diff --git a/packages/codegen/README.md b/packages/codegen/README.md
index 8b466b93..bfdebb6d 100644
--- a/packages/codegen/README.md
+++ b/packages/codegen/README.md
@@ -82,7 +82,7 @@
 
   * Edit the custom hook function `handleEvent` (triggered on an event) in `src/hooks.ts` to perform corresponding indexing using the `Indexer` object.
 
-  * While using the indexer storage methods for indexing, pass the optional arg. `state` as `diff` or `checkpoint` if default state is desired to be generated using the state variables being indexed else pass `none`.
+  * While using the indexer storage methods for indexing, pass `diff` as true if default state is desired to be generated using the state variables being indexed.
 
 * Generating state:
 
@@ -131,6 +131,20 @@
     ```bash
     yarn checkpoint --address <contract-address> --block-hash [block-hash]
     ```
+  
+  * To reset the watcher to a previous block number:
+
+    * Reset state:
+
+      ```bash
+      yarn reset state --block-number <previous-block-number>
+      ```
+
+    * Reset job-queue:
+
+      ```bash
+      yarn reset job-queue --block-number <previous-block-number>
+      ```
 
 ## Known Issues
 
diff --git a/packages/codegen/src/templates/database-template.handlebars b/packages/codegen/src/templates/database-template.handlebars
index 5c2b1092..c2c1ae35 100644
--- a/packages/codegen/src/templates/database-template.handlebars
+++ b/packages/codegen/src/templates/database-template.handlebars
@@ -3,7 +3,7 @@
 //
 
 import assert from 'assert';
-import { Connection, ConnectionOptions, DeepPartial, FindConditions, QueryRunner, FindManyOptions, In, Between } from 'typeorm';
+import { Connection, ConnectionOptions, DeepPartial, FindConditions, QueryRunner, FindManyOptions, MoreThan } from 'typeorm';
 import path from 'path';
 
 import { Database as BaseDatabase, QueryOptions, Where, MAX_REORG_DEPTH } from '@vulcanize/util';
@@ -83,17 +83,22 @@ export class Database {
     return repo.find({ where, relations: ['block'] });
   }
 
-  async getLatestCheckpoint (queryRunner: QueryRunner, contractAddress: string): Promise<IPLDBlock | undefined> {
-    // Get the latest checkpoints for a contract.
-    const result = await queryRunner.manager.createQueryBuilder(IPLDBlock, 'ipld_block')
+  async getLastIPLDBlock (contractAddress: string, kind?: string): Promise<IPLDBlock | undefined> {
+    const repo = this._conn.getRepository(IPLDBlock);
+
+    let queryBuilder = repo.createQueryBuilder('ipld_block')
       .leftJoinAndSelect('ipld_block.block', 'block')
       .where('block.is_pruned = false')
-      .andWhere('ipld_block.contractAddress = :contractAddress', { contractAddress })
-      .andWhere('ipld_block.kind = :kind', { kind: 'checkpoint' })
-      .orderBy('ipld_block.block_id', 'DESC')
-      .getOne();
+      .andWhere('ipld_block.contract_address = :contractAddress', { contractAddress })
+      .orderBy('block.block_number', 'DESC');
 
-    return result;
+    // Filter using kind if specified else order by id to give preference to checkpoint.
+    queryBuilder = kind
+      ? queryBuilder.andWhere('ipld_block.kind = :kind', { kind })
+      : queryBuilder.andWhere('ipld_block.kind != :kind', { kind: 'diff_staged' })
+        .addOrderBy('ipld_block.id', 'DESC');
+
+    return queryBuilder.getOne();
   }
 
   async getPrevIPLDBlock (queryRunner: QueryRunner, blockHash: string, contractAddress: string, kind?: string): Promise<IPLDBlock | undefined> {
@@ -172,67 +177,23 @@ export class Database {
     return result;
   }
 
-  async getPrevIPLDBlocksAfterCheckpoint (queryRunner: QueryRunner, blockHash: string, checkpointBlockNumber: number, contractAddress: string): Promise<IPLDBlock[]> {
-    const heirerchicalQuery = `
-      WITH RECURSIVE cte_query AS
-      (
-        SELECT
-          b.block_hash,
-          b.block_number,
-          b.parent_hash,
-          1 as depth,
-          i.id
-        FROM
-          block_progress b
-          LEFT JOIN
-            ipld_block i ON i.block_id = b.id
-            AND i.contract_address = $2
-        WHERE
-          b.block_hash = $1
-        UNION ALL
-          SELECT
-            b.block_hash,
-            b.block_number,
-            b.parent_hash,
-            c.depth + 1,
-            i.id
-          FROM
-            block_progress b
-            LEFT JOIN
-              ipld_block i
-              ON i.block_id = b.id
-              AND i.contract_address = $2
-            INNER JOIN
-              cte_query c ON c.parent_hash = b.block_hash
-            WHERE
-              c.depth < $3
-      )
-      SELECT
-        block_number, id
-      FROM
-        cte_query
-      ORDER BY block_number ASC
-    `;
+  async getPrevIPLDBlocksAfterCheckpoint (contractAddress: string, checkpointBlockNumber: number): Promise<IPLDBlock[]> {
+    const repo = this._conn.getRepository(IPLDBlock);
 
-    // Fetching ids for previous IPLDBlocks in the frothy region.
-    const queryResult = await queryRunner.query(heirerchicalQuery, [blockHash, contractAddress, MAX_REORG_DEPTH]);
-
-    let frothyIds = queryResult.map((obj: any) => obj.id);
-    frothyIds = frothyIds.filter((id: any) => id !== null);
-
-    const frothyBlockNumber = queryResult[0].block_number;
-
-    // Fetching all diff blocks after checkpoint till current blockNumber.
-    const ipldBlocks = await queryRunner.manager.find(IPLDBlock, {
+    return repo.find({
       relations: ['block'],
-      where: [
-        { contractAddress, block: { isPruned: false, blockNumber: Between(checkpointBlockNumber + 1, frothyBlockNumber - 1) } },
-        { id: In(frothyIds) }
-      ],
-      order: { block: 'ASC' }
+      where: {
+        contractAddress,
+        kind: 'diff',
+        block: {
+          isPruned: false,
+          blockNumber: MoreThan(checkpointBlockNumber)
+        }
+      },
+      order: {
+        block: 'ASC'
+      }
     });
-
-    return ipldBlocks;
   }
 
   async saveOrUpdateIPLDBlock (ipldBlock: IPLDBlock): Promise<IPLDBlock> {
@@ -268,6 +229,11 @@ export class Database {
     return repo.find({ where });
   }
 
+  async getLastCompleteBlock (): Promise<BlockProgress | undefined> {
+    const repo = this._conn.getRepository(BlockProgress);
+    return repo.findOne({ where: { isComplete: true }, order: { blockNumber: 'DESC' } });
+  }
+
   async getContract (address: string): Promise<Contract | undefined> {
     const repo = this._conn.getRepository(Contract);
 
@@ -370,11 +336,6 @@ export class Database {
     return this._baseDatabase.getBlockProgressEntities(repo, where, options);
   }
 
-  async getLatestBlockProgress (): Promise<BlockProgress | undefined> {
-    const repo = this._conn.getRepository(BlockProgress);
-    return repo.findOne({ order: { blockNumber: 'DESC' } });
-  }
-
   async updateBlockProgress (queryRunner: QueryRunner, blockHash: string, lastProcessedEventIndex: number): Promise<void> {
     const repo = queryRunner.manager.getRepository(BlockProgress);
 
diff --git a/packages/codegen/src/templates/events-template.handlebars b/packages/codegen/src/templates/events-template.handlebars
index dcc3e75d..a28b3ac0 100644
--- a/packages/codegen/src/templates/events-template.handlebars
+++ b/packages/codegen/src/templates/events-template.handlebars
@@ -16,6 +16,7 @@ import {
   QUEUE_HOOKS,
   UNKNOWN_EVENT_NAME,
   UpstreamConfig
+  JOB_KIND_PRUNE
 } from '@vulcanize/util';
 
 import { Indexer } from './indexer';
@@ -75,6 +76,23 @@ export class EventWatcher {
       }
 
       await this._baseEventWatcher.blockProcessingCompleteHandler(job);
+
+      const { data: { request: { data: { kind } } } } = job;
+
+      // If it's a pruning job:
+      // Create a hook job for the latest canonical block.
+      if (kind === JOB_KIND_PRUNE) {
+        const syncStatus = await this._indexer.getSyncStatus();
+        assert(syncStatus);
+
+        this._jobQueue.pushJob(
+          QUEUE_HOOKS,
+          {
+            blockHash: syncStatus.latestCanonicalBlockHash,
+            blockNumber: syncStatus.latestCanonicalBlockNumber
+          }
+        );
+      }
     });
   }
 
@@ -110,14 +128,18 @@ export class EventWatcher {
 
   async initHooksOnCompleteHandler (): Promise<void> {
     this._jobQueue.onComplete(QUEUE_HOOKS, async (job) => {
-      const { data: { request: { data: { blockHash, blockNumber } } } } = job;
+      const { data: { request: { data: { blockNumber, blockHash } } } } = job;
 
       await this._indexer.updateHookStatusProcessedBlock(blockNumber);
 
-      // Push checkpointing job only after post-block hook job is marked complete and checkpointing is on.
-      if (this._indexer._serverConfig.checkpointing) {
-        this._jobQueue.pushJob(QUEUE_BLOCK_CHECKPOINT, { blockHash });
-      }
+      // Create a checkpoint job after completion of a hook job.
+      this._jobQueue.pushJob(
+        QUEUE_BLOCK_CHECKPOINT,
+        {
+          blockHash,
+          blockNumber
+        }
+      );
     });
   }
 
diff --git a/packages/codegen/src/templates/hooks-template.handlebars b/packages/codegen/src/templates/hooks-template.handlebars
index 9e600051..0b7d6d50 100644
--- a/packages/codegen/src/templates/hooks-template.handlebars
+++ b/packages/codegen/src/templates/hooks-template.handlebars
@@ -7,7 +7,6 @@ import assert from 'assert';
 import { UNKNOWN_EVENT_NAME, updateStateForMappingType, updateStateForElementaryType } from '@vulcanize/util';
 
 import { Indexer, ResultEvent } from './indexer';
-import { BlockProgress } from './entity/BlockProgress';
 
 const ACCOUNTS = [
   '0xDC7d7A8920C8Eecc098da5B7522a5F31509b5Bfc'
@@ -19,9 +18,9 @@ const ACCOUNTS = [
  * @param block Concerned block.
  * @param contractAddress Address of the concerned contract.
  */
-export async function createInitialCheckpoint (indexer: Indexer, block: BlockProgress, contractAddress: string): Promise<void> {
+export async function createInitialCheckpoint (indexer: Indexer, contractAddress: string, blockHash: string): Promise<void> {
   assert(indexer);
-  assert(block);
+  assert(blockHash);
   assert(contractAddress);
 
   // Store the initial state values in an IPLDBlock.
@@ -29,12 +28,11 @@ export async function createInitialCheckpoint (indexer: Indexer, block: BlockPro
 
   // Setting the initial balances of accounts.
   for (const account of ACCOUNTS) {
-    const balance = await indexer._balances(block.blockHash, contractAddress, account);
+    const balance = await indexer._balances(blockHash, contractAddress, account);
     ipldBlockData = updateStateForMappingType(ipldBlockData, '_balances', [account], balance.value.toString());
   }
 
-  const ipldBlock = await indexer.prepareIPLDBlock(block, contractAddress, ipldBlockData, 'checkpoint');
-  await indexer.saveOrUpdateIPLDBlock(ipldBlock);
+  await indexer.createCheckpoint(contractAddress, blockHash, ipldBlockData);
 }
 
 /**
@@ -59,7 +57,6 @@ export async function createStateDiff (indexer: Indexer, blockHash: string): Pro
       continue;
     }
 
-    const block = event.block;
     const contractAddress = event.contract;
 
     const eventData = indexer.getResultEvent(event);
@@ -102,8 +99,7 @@ export async function createStateDiff (indexer: Indexer, blockHash: string): Pro
       }
     }
 
-    const ipldBlock = await indexer.prepareIPLDBlock(block, contractAddress, ipldBlockData, 'diff');
-    await indexer.saveOrUpdateIPLDBlock(ipldBlock);
+    await indexer.createDiff(contractAddress, blockHash, ipldBlockData);
   }
 }
 
diff --git a/packages/codegen/src/templates/indexer-template.handlebars b/packages/codegen/src/templates/indexer-template.handlebars
index b59f6138..17a28c3e 100644
--- a/packages/codegen/src/templates/indexer-template.handlebars
+++ b/packages/codegen/src/templates/indexer-template.handlebars
@@ -160,9 +160,7 @@ export class Indexer {
   async {{query.name}} (blockHash: string, contractAddress: string
     {{~#each query.params}}, {{this.name~}}: {{this.type~}} {{/each}}
     {{~#if query.stateVariableType~}}
-    , state = 'none'): Promise<ValueResult> {
-    assert(_.includes(['diff', 'checkpoint', 'none'], state));
-
+    , diff = false): Promise<ValueResult> {
     {{else~}}
     ): Promise<ValueResult> {
     {{/if}}
@@ -214,19 +212,19 @@ export class Indexer {
 
     {{#if query.stateVariableType}}
     {{#if (compare query.stateVariableType 'Mapping')}}
-    if (state !== 'none') {
+    if (diff) {
       const stateUpdate = updateStateForMappingType({}, '{{query.name}}', [
       {{~#each query.params}}
       {{~this.name}}.toString() {{~#unless @last}}, {{/unless~}}
       {{/each~}}
       ], result.value.toString());
-      await this.storeIPLDData(blockHash, contractAddress, stateUpdate, state);
+      await this.createDiffStaged(contractAddress, blockHash, stateUpdate);
     }
 
     {{else if (compare query.stateVariableType 'ElementaryTypeName')}}
-    if (state !== 'none') {
+    if (diff) {
       const stateUpdate = updateStateForElementaryType({}, '{{query.name}}', result.value.toString());
-      await this.storeIPLDData(blockHash, contractAddress, stateUpdate, state);
+      await this.createDiffStaged(contractAddress, blockHash, stateUpdate);
     }
 
     {{else}}
@@ -238,49 +236,125 @@ export class Indexer {
   }
 
   {{/each}}
-  async processBlock (job: any): Promise<void> {
+  async processCanonicalBlock (job: any): Promise<void> {
     const { data: { blockHash } } = job;
 
+    // Finalize staged diff blocks if any.
+    await this.finalizeDiffStaged(blockHash);
+
     // Call custom stateDiff hook.
     await createStateDiff(this, blockHash);
   }
 
-  async processCheckpoint (job: any): Promise<void> {
-    // Create a checkpoint IPLDBlock for contracts that were checkpointed checkPointInterval blocks before.
+  async createDiffStaged (contractAddress: string, blockHash: string, data: any): Promise<void> {
+    const block = await this.getBlockProgress(blockHash);
+    assert(block);
 
+    // Create a staged diff block.
+    const ipldBlock = await this.prepareIPLDBlock(block, contractAddress, data, 'diff_staged');
+    await this.saveOrUpdateIPLDBlock(ipldBlock);
+  }
+
+  async finalizeDiffStaged (blockHash: string): Promise<void> {
+    const block = await this.getBlockProgress(blockHash);
+    assert(block);
+
+    // Get all the staged diff blocks for the given blockHash.
+    const stagedBlocks = await this._db.getIPLDBlocks({ block, kind: 'diff_staged' });
+
+    // For each staged block, create a diff block.
+    for (const stagedBlock of stagedBlocks) {
+      const data = codec.decode(Buffer.from(stagedBlock.data));
+      await this.createDiff(stagedBlock.contractAddress, stagedBlock.block.blockHash, data);
+    }
+
+    // Remove all the staged diff blocks for current blockNumber.
+    await this.removeStagedIPLDBlocks(block.blockNumber);
+  }
+
+  async createDiff (contractAddress: string, blockHash: string, data: any): Promise<void> {
+    const block = await this.getBlockProgress(blockHash);
+    assert(block);
+
+    // Fetch the latest checkpoint for the contract.
+    const checkpoint = await this.getLastIPLDBlock(contractAddress, 'checkpoint');
+
+    // There should be an initial checkpoint at least.
+    assert(checkpoint, 'Initial checkpoint doesn\'t exist');
+
+    // Check if the latest checkpoint is in the same block.
+    assert(checkpoint.block.blockHash !== block.blockHash, 'Checkpoint already created for the block hash.');
+
+    const ipldBlock = await this.prepareIPLDBlock(block, contractAddress, data, 'diff');
+    await this.saveOrUpdateIPLDBlock(ipldBlock);
+  }
+
+  async processCheckpoint (job: any): Promise<void> {
     // Return if checkpointInterval is <= 0.
     const checkpointInterval = this._serverConfig.checkpointInterval;
     if (checkpointInterval <= 0) return;
 
-    const { data: { blockHash: currentBlockHash } } = job;
+    const { data: { blockHash, blockNumber } } = job;
 
     // Get all the contracts.
     const contracts = await this._db.getContracts({});
 
     // For each contract, merge the diff till now to create a checkpoint.
     for (const contract of contracts) {
+      // Check if contract has checkpointing on.
       if (contract.checkpoint) {
-        await this.createCheckpoint(contract.address, currentBlockHash, checkpointInterval);
+        // If a checkpoint doesn't already exist and blockNumber is equal to startingBlock, create an initial checkpoint.
+        const checkpointBlock = await this.getLastIPLDBlock(contract.address, 'checkpoint');
+
+        if (!checkpointBlock) {
+          if (blockNumber === contract.startingBlock) {
+            await createInitialCheckpoint(this, contract.address, blockHash);
+          }
+        } else {
+          await this.createCheckpoint(contract.address, blockHash, undefined, checkpointInterval);
+        }
       }
     }
   }
 
-  async createCheckpoint (contractAddress: string, currentBlockHash?: string, checkpointInterval?: number): Promise<string | undefined> {
+  async createCheckpoint (contractAddress: string, blockHash?: string, data?: any, checkpointInterval?: number): Promise<string | undefined> {
+    const syncStatus = await this.getSyncStatus();
+    assert(syncStatus);
+
     // Getting the current block.
     let currentBlock;
-    if (currentBlockHash) {
-      currentBlock = await this.getBlockProgress(currentBlockHash);
+
+    if (blockHash) {
+      currentBlock = await this.getBlockProgress(blockHash);
     } else {
-      currentBlock = await this._db.getLatestBlockProgress();
+      // In case of empty blockHash from checkpoint CLI, get the latest canonical block for the checkpoint.
+      currentBlock = await this.getBlockProgress(syncStatus.latestCanonicalBlockHash);
     }
+
     assert(currentBlock);
 
-    // Fetching the latest checkpoint for a contract.
-    // Assuming checkPointInterval > MAX_REORG_DEPTH.
-    const checkpointBlock = await this.getLatestCheckpoint(contractAddress);
+    // Data is passed in case of initial checkpoint.
+    // Assuming there will be no events for the contract in this block.
+    if (data) {
+      const ipldBlock = await this.prepareIPLDBlock(currentBlock, contractAddress, data, 'checkpoint');
+      await this.saveOrUpdateIPLDBlock(ipldBlock);
+
+      return;
+    }
+
+    // If data is not passed, create from previous checkpoint and diffs after that.
+
+    // Make sure the block is marked complete.
+    assert(currentBlock.isComplete, 'Block for a checkpoint should be marked as complete');
+
+    // Make sure the block is in the pruned region.
+    assert(currentBlock.blockNumber <= syncStatus.latestCanonicalBlockNumber, 'Block for a checkpoint should be in the pruned region');
+
+    // Fetch the latest checkpoint for the contract.
+    const checkpointBlock = await this.getLastIPLDBlock(contractAddress, 'checkpoint');
     assert(checkpointBlock);
 
-    // Check if it is time for a new checkpoint.
+    // Check (only if checkpointInterval is passed) if it is time for a new checkpoint.
     if (checkpointInterval && checkpointBlock.block.blockNumber > (currentBlock.blockNumber - checkpointInterval)) {
       return;
     }
@@ -288,44 +362,21 @@ export class Indexer {
     const { block: { blockNumber: checkpointBlockNumber } } = checkpointBlock;
 
     // Fetching all diff blocks after checkpoint.
-    const diffBlocks = await this.getPrevIPLDBlocksAfterCheckpoint(currentBlock.blockHash, checkpointBlockNumber, contractAddress);
+    const diffBlocks = await this.getPrevIPLDBlocksAfterCheckpoint(contractAddress, checkpointBlockNumber);
 
-    let checkPoint = codec.decode(Buffer.from(checkpointBlock.data)) as any;
+    data = codec.decode(Buffer.from(checkpointBlock.data)) as any;
 
     for (const diffBlock of diffBlocks) {
       const diff = codec.decode(Buffer.from(diffBlock.data));
-      checkPoint = _.merge(checkPoint, diff);
+      data = _.merge(data, diff);
     }
 
-    const ipldBlock = await this.prepareIPLDBlock(currentBlock, contractAddress, checkPoint, 'checkpoint');
+    const ipldBlock = await this.prepareIPLDBlock(currentBlock, contractAddress, data, 'checkpoint');
     await this.saveOrUpdateIPLDBlock(ipldBlock);
 
     return currentBlock.blockHash;
   }
 
-  async getLatestCheckpoint (contractAddress: string): Promise<IPLDBlock | undefined> {
-    // Get the latest checkpoints for a contract.
-    const dbTx = await this._db.createTransactionRunner();
-    let res;
-
-    try {
-      res = await this._db.getLatestCheckpoint(dbTx, contractAddress);
-      await dbTx.commitTransaction();
-    } catch (error) {
-      await dbTx.rollbackTransaction();
-      throw error;
-    } finally {
-      await dbTx.release();
-    }
-    return res;
-  }
-
-  async getIPLDBlocks (block: BlockProgress, contractAddress: string, kind?: string): Promise<IPLDBlock[]> {
-    const ipldBlocks = await this._db.getIPLDBlocks({ block, contractAddress, kind });
-
-    return ipldBlocks;
-  }
-
   async getIPLDBlockByCid (cid: string): Promise<IPLDBlock | undefined> {
     const ipldBlocks = await this._db.getIPLDBlocks({ cid });
 
@@ -335,13 +386,8 @@ export class Indexer {
     return ipldBlocks[0];
   }
 
-  async getPrevState (blockHash: string, contractAddress: string, kind?: string): Promise<any> {
-    const ipldBlock = await this.getPrevIPLDBlock(blockHash, contractAddress, kind);
-
-    if (ipldBlock) {
-      const data = codec.decode(Buffer.from(ipldBlock.data)) as any;
-      return data.state;
-    }
+  async getLastIPLDBlock (contractAddress: string, kind?: string): Promise<IPLDBlock | undefined> {
+    return this._db.getLastIPLDBlock(contractAddress, kind);
   }
 
   async getPrevIPLDBlock (blockHash: string, contractAddress: string, kind?: string): Promise<IPLDBlock | undefined> {
@@ -360,47 +406,26 @@ export class Indexer {
     return res;
   }
 
-  async getPrevIPLDBlocksAfterCheckpoint (blockHash: string, checkpointBlockNumber: number, contractAddress: string): Promise<IPLDBlock[]> {
-    const dbTx = await this._db.createTransactionRunner();
-    let res;
-
-    try {
-      res = await this._db.getPrevIPLDBlocksAfterCheckpoint(dbTx, blockHash, checkpointBlockNumber, contractAddress);
-      await dbTx.commitTransaction();
-    } catch (error) {
-      await dbTx.rollbackTransaction();
-      throw error;
-    } finally {
-      await dbTx.release();
-    }
-
-    return res;
-  }
-
-  async storeIPLDData (blockHash: string, contractAddress: string, data: any, kind: string): Promise<void> {
-    const block = await this.getBlockProgress(blockHash);
-    assert(block);
-
-    const ipldBlock = await this.prepareIPLDBlock(block, contractAddress, data, kind);
-    await this.saveOrUpdateIPLDBlock(ipldBlock);
-  }
-
-  async saveOrUpdateIPLDBlock (ipldBlock: IPLDBlock): Promise<IPLDBlock> {
-    return this._db.saveOrUpdateIPLDBlock(ipldBlock);
+  async getPrevIPLDBlocksAfterCheckpoint (contractAddress: string, checkpointBlockNumber: number): Promise<IPLDBlock[]> {
+    return this._db.getPrevIPLDBlocksAfterCheckpoint(contractAddress, checkpointBlockNumber);
   }
 
   async prepareIPLDBlock (block: BlockProgress, contractAddress: string, data: any, kind: string):Promise<any> {
-    assert(_.includes(['diff', 'checkpoint'], kind));
+    assert(_.includes(['diff', 'checkpoint', 'diff_staged'], kind));
 
-    // Get an existing IPLDBlock for current block and contractAddress.
-    const currentIPLDBlocks = await this.getIPLDBlocks(block, contractAddress, 'diff');
-    // There can be only one IPLDBlock for a (block, contractAddress, 'diff') combination.
+    // Get an existing 'diff' | 'diff_staged' IPLDBlock for current block, contractAddress.
+    let currentIPLDBlocks: IPLDBlock[] = [];
+    if (kind !== 'checkpoint') {
+      currentIPLDBlocks = await this._db.getIPLDBlocks({ block, contractAddress, kind });
+    }
+
+    // There can be only one IPLDBlock for a (block, contractAddress, kind) combination.
     assert(currentIPLDBlocks.length <= 1);
     const currentIPLDBlock = currentIPLDBlocks[0];
 
     // Update currentIPLDBlock if it exists and is of same kind.
     let ipldBlock;
-    if (currentIPLDBlock && currentIPLDBlock.kind === kind) {
+    if (currentIPLDBlock) {
       ipldBlock = currentIPLDBlock;
 
       // Update the data field.
@@ -410,7 +435,7 @@ export class Indexer {
       ipldBlock = new IPLDBlock();
 
       // Fetch the parent IPLDBlock.
-      const parentIPLDBlock = await this.getPrevIPLDBlock(block.blockHash, contractAddress);
+      const parentIPLDBlock = await this.getLastIPLDBlock(contractAddress);
 
       // Setting the meta-data for an IPLDBlock (done only once per block).
       data.meta = {
@@ -449,6 +474,24 @@ export class Indexer {
     return ipldBlock;
   }
 
+  async saveOrUpdateIPLDBlock (ipldBlock: IPLDBlock): Promise<IPLDBlock> {
+    return this._db.saveOrUpdateIPLDBlock(ipldBlock);
+  }
+
+  async removeStagedIPLDBlocks (blockNumber: number): Promise<void> {
+    const dbTx = await this._db.createTransactionRunner();
+
+    try {
+      await this._db.removeEntities(dbTx, IPLDBlock, { relations: ['block'], where: { block: { blockNumber }, kind: 'diff_staged' } });
+      await dbTx.commitTransaction();
+    } catch (error) {
+      await dbTx.rollbackTransaction();
+      throw error;
+    } finally {
+      await dbTx.release();
+    }
+  }
+
   async triggerIndexingOnEvent (event: Event): Promise<void> {
     const resultEvent = this.getResultEvent(event);
 
@@ -477,7 +520,7 @@ export class Indexer {
           {{#each event.params}}
           {{#if (compare this.type 'bigint')}}
           {{this.name}}: BigInt(ethers.BigNumber.from({{this.name}}).toString())
-          {{else}}
+          {{~else}}
           {{this.name}}
           {{~/if}}
           {{~#unless @last}},{{/unless}}
@@ -492,22 +535,21 @@ export class Indexer {
     return { eventName, eventInfo };
   }
 
-  async watchContract (address: string, kind: string, checkpoint: boolean, startingBlock: number): Promise<boolean> {
+  async watchContract (address: string, kind: string, checkpoint: boolean, startingBlock?: number): Promise<boolean> {
     // Use the checksum address (https://docs.ethers.io/v5/api/utils/address/#utils-getAddress) if input to address is a contract address.
     // If a contract identifier is passed as address instead, no need to convert to checksum address.
     // Customize: use the kind input to filter out non-contract-address input to address.
     const formattedAddress = (kind === '__protocol__') ? address : ethers.utils.getAddress(address);
-    await this._db.saveContract(formattedAddress, kind, checkpoint, startingBlock);
 
-    if (checkpoint) {
-      // Getting the current block.
-      const currentBlock = await this._db.getLatestBlockProgress();
-      assert(currentBlock);
+    if (!startingBlock) {
+      const syncStatus = await this.getSyncStatus();
+      assert(syncStatus);
 
-      // Call custom initial checkpoint hook.
-      await createInitialCheckpoint(this, currentBlock, address);
+      startingBlock = syncStatus.latestIndexedBlockNumber;
     }
 
+    await this._db.saveContract(formattedAddress, kind, checkpoint, startingBlock);
+
     return true;
   }
 
diff --git a/packages/codegen/src/templates/job-runner-template.handlebars b/packages/codegen/src/templates/job-runner-template.handlebars
index 44e460fe..8db8f5ce 100644
--- a/packages/codegen/src/templates/job-runner-template.handlebars
+++ b/packages/codegen/src/templates/job-runner-template.handlebars
@@ -78,14 +78,14 @@ export class JobRunner {
 
       const hookStatus = await this._indexer.getHookStatus();
 
-      if (hookStatus && hookStatus.latestProcessedBlockNumber !== blockNumber - 1) {
+      if (hookStatus && hookStatus.latestProcessedBlockNumber < (blockNumber - 1)) {
         const message = `Hooks for blockNumber ${blockNumber - 1} not processed yet, aborting`;
         log(message);
 
         throw new Error(message);
       }
 
-      await this._indexer.processBlock(job);
+      await this._indexer.processCanonicalBlock(job);
 
       await this._jobQueue.markComplete(job);
     });
diff --git a/packages/codegen/src/templates/readme-template.handlebars b/packages/codegen/src/templates/readme-template.handlebars
index 79f4359c..c1c0cbe8 100644
--- a/packages/codegen/src/templates/readme-template.handlebars
+++ b/packages/codegen/src/templates/readme-template.handlebars
@@ -47,7 +47,7 @@
 
   * Edit the custom hook function `handleEvent` (triggered on an event) in [hooks.ts](./src/hooks.ts) to perform corresponding indexing using the `Indexer` object.
 
-  * While using the indexer storage methods for indexing, pass the optional arg. `state` as `diff` or `checkpoint` if default state is desired to be generated using the state variables being indexed else pass `none`.
+  * While using the indexer storage methods for indexing, pass `diff` as true if default state is desired to be generated using the state variables being indexed.
 
 * Generating state:
 
@@ -116,4 +116,20 @@ GQL console: http://localhost:3008/graphql
     ```
 
     * `address`: Address or identifier of the contract for which to create a checkpoint.
-    * `block-hash`: Hash of the block at which to create the checkpoint (default: current block hash).
+    * `block-hash`: Hash of a block (in the pruned region) at which to create the checkpoint (default: latest canonical block hash).
+
+  * To reset the watcher to a previous block number:
+
+    * Reset state:
+
+      ```bash
+      yarn reset state --block-number <previous-block-number>
+      ```
+
+    * Reset job-queue:
+
+      ```bash
+      yarn reset job-queue --block-number <previous-block-number>
+      ```
+    
+    * `block-number`: Block number to reset the watcher to.
diff --git a/packages/codegen/src/templates/resolvers-template.handlebars b/packages/codegen/src/templates/resolvers-template.handlebars
index 7d90e654..017225fe 100644
--- a/packages/codegen/src/templates/resolvers-template.handlebars
+++ b/packages/codegen/src/templates/resolvers-template.handlebars
@@ -34,8 +34,9 @@ export const createResolvers = async (indexer: Indexer, eventWatcher: EventWatch
     },
 
     Mutation: {
-      watchContract: (_: any, { address, kind, checkpoint, startingBlock = 1 }: { address: string, kind: string, checkpoint: boolean, startingBlock: number }): Promise<boolean> => {
+      watchContract: (_: any, { address, kind, checkpoint, startingBlock }: { address: string, kind: string, checkpoint: boolean, startingBlock: number }): Promise<boolean> => {
         log('watchContract', address, kind, checkpoint, startingBlock);
+
         return indexer.watchContract(address, kind, checkpoint, startingBlock);
       }
     },
diff --git a/packages/codegen/src/templates/watch-contract-template.handlebars b/packages/codegen/src/templates/watch-contract-template.handlebars
index 61603fc6..26866188 100644
--- a/packages/codegen/src/templates/watch-contract-template.handlebars
+++ b/packages/codegen/src/templates/watch-contract-template.handlebars
@@ -49,7 +49,6 @@ const main = async (): Promise<void> => {
     },
     startingBlock: {
       type: 'number',
-      default: 1,
       describe: 'Starting block'
     }
   }).argv;
diff --git a/packages/util/src/job-runner.ts b/packages/util/src/job-runner.ts
index 23642deb..6cefa79d 100644
--- a/packages/util/src/job-runner.ts
+++ b/packages/util/src/job-runner.ts
@@ -15,8 +15,7 @@ import {
   MAX_REORG_DEPTH,
   UNKNOWN_EVENT_NAME,
   QUEUE_BLOCK_PROCESSING,
-  QUEUE_EVENT_PROCESSING,
-  QUEUE_HOOKS
+  QUEUE_EVENT_PROCESSING
 } from './constants';
 import { JobQueue } from './job-queue';
 import { EventInterface, IndexerInterface, SyncStatusInterface } from './types';
@@ -235,11 +234,6 @@ export class JobRunner {
       await this._jobQueue.pushJob(QUEUE_EVENT_PROCESSING, { kind: JOB_KIND_EVENTS, blockHash: blockProgress.blockHash, publish: true });
     }
 
-    if (!blockProgress.numEvents) {
-      // Push post-block hook and checkpointing jobs if there are no events as the block is already marked as complete.
-      await this._jobQueue.pushJob(QUEUE_HOOKS, { blockHash, blockNumber });
-    }
-
     const indexBlockDuration = new Date().getTime() - indexBlockStartTime.getTime();
     log(`time:job-runner#_indexBlock: ${indexBlockDuration}ms`);
   }
diff --git a/packages/util/src/types.ts b/packages/util/src/types.ts
index 5003bbb9..6b04f69f 100644
--- a/packages/util/src/types.ts
+++ b/packages/util/src/types.ts
@@ -72,7 +72,6 @@ export interface IndexerInterface {
   parseEventNameAndArgs?: (kind: string, logObj: any) => any;
   isWatchedContract?: (address: string) => Promise<ContractInterface | undefined>;
   cacheContract?: (contract: ContractInterface) => void;
-  processBlock(blockHash: string): Promise<void>;
 }
 
 export interface EventWatcherInterface {