diff --git a/entities.lua b/entities.lua
new file mode 100644
index 0000000..53c40d4
--- /dev/null
+++ b/entities.lua
@@ -0,0 +1,47 @@
+-- bring in the util module
+local util = require("util")
+
+local entities = {}
+
+-- initialize the entities table
+function entities.init()
+    entities.staticEntities = {}
+    entities.dynamicEntities = {}
+end
+
+-- load all sprites to memory
+function entities.loadSprites()
+    entities.sprites = {}
+    entities.sprites.town = love.graphics.newImage("img/building.png")
+end
+
+-- create a new static entity that will always align with the map grid
+function entities.newStatic(x, y, z, type)
+    local static = {}
+    static.x = x
+    static.y = y
+    static.z = z 
+    static.type = type
+
+    table.insert(entities.staticEntities, static)
+end
+
+-- render all entities
+function entities.render(offset)
+    -- render static entities
+    for _, entity in ipairs(entities.staticEntities) do
+        local type = entity.type
+        local loc = util.cartToIso({x = entity.x, y = entity.y})
+
+        if type == "town" then
+            image = entities.sprites.town
+        end
+
+        if image ~= nil then
+            love.graphics.draw(image, loc.x * 16 + offset.x, loc.y * 16 + offset.y - entity.z * 16)
+        end
+    end
+
+end
+
+return entities
\ No newline at end of file
diff --git a/img/building.png b/img/building.png
new file mode 100644
index 0000000..286a1b7
Binary files /dev/null and b/img/building.png differ
diff --git a/main.lua b/main.lua
index 5804149..61d51f5 100644
--- a/main.lua
+++ b/main.lua
@@ -1,5 +1,7 @@
 -- world module
 local world = require("world")
+-- entities module
+local entities = require("entities")
 
 -- love's load function
 function love.load()
@@ -8,10 +10,16 @@ function love.load()
         x = 304,
         y = 48
     }
-    
+
     -- generate the world and load the files
     world.new(20, 20, 3)
+    world.generate()
     world.loadTiles()
+
+    -- entities initialization
+    entities.init()
+    entities.loadSprites()
+    entities.newStatic(7, 7, 3, "town")
 end
 
 -- love's update function
@@ -50,4 +58,7 @@ function love.draw()
     
     -- draw the map
     world.render(offset)
+
+    -- draw the entities
+    entities.render(offset)
 end
\ No newline at end of file
diff --git a/world.lua b/world.lua
index f40ed77..4563728 100644
--- a/world.lua
+++ b/world.lua
@@ -16,7 +16,7 @@ local world = {}
             for y = 1, world.depth do
                 world[x][y] = {}
                 for z = 1, world.height do
-                    world[x][y][z] = "nothing"
+                    world[x][y][z] = "air"
                 end
             end
         end
@@ -24,7 +24,22 @@ local world = {}
 
     -- generates a world, should be called after world.new()
     function world.generate()
-
+        -- draw the bottom layer of dirt
+        for x = 1, world.width do
+            for y = 1, world.depth do
+                world[x][y][1] = "dirt"
+            end
+        end
+        -- draw the grass
+        for x = 1, world.width do
+            for y = 1, world.depth do
+                world[x][y][2] = "grass"
+            end
+        end
+        -- draw a stream
+        for x = 1, world.width do
+            world[x][5][2] = "water"
+        end
     end
 
     -- load the tile files
@@ -50,16 +65,20 @@ local world = {}
                         image = world.tiles.dirt
                     elseif tile == "water" then
                         image = world.tiles.water
+                    elseif tile == "air" then
+                        image = nil
                     else 
                         image = world.tiles.nothing
                     end
-    
-                    love.graphics.draw(image, loc.x * 16 + offset.x, loc.y * 16 + offset.y - z * 16)
+                    
+                    if image ~= nil then
+                        love.graphics.draw(image, loc.x * 16 + offset.x, loc.y * 16 + offset.y - z * 16)
+                    end
                 end
             end
         end
 
-        if not world.hover == nil then
+        if world.hover ~= nil then
             love.graphics.draw(world.select, world.hover.x, world.hover.y)
         end
     end