DIOS (Diffuse Intergalactic Oxygen Surveyor) is a small satellite aiming for a launch around 2020 with JAXA's Epsilon rocket. Its main aim is a search for warm-hot intergalactic medium with high-resolution X-ray spectroscopy of redshifted emission lines from OVII and OVIII ions. The superior energy resolution of TES microcalorimeters combined with a very wide field of view (30-50 arcmin diameter) will enable us to look into gas dynamics of cosmic plasmas in a wide range of spatial scales from Earth's magnetosphere to unvirialized regions of clusters of galaxies. Mechanical and thermal design of the spacecraft and development of the TES calorimeter system are described. We also consider revising the payload design to optimize the scientific capability allowed by the boundary conditions of the small mission.