diff --git a/compiler/apps/playground/yarn.lock b/compiler/apps/playground/yarn.lock
index 232d37448e..b0a3a09589 100644
--- a/compiler/apps/playground/yarn.lock
+++ b/compiler/apps/playground/yarn.lock
@@ -854,23 +854,11 @@
   resolved "https://registry.yarnpkg.com/@types/node/-/node-18.11.9.tgz#02d013de7058cea16d36168ef2fc653464cfbad4"
   integrity sha512-CRpX21/kGdzjOpFsZSkcrXMGIBWMGNIHXXBVFSH+ggkftxg+XYP20TESbh+zFvFj3EQOl5byk0HTRn1IL6hbqg==
 
-"@types/react-dom@19.1.9":
-  version "19.1.9"
-  resolved "https://registry.yarnpkg.com/@types/react-dom/-/react-dom-19.1.9.tgz#5ab695fce1e804184767932365ae6569c11b4b4b"
-  integrity sha512-qXRuZaOsAdXKFyOhRBg6Lqqc0yay13vN7KrIg4L7N4aaHN68ma9OK3NE1BoDFgFOTfM7zg+3/8+2n8rLUH3OKQ==
-
 "@types/react-dom@19.2":
   version "19.2.2"
   resolved "https://registry.npmjs.org/@types/react-dom/-/react-dom-19.2.2.tgz#a4cc874797b7ddc9cb180ef0d5dc23f596fc2332"
   integrity sha512-9KQPoO6mZCi7jcIStSnlOWn2nEF3mNmyr3rIAsGnAbQKYbRLyqmeSc39EVgtxXVia+LMT8j3knZLAZAh+xLmrw==
 
-"@types/react@19.1.12":
-  version "19.1.12"
-  resolved "https://registry.yarnpkg.com/@types/react/-/react-19.1.12.tgz#7bfaa76aabbb0b4fe0493c21a3a7a93d33e8937b"
-  integrity sha512-cMoR+FoAf/Jyq6+Df2/Z41jISvGZZ2eTlnsaJRptmZ76Caldwy1odD4xTr/gNV9VLj0AWgg/nmkevIyUfIIq5w==
-  dependencies:
-    csstype "^3.0.2"
-
 "@types/react@19.2":
   version "19.2.2"
   resolved "https://registry.npmjs.org/@types/react/-/react-19.2.2.tgz#ba123a75d4c2a51158697160a4ea2ff70aa6bf36"
@@ -3982,16 +3970,7 @@ stop-iteration-iterator@^1.1.0:
     es-errors "^1.3.0"
     internal-slot "^1.1.0"
 
-"string-width-cjs@npm:string-width@^4.2.0":
-  version "4.2.3"
-  resolved "https://registry.yarnpkg.com/string-width/-/string-width-4.2.3.tgz#269c7117d27b05ad2e536830a8ec895ef9c6d010"
-  integrity sha512-wKyQRQpjJ0sIp62ErSZdGsjMJWsap5oRNihHhu6G7JVO/9jIB6UyevL+tXuOqrng8j/cxKTWyWUwvSTriiZz/g==
-  dependencies:
-    emoji-regex "^8.0.0"
-    is-fullwidth-code-point "^3.0.0"
-    strip-ansi "^6.0.1"
-
-string-width@^4.1.0, string-width@^4.2.0, string-width@^4.2.3:
+"string-width-cjs@npm:string-width@^4.2.0", string-width@^4.1.0, string-width@^4.2.0, string-width@^4.2.3:
   version "4.2.3"
   resolved "https://registry.yarnpkg.com/string-width/-/string-width-4.2.3.tgz#269c7117d27b05ad2e536830a8ec895ef9c6d010"
   integrity sha512-wKyQRQpjJ0sIp62ErSZdGsjMJWsap5oRNihHhu6G7JVO/9jIB6UyevL+tXuOqrng8j/cxKTWyWUwvSTriiZz/g==
@@ -4095,14 +4074,7 @@ string.prototype.trimstart@^1.0.8:
     define-properties "^1.2.1"
     es-object-atoms "^1.0.0"
 
-"strip-ansi-cjs@npm:strip-ansi@^6.0.1":
-  version "6.0.1"
-  resolved "https://registry.yarnpkg.com/strip-ansi/-/strip-ansi-6.0.1.tgz#9e26c63d30f53443e9489495b2105d37b67a85d9"
-  integrity sha512-Y38VPSHcqkFrCpFnQ9vuSXmquuv5oXOKpGeT6aGrr3o3Gc9AlVa6JBfUSOCnbxGGZF+/0ooI7KrPuUSztUdU5A==
-  dependencies:
-    ansi-regex "^5.0.1"
-
-strip-ansi@^6.0.0, strip-ansi@^6.0.1:
+"strip-ansi-cjs@npm:strip-ansi@^6.0.1", strip-ansi@^6.0.0, strip-ansi@^6.0.1:
   version "6.0.1"
   resolved "https://registry.yarnpkg.com/strip-ansi/-/strip-ansi-6.0.1.tgz#9e26c63d30f53443e9489495b2105d37b67a85d9"
   integrity sha512-Y38VPSHcqkFrCpFnQ9vuSXmquuv5oXOKpGeT6aGrr3o3Gc9AlVa6JBfUSOCnbxGGZF+/0ooI7KrPuUSztUdU5A==
@@ -4523,16 +4495,7 @@ word-wrap@^1.2.5:
   resolved "https://registry.yarnpkg.com/word-wrap/-/word-wrap-1.2.5.tgz#d2c45c6dd4fbce621a66f136cbe328afd0410b34"
   integrity sha512-BN22B5eaMMI9UMtjrGd5g5eCYPpCPDUy0FJXbYsaT5zYxjFOckS53SQDE3pWkVoWpHXVb3BrYcEN4Twa55B5cA==
 
-"wrap-ansi-cjs@npm:wrap-ansi@^7.0.0":
-  version "7.0.0"
-  resolved "https://registry.yarnpkg.com/wrap-ansi/-/wrap-ansi-7.0.0.tgz#67e145cff510a6a6984bdf1152911d69d2eb9e43"
-  integrity sha512-YVGIj2kamLSTxw6NsZjoBxfSwsn0ycdesmc4p+Q21c5zPuZ1pl+NfxVdxPtdHvmNVOQ6XSYG4AUtyt/Fi7D16Q==
-  dependencies:
-    ansi-styles "^4.0.0"
-    string-width "^4.1.0"
-    strip-ansi "^6.0.0"
-
-wrap-ansi@^7.0.0:
+"wrap-ansi-cjs@npm:wrap-ansi@^7.0.0", wrap-ansi@^7.0.0:
   version "7.0.0"
   resolved "https://registry.yarnpkg.com/wrap-ansi/-/wrap-ansi-7.0.0.tgz#67e145cff510a6a6984bdf1152911d69d2eb9e43"
   integrity sha512-YVGIj2kamLSTxw6NsZjoBxfSwsn0ycdesmc4p+Q21c5zPuZ1pl+NfxVdxPtdHvmNVOQ6XSYG4AUtyt/Fi7D16Q==
diff --git a/compiler/packages/babel-plugin-react-compiler/src/Validation/ValidateNoDerivedComputationsInEffects_exp.ts b/compiler/packages/babel-plugin-react-compiler/src/Validation/ValidateNoDerivedComputationsInEffects_exp.ts
index dad74c03fb..297f795897 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/Validation/ValidateNoDerivedComputationsInEffects_exp.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/Validation/ValidateNoDerivedComputationsInEffects_exp.ts
@@ -37,6 +37,11 @@ type DerivationMetadata = {
   sourcesIds: Set<IdentifierId>;
 };
 
+// type setStateKey = {
+//   id: IdentifierId;
+//   usageType: 'all' | 'effect';
+// };
+
 type ValidationContext = {
   readonly functions: Map<IdentifierId, FunctionExpression>;
   readonly errors: CompilerError;
@@ -44,6 +49,9 @@ type ValidationContext = {
   readonly effects: Set<HIRFunction>;
   readonly setStateCache: Map<string | undefined | null, Array<Place>>;
   readonly effectSetStateCache: Map<string | undefined | null, Array<Place>>;
+  // These should replace the setStateCache and effectSetStateCache once we have
+  readonly setStateLoads: Map<IdentifierId, IdentifierId | null>;
+  readonly setStateUsages: Map<IdentifierId, SourceLocation>;
 };
 
 class DerivationCache {
@@ -189,6 +197,9 @@ export function validateNoDerivedComputationsInEffects_exp(
     Array<Place>
   > = new Map();
 
+  const setStateLoads: Map<IdentifierId, IdentifierId> = new Map();
+  const setStateUsages: Map<IdentifierId, SourceLocation> = new Map();
+
   const context: ValidationContext = {
     functions,
     errors,
@@ -196,6 +207,8 @@ export function validateNoDerivedComputationsInEffects_exp(
     effects,
     setStateCache,
     effectSetStateCache,
+    setStateLoads,
+    setStateUsages,
   };
 
   if (fn.fnType === 'Hook') {
@@ -242,10 +255,8 @@ export function validateNoDerivedComputationsInEffects_exp(
     validateEffect(effect, context);
   }
 
-  console.log(derivationCache.cache);
-  if (errors.hasAnyErrors()) {
-    throw errors;
-  }
+  console.log('SetStateLoads', context.setStateLoads);
+  return errors.asResult();
 }
 
 function recordPhiDerivations(
@@ -288,11 +299,29 @@ function joinValue(
   return 'fromPropsAndState';
 }
 
+function maybeRecordSetState(instr: Instruction, context: ValidationContext) {
+  for (const operand of eachInstructionLValue(instr)) {
+    if (isSetStateType(operand.identifier)) {
+      if (instr.value.kind === 'LoadLocal') {
+        context.setStateLoads.set(
+          operand.identifier.id,
+          instr.value.place.identifier.id,
+        );
+      } else {
+        context.setStateLoads.set(operand.identifier.id, null);
+      }
+    }
+  }
+}
+
 function recordInstructionDerivations(
   instr: Instruction,
   context: ValidationContext,
   isFirstPass: boolean,
 ): void {
+  // WIP
+  maybeRecordSetState(instr, context);
+
   let typeOfValue: TypeOfValue = 'ignored';
   const sources: Set<IdentifierId> = new Set();
   const {lvalue, value} = instr;