diff --git a/.eslintrc.json b/.eslintrc.json
index 74fe76a93f..97437f1bea 100644
--- a/.eslintrc.json
+++ b/.eslintrc.json
@@ -90,6 +90,7 @@
         "home_msg_list": false,
         "pm_list": false,
         "unread_ui": false,
+        "user_events": false,
         "Plotly": false
     },
     "rules": {
diff --git a/frontend_tests/node_tests/dispatch.js b/frontend_tests/node_tests/dispatch.js
index 5a60ae95c7..2ed9ea6826 100644
--- a/frontend_tests/node_tests/dispatch.js
+++ b/frontend_tests/node_tests/dispatch.js
@@ -588,7 +588,7 @@ run(function (override, capture, args) {
     assert_same(args.person, event.person);
 
     event = event_fixtures.realm_user__update;
-    override('people', 'update', capture(['person']));
+    override('user_events', 'update_person', capture(['person']));
     dispatch(event);
     assert_same(args.person, event.person);
 
diff --git a/frontend_tests/node_tests/people.js b/frontend_tests/node_tests/people.js
index 2cbfc7051d..cb652bf162 100644
--- a/frontend_tests/node_tests/people.js
+++ b/frontend_tests/node_tests/people.js
@@ -6,17 +6,6 @@ global.stub_out_jquery();
 
 var people = require("js/people.js");
 
-set_global('page_params', {
-    people_list: [],
-});
-set_global('activity', {
-    redraw: function () {},
-});
-set_global('admin', {
-    update_user_full_name: function () {},
-    show_or_hide_menu_item: function () {},
-});
-
 var _ = global._;
 
 var me = {
@@ -42,7 +31,6 @@ initialize();
     var realm_persons = people.get_realm_persons();
     assert.equal(_.size(realm_persons), 0);
 
-
     var full_name = 'Isaac Newton';
     var email = 'isaac@example.com';
     var isaac = {
@@ -67,16 +55,6 @@ initialize();
     assert.equal(_.size(realm_persons), 1);
     assert.equal(realm_persons[0].full_name, 'Isaac Newton');
 
-    people.update({email: email, is_admin: true});
-    person = people.get_by_email(email);
-    assert.equal(person.full_name, full_name);
-    assert.equal(person.is_admin, true);
-
-    people.update({email: email, full_name: 'Sir Isaac'});
-    person = people.get_by_email(email);
-    assert.equal(person.full_name, 'Sir Isaac');
-    assert.equal(person.is_admin, true);
-
     // Now deactivate isaac
     people.deactivate(isaac);
     person = people.realm_get(email);
@@ -92,12 +70,6 @@ initialize();
 }());
 
 (function test_updates() {
-    people.update({email: me.email, is_admin: false});
-    assert(!global.page_params.is_admin);
-
-    people.update({email: me.email, full_name: 'Me V2'});
-    assert.equal(people.my_full_name(), 'Me V2');
-
     var person = people.get_by_email('me@example.com');
     people.set_full_name(person, 'Me the Third');
     assert.equal(people.my_full_name(), 'Me the Third');
@@ -105,7 +77,6 @@ initialize();
     assert.equal(people.get_by_name('Me the Third').email, 'me@example.com');
 }());
 
-
 (function test_get_person_from_user_id() {
     var person = {
         email: 'mary@example.com',
@@ -118,17 +89,7 @@ initialize();
     person = people.get_person_from_user_id(42);
     assert.equal(person.email, 'mary@example.com');
 
-    // The semantics for update() are going to eventually
-    // change to use user_id as a key, but now we use email
-    // as a key and change attributes.  With the current
-    // behavior, we don't have to make update() do anything
-    // new.
-    person = {
-        email: 'mary@example.com',
-        user_id: 42,
-        full_name: 'Mary New',
-    };
-    people.update(person);
+    people.set_full_name(person, 'Mary New');
     person = people.get_person_from_user_id(42);
     assert.equal(person.full_name, 'Mary New');
 
diff --git a/frontend_tests/node_tests/user_events.js b/frontend_tests/node_tests/user_events.js
new file mode 100644
index 0000000000..2555402d7d
--- /dev/null
+++ b/frontend_tests/node_tests/user_events.js
@@ -0,0 +1,66 @@
+global.stub_out_jquery();
+
+add_dependencies({
+    people: 'js/people.js',
+});
+
+var people = global.people;
+
+var user_events = require("js/user_events.js");
+
+set_global('activity', {
+    redraw: function () {},
+});
+set_global('admin', {
+    update_user_full_name: function () {},
+    show_or_hide_menu_item: function () {},
+});
+set_global('page_params', {
+    is_admin: true,
+});
+
+var me = {
+    email: 'me@example.com',
+    user_id: 30,
+    full_name: 'Me Myself',
+    is_admin: true,
+};
+
+function initialize() {
+    people.init();
+    people.add(me);
+    people.initialize_current_user(me.user_id);
+}
+
+initialize();
+
+(function test_updates() {
+    var person;
+
+    var isaac = {
+        email: 'isaac@example.com',
+        user_id: 32,
+        full_name: 'Isaac Newton',
+    };
+    people.add(isaac);
+
+    user_events.update_person({user_id: isaac.user_id, is_admin: true});
+    person = people.get_by_email(isaac.email);
+    assert.equal(person.full_name, 'Isaac Newton');
+    assert.equal(person.is_admin, true);
+
+    user_events.update_person({user_id: isaac.user_id, full_name: 'Sir Isaac'});
+    person = people.get_by_email(isaac.email);
+    assert.equal(person.full_name, 'Sir Isaac');
+    assert.equal(person.is_admin, true);
+
+    user_events.update_person({user_id: me.user_id, is_admin: false});
+    assert(!global.page_params.is_admin);
+
+    user_events.update_person({user_id: me.user_id, full_name: 'Me V2'});
+    assert.equal(people.my_full_name(), 'Me V2');
+
+}());
+
+
+
diff --git a/static/js/people.js b/static/js/people.js
index d36cc3b4fa..73b80d9656 100644
--- a/static/js/people.js
+++ b/static/js/people.js
@@ -307,47 +307,6 @@ exports.set_full_name = function (person_obj, new_full_name) {
     person_obj.full_name = new_full_name;
 };
 
-exports.update = function update(person) {
-    if (! people_dict.has(person.email)) {
-        blueslip.error("Got update_person event for unexpected user",
-                       {email: person.email});
-        return;
-    }
-    var person_obj = people_dict.get(person.email);
-
-    if (_.has(person, 'full_name')) {
-        exports.set_full_name(person_obj, person.full_name);
-
-        admin.update_user_full_name(person.email, person.full_name);
-        activity.redraw();
-        // TODO: update sender names on messages
-
-    }
-
-    if (_.has(person, 'is_admin')) {
-        person_obj.is_admin = person.is_admin;
-
-        if (exports.is_current_user(person.email)) {
-            page_params.is_admin = person.is_admin;
-            admin.show_or_hide_menu_item();
-        }
-    }
-
-    if (_.has(person, 'avatar_url')) {
-        var url = person.avatar_url + "&y=" + new Date().getTime();
-        person_obj.avatar_url = url;
-
-        if (exports.is_current_user(person.email)) {
-          page_params.avatar_url = url;
-          $("#user-settings-avatar").attr("src", url);
-        }
-
-        $(".inline_profile_picture.u-" + person.id).css({
-          "background-image": "url(" + url + ")",
-        });
-    }
-};
-
 exports.is_current_user = function (email) {
     if (email === null || email === undefined) {
         return false;
diff --git a/static/js/server_events.js b/static/js/server_events.js
index a3b4b1016c..7b3b82e1f0 100644
--- a/static/js/server_events.js
+++ b/static/js/server_events.js
@@ -127,7 +127,7 @@ function dispatch_normal_event(event) {
         } else if (event.op === 'remove') {
             people.deactivate(event.person);
         } else if (event.op === 'update') {
-            people.update(event.person);
+            user_events.update_person(event.person);
         }
         break;
 
diff --git a/static/js/user_events.js b/static/js/user_events.js
new file mode 100644
index 0000000000..6966f613ee
--- /dev/null
+++ b/static/js/user_events.js
@@ -0,0 +1,57 @@
+var user_events = (function () {
+
+var exports = {};
+
+// This module is kind of small, but it will help us keep
+// server_events.js simple while breaking some circular
+// dependencies that existed when this code was in people.js.
+// (We should do bot updates here too.)
+
+exports.update_person = function update(person) {
+    var person_obj = people.get_person_from_user_id(person.user_id);
+
+    if (!person_obj) {
+        blueslip.error("Got update_person event for unexpected user",
+                       {email: person.user_id});
+        return;
+    }
+
+    if (_.has(person, 'full_name')) {
+        people.set_full_name(person_obj, person.full_name);
+
+        admin.update_user_full_name(person.email, person.full_name);
+        activity.redraw();
+        // TODO: update sender names on messages
+
+    }
+
+    if (_.has(person, 'is_admin')) {
+        person_obj.is_admin = person.is_admin;
+
+        if (people.is_my_user_id(person.user_id)) {
+            page_params.is_admin = person.is_admin;
+            admin.show_or_hide_menu_item();
+        }
+    }
+
+    if (_.has(person, 'avatar_url')) {
+        var url = person.avatar_url + "&y=" + new Date().getTime();
+        person_obj.avatar_url = url;
+
+        if (people.is_my_user_id(person.user_id)) {
+          page_params.avatar_url = url;
+          $("#user-settings-avatar").attr("src", url);
+        }
+
+        $(".inline_profile_picture.u-" + person.id).css({
+          "background-image": "url(" + url + ")",
+        });
+    }
+};
+
+return exports;
+
+}());
+if (typeof module !== 'undefined') {
+    module.exports = user_events;
+}
diff --git a/zproject/settings.py b/zproject/settings.py
index 9d6bba01a3..90e6f6ab3d 100644
--- a/zproject/settings.py
+++ b/zproject/settings.py
@@ -834,6 +834,7 @@ JS_SPECS = {
             'js/server_events.js',
             'js/zulip.js',
             'js/activity.js',
+            'js/user_events.js',
             'js/colorspace.js',
             'js/timerender.js',
             'js/tutorial.js',