Open Watcom will generate 16 bit DOS binaries from any host platform that you run it on. All of my code is developed on Windows 7 using Open Watcom, generating code for the 16 bit DOS target.
I use DOSbox for quick testing. For this code a virtual machine is appropriate. Setup networking in the virtual machine or some sort of host / guest shared drive and the file transfer becomes less painful. If anybody has questions about Open Watcom I'm happy to share what I know. Yes, there is a learning curve. But it is worth it.
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