diff --git a/lib/compiler.js b/lib/compiler.js
new file mode 100644
index 000000000..e57af716a
--- /dev/null
+++ b/lib/compiler.js
@@ -0,0 +1,25 @@
+var web3 = require('web3');
+
+Compiler = function(blockchainConfig) {
+  this.blockchainConfig = blockchainConfig;
+};
+
+Compiler.prototype.init = function(env) {
+  var config = this.blockchainConfig.config(env);
+
+  try {
+    web3.setProvider(new web3.providers.HttpProvider("http://" + config.rpcHost + ":" + config.rpcPort));
+    primaryAddress = web3.eth.coinbase;
+    web3.eth.defaultAccount = primaryAddress;
+  } catch (e) {
+    throw new Error("can't connect to " + config.rpcHost + ":" + config.rpcPort + " check if an ethereum node is running");
+  }
+
+  console.log("address is : " + primaryAddress);
+};
+
+Compiler.prototype.compile = function(source) {
+  return web3.eth.compile.solidity(source);
+};
+
+module.exports = Compiler;
diff --git a/lib/config/contracts.js b/lib/config/contracts.js
index 4ec407b16..2fe63cab8 100644
--- a/lib/config/contracts.js
+++ b/lib/config/contracts.js
@@ -2,9 +2,9 @@ var readYaml = require('read-yaml');
 var fs = require('fs');
 var toposort = require('toposort');
 
-ContractsConfig = function(blockchainConfig, web3) {
+ContractsConfig = function(blockchainConfig, compiler) {
   this.blockchainConfig = blockchainConfig;
-  this.web3 = web3;
+  this.compiler = compiler;
   this.contractFiles = [];
 }
 
@@ -17,17 +17,6 @@ ContractsConfig.prototype.init = function(files) {
   if (this.blockchainConfig.config != undefined) {
     this.blockchainConfig = this.blockchainConfig.config('development');
   }
-
-  try {
-    this.web3.setProvider(new this.web3.providers.HttpProvider("http://" + this.blockchainConfig.rpcHost + ":" + this.blockchainConfig.rpcPort));
-    primaryAddress = this.web3.eth.coinbase;
-    this.web3.eth.defaultAccount = primaryAddress;
-  } catch (_error) {
-    e = _error;
-    throw new Error("can't connect to " + this.blockchainConfig.rpcHost + ":" + this.blockchainConfig.rpcPort + " check if an ethereum node is running");
-  }
-
-  console.log("address is : " + primaryAddress);
 };
 
 ContractsConfig.prototype.loadConfigFile = function(filename) {
@@ -51,6 +40,7 @@ ContractsConfig.prototype.config = function(env) {
 ContractsConfig.prototype.compileContracts = function(env) {
   var contractFile, source, j;
   var contractsConfig = this.config(env);
+  this.compiler.init(env);
 
   if (contractsConfig != null) {
     for (className in contractsConfig) {
@@ -75,7 +65,7 @@ ContractsConfig.prototype.compileContracts = function(env) {
     source = fs.readFileSync(contractFile).toString()
 
     console.log("compiling " + contractFile);
-    compiled_contracts = this.web3.eth.compile.solidity(source);
+    compiled_contracts = this.compiler.compile(source);
     for (className in compiled_contracts) {
       var contract = compiled_contracts[className];
       this.all_contracts.push(className);
diff --git a/lib/index.js b/lib/index.js
index fc584b384..2d7545577 100644
--- a/lib/index.js
+++ b/lib/index.js
@@ -17,11 +17,13 @@ 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');
 
 Embark = {
   init: function() {
     this.blockchainConfig = (new Config.Blockchain());
-    this.contractsConfig  = (new Config.Contracts(this.blockchainConfig, web3));
+    this.compiler         = (new Compiler(this.blockchainConfig()));
+    this.contractsConfig  = (new Config.Contracts(this.blockchainConfig, this.compiler));
   },
 
   tests: function(contractFiles) {
diff --git a/test/config.contracts.js b/test/config.contracts.js
index 78f6381e5..0b9602685 100644
--- a/test/config.contracts.js
+++ b/test/config.contracts.js
@@ -1,15 +1,17 @@
 var Config = require('../lib/config/config.js');
+var Compiler = require('../lib/compiler.js');
 var assert = require('assert');
 var sinon = require('sinon');
-var web3 = require('web3');
 require('mocha-sinon');
 
 describe('embark.config.contracts', function() {
-  var blockchainConfig = (new Config.Blockchain()).loadConfigFile('test/support/blockchain.yml').config("development");
+  var _blockchainConfig = (new Config.Blockchain()).loadConfigFile('test/support/blockchain.yml');
+  var blockchainConfig = _blockchainConfig.config("development");
+  var compiler = new Compiler(_blockchainConfig);
 
   describe('#loadConfigFile', function() {
     it('should read and load yml file', function() {
-      var contractsConfig = new Config.Contracts(blockchainConfig, web3);
+      var contractsConfig = new Config.Contracts(blockchainConfig, compiler);
       contractsConfig.loadConfigFile('test/support/contracts.yml');
 
       assert.equal(contractsConfig.contractConfig.hasOwnProperty('development'), true)
@@ -23,7 +25,7 @@ describe('embark.config.contracts', function() {
 
   describe('#loadConfig', function() {
     it('should load config', function() {
-      var contractsConfig = new Config.Contracts([], blockchainConfig, web3);
+      var contractsConfig = new Config.Contracts([], blockchainConfig, compiler);
       var hsh = {
         development: {},
         staging: {}
@@ -43,7 +45,7 @@ describe('embark.config.contracts', function() {
           'test/support/contracts/simple_storage.sol',
           'test/support/contracts/another_storage.sol'
         ]
-        contractsConfig = new Config.Contracts(blockchainConfig, web3);
+        contractsConfig = new Config.Contracts(blockchainConfig, compiler);
         contractsConfig.loadConfigFile('test/support/contracts.yml');
         contractsConfig.init(files);
         contractsConfig.compileContracts();
@@ -62,7 +64,7 @@ describe('embark.config.contracts', function() {
           'test/support/contracts/another_storage.sol',
           'test/support/contracts/wallets.sol'
         ]
-        contractsConfig = new Config.Contracts(blockchainConfig, web3);
+        contractsConfig = new Config.Contracts(blockchainConfig, compiler);
         contractsConfig.loadConfigFile('test/support/arguments.yml');
         contractsConfig.init(files);
         contractsConfig.compileContracts('development');
diff --git a/test/deploy.js b/test/deploy.js
index e8f9bd164..99070a20b 100644
--- a/test/deploy.js
+++ b/test/deploy.js
@@ -1,7 +1,7 @@
 var Config = require('../lib/config/config.js');
 var Deploy = require('../lib/deploy.js');
+var Compiler = require('../lib/compiler.js');
 var assert = require('assert');
-var web3 = require('web3');
 
 describe('embark.deploy', function() {
   var files = [
@@ -10,13 +10,16 @@ describe('embark.deploy', function() {
     'test/support/contracts/another_storage.sol',
     'test/support/contracts/wallets.sol'
   ];
-  var blockchainConfig = (new Config.Blockchain()).loadConfigFile('test/support/blockchain.yml').config("development");
-  var contractsConfig = new Config.Contracts(blockchainConfig, web3);
+  var _blockchainConfig = (new Config.Blockchain()).loadConfigFile('test/support/blockchain.yml');
+  var blockchainConfig = _blockchainConfig.config("development");
+  var compiler = new Compiler(_blockchainConfig);
+  var contractsConfig = new Config.Contracts(blockchainConfig, compiler);
   contractsConfig.loadConfigFile('test/support/arguments.yml');
   contractsConfig.init(files);
   var deploy = new Deploy('development', files, blockchainConfig, contractsConfig);
 
   describe('#deploy_contracts', function() {
+    compiler.init('development');
     deploy.deploy_contracts("development");
 
     it("should deploy contracts", function() {
@@ -41,6 +44,7 @@ describe('embark.deploy', function() {
     }
 
     it("should deploy contracts", function() {
+      compiler.init('development');
       var result = deploy.generate_abi_file();
 
       assert.strictEqual(result, "web3.setProvider(new web3.providers.HttpProvider('http://localhost:8101'));web3.eth.defaultAccount = web3.eth.accounts[0];var SimpleStorageAbi = 123;var SimpleStorageContract = web3.eth.contract(SimpleStorageAbi);var SimpleStorage = SimpleStorageContract.at('0x123');var AnotherStorageAbi = 234;var AnotherStorageContract = web3.eth.contract(AnotherStorageAbi);var AnotherStorage = AnotherStorageContract.at('0x234');");
diff --git a/test/test.js b/test/test.js
index 1682c1c45..1d88d346b 100644
--- a/test/test.js
+++ b/test/test.js
@@ -1,7 +1,7 @@
 var Config = require('../lib/config/config.js');
 var Test = require('../lib/test.js');
+var Compiler = require('../lib/compiler.js');
 var assert = require('assert');
-var web3 = require('web3');
 
 //var contractFiles = grunt.file.expand("./app/contracts/**/*.sol")
 
@@ -9,8 +9,10 @@ describe('embark.test', function() {
   var files = [
     'test/support/contracts/simple_storage.sol'
   ]
-  var blockchainConfig = (new Config.Blockchain()).loadConfigFile('test/support/blockchain.yml').config("development");
-  var contractsConfig = new Config.Contracts(blockchainConfig, web3);
+  var _blockchainConfig = (new Config.Blockchain()).loadConfigFile('test/support/blockchain.yml');
+  var blockchainConfig = _blockchainConfig.config("development");
+  var compiler = new Compiler(_blockchainConfig);
+  var contractsConfig = new Config.Contracts(blockchainConfig, compiler);
   contractsConfig.loadConfigFile('test/support/contracts.yml');
   contractsConfig.init(files);