenerator.generateModuleImports())
-        }
-
-        return codeSegments.concat(codeGenerator.generateTypes())
-      }, immutable.List())
-
-    if (!codeSegments.isEmpty()) {
-      let code = prettier.format([GENERATED_FILE_NOTE, ...codeSegments].join('\n'), {
-        parser: 'typescript',
-      })
-
-      let outputFile = path.join(
-        this.options.outputDir,
-        dataSource.get('name'),
-        'templates.ts',
-      )
-      step(
-        spinner,
-        `Write types templates of data source ${dataSource.get('name')} to`,
-        this.displayPath(outputFile),
-      )
-      fs.mkdirsSync(path.dirname(outputFile))
-      fs.writeFileSync(outputFile, code)
-    }
-  }
-
-  async generateTypesForAllDataSourceTemplates(dataSources) {
+  async generateTypesForDataSourceTemplates(subgraph) {
     return await withSpinner(
       `Generate types for data source templates`,
       `Failed to generate types for data source templates`,
       `Warnings while generating types for data source templates`,
       async spinner => {
-        await Promise.all(
-          dataSources.map(async dataSource => {
-            await this.generateTypesForDataSourceTemplates(dataSource, spinner)
-          }),
-        )
+        // Combine the generated code for all templates
+        let codeSegments = subgraph
+          .get('templates', immutable.List())
+          .reduce((codeSegments, template) => {
+            step(
+              spinner,
+              'Generate types for data source template',
+              `${template.get('name')}`,
+            )
+
+            let codeGenerator = new DataSourceTemplateCodeGenerator(template)
+
+            // Only generate module imports once, because they are identical for
+            // all types generated for data source templates.
+            if (codeSegments.isEmpty()) {
+              codeSegments = codeSegments.concat(codeGenerator.generateModuleImports())
+            }
+
+            return codeSegments.concat(codeGenerator.generateTypes())
+          }, immutable.List())
+
+        if (!codeSegments.isEmpty()) {
+          let code = prettier.format([GENERATED_FILE_NOTE, ...codeSegments].join('\n'), {
+            parser: 'typescript',
+          })
+
+          let outputFile = path.join(this.options.outputDir, 'templates.ts')
+          step(spinner, `Write types for templates to`, this.displayPath(outputFile))
+          fs.mkdirsSync(path.dirname(outputFile))
+          fs.writeFileSync(outputFile, code)
+        }
       },
     )
   }
 
-  async loadDataSourceTemplateABIs(dataSources) {
+  async loadDataSourceTemplateABIs(subgraph) {
     return await withSpinner(
       `Load data source template ABIs`,
       `Failed to load data source template ABIs`,
       `Warnings while loading data source template ABIs`,
       async spinner => {
-        return dataSources.reduce(
-          (abis, dataSource) =>
-            dataSource
-              .get('templates', immutable.List())
-              .reduce(
-                (abis, template) =>
-                  template
-                    .getIn(['mapping', 'abis'])
-                    .reduce(
-                      (abis, abi) =>
-                        abis.push(
-                          this._loadDataSourceTemplateABI(
-                            dataSource,
-                            template,
-                            abi.get('name'),
-                            abi.get('file'),
-                            spinner,
-                          ),
-                        ),
-                      abis,
-                    ),
-                abis,
+        let abis = []
+        for (let template of subgraph.get('templates', immutable.List())) {
+          for (let abi of template.getIn(['mapping', 'abis'])) {
+            abis.push(
+              this._loadDataSourceTemplateABI(
+                template,
+                abi.get('name'),
+                abi.get('file'),
+                spinner,
               ),
-          immutable.List(),
-        )
+            )
+          }
+        }
+        return abis
       },
     )
   }
diff --git a/src/validation/manifest.js b/src/validation/manifest.js
index 7c1fec9a1..458749b2b 100644
--- a/src/validation/manifest.js
+++ b/src/validation/manifest.js
@@ -39,10 +39,10 @@ const resolveType = (schema, type) =>
   type.has('type')
     ? resolveType(schema, type.get('type'))
     : type.get('kind') === 'NamedType'
-      ? schema
-          .get('definitions')
-          .find(def => def.getIn(['name', 'value']) === type.getIn(['name', 'value']))
-      : 'resolveType: unimplemented'
+    ? schema
+        .get('definitions')
+        .find(def => def.getIn(['name', 'value']) === type.getIn(['name', 'value']))
+    : 'resolveType: unimplemented'
 
 /**
  * A map of supported validators.
@@ -56,13 +56,13 @@ const validators = immutable.fromJS({
       .getIn(['type', 'types'])
       .reduce(
         (errors, type) => errors.concat(validateValue(value, ctx.set('type', type))),
-        List()
+        List(),
       ),
 
   NamedType: (value, ctx) =>
     validateValue(
       value,
-      ctx.update('type', type => resolveType(ctx.get('schema'), type))
+      ctx.update('type', type => resolveType(ctx.get('schema'), type)),
     ),
 
   NonNullType: (value, ctx) =>
@@ -84,10 +84,10 @@ const validators = immutable.fromJS({
                 value,
                 ctx
                   .update('path', path => path.push(i))
-                  .update('type', type => type.get('type'))
-              )
+                  .update('type', type => type.get('type')),
+              ),
             ),
-          List()
+          List(),
         )
       : immutable.fromJS([
           {
@@ -111,16 +111,23 @@ const validators = immutable.fromJS({
                       value.get(key),
                       ctx
                         .update('path', path => path.push(key))
-                        .set('type', getFieldType(ctx.get('type'), key))
-                    )
+                        .set('type', getFieldType(ctx.get('type'), key)),
+                    ),
                   )
                 : errors.push(
-                    immutable.fromJS({
-                      path: ctx.get('path'),
-                      message: `Unexpected key in map: ${key}`,
-                    })
+                    key == 'templates'
+                      ? immutable.fromJS({
+                          path: ctx.get('path'),
+                          message: `The way to declare data source templates has changed, ` + 
+                                `please move the templates from inside data sources to ` +
+                                `a \`templates:\` field at the top level of the manifest.`,
+                        })
+                      : immutable.fromJS({
+                          path: ctx.get('path'),
+                          message: `Unexpected key in map: ${key}`,
+                        }),
                   ),
-            List()
+            List(),
           )
       : immutable.fromJS([
           {
@@ -191,7 +198,7 @@ const validateManifest = (value, type, schema, { resolveFile }) =>
           path: [],
           errors: [],
           resolveFile,
-        })
+        }),
       )
     : immutable.fromJS([
         {
diff --git a/tests/cli/validation.test.js b/tests/cli/validation.test.js
index d01c57ab8..7d8a9bedc 100644
--- a/tests/cli/validation.test.js
+++ b/tests/cli/validation.test.js
@@ -128,4 +128,12 @@ describe('Validation', () => {
       exitCode: 1,
     },
   )
+  cliTest(
+    'Deprecated template format gives nice error',
+    ['codegen', '--skip-migrations'],
+    'validation/nested-template-nice-error',
+    {
+      exitCode: 1,
+    },
+  )
 })
diff --git a/tests/cli/validation/abi-not-found.stderr b/tests/cli/validation/abi-not-found.stderr
index 8ce91ded4..4a5df61ef 100644
--- a/tests/cli/validation/abi-not-found.stderr
+++ b/tests/cli/validation/abi-not-found.stderr
@@ -7,7 +7,7 @@
   - FirstAbi
   - SecondAbi
 
-  Path: dataSources > 0 > templates > 0 > eventHandlers > 0
+  Path: templates > 0 > eventHandlers > 0
   Event with signature 'ExampleEvent(string,uint256)' not present in ABI 'ExampleContract'.
   Available events:
   - ExampleEvent(string)
diff --git a/tests/cli/validation/abi-not-found/subgraph.yaml b/tests/cli/validation/abi-not-found/subgraph.yaml
index 05ecb0841..f4d3fedf4 100644
--- a/tests/cli/validation/abi-not-found/subgraph.yaml
+++ b/tests/cli/validation/abi-not-found/subgraph.yaml
@@ -22,21 +22,21 @@ dataSources:
       eventHandlers:
         - event: ExampleEvent(string)
           handler: handleExampleEvent
-    templates:
-      - kind: ethereum/contract
-        name: ExampleTemplate
-        source:
-          abi: ExampleContract
-        mapping:
-          kind: ethereum/events
-          apiVersion: 0.0.1
-          language: wasm/assemblyscript
-          file: ./mapping.ts
-          entities:
-            - ExampleEntity
-          abis:
-            - name: ExampleContract
-              file: ./Abi.json
-          eventHandlers:
-            - event: ExampleEvent(string,uint256)
-              handler: handleExampleEvent
+templates:
+  - kind: ethereum/contract
+    name: ExampleTemplate
+    source:
+      abi: ExampleContract
+    mapping:
+      kind: ethereum/events
+      apiVersion: 0.0.1
+      language: wasm/assemblyscript
+      file: ./mapping.ts
+      entities:
+        - ExampleEntity
+      abis:
+        - name: ExampleContract
+          file: ./Abi.json
+      eventHandlers:
+        - event: ExampleEvent(string,uint256)
+          handler: handleExampleEvent
diff --git a/tests/cli/validation/event-not-found.stderr b/tests/cli/validation/event-not-found.stderr
index 7abe3bd16..2abaaf993 100644
--- a/tests/cli/validation/event-not-found.stderr
+++ b/tests/cli/validation/event-not-found.stderr
@@ -6,7 +6,7 @@
   Available events:
   - ExampleEvent(string)
 
-  Path: dataSources > 0 > templates > 0 > eventHandlers > 0
+  Path: templates > 0 > eventHandlers > 0
   Event with signature 'ExampleEvent(string,uint256)' not present in ABI 'ExampleContract'.
   Available events:
   - ExampleEvent(string)
diff --git a/tests/cli/validation/event-not-found/subgraph.yaml b/tests/cli/validation/event-not-found/subgraph.yaml
index ac79ed38a..70fdd507a 100644
--- a/tests/cli/validation/event-not-found/subgraph.yaml
+++ b/tests/cli/validation/event-not-found/subgraph.yaml
@@ -20,21 +20,21 @@ dataSources:
       eventHandlers:
         - event: ExampleEvent(string,uint256)
           handler: handleExampleEvent
-    templates:
-      - kind: ethereum/contract
-        name: ExampleTemplate
-        source:
-          abi: ExampleContract
-        mapping:
-          kind: ethereum/events
-          apiVersion: 0.0.1
-          language: wasm/assemblyscript
-          file: ./mapping.ts
-          entities:
-            - ExampleEntity
-          abis:
-            - name: ExampleContract
-              file: ./Abi.json
-          eventHandlers:
-            - event: ExampleEvent(string,uint256)
-              handler: handleExampleEvent
+templates:
+  - kind: ethereum/contract
+    name: ExampleTemplate
+    source:
+      abi: ExampleContract
+    mapping:
+      kind: ethereum/events
+      apiVersion: 0.0.1
+      language: wasm/assemblyscript
+      file: ./mapping.ts
+      entities:
+        - ExampleEntity
+      abis:
+        - name: ExampleContract
+          file: ./Abi.json
+      eventHandlers:
+        - event: ExampleEvent(string,uint256)
+          handler: handleExampleEvent
diff --git a/tests/cli/validation/example-values-found/generated/ExampleSubgraph/ExampleContract.ts b/tests/cli/validation/example-values-found/generated/ExampleSubgraph/ExampleContract.ts
index 133155879..680a1c507 100644
--- a/tests/cli/validation/example-values-found/generated/ExampleSubgraph/ExampleContract.ts
+++ b/tests/cli/validation/example-values-found/generated/ExampleSubgraph/ExampleContract.ts
@@ -1,3 +1,5 @@
+// THIS IS AN AUTOGENERATED FILE. DO NOT EDIT THIS FILE DIRECTLY.
+
 import {
   EthereumCall,
   EthereumEvent,
diff --git a/tests/cli/validation/example-values-found/generated/schema.ts b/tests/cli/validation/example-values-found/generated/schema.ts
index a21336407..beee560b9 100644
--- a/tests/cli/validation/example-values-found/generated/schema.ts
+++ b/tests/cli/validation/example-values-found/generated/schema.ts
@@ -1,3 +1,5 @@
+// THIS IS AN AUTOGENERATED FILE. DO NOT EDIT THIS FILE DIRECTLY.
+
 import {
   TypedMap,
   Entity,
diff --git a/tests/cli/validation/invalid-data-source-template.stderr b/tests/cli/validation/invalid-data-source-template.stderr
index 43e9d18e7..631888b97 100644
--- a/tests/cli/validation/invalid-data-source-template.stderr
+++ b/tests/cli/validation/invalid-data-source-template.stderr
@@ -4,27 +4,27 @@
   Path: dataSources > 0 > mapping > abis > 0 > file
   File does not exist: Abi.json
 
-  Path: dataSources > 0 > templates > 0 > kind
+  Path: templates > 0 > kind
   No value provided
 
-  Path: dataSources > 0 > templates > 0 > name
+  Path: templates > 0 > name
   Expected string, found number:
   5
 
-  Path: dataSources > 0 > templates > 0 > source
+  Path: templates > 0 > source
   Unexpected key in map: address
 
-  Path: dataSources > 0 > templates > 0 > mapping > entities
+  Path: templates > 0 > mapping > entities
   No value provided
 
-  Path: dataSources > 0 > templates > 0 > mapping > abis > 0 > file
+  Path: templates > 0 > mapping > abis > 0 > file
   File does not exist: NonexistentAbi.json
 
-  Path: dataSources > 0 > templates > 0 > mapping > language
+  Path: templates > 0 > mapping > language
   No value provided
 
-  Path: dataSources > 0 > templates > 0 > mapping > file
+  Path: templates > 0 > mapping > file
   No value provided
 
-  Path: dataSources > 0 > templates > 0 > mapping > apiVersion
+  Path: templates > 0 > mapping > apiVersion
   No value provided
diff --git a/tests/cli/validation/invalid-data-source-template/subgraph.yaml b/tests/cli/validation/invalid-data-source-template/subgraph.yaml
index 6c3ae8fca..7e0db9f11 100644
--- a/tests/cli/validation/invalid-data-source-template/subgraph.yaml
+++ b/tests/cli/validation/invalid-data-source-template/subgraph.yaml
@@ -20,13 +20,13 @@ dataSources:
       eventHandlers:
         - event: ExampleEvent(string,uint256)
           handler: handleExampleEvent
-    templates:
-      - name: 5
-        source:
-          abi: SomeAbi
-          address: '0x22843e74c59580b3eaf6c233fa67d8b7c561a835'
-        mapping:
-          kind: ethereum/foo
-          abis:
-            - name: SomeAbi
-              file: ./NonexistentAbi.json
+templates:
+  - name: 5
+    source:
+      abi: SomeAbi
+      address: '0x22843e74c59580b3eaf6c233fa67d8b7c561a835'
+    mapping:
+      kind: ethereum/foo
+      abis:
+        - name: SomeAbi
+          file: ./NonexistentAbi.json
diff --git a/tests/cli/validation/invalid-manifest.stderr b/tests/cli/validation/invalid-manifest.stderr
index e9368a256..f7794fb77 100644
--- a/tests/cli/validation/invalid-manifest.stderr
+++ b/tests/cli/validation/invalid-manifest.stderr
@@ -23,9 +23,9 @@
   - 13
   - 14
 
-  Path: dataSources > 0 > templates
-  Expected list, found map:
-  field: foo
-
   Path: dataSources > 0
   Unexpected key in map: abis
+
+  Path: templates
+  Expected list, found map:
+  field: foo
diff --git a/tests/cli/validation/invalid-manifest/subgraph.yaml b/tests/cli/validation/invalid-manifest/subgraph.yaml
index 63ee3896c..d4fa4ee08 100644
--- a/tests/cli/validation/invalid-manifest/subgraph.yaml
+++ b/tests/cli/validation/invalid-manifest/subgraph.yaml
@@ -8,5 +8,5 @@ dataSources:
       - 12
       - 13
       - 14
-    templates:
-      field: foo
+templates:
+  field: foo
diff --git a/tests/cli/validation/nested-template-nice-error.stderr b/tests/cli/validation/nested-template-nice-error.stderr
new file mode 100644
index 000000000..b3a2f93b6
--- /dev/null
+++ b/tests/cli/validation/nested-template-nice-error.stderr
@@ -0,0 +1,5 @@
+- Load subgraph from subgraph.yaml
+✖ Failed to load subgraph from subgraph.yaml: Error in subgraph.yaml:
+
+  Path: dataSources > 0 > mapping
+  The way to declare data source templates has changed, please move the templates from inside data sources to a `templates:` field at the top level of the manifest.
diff --git a/tests/cli/validation/nested-template-nice-error/Abi.json b/tests/cli/validation/nested-template-nice-error/Abi.json
new file mode 100644
index 000000000..4d05f5839
--- /dev/null
+++ b/tests/cli/validation/nested-template-nice-error/Abi.json
@@ -0,0 +1,7 @@
+[
+  {
+    "type": "event",
+    "name": "ExampleEvent",
+    "inputs": [{ "type": "string" }]
+  }
+]
diff --git a/tests/cli/validation/nested-template-nice-error/mapping.ts b/tests/cli/validation/nested-template-nice-error/mapping.ts
new file mode 100644
index 000000000..e69de29bb
diff --git a/tests/cli/validation/nested-template-nice-error/schema.graphql b/tests/cli/validation/nested-template-nice-error/schema.graphql
new file mode 100644
index 000000000..2fa61d542
--- /dev/null
+++ b/tests/cli/validation/nested-template-nice-error/schema.graphql
@@ -0,0 +1,3 @@
+type MyEntity @entity {
+  id: ID!
+}
diff --git a/tests/cli/validation/nested-template-nice-error/subgraph.yaml b/tests/cli/validation/nested-template-nice-error/subgraph.yaml
new file mode 100644
index 000000000..715d5f981
--- /dev/null
+++ b/tests/cli/validation/nested-template-nice-error/subgraph.yaml
@@ -0,0 +1,35 @@
+specVersion: 0.0.1
+repository: https://github.com/graphprotocol/test-subgraph
+description: Test subgraph
+schema:
+  file: ./schema.graphql
+dataSources:
+  - kind: ethereum/contract
+    name: ExampleSubgraph
+    source:
+      abi: ExampleContract
+    mapping:
+      kind: ethereum/events
+      apiVersion: 0.0.1
+      language: wasm/assemblyscript
+      file: ./mapping.ts
+      entities:
+        - ExampleEntity
+      abis:
+        - name: ExampleContract
+          file: ./Abi.json
+      templates:
+        - kind: ethereum/contract
+          name: ExampleSubgraph
+          source:
+            abi: ExampleContract
+          mapping:
+            kind: ethereum/events
+            apiVersion: 0.0.1
+            language: wasm/assemblyscript
+            file: ./mapping.ts
+            entities:
+              - ExampleEntity
+            abis:
+              - name: ExampleContract
+                file: ./Abi.json
diff --git a/tests/cli/validation/source-without-address-is-valid/generated/ExampleSubgraph/ExampleContract.ts b/tests/cli/validation/source-without-address-is-valid/generated/ExampleSubgraph/ExampleContract.ts
index 133155879..680a1c507 100644
--- a/tests/cli/validation/source-without-address-is-valid/generated/ExampleSubgraph/ExampleContract.ts
+++ b/tests/cli/validation/source-without-address-is-valid/generated/ExampleSubgraph/ExampleContract.ts
@@ -1,3 +1,5 @@
+// THIS IS AN AUTOGENERATED FILE. DO NOT EDIT THIS FILE DIRECTLY.
+
 import {
   EthereumCall,
   EthereumEvent,
diff --git a/tests/cli/validation/source-without-address-is-valid/generated/schema.ts b/tests/cli/validation/source-without-address-is-valid/generated/schema.ts
index a21336407..beee560b9 100644
--- a/tests/cli/validation/source-without-address-is-valid/generated/schema.ts
+++ b/tests/cli/validation/source-without-address-is-valid/generated/schema.ts
@@ -1,3 +1,5 @@
+// THIS IS AN AUTOGENERATED FILE. DO NOT EDIT THIS FILE DIRECTLY.
+
 import {
   TypedMap,
   Entity,