diff --git a/ampersand-state.js b/ampersand-state.js
index bd221fa..b75cd5c 100644
--- a/ampersand-state.js
+++ b/ampersand-state.js
@@ -405,27 +405,44 @@ assign(Base.prototype, Events, {
     _initDerived: function () {
         var self = this;
 
-        forEach(this._derived, function (value, name) {
-            var def = self._derived[name];
+        forEach(this._derived, function (def, name) {
             def.deps = def.depList;
 
-            var update = function (options) {
-                options = options || {};
-
+            var update = function () {
                 var newVal = def.fn.call(self);
 
-                if (self._cache[name] !== newVal || !def.cache) {
+                var isEqual = self._getCompareForType(def.type);
+                var dataType = def.type && self._dataTypes[def.type];
+                var currentVal = self._cache[name];
+                var hasChanged = !isEqual(currentVal, newVal, name);
+
+                if (hasChanged || !def.cache) {
                     if (def.cache) {
-                        self._previousAttributes[name] = self._cache[name];
+                        self._previousAttributes[name] = currentVal;
+                    }
+                    // cast newVal if there is a type set
+                    if (dataType && dataType.set) {
+                        newVal = dataType.set(newVal).val;
                     }
                     self._cache[name] = newVal;
-                    self.trigger('change:' + name, self, self._cache[name]);
+
+                    // check for default or get for the change event value
+                    if (typeof newVal === 'undefined') {
+                        newVal = result(def, 'default');
+                    }
+                    else if (dataType && dataType.get) {
+                        newVal = dataType.get(newVal);
+                    }
+                    self.trigger('change:' + name, self, newVal);
                 }
             };
 
             def.deps.forEach(function (propString) {
                 self._keyTree.add(propString, update);
             });
+
+            // init to set any listeners
+            if (def.init) update();
         });
 
         this.on('all', function (eventName) {
@@ -437,16 +454,17 @@ assign(Base.prototype, Events, {
         }, this);
     },
 
-    _getDerivedProperty: function (name, flushCache) {
+    _getDerivedProperty: function (name) {
+        var def = this._derived[name];
         // is this a derived property that is cached
-        if (this._derived[name].cache) {
-            //set if this is the first time, or flushCache is set
-            if (flushCache || !this._cache.hasOwnProperty(name)) {
-                this._cache[name] = this._derived[name].fn.apply(this);
+        if (def.cache) {
+            // set if this is the first time
+            if (!this._cache.hasOwnProperty(name)) {
+                this._cache[name] = def.fn.apply(this);
             }
             return this._cache[name];
         } else {
-            return this._derived[name].fn.apply(this);
+            return def.fn.apply(this);
         }
     },
 
@@ -582,9 +600,14 @@ function createDerivedProperty(modelProto, name, definition) {
     var def = modelProto._derived[name] = {
         fn: isFunction(definition) ? definition : definition.fn,
         cache: (definition.cache !== false),
+        type: definition.type,
+        init: definition.init,
+        default: definition.default,
         depList: definition.deps || []
     };
 
+    if (def.type && isUndefined(def.default))
+        def.default = modelProto._getDefaultForType(def.type);
     // add to our shared dependency list
     forEach(def.depList, function (dep) {
         modelProto._deps[dep] = union(modelProto._deps[dep] || [], [name]);
@@ -593,7 +616,15 @@ function createDerivedProperty(modelProto, name, definition) {
     // defined a top-level getter for derived names
     Object.defineProperty(modelProto, name, {
         get: function () {
-            return this._getDerivedProperty(name);
+            var value = this._getDerivedProperty(name);
+            var typeDef = this._dataTypes[def.type];
+            if (typeof value !== 'undefined') {
+                if (typeDef && typeDef.get) {
+                    value = typeDef.get(value);
+                }
+                return value;
+            }
+            return result(def, 'default');
         },
         set: function () {
             throw new TypeError('"' + name + '" is a derived property, it can\'t be set directly.');
diff --git a/test/basics.js b/test/basics.js
index 1ed2355..fa61bd6 100644
--- a/test/basics.js
+++ b/test/basics.js
@@ -208,6 +208,49 @@ test('uncached derived properties always fire events on dependency change', func
     person.name = 'different';
 });
 
+test('derived properties with type: `state` will be evented', function (t) {
+    var ran = 0;
+    var coolCheck;
+    var AwesomePerson = Person.extend({
+        props: {
+            awesomeness: 'number',
+            coolness: 'number'
+        }
+    });
+    var friend = new AwesomePerson({name: 'mat', awesomeness: 1, coolness: 1});
+    var NewPerson = Person.extend({
+        props: {
+            friendName: 'string'
+        },
+        derived: {
+            friend: {
+                deps: ['friendName'],
+                type: 'state',
+                init: true,
+                fn: function () {
+                    ran++;
+                    return this.friendName === 'mat' ? friend : null;
+                }
+            }
+        }
+    });
+    var person = new NewPerson({name: 'henrik', friendName: 'mat'});
+    person.on('change:friend.coolness', function (model, value) {
+        t.equal(value, 3, "listens to changes on derived property attribute at init");
+        coolCheck = true;
+    });
+    person.on('change:friend.awesomeness', function (model, value) {
+        t.equal(value, 7, "Fires update for derived property attribute");
+        t.end();
+    });
+    t.equal(ran, 1);
+    friend.coolness = 3;
+    t.ok(coolCheck, 'coolCheck');
+    t.equal(person.friend.awesomeness, 1);
+    person.friend.awesomeness = 7;
+    t.equal(ran, 1);
+});
+
 test('everything should work with a property called `type`. Issue #6.', function (t) {
     var Model = State.extend({
         props: {
diff --git a/test/full.js b/test/full.js
index 1dc588e..14f8b17 100644
--- a/test/full.js
+++ b/test/full.js
@@ -546,6 +546,137 @@ test('derived properties triggered with multiple instances', function (t) {
     t.end();
 });
 
+test('derived properties with `type` will use dataType functions', function (t) {
+    var friendRan = 0;
+    var crazyRan = 0;
+    var compareCheck, coolCheck, changeCheck, thingCheck, weirdCheck;
+
+    var fooFriends = {};
+
+    var Foo = State.extend({
+        extraProperties: 'allow',
+        props: {
+            name: ['string', true],
+            friendName: 'string',
+            crazy: 'boolean',
+            cool: 'boolean'
+        },
+        derived: {
+            friend: {
+                deps: ['friendName'],
+                type: 'state',
+                init: true,
+                default: 'no friend',
+                fn: function () {
+                    friendRan++;
+                    return fooFriends[this.friendName];
+                }
+            },
+            crazyFriend: {
+                deps: ['friend', 'friend.name', 'friend.crazy'],
+                type: 'crazyType',
+                fn: function () {
+                    crazyRan++;
+                    if (this.friend.name) {
+                        return this.friend.name + ' is ' + (this.friend.crazy ? '' : 'not ');
+                    }
+                }
+            }
+        },
+        dataTypes: {
+            crazyType: {
+                compare: function (oldVal, newVal, name) {
+                    compareCheck = true;
+                    return false;
+                },
+                set: function (newVal) {
+                    return {
+                        val: newVal,
+                        type: 'crazyType'
+                    };
+                },
+                get: function (val) {
+                    return val + 'crazy!';
+                },
+                default: function () {
+                    return 'crazy!';
+                }
+            }
+        }
+    });
+
+    fooFriends.mat = new Foo({
+        name: 'mat',
+        cool: false,
+        weird: false
+    });
+    t.equal(friendRan, 1);
+    t.equal(fooFriends.mat.friend, 'no friend', 'apply derived default when undefined');
+    t.equal(fooFriends.mat.crazyFriend, 'crazy!', 'apply dataType default when undefined');
+    t.equal(crazyRan, 1);
+    fooFriends.cat = new Foo({
+        name: 'cat',
+        cool: false,
+        weird: false
+    });
+    t.equal(friendRan, 3);
+
+    var foo = new Foo({
+        name: 'abe',
+        friendName: 'mat'
+    });
+    t.equal(friendRan, 4);
+
+    foo.on('change:friend.weird', function (model, value) {
+        t.ok(value, "Fires update for derived property attribute");
+        weirdCheck = true;
+    });
+    foo.on('change:friend.cool', function (model, value) {
+        t.ok(value, "Fires compare for derived state on init");
+        coolCheck = true;
+    });
+
+    foo.friend.cool = true;
+    foo.friend.weird = true;
+    t.ok(foo.friend.weird);
+    t.equal(friendRan, 4);
+
+    var bar = new Foo({
+        name: 'bob',
+        friendName: 'nobody'
+    });
+
+    bar.on('change:friend', function (model, value) {
+        t.ok(value, "Fires on change");
+        changeCheck = true;
+    });
+    bar.on('change:friend:thing', function (model, value) {
+        t.equal(value, 'thing', "Fires on change of derived child ad hoc properties");
+        thingCheck = true;
+    });
+
+    bar.friendName = 'cat';
+    t.equal(friendRan, 6);
+    t.equal(bar.friend.name, 'cat');
+    bar.friendName = 'mat';
+    t.equal(bar.friend.name, 'mat');
+    t.equal(friendRan, 7);
+
+    bar.friend.thing = 'thing';
+
+    t.equal(crazyRan, 7);
+    t.equal(bar.crazyFriend, 'mat is not crazy!', 'derived properties with dataType should use dataType.get');
+    bar.friend.crazy = true;
+    t.equal(bar.crazyFriend, 'mat is crazy!', 'derived result for dataType should change');
+    t.equal(crazyRan, 9);
+
+    t.ok(compareCheck, 'passed compareCheck');
+    t.ok(changeCheck, 'passed changeCheck');
+    t.ok(coolCheck, 'passed coolCheck');
+    t.ok(weirdCheck, 'passed weirdCheck');
+    t.end();
+});
+
 test('Calling `previous` during change of derived cached property should work', function (t) {
     var foo = new Foo({firstName: 'Henrik', lastName: 'Joreteg'});
     var ran = false;