diff --git a/boilerplate/config/development/genesis.json b/boilerplate/config/development/genesis.json
index 8df40402..4a50a438 100644
--- a/boilerplate/config/development/genesis.json
+++ b/boilerplate/config/development/genesis.json
@@ -1,5 +1,7 @@
 {
-    "config": {},
+    "config": {
+      "homesteadBlock": 1
+    },
     "nonce": "0x0000000000000042",
     "difficulty": "0x0",
     "alloc": {
diff --git a/demo/config/development/genesis.json b/demo/config/development/genesis.json
index 8df40402..4a50a438 100644
--- a/demo/config/development/genesis.json
+++ b/demo/config/development/genesis.json
@@ -1,5 +1,7 @@
 {
-    "config": {},
+    "config": {
+      "homesteadBlock": 1
+    },
     "nonce": "0x0000000000000042",
     "difficulty": "0x0",
     "alloc": {
diff --git a/lib/contracts/compiler.js b/lib/contracts/compiler.js
index f8052028..1757194f 100644
--- a/lib/contracts/compiler.js
+++ b/lib/contracts/compiler.js
@@ -106,6 +106,7 @@ class Compiler {
           // [2] classname
           const regex = /(.*):(.*)/;
           const className = contractName.match(regex)[2];
+          const filename = contractName.match(regex)[1];
 
           compiled_object[className] = {};
           compiled_object[className].code = contract.bytecode;
@@ -115,7 +116,9 @@ class Compiler {
           compiled_object[className].gasEstimates = contract.gasEstimates;
           compiled_object[className].functionHashes = contract.functionHashes;
           compiled_object[className].abiDefinition = JSON.parse(contract.interface);
+          compiled_object[className].filename = filename
         }
+
         callback(null, compiled_object);
       }
     ], function (err, result) {
diff --git a/lib/contracts/contracts.js b/lib/contracts/contracts.js
index 9799e4df..97c67b87 100644
--- a/lib/contracts/contracts.js
+++ b/lib/contracts/contracts.js
@@ -62,6 +62,7 @@ class ContractsManager {
           contract.gasEstimates = compiledContract.gasEstimates;
           contract.functionHashes = compiledContract.functionHashes;
           contract.abiDefinition = compiledContract.abiDefinition;
+          contract.filename = compiledContract.filename;
 
           contract.gas = (contractConfig && contractConfig.gas) || self.contractsConfig.gas || 'auto';
           self.adjustGas(contract);
diff --git a/lib/contracts/deploy.js b/lib/contracts/deploy.js
index f9b2259b..e3103da2 100644
--- a/lib/contracts/deploy.js
+++ b/lib/contracts/deploy.js
@@ -105,18 +105,32 @@ class Deploy {
         return callback(new Error(err));
       }
 
+      let contractCode = contract.code;
+      let contractsList = self.contractsManager.listContracts();
+      for (let contractObj of contractsList) {
+        let filename = contractObj.filename;
+        let deployedAddress = contractObj.deployedAddress;
+        if (deployedAddress) {
+          deployedAddress = deployedAddress.substr(2);
+        }
+        let linkReference = '__' + filename + ":" + contractObj.className;
+        let toReplace = linkReference + "_".repeat(40 - linkReference.length);
+        contractCode = contractCode.replace(toReplace, deployedAddress);
+      }
+
       // TODO: probably needs to be defaultAccount
       // TODO: it wouldn't necessary be the first address
       // use defined blockchain address or first address
       contractParams.push({
         //from: this.web3.eth.coinbase,
         from: accounts[0],
-        data: "0x" + contract.code,
+        data: "0x" + contractCode,
         gas: contract.gas,
         gasPrice: contract.gasPrice
       });
 
       self.logger.info("deploying " + contract.className.bold.cyan + " with ".green + contract.gas + " gas".green);
+
       contractParams.push(function (err, transaction) {
         self.logger.contractsState(self.contractsManager.contractsState());
 
diff --git a/test_app/app/contracts/simple_storage.sol b/test_app/app/contracts/simple_storage.sol
index 7c8ea15c..41d608d3 100644
--- a/test_app/app/contracts/simple_storage.sol
+++ b/test_app/app/contracts/simple_storage.sol
@@ -12,7 +12,7 @@ contract SimpleStorage {
     storedData = x;
   }
 
-  function set2(uint x, uint y) {
+  function set2(uint x, uint unusedGiveWarning) {
     storedData = x;
   }
 
diff --git a/test_app/app/contracts/test.sol b/test_app/app/contracts/test.sol
new file mode 100644
index 00000000..2618d93d
--- /dev/null
+++ b/test_app/app/contracts/test.sol
@@ -0,0 +1,17 @@
+pragma solidity ^0.4.11;
+
+library AMyLib {
+
+  function add(uint _a, uint _b) returns (uint _c) {
+    return _a + _b;
+  }
+
+}
+
+contract Test {
+
+  function testAdd() constant returns (uint _result) {
+    return AMyLib.add(1, 2);
+  }
+
+}
diff --git a/test_app/config/development/genesis.json b/test_app/config/development/genesis.json
index 8df40402..4a50a438 100644
--- a/test_app/config/development/genesis.json
+++ b/test_app/config/development/genesis.json
@@ -1,5 +1,7 @@
 {
-    "config": {},
+    "config": {
+      "homesteadBlock": 1
+    },
     "nonce": "0x0000000000000042",
     "difficulty": "0x0",
     "alloc": {