diff --git a/app/app.go b/app/app.go
index 6f54782ff7..3b802d372f 100644
--- a/app/app.go
+++ b/app/app.go
@@ -29,23 +29,19 @@ type Basecoin struct {
 	logger     log.Logger
 }
 
-func NewBasecoin(eyesCli *eyes.Client) *Basecoin {
-	state := sm.NewState(eyesCli)
+func NewBasecoin(eyesCli *eyes.Client, l log.Logger) *Basecoin {
+	state := sm.NewState(eyesCli, l.With("module", "state"))
+
 	plugins := types.NewPlugins()
 	return &Basecoin{
 		eyesCli:    eyesCli,
 		state:      state,
 		cacheState: nil,
 		plugins:    plugins,
-		logger:     log.NewNopLogger(),
+		logger:     l,
 	}
 }
 
-func (app *Basecoin) SetLogger(l log.Logger) {
-	app.logger = l
-	app.state.SetLogger(l.With("module", "state"))
-}
-
 // XXX For testing, not thread safe!
 func (app *Basecoin) GetState() *sm.State {
 	return app.state.CacheWrap()
diff --git a/app/app_test.go b/app/app_test.go
index 1f150e8c48..e407b1e55d 100644
--- a/app/app_test.go
+++ b/app/app_test.go
@@ -56,8 +56,7 @@ func (at *appTest) reset() {
 	at.accOut = types.MakeAcc("output0")
 
 	eyesCli := eyes.NewLocalClient("", 0)
-	at.app = NewBasecoin(eyesCli)
-	at.app.SetLogger(log.TestingLogger().With("module", "app"))
+	at.app = NewBasecoin(eyesCli, log.TestingLogger().With("module", "app"))
 
 	res := at.app.SetOption("base/chain_id", at.chainID)
 	require.EqualValues(at.t, res, "Success")
@@ -106,8 +105,7 @@ func TestSetOption(t *testing.T) {
 	require := require.New(t)
 
 	eyesCli := eyes.NewLocalClient("", 0)
-	app := NewBasecoin(eyesCli)
-	app.SetLogger(log.TestingLogger().With("module", "app"))
+	app := NewBasecoin(eyesCli, log.TestingLogger().With("module", "app"))
 
 	//testing ChainID
 	chainID := "testChain"
diff --git a/app/genesis_test.go b/app/genesis_test.go
index dc398afd97..1fb84acd97 100644
--- a/app/genesis_test.go
+++ b/app/genesis_test.go
@@ -11,6 +11,7 @@ import (
 	crypto "github.com/tendermint/go-crypto"
 	eyescli "github.com/tendermint/merkleeyes/client"
 	cmn "github.com/tendermint/tmlibs/common"
+	"github.com/tendermint/tmlibs/log"
 )
 
 const genesisFilepath = "./testdata/genesis.json"
@@ -18,7 +19,7 @@ const genesisAcctFilepath = "./testdata/genesis2.json"
 
 func TestLoadGenesisDoNotFailIfAppOptionsAreMissing(t *testing.T) {
 	eyesCli := eyescli.NewLocalClient("", 0)
-	app := NewBasecoin(eyesCli)
+	app := NewBasecoin(eyesCli, log.TestingLogger())
 	err := app.LoadGenesis("./testdata/genesis3.json")
 	require.Nil(t, err, "%+v", err)
 }
@@ -27,7 +28,7 @@ func TestLoadGenesis(t *testing.T) {
 	assert, require := assert.New(t), require.New(t)
 
 	eyesCli := eyescli.NewLocalClient("", 0)
-	app := NewBasecoin(eyesCli)
+	app := NewBasecoin(eyesCli, log.TestingLogger())
 	err := app.LoadGenesis(genesisFilepath)
 	require.Nil(err, "%+v", err)
 
@@ -64,7 +65,7 @@ func TestLoadGenesisAccountAddress(t *testing.T) {
 	assert, require := assert.New(t), require.New(t)
 
 	eyesCli := eyescli.NewLocalClient("", 0)
-	app := NewBasecoin(eyesCli)
+	app := NewBasecoin(eyesCli, log.TestingLogger())
 	err := app.LoadGenesis(genesisAcctFilepath)
 	require.Nil(err, "%+v", err)
 
diff --git a/cmd/basecoin/commands/start.go b/cmd/basecoin/commands/start.go
index 8f6abd75f5..d27ddd152e 100644
--- a/cmd/basecoin/commands/start.go
+++ b/cmd/basecoin/commands/start.go
@@ -66,8 +66,7 @@ func startCmd(cmd *cobra.Command, args []string) error {
 	}
 
 	// Create Basecoin app
-	basecoinApp := app.NewBasecoin(eyesCli)
-	basecoinApp.SetLogger(logger.With("module", "app"))
+	basecoinApp := app.NewBasecoin(eyesCli, logger.With("module", "app"))
 
 	// register IBC plugn
 	// basecoinApp.RegisterPlugin(NewIBCPlugin())
diff --git a/docs/guide/counter/plugins/counter/counter_test.go b/docs/guide/counter/plugins/counter/counter_test.go
index f1c7d9d354..a15ad3ecc5 100644
--- a/docs/guide/counter/plugins/counter/counter_test.go
+++ b/docs/guide/counter/plugins/counter/counter_test.go
@@ -11,6 +11,7 @@ import (
 	"github.com/tendermint/basecoin/types"
 	"github.com/tendermint/go-wire"
 	eyescli "github.com/tendermint/merkleeyes/client"
+	"github.com/tendermint/tmlibs/log"
 )
 
 func TestCounterPlugin(t *testing.T) {
@@ -19,7 +20,7 @@ func TestCounterPlugin(t *testing.T) {
 	// Basecoin initialization
 	eyesCli := eyescli.NewLocalClient("", 0)
 	chainID := "test_chain_id"
-	bcApp := app.NewBasecoin(eyesCli)
+	bcApp := app.NewBasecoin(eyesCli, log.TestingLogger().With("module", "app"))
 	bcApp.SetOption("base/chain_id", chainID)
 	// t.Log(bcApp.Info())
 
diff --git a/state/execution_test.go b/state/execution_test.go
index 91ce5a6ec2..983ae8d599 100644
--- a/state/execution_test.go
+++ b/state/execution_test.go
@@ -60,8 +60,7 @@ func (et *execTest) reset() {
 	et.accOut = types.MakeAcc("bar")
 
 	et.store = types.NewMemKVStore()
-	et.state = NewState(et.store)
-	et.state.SetLogger(log.TestingLogger())
+	et.state = NewState(et.store, log.TestingLogger())
 	et.state.SetChainID(et.chainID)
 
 	// NOTE we dont run acc2State here
diff --git a/state/state.go b/state/state.go
index e9daf73b12..da370da817 100644
--- a/state/state.go
+++ b/state/state.go
@@ -17,20 +17,16 @@ type State struct {
 	logger     log.Logger
 }
 
-func NewState(store types.KVStore) *State {
+func NewState(store types.KVStore, l log.Logger) *State {
 	return &State{
 		chainID:    "",
 		store:      store,
 		readCache:  make(map[string][]byte),
 		writeCache: nil,
-		logger:     log.NewNopLogger(),
+		logger:     l,
 	}
 }
 
-func (s *State) SetLogger(l log.Logger) {
-	s.logger = l
-}
-
 func (s *State) SetChainID(chainID string) {
 	s.chainID = chainID
 	s.store.Set([]byte("base/chain_id"), []byte(chainID))
diff --git a/state/state_test.go b/state/state_test.go
index dae620027a..990659d361 100644
--- a/state/state_test.go
+++ b/state/state_test.go
@@ -16,8 +16,7 @@ func TestState(t *testing.T) {
 
 	//States and Stores for tests
 	store := types.NewMemKVStore()
-	state := NewState(store)
-	state.SetLogger(log.TestingLogger())
+	state := NewState(store, log.TestingLogger())
 	cache := state.CacheWrap()
 	eyesCli := eyes.NewLocalClient("", 0)
 
@@ -30,15 +29,13 @@ func TestState(t *testing.T) {
 	//reset the store/state/cache
 	reset := func() {
 		store = types.NewMemKVStore()
-		state = NewState(store)
-		state.SetLogger(log.TestingLogger())
+		state = NewState(store, log.TestingLogger())
 		cache = state.CacheWrap()
 	}
 
 	//set the state to using the eyesCli instead of MemKVStore
 	useEyesCli := func() {
-		state = NewState(eyesCli)
-		state.SetLogger(log.TestingLogger())
+		state = NewState(eyesCli, log.TestingLogger())
 		cache = state.CacheWrap()
 	}
 
diff --git a/tests/tmsp/tmsp_test.go b/tests/tmsp/tmsp_test.go
index 19b32341b7..9de055ad65 100644
--- a/tests/tmsp/tmsp_test.go
+++ b/tests/tmsp/tmsp_test.go
@@ -17,8 +17,7 @@ import (
 func TestSendTx(t *testing.T) {
 	eyesCli := eyescli.NewLocalClient("", 0)
 	chainID := "test_chain_id"
-	bcApp := app.NewBasecoin(eyesCli)
-	bcApp.SetLogger(log.TestingLogger().With("module", "app"))
+	bcApp := app.NewBasecoin(eyesCli, log.TestingLogger().With("module", "app"))
 	bcApp.SetOption("base/chain_id", chainID)
 	// t.Log(bcApp.Info())
 
@@ -64,7 +63,7 @@ func TestSendTx(t *testing.T) {
 func TestSequence(t *testing.T) {
 	eyesCli := eyescli.NewLocalClient("", 0)
 	chainID := "test_chain_id"
-	bcApp := app.NewBasecoin(eyesCli)
+	bcApp := app.NewBasecoin(eyesCli, log.TestingLogger().With("module", "app"))
 	bcApp.SetOption("base/chain_id", chainID)
 	// t.Log(bcApp.Info())