diff --git a/examples/auth/app/auth/auth-utils.ts b/examples/auth/app/auth/auth-utils.ts
deleted file mode 100644
index 03d882409..000000000
--- a/examples/auth/app/auth/auth-utils.ts
+++ /dev/null
@@ -1,18 +0,0 @@
-import {SecurePassword, AuthenticationError} from "blitz"
-import db from "db"
-
-export const authenticateUser = async (email: string, password: string) => {
-  const user = await db.user.findFirst({where: {email}})
-  if (!user) throw new AuthenticationError()
-
-  const result = await SecurePassword.verify(user.hashedPassword, password)
-
-  if (result === SecurePassword.VALID_NEEDS_REHASH) {
-    // Upgrade hashed password with a more secure hash
-    const improvedHash = await SecurePassword.hash(password)
-    await db.user.update({where: {id: user.id}, data: {hashedPassword: improvedHash}})
-  }
-
-  const {hashedPassword, ...rest} = user
-  return rest
-}
diff --git a/examples/auth/app/auth/mutations/login.ts b/examples/auth/app/auth/mutations/login.ts
index b0d022c88..a92715444 100644
--- a/examples/auth/app/auth/mutations/login.ts
+++ b/examples/auth/app/auth/mutations/login.ts
@@ -1,7 +1,23 @@
-import {Ctx} from "blitz"
-import {authenticateUser} from "app/auth/auth-utils"
+import {Ctx, SecurePassword, AuthenticationError} from "blitz"
+import db from "db"
 import * as z from "zod"
 
+export const authenticateUser = async (email: string, password: string) => {
+  const user = await db.user.findFirst({where: {email}})
+  if (!user) throw new AuthenticationError()
+
+  const result = await SecurePassword.verify(user.hashedPassword, password)
+
+  if (result === SecurePassword.VALID_NEEDS_REHASH) {
+    // Upgrade hashed password with a more secure hash
+    const improvedHash = await SecurePassword.hash(password)
+    await db.user.update({where: {id: user.id}, data: {hashedPassword: improvedHash}})
+  }
+
+  const {hashedPassword, ...rest} = user
+  return rest
+}
+
 export const LoginInput = z.object({
   email: z.string().email(),
   password: z.string(),
diff --git a/packages/generator/templates/app/README.md b/packages/generator/templates/app/README.md
index 9222a09d1..6bcbc6f10 100644
--- a/packages/generator/templates/app/README.md
+++ b/packages/generator/templates/app/README.md
@@ -91,7 +91,6 @@ __name__
 │   │   ├── pages/
 │   │   │   ├── login.tsx
 │   │   │   └── signup.tsx
-│   │   ├── auth-utils.ts
 │   │   └── validations.ts
 │   └── users/
 │       └── queries/
diff --git a/packages/generator/templates/app/app/auth/auth-utils.ts b/packages/generator/templates/app/app/auth/auth-utils.ts
deleted file mode 100644
index c0e8a2d82..000000000
--- a/packages/generator/templates/app/app/auth/auth-utils.ts
+++ /dev/null
@@ -1,18 +0,0 @@
-import { SecurePassword, AuthenticationError } from "blitz"
-import db from "db"
-
-export const authenticateUser = async (email: string, password: string) => {
-  const user = await db.user.findFirst({ where: { email } })
-  if (!user) throw new AuthenticationError()
-
-  const result = await SecurePassword.verify(user.hashedPassword, password)
-
-  if (result === SecurePassword.VALID_NEEDS_REHASH) {
-    // Upgrade hashed password with a more secure hash
-    const improvedHash = await SecurePassword.hash(password)
-    await db.user.update({ where: { id: user.id }, data: { hashedPassword: improvedHash } })
-  }
-
-  const { hashedPassword, ...rest } = user
-  return rest
-}
diff --git a/packages/generator/templates/app/app/auth/mutations/login.ts b/packages/generator/templates/app/app/auth/mutations/login.ts
index c6ddf5ac3..c7113df0a 100644
--- a/packages/generator/templates/app/app/auth/mutations/login.ts
+++ b/packages/generator/templates/app/app/auth/mutations/login.ts
@@ -1,7 +1,23 @@
-import { Ctx } from "blitz"
-import { authenticateUser } from "app/auth/auth-utils"
+import { Ctx, SecurePassword, AuthenticationError } from "blitz"
+import db from "db"
 import { LoginInput, LoginInputType } from "../validations"
 
+export const authenticateUser = async (email: string, password: string) => {
+  const user = await db.user.findFirst({ where: { email } })
+  if (!user) throw new AuthenticationError()
+
+  const result = await SecurePassword.verify(user.hashedPassword, password)
+
+  if (result === SecurePassword.VALID_NEEDS_REHASH) {
+    // Upgrade hashed password with a more secure hash
+    const improvedHash = await SecurePassword.hash(password)
+    await db.user.update({ where: { id: user.id }, data: { hashedPassword: improvedHash } })
+  }
+
+  const { hashedPassword, ...rest } = user
+  return rest
+}
+
 export default async function login(input: LoginInputType, { session }: Ctx) {
   // This throws an error if input is invalid
   const { email, password } = LoginInput.parse(input)