diff --git a/Sources/Common/Compiler.swift b/Sources/Common/Compiler.swift
index 33371bb..a6bf391 100644
--- a/Sources/Common/Compiler.swift
+++ b/Sources/Common/Compiler.swift
@@ -43,6 +43,8 @@ public struct CompilerContext {
   public let ffis: [P4FFI]
   public let expected_type: P4QualifiedType?
   public let extern_context: Bool
+  public let lexical_context_name: Identifier?
+  public let lexical_context_statements: [P4Statement]?
 
   public init() {
     instances = StaticVarValueScopes().enter()
@@ -51,6 +53,8 @@ public struct CompilerContext {
     expected_type = .none
     extern_context = false
     ffis = Array()
+    lexical_context_name = .none
+    lexical_context_statements = .none
   }
 
   public init(withInstances _instances: StaticVarValueScopes, withTypes _types: TypeTypeScopes) {
@@ -60,12 +64,16 @@ public struct CompilerContext {
     expected_type = .none
     extern_context = false
     ffis = Array()
+    lexical_context_name = .none
+    lexical_context_statements = .none
   }
 
   public init(
     withInstances _instances: StaticVarValueScopes, withTypes _types: TypeTypeScopes,
     withExpectation expectation: P4QualifiedType?, withExtern extern: Bool,
-    withExterns externs: TypeTypeScopes, withFFIs foreigns: [P4FFI]
+    withExterns externs: TypeTypeScopes, withFFIs foreigns: [P4FFI],
+    withLexicalContextName lexical_context_name: Identifier?,
+    withLexicalContextStatements lexical_context_statements: [P4Statement]?
   ) {
     instances = _instances
     types = _types
@@ -73,6 +81,8 @@ public struct CompilerContext {
     extern_context = extern
     self.externs = externs
     ffis = foreigns
+    self.lexical_context_name = lexical_context_name
+    self.lexical_context_statements = lexical_context_statements
   }
 
   /// Update a compiler context
@@ -84,7 +94,9 @@ public struct CompilerContext {
   public func update(newInstances instances: StaticVarValueScopes) -> CompilerContext {
     return CompilerContext(
       withInstances: instances, withTypes: self.types, withExpectation: self.expected_type,
-      withExtern: self.extern_context, withExterns: self.externs, withFFIs: self.ffis)
+      withExtern: self.extern_context, withExterns: self.externs, withFFIs: self.ffis,
+      withLexicalContextName: self.lexical_context_name,
+      withLexicalContextStatements: self.lexical_context_statements)
   }
 
   /// Update a compiler context
@@ -96,7 +108,9 @@ public struct CompilerContext {
   public func update(newTypes types: TypeTypeScopes) -> CompilerContext {
     return CompilerContext(
       withInstances: self.instances, withTypes: types, withExpectation: self.expected_type,
-      withExtern: self.extern_context, withExterns: self.externs, withFFIs: self.ffis)
+      withExtern: self.extern_context, withExterns: self.externs, withFFIs: self.ffis,
+      withLexicalContextName: self.lexical_context_name,
+      withLexicalContextStatements: self.lexical_context_statements)
   }
 
   /// Update a compiler context
@@ -108,7 +122,9 @@ public struct CompilerContext {
   public func update(newExpectation expectation: P4QualifiedType?) -> CompilerContext {
     return CompilerContext(
       withInstances: self.instances, withTypes: self.types, withExpectation: expectation,
-      withExtern: self.extern_context, withExterns: self.externs, withFFIs: self.ffis)
+      withExtern: self.extern_context, withExterns: self.externs, withFFIs: self.ffis,
+      withLexicalContextName: self.lexical_context_name,
+      withLexicalContextStatements: self.lexical_context_statements)
   }
 
   /// Update a compiler context
@@ -120,7 +136,9 @@ public struct CompilerContext {
   public func update(newExtern extern: Bool) -> CompilerContext {
     return CompilerContext(
       withInstances: self.instances, withTypes: self.types, withExpectation: self.expected_type,
-      withExtern: extern, withExterns: self.externs, withFFIs: self.ffis)
+      withExtern: extern, withExterns: self.externs, withFFIs: self.ffis,
+      withLexicalContextName: self.lexical_context_name,
+      withLexicalContextStatements: self.lexical_context_statements)
   }
 
   /// Update a compiler context
@@ -132,7 +150,9 @@ public struct CompilerContext {
   public func update(newExterns externs: TypeTypeScopes) -> CompilerContext {
     return CompilerContext(
       withInstances: self.instances, withTypes: self.types, withExpectation: self.expected_type,
-      withExtern: self.extern_context, withExterns: externs, withFFIs: self.ffis)
+      withExtern: self.extern_context, withExterns: externs, withFFIs: self.ffis,
+      withLexicalContextName: self.lexical_context_name,
+      withLexicalContextStatements: self.lexical_context_statements)
   }
 
   /// Update a compiler context
@@ -144,6 +164,40 @@ public struct CompilerContext {
   public func update(newFFIs foreigns: [P4FFI]) -> CompilerContext {
     return CompilerContext(
       withInstances: self.instances, withTypes: self.types, withExpectation: self.expected_type,
-      withExtern: self.extern_context, withExterns: externs, withFFIs: foreigns)
+      withExtern: self.extern_context, withExterns: externs, withFFIs: foreigns,
+      withLexicalContextName: self.lexical_context_name,
+      withLexicalContextStatements: self.lexical_context_statements)
   }
+
+  /// Update a compiler context
+  ///
+  /// Create a new compiler context based on the current but with a new lexical context name.
+  ///
+  /// - Parameter new_lexical_context_name: an optional new lexical context name; passing `.none` resets.
+  /// - Returns: A new compiler context based on the current but with a new lexical context name.
+  public func update(newLexicalContextName new_lexical_context_name: Identifier?) -> CompilerContext
+  {
+    return CompilerContext(
+      withInstances: self.instances, withTypes: self.types, withExpectation: self.expected_type,
+      withExtern: self.extern_context, withExterns: externs, withFFIs: self.ffis,
+      withLexicalContextName: new_lexical_context_name,
+      withLexicalContextStatements: self.lexical_context_statements)
+  }
+
+  /// Update a compiler context
+  ///
+  /// Create a new compiler context based on the current but with a new set of lexical context statements.
+  ///
+  /// - Parameter new_lexical_context_statements: an optional new set of lexical context statements; passing `.none` resets.
+  /// - Returns: A new compiler context based on the current but with a new set of lexical context statements.
+  public func update(
+    newLexicalContextStatements new_lexical_context_statements: [P4Statement]?
+  ) -> CompilerContext {
+    return CompilerContext(
+      withInstances: self.instances, withTypes: self.types, withExpectation: self.expected_type,
+      withExtern: self.extern_context, withExterns: externs, withFFIs: self.ffis,
+      withLexicalContextName: self.lexical_context_name,
+      withLexicalContextStatements: new_lexical_context_statements)
+  }
+
 }
diff --git a/Sources/P4Compiler/Parser.swift b/Sources/P4Compiler/Parser.swift
index 8543213..8576f32 100644
--- a/Sources/P4Compiler/Parser.swift
+++ b/Sources/P4Compiler/Parser.swift
@@ -178,8 +178,9 @@ extension ParserState: Compilable {
           sourceLocation: node.toSourceLocation(),
           withError: "Missing transition statement of state declaration")))
 
-    return SpecialCompilers.TransitionStatement.Compile(
-      node: current_node!, forState: state_identifier, withStatements: parsed_s,
-      withContext: SpecialCompilers.Statements.effect(statements: parsed_s, context: context))
+    let updated_context = SpecialCompilers.Statements.effect(statements: parsed_s, context: context)
+      .update(newLexicalContextName: state_identifier).update(newLexicalContextStatements: parsed_s)
+
+    return TransitionStatement.Compile(node: current_node!, withContext: updated_context)
   }
 }
diff --git a/Sources/P4Compiler/SpecialCompilers.swift b/Sources/P4Compiler/SpecialCompilers.swift
index 514391f..0dffc23 100644
--- a/Sources/P4Compiler/SpecialCompilers.swift
+++ b/Sources/P4Compiler/SpecialCompilers.swift
@@ -28,88 +28,102 @@ protocol AnyCompilable {
   ) -> Common.Result<(Any, CompilerContext)>
 }
 
-public struct SpecialCompilers {
-  public struct TransitionStatement {
-    static func Compile(
-      node: Node, forState state_identifier: Common.Identifier,
-      withStatements stmts: [P4Statement], withContext context: CompilerContext
-    ) -> Result<ParserState> {
+extension TransitionStatement: Compilable {
+  public static func Compile(
+    node: Node, withContext context: CompilerContext
+  ) -> Result<ParserState> {
 
-      #RequireNodeType<Node, P4Statement>(
-        node: node, type: "parserTransitionStatement", nice_type_name: "parser transition statement"
-      )
+    guard let state_identifier = context.lexical_context_name else {
+      return .Error(
+        ErrorWithLocation(
+          sourceLocation: node.toSourceLocation(),
+          withError: "Cannot parse a transition statement without the name of the containing state."))
+    }
 
-      guard let tse_node = node.child(at: 1),
-        tse_node.nodeType! == "transitionSelectionExpression"
-      else {
-        return .Error(
-          ErrorWithLocation(
-            sourceLocation: node.toSourceLocation(),
-            withError: "Could not find transition select expression"))
-      }
+    guard let stmts = context.lexical_context_statements else {
+      return .Error(
+        ErrorWithLocation(
+          sourceLocation: node.toSourceLocation(),
+          withError: "Cannot parse a transition statement without statements of the containing state."))
+    }
 
-      guard let next_node = tse_node.child(at: 0) else {
-        return .Error(
-          ErrorWithLocation(
-            sourceLocation: node.toSourceLocation(),
-            withError: "Could not find the next token in a transition selection expression"))
-      }
 
-      // If the next node is an identifier, we have the simple form ...
-      if next_node.nodeType == "identifier" {
-        let maybe_parsed_next_state_id = Identifier.Compile(
-          node: next_node, withContext: context)
-        if case .Ok(let next_state_id) = maybe_parsed_next_state_id {
-          if case .Ok(let next_state) = context.instances.lookup(identifier: next_state_id) {
-            switch next_state {
-            case (_, .some(let instance)):
-              return .Ok(
-                ParserStateDirectTransition(
-                  name: state_identifier,
-                  withNextState: instance.dataValue() as! InstantiatedParserState,
-                  withStatements: stmts,
-                )
+    #RequireNodeType<Node, P4Statement>(
+      node: node, type: "parserTransitionStatement", nice_type_name: "parser transition statement"
+    )
+
+    guard let tse_node = node.child(at: 1),
+      tse_node.nodeType! == "transitionSelectionExpression"
+    else {
+      return .Error(
+        ErrorWithLocation(
+          sourceLocation: node.toSourceLocation(),
+          withError: "Could not find transition select expression"))
+    }
+
+    guard let next_node = tse_node.child(at: 0) else {
+      return .Error(
+        ErrorWithLocation(
+          sourceLocation: node.toSourceLocation(),
+          withError: "Could not find the next token in a transition selection expression"))
+    }
+
+    // If the next node is an identifier, we have the simple form ...
+    if next_node.nodeType == "identifier" {
+      let maybe_parsed_next_state_id = Identifier.Compile(
+        node: next_node, withContext: context)
+      if case .Ok(let next_state_id) = maybe_parsed_next_state_id {
+        if case .Ok(let next_state) = context.instances.lookup(identifier: next_state_id) {
+          switch next_state {
+          case (_, .some(let instance)):
+            return .Ok(
+              ParserStateDirectTransition(
+                name: state_identifier,
+                withNextState: instance.dataValue() as! InstantiatedParserState,
+                withStatements: stmts,
               )
-            case (_, .none):
-              return .Ok(
-                ParserStateDirectTransition(
-                  name: state_identifier,
-                  withNextStateIdentifier: next_state_id, withStatements: stmts)
-              )
-            }
-          } else {
-
-            return .Error(
-              Error(
-                withMessage:
-                  "\(next_state_id) does not name a parser state in scope"
-              ))
+            )
+          case (_, .none):
+            return .Ok(
+              ParserStateDirectTransition(
+                name: state_identifier,
+                withNextStateIdentifier: next_state_id, withStatements: stmts)
+            )
           }
         } else {
+
           return .Error(
             Error(
               withMessage:
-                "Could not parse the next state in a transition statement: \(maybe_parsed_next_state_id.error()!)"
+                "\(next_state_id) does not name a parser state in scope"
             ))
         }
-      }
-
-      // We know that the next node is a select expression.
-      return
-        switch SelectExpression.compile(node: next_node, withContext: context)
-      {
-      case .Ok(let tse):
-        .Ok(
-          ParserStateSelectTransition(
-            name: state_identifier, withTransitionExpression: tse as! SelectExpression,
-            withStatements: stmts,
-          )
-        )
-      case .Error(let e): .Error(e)
+      } else {
+        return .Error(
+          Error(
+            withMessage:
+              "Could not parse the next state in a transition statement: \(maybe_parsed_next_state_id.error()!)"
+          ))
       }
     }
-  }
 
+    // We know that the next node is a select expression.
+    return
+      switch SelectExpression.compile(node: next_node, withContext: context)
+    {
+    case .Ok(let tse):
+      .Ok(
+        ParserStateSelectTransition(
+          name: state_identifier, withTransitionExpression: tse as! SelectExpression,
+          withStatements: stmts,
+        )
+      )
+    case .Error(let e): .Error(e)
+    }
+  }
+}
+
+public struct SpecialCompilers {
   public struct Statements {
     static func Compile(
       node: Node, withContext context: CompilerContext