diff --git a/lib/config/contracts.js b/lib/config/contracts.js
index 2fe63cab8..0ba03beaa 100644
--- a/lib/config/contracts.js
+++ b/lib/config/contracts.js
@@ -14,6 +14,7 @@ ContractsConfig.prototype.init = function(files) {
   this.contractFiles = files;
   this.contractDependencies = {};
 
+  //TODO: have to specify environment otherwise wouldn't work with staging
   if (this.blockchainConfig.config != undefined) {
     this.blockchainConfig = this.blockchainConfig.config('development');
   }
@@ -42,6 +43,7 @@ ContractsConfig.prototype.compileContracts = function(env) {
   var contractsConfig = this.config(env);
   this.compiler.init(env);
 
+  // determine dependencies
   if (contractsConfig != null) {
     for (className in contractsConfig) {
       options = contractsConfig[className];
@@ -60,6 +62,8 @@ ContractsConfig.prototype.compileContracts = function(env) {
     }
   }
 
+  var all_compiled_contracts = {};
+  // compile files
   for (j = 0; j < this.contractFiles.length; j++) {
     contractFile = this.contractFiles[j];
     source = fs.readFileSync(contractFile).toString()
@@ -68,9 +72,45 @@ ContractsConfig.prototype.compileContracts = function(env) {
     compiled_contracts = this.compiler.compile(source);
     for (className in compiled_contracts) {
       var contract = compiled_contracts[className];
+      all_compiled_contracts[className] = contract;
       this.all_contracts.push(className);
+      this.contractDB[className] = {
+        args: [],
+        types: ['file'],
+        gasPrice: this.blockchainConfig.gas_price,
+        gasLimit: this.blockchainConfig.gas_limit,
+        compiled: contract
+      }
+    }
+  }
+
+  // TODO: move this
+  // determine full contract list
+
+  // will be a combination between compiled contracts and the ones in config
+
+  for(className in contractsConfig) {
+    var contractConfig = contractsConfig[className];
+
+    var contract;
+    contract = this.contractDB[className];
+    if (contract === undefined) {
+      contract = {};
       this.contractDB[className] = contract;
     }
+
+    contract.gasPrice = contract.gasPrice || contractConfig.gas_price;
+    contract.gasLimit = contract.gasLimit || contractConfig.gas_limit;
+    contract.args     = contractConfig.args;
+
+    if (contractConfig.instanceOf === undefined) {
+      contract.types.push('instance');
+      contract.instanceOf = contractConfig.instanceOf;
+    }
+
+    if (this.all_contracts.indexOf(className) < 0) {
+      this.all_contracts.push(className);
+    }
   }
 
   this.sortContracts();
diff --git a/lib/deploy.js b/lib/deploy.js
index e29204835..a24ed1f0d 100644
--- a/lib/deploy.js
+++ b/lib/deploy.js
@@ -36,16 +36,11 @@ Deploy.prototype.deploy_contracts = function(env) {
     className = all_contracts[k];
     contract = this.contractDB[className];
 
-    contractGasLimit = (this.contractsConfig != null ? (ref1 = this.contractsConfig[className]) != null ? ref1.gasLimit : void 0 : void 0) || this.blockchainConfig.gasLimit;
-    contractGasPrice = (this.contractsConfig != null ? (ref2 = this.contractsConfig[className]) != null ? ref2.gasPrice : void 0 : void 0) || this.blockchainConfig.gasPrice;
-
-    args = (this.contractsConfig != null ? (ref3 = this.contractsConfig[className]) != null ? ref3.args : void 0 : void 0) || [];
-
-    contractObject = web3.eth.contract(contract.info.abiDefinition);
+    contractObject = web3.eth.contract(contract.compiled.info.abiDefinition);
 
     realArgs = [];
-    for (l = 0, len3 = args.length; l < len3; l++) {
-      arg = args[l];
+    for (var l = 0; l < contract.args.length; l++) {
+      arg = contract.args[l];
       if (arg[0] === "$") {
         realArgs.push(this.deployedContracts[arg.substr(1)]);
       } else {
@@ -56,9 +51,9 @@ Deploy.prototype.deploy_contracts = function(env) {
     contractParams = realArgs;
     contractParams.push({
       from: primaryAddress,
-      data: contract.code,
-      gas: contractGasLimit,
-      gasPrice: contractGasPrice
+      data: contract.compiled.code,
+      gas: contract.gasLimit,
+      gasPrice: contract.gasPrice
     });
 
     contractAddress = contractObject["new"].apply(contractObject, contractParams).address;
diff --git a/lib/index.js b/lib/index.js
index 2d7545577..2c13fd7b0 100644
--- a/lib/index.js
+++ b/lib/index.js
@@ -17,12 +17,12 @@ var Blockchain = require('./blockchain.js');
 var Deploy = require('./deploy.js');
 var Release = require('./ipfs.js');
 var Config = require('./config/config.js');
-var Compiler = require('./config/compiler.js');
+var Compiler = require('./compiler.js');
 
 Embark = {
   init: function() {
     this.blockchainConfig = (new Config.Blockchain());
-    this.compiler         = (new Compiler(this.blockchainConfig()));
+    this.compiler         = (new Compiler(this.blockchainConfig));
     this.contractsConfig  = (new Config.Contracts(this.blockchainConfig, this.compiler));
   },
 
diff --git a/lib/test.js b/lib/test.js
index b8ed4600a..4dd11ed1e 100644
--- a/lib/test.js
+++ b/lib/test.js
@@ -8,7 +8,7 @@ py_exec = function(cmd) {
 
 TestContractWrapper = (function() {
   function TestContractWrapper(contract, className, args) {
-    this.contract = contract;
+    this.contract = contract.compiled;
     this.className = className;
     this.args = args;
     this.initializeContract();
diff --git a/test/config.contracts.js b/test/config.contracts.js
index 0b9602685..cc2150e6c 100644
--- a/test/config.contracts.js
+++ b/test/config.contracts.js
@@ -74,6 +74,23 @@ describe('embark.config.contracts', function() {
         assert.deepEqual(contractsConfig.all_contracts, [ "SimpleStorage", "AnotherStorage", "Wallet", "Wallets" ]);
       });
     });
+
+    context("contracts instances", function() {
+      before(function() {
+        files = [
+          'test/support/contracts/simple_storage.sol'
+        ]
+        contractsConfig = new Config.Contracts(blockchainConfig, compiler);
+        contractsConfig.loadConfigFile('test/support/instances.yml');
+        contractsConfig.init(files);
+        contractsConfig.compileContracts('development');
+      });
+
+      it('add contracts to a list', function() {
+        assert.deepEqual(contractsConfig.all_contracts, [ "SimpleStorage", "BarStorage", "FooStorage" ]);
+      });
+    });
+
   });
 
 });
diff --git a/test/support/instances.yml b/test/support/instances.yml
new file mode 100644
index 000000000..04e15644f
--- /dev/null
+++ b/test/support/instances.yml
@@ -0,0 +1,11 @@
+development:
+  SimpleStorage:
+    args:
+      - 100
+  BarStorage:
+    instanceOf: SimpleStorage
+  FooStorage:
+    instanceOf: SimpleStorage
+    args:
+      - 200
+staging: