diff --git a/libs/common/spec/fake-storage.service.ts b/libs/common/spec/fake-storage.service.ts
index ba3e461346..7c9e5b3231 100644
--- a/libs/common/spec/fake-storage.service.ts
+++ b/libs/common/spec/fake-storage.service.ts
@@ -59,7 +59,7 @@ export class FakeStorageService implements AbstractStorageService {
     return Promise.resolve(this.store[key] != null);
   }
   save<T>(key: string, obj: T, options?: StorageOptions): Promise<void> {
-    this.mock.save(key, options);
+    this.mock.save(key, obj, options);
     this.store[key] = obj;
     this.updatesSubject.next({ key: key, updateType: "save" });
     return Promise.resolve();
diff --git a/libs/common/spec/utils.ts b/libs/common/spec/utils.ts
index 5053a71c87..ad5907f61d 100644
--- a/libs/common/spec/utils.ts
+++ b/libs/common/spec/utils.ts
@@ -69,6 +69,10 @@ export function trackEmissions<T>(observable: Observable<T>): T[] {
       case "boolean":
         emissions.push(value);
         break;
+      case "symbol":
+        // Cheating types to make symbols work at all
+        emissions.push(value.toString() as T);
+        break;
       default: {
         emissions.push(clone(value));
       }
@@ -85,7 +89,7 @@ function clone(value: any): any {
   }
 }
 
-export async function awaitAsync(ms = 0) {
+export async function awaitAsync(ms = 1) {
   if (ms < 1) {
     await Promise.resolve();
   } else {
diff --git a/libs/common/src/platform/state/implementations/default-active-user-state.spec.ts b/libs/common/src/platform/state/implementations/default-active-user-state.spec.ts
index 065f7a8e95..e4a3f80eec 100644
--- a/libs/common/src/platform/state/implementations/default-active-user-state.spec.ts
+++ b/libs/common/src/platform/state/implementations/default-active-user-state.spec.ts
@@ -2,7 +2,7 @@
  * need to update test environment so trackEmissions works appropriately
  * @jest-environment ../shared/test.environment.ts
  */
-import { any, mock } from "jest-mock-extended";
+import { any, anySymbol, mock } from "jest-mock-extended";
 import { BehaviorSubject, firstValueFrom, of, timeout } from "rxjs";
 import { Jsonify } from "type-fest";
 
@@ -11,7 +11,7 @@ import { FakeStorageService } from "../../../../spec/fake-storage.service";
 import { AccountInfo, AccountService } from "../../../auth/abstractions/account.service";
 import { AuthenticationStatus } from "../../../auth/enums/authentication-status";
 import { UserId } from "../../../types/guid";
-import { KeyDefinition } from "../key-definition";
+import { KeyDefinition, userKeyBuilder } from "../key-definition";
 import { StateDefinition } from "../state-definition";
 
 import { DefaultActiveUserState } from "./default-active-user-state";
@@ -32,9 +32,10 @@ class TestState {
 }
 
 const testStateDefinition = new StateDefinition("fake", "disk");
-
+const cleanupDelayMs = 10;
 const testKeyDefinition = new KeyDefinition<TestState>(testStateDefinition, "fake", {
   deserializer: TestState.fromJSON,
+  cleanupDelayMs,
 });
 
 describe("DefaultActiveUserState", () => {
@@ -56,10 +57,14 @@ describe("DefaultActiveUserState", () => {
     );
   });
 
+  const makeUserId = (id: string) => {
+    return id != null ? (`00000000-0000-1000-a000-00000000000${id}` as UserId) : undefined;
+  };
+
   const changeActiveUser = async (id: string) => {
-    const userId = id != null ? `00000000-0000-1000-a000-00000000000${id}` : undefined;
+    const userId = makeUserId(id);
     activeAccountSubject.next({
-      id: userId as UserId,
+      id: userId,
       email: `test${id}@example.com`,
       name: `Test User ${id}`,
       status: AuthenticationStatus.Unlocked,
@@ -90,7 +95,7 @@ describe("DefaultActiveUserState", () => {
     const emissions = trackEmissions(userState.state$);
 
     // User signs in
-    changeActiveUser("1");
+    await changeActiveUser("1");
     await awaitAsync();
 
     // Service does an update
@@ -111,17 +116,17 @@ describe("DefaultActiveUserState", () => {
     expect(diskStorageService.mock.get).toHaveBeenNthCalledWith(
       1,
       "user_00000000-0000-1000-a000-000000000001_fake_fake",
-      any(),
+      any(), // options
     );
     expect(diskStorageService.mock.get).toHaveBeenNthCalledWith(
       2,
       "user_00000000-0000-1000-a000-000000000001_fake_fake",
-      any(),
+      any(), // options
     );
     expect(diskStorageService.mock.get).toHaveBeenNthCalledWith(
       3,
       "user_00000000-0000-1000-a000-000000000002_fake_fake",
-      any(),
+      any(), // options
     );
 
     // Should only have saved data for the first user
@@ -129,7 +134,8 @@ describe("DefaultActiveUserState", () => {
     expect(diskStorageService.mock.save).toHaveBeenNthCalledWith(
       1,
       "user_00000000-0000-1000-a000-000000000001_fake_fake",
-      any(),
+      updatedState,
+      any(), // options
     );
   });
 
@@ -183,15 +189,17 @@ describe("DefaultActiveUserState", () => {
   });
 
   it("should not emit a previous users value if that user is no longer active", async () => {
+    const user1Data: Jsonify<TestState> = {
+      date: "2020-09-21T13:14:17.648Z",
+      array: ["value"],
+    };
+    const user2Data: Jsonify<TestState> = {
+      date: "2020-09-21T13:14:17.648Z",
+      array: [],
+    };
     diskStorageService.internalUpdateStore({
-      "user_00000000-0000-1000-a000-000000000001_fake_fake": {
-        date: "2020-09-21T13:14:17.648Z",
-        array: ["value"],
-      } as Jsonify<TestState>,
-      "user_00000000-0000-1000-a000-000000000002_fake_fake": {
-        date: "2020-09-21T13:14:17.648Z",
-        array: [],
-      } as Jsonify<TestState>,
+      "user_00000000-0000-1000-a000-000000000001_fake_fake": user1Data,
+      "user_00000000-0000-1000-a000-000000000002_fake_fake": user2Data,
     });
 
     // This starts one subscription on the observable for tracking emissions throughout
@@ -203,7 +211,7 @@ describe("DefaultActiveUserState", () => {
 
     // This should always return a value right await
     const value = await firstValueFrom(userState.state$);
-    expect(value).toBeTruthy();
+    expect(value).toEqual(user1Data);
 
     // Make it such that there is no active user
     await changeActiveUser(undefined);
@@ -222,20 +230,34 @@ describe("DefaultActiveUserState", () => {
         rejectedError = err;
       });
 
-    expect(resolvedValue).toBeFalsy();
-    expect(rejectedError).toBeTruthy();
+    expect(resolvedValue).toBeUndefined();
+    expect(rejectedError).not.toBeUndefined();
     expect(rejectedError.message).toBe("Timeout has occurred");
 
     // We need to figure out if something should be emitted
     // when there becomes no active user, if we don't want that to emit
     // this value is correct.
-    expect(emissions).toHaveLength(2);
+    expect(emissions).toEqual([user1Data]);
+  });
+
+  it("should not emit twice if there are two listeners", async () => {
+    await changeActiveUser("1");
+    const emissions = trackEmissions(userState.state$);
+    const emissions2 = trackEmissions(userState.state$);
+    await awaitAsync();
+
+    expect(emissions).toEqual([
+      null, // Initial value
+    ]);
+    expect(emissions2).toEqual([
+      null, // Initial value
+    ]);
   });
 
   describe("update", () => {
     const newData = { date: new Date(), array: ["test"] };
     beforeEach(async () => {
-      changeActiveUser("1");
+      await changeActiveUser("1");
     });
 
     it("should save on update", async () => {
@@ -315,6 +337,8 @@ describe("DefaultActiveUserState", () => {
         return initialData;
       });
 
+      await awaitAsync();
+
       await userState.update((state, dependencies) => {
         expect(state).toEqual(initialData);
         return newData;
@@ -329,4 +353,285 @@ describe("DefaultActiveUserState", () => {
       ]);
     });
   });
+
+  describe("update races", () => {
+    const newData = { date: new Date(), array: ["test"] };
+    const userId = makeUserId("1");
+
+    beforeEach(async () => {
+      await changeActiveUser("1");
+      await awaitAsync();
+    });
+
+    test("subscriptions during an update should receive the current and latest", async () => {
+      const oldData = { date: new Date(2019, 1, 1), array: ["oldValue1"] };
+      await userState.update(() => {
+        return oldData;
+      });
+      const initialData = { date: new Date(2020, 1, 1), array: ["value1", "value2"] };
+      await userState.update(() => {
+        return initialData;
+      });
+
+      await awaitAsync();
+
+      const emissions = trackEmissions(userState.state$);
+      await awaitAsync();
+      expect(emissions).toEqual([initialData]);
+
+      let emissions2: TestState[];
+      const originalSave = diskStorageService.save.bind(diskStorageService);
+      diskStorageService.save = jest.fn().mockImplementation(async (key: string, obj: any) => {
+        emissions2 = trackEmissions(userState.state$);
+        await originalSave(key, obj);
+      });
+
+      const val = await userState.update(() => {
+        return newData;
+      });
+
+      await awaitAsync(10);
+
+      expect(val).toEqual(newData);
+      expect(emissions).toEqual([initialData, newData]);
+      expect(emissions2).toEqual([initialData, newData]);
+    });
+
+    test("subscription during an aborted update should receive the last value", async () => {
+      // Seed with interesting data
+      const initialData = { date: new Date(2020, 1, 1), array: ["value1", "value2"] };
+      await userState.update(() => {
+        return initialData;
+      });
+
+      await awaitAsync();
+
+      const emissions = trackEmissions(userState.state$);
+      await awaitAsync();
+      expect(emissions).toEqual([initialData]);
+
+      let emissions2: TestState[];
+      const val = await userState.update(
+        (state) => {
+          return newData;
+        },
+        {
+          shouldUpdate: () => {
+            emissions2 = trackEmissions(userState.state$);
+            return false;
+          },
+        },
+      );
+
+      await awaitAsync();
+
+      expect(val).toEqual(initialData);
+      expect(emissions).toEqual([initialData]);
+
+      expect(emissions2).toEqual([initialData]);
+    });
+
+    test("updates should wait until previous update is complete", async () => {
+      trackEmissions(userState.state$);
+      await awaitAsync(); // storage updates are behind a promise
+
+      const originalSave = diskStorageService.save.bind(diskStorageService);
+      diskStorageService.save = jest
+        .fn()
+        .mockImplementationOnce(async (key: string, obj: any) => {
+          let resolved = false;
+          await Promise.race([
+            userState.update(() => {
+              // deadlocks
+              resolved = true;
+              return newData;
+            }),
+            awaitAsync(100), // limit test to 100ms
+          ]);
+          expect(resolved).toBe(false);
+        })
+        .mockImplementation((...args) => {
+          return originalSave(...args);
+        });
+
+      await userState.update(() => {
+        return newData;
+      });
+    });
+
+    test("updates with FAKE_DEFAULT initial value should resolve correctly", async () => {
+      expect(userState["stateSubject"].value).toEqual(anySymbol()); // FAKE_DEFAULT
+      const val = await userState.update((state) => {
+        return newData;
+      });
+
+      expect(val).toEqual(newData);
+      const call = diskStorageService.mock.save.mock.calls[0];
+      expect(call[0]).toEqual(`user_${userId}_fake_fake`);
+      expect(call[1]).toEqual(newData);
+    });
+
+    it("does not await updates if the active user changes", async () => {
+      const initialUserId = (await firstValueFrom(accountService.activeAccount$)).id;
+      expect(initialUserId).toBe(userId);
+      trackEmissions(userState.state$);
+      await awaitAsync(); // storage updates are behind a promise
+
+      const originalSave = diskStorageService.save.bind(diskStorageService);
+      diskStorageService.save = jest
+        .fn()
+        .mockImplementationOnce(async (key: string, obj: any) => {
+          let resolved = false;
+          await changeActiveUser("2");
+          await Promise.race([
+            userState.update(() => {
+              // should not deadlock because we updated the user
+              resolved = true;
+              return newData;
+            }),
+            awaitAsync(100), // limit test to 100ms
+          ]);
+          expect(resolved).toBe(true);
+        })
+        .mockImplementation((...args) => {
+          return originalSave(...args);
+        });
+
+      await userState.update(() => {
+        return newData;
+      });
+    });
+
+    it("stores updates for users in the correct place when active user changes mid-update", async () => {
+      trackEmissions(userState.state$);
+      await awaitAsync(); // storage updates are behind a promise
+
+      const user2Data = { date: new Date(), array: ["user 2 data"] };
+
+      const originalSave = diskStorageService.save.bind(diskStorageService);
+      diskStorageService.save = jest
+        .fn()
+        .mockImplementationOnce(async (key: string, obj: any) => {
+          let resolved = false;
+          await changeActiveUser("2");
+          await Promise.race([
+            userState.update(() => {
+              // should not deadlock because we updated the user
+              resolved = true;
+              return user2Data;
+            }),
+            awaitAsync(100), // limit test to 100ms
+          ]);
+          expect(resolved).toBe(true);
+          await originalSave(key, obj);
+        })
+        .mockImplementation((...args) => {
+          return originalSave(...args);
+        });
+
+      await userState.update(() => {
+        return newData;
+      });
+      await awaitAsync();
+
+      expect(diskStorageService.mock.save).toHaveBeenCalledTimes(2);
+      const innerCall = diskStorageService.mock.save.mock.calls[0];
+      expect(innerCall[0]).toEqual(`user_${makeUserId("2")}_fake_fake`);
+      expect(innerCall[1]).toEqual(user2Data);
+      const outerCall = diskStorageService.mock.save.mock.calls[1];
+      expect(outerCall[0]).toEqual(`user_${makeUserId("1")}_fake_fake`);
+      expect(outerCall[1]).toEqual(newData);
+    });
+  });
+
+  describe("cleanup", () => {
+    const newData = { date: new Date(), array: ["test"] };
+    const userId = makeUserId("1");
+    let userKey: string;
+
+    beforeEach(async () => {
+      await changeActiveUser("1");
+      userKey = userKeyBuilder(userId, testKeyDefinition);
+    });
+
+    async function assertClean() {
+      const emissions = trackEmissions(userState["stateSubject"]);
+      const initial = structuredClone(emissions);
+
+      diskStorageService.save(userKey, newData);
+      await awaitAsync(); // storage updates are behind a promise
+
+      expect(emissions).toEqual(initial); // no longer listening to storage updates
+    }
+
+    it("should cleanup after last subscriber", async () => {
+      const subscription = userState.state$.subscribe();
+      await awaitAsync(); // storage updates are behind a promise
+
+      subscription.unsubscribe();
+      expect(userState["subscriberCount"].getValue()).toBe(0);
+      // Wait for cleanup
+      await awaitAsync(cleanupDelayMs * 2);
+
+      await assertClean();
+    });
+
+    it("should not cleanup if there are still subscribers", async () => {
+      const subscription1 = userState.state$.subscribe();
+      const sub2Emissions: TestState[] = [];
+      const subscription2 = userState.state$.subscribe((v) => sub2Emissions.push(v));
+      await awaitAsync(); // storage updates are behind a promise
+
+      subscription1.unsubscribe();
+
+      // Wait for cleanup
+      await awaitAsync(cleanupDelayMs * 2);
+
+      expect(userState["subscriberCount"].getValue()).toBe(1);
+
+      // Still be listening to storage updates
+      diskStorageService.save(userKey, newData);
+      await awaitAsync(); // storage updates are behind a promise
+      expect(sub2Emissions).toEqual([null, newData]);
+
+      subscription2.unsubscribe();
+      // Wait for cleanup
+      await awaitAsync(cleanupDelayMs * 2);
+
+      await assertClean();
+    });
+
+    it("can re-initialize after cleanup", async () => {
+      const subscription = userState.state$.subscribe();
+      await awaitAsync();
+
+      subscription.unsubscribe();
+      // Wait for cleanup
+      await awaitAsync(cleanupDelayMs * 2);
+
+      const emissions = trackEmissions(userState.state$);
+      await awaitAsync();
+
+      diskStorageService.save(userKey, newData);
+      await awaitAsync();
+
+      expect(emissions).toEqual([null, newData]);
+    });
+
+    it("should not cleanup if a subscriber joins during the cleanup delay", async () => {
+      const subscription = userState.state$.subscribe();
+      await awaitAsync();
+
+      await diskStorageService.save(userKey, newData);
+      await awaitAsync();
+
+      subscription.unsubscribe();
+      expect(userState["subscriberCount"].getValue()).toBe(0);
+      // Do not wait long enough for cleanup
+      await awaitAsync(cleanupDelayMs / 2);
+
+      expect(userState["stateSubject"].value).toEqual(newData); // digging in to check that it hasn't been cleared
+      expect(userState["storageUpdateSubscription"]).not.toBeNull(); // still listening to storage updates
+    });
+  });
 });
diff --git a/libs/common/src/platform/state/implementations/default-active-user-state.ts b/libs/common/src/platform/state/implementations/default-active-user-state.ts
index 3d36af1d61..ae5c25dcb4 100644
--- a/libs/common/src/platform/state/implementations/default-active-user-state.ts
+++ b/libs/common/src/platform/state/implementations/default-active-user-state.ts
@@ -4,12 +4,12 @@ import {
   map,
   shareReplay,
   switchMap,
-  tap,
-  defer,
   firstValueFrom,
   combineLatestWith,
   filter,
   timeout,
+  Subscription,
+  tap,
 } from "rxjs";
 
 import { AccountService } from "../../../auth/abstractions/account.service";
@@ -31,13 +31,21 @@ const FAKE_DEFAULT = Symbol("fakeDefault");
 export class DefaultActiveUserState<T> implements ActiveUserState<T> {
   [activeMarker]: true;
   private formattedKey$: Observable<string>;
+  private updatePromise: Promise<T> | null = null;
+  private storageUpdateSubscription: Subscription;
+  private activeAccountUpdateSubscription: Subscription;
+  private subscriberCount = new BehaviorSubject<number>(0);
+  private stateObservable: Observable<T>;
 
   protected stateSubject: BehaviorSubject<T | typeof FAKE_DEFAULT> = new BehaviorSubject<
     T | typeof FAKE_DEFAULT
   >(FAKE_DEFAULT);
   private stateSubject$ = this.stateSubject.asObservable();
 
-  state$: Observable<T>;
+  get state$() {
+    this.stateObservable = this.stateObservable ?? this.initializeObservable();
+    return this.stateObservable;
+  }
 
   constructor(
     protected keyDefinition: KeyDefinition<T>,
@@ -51,62 +59,12 @@ export class DefaultActiveUserState<T> implements ActiveUserState<T> {
           ? userKeyBuilder(account.id, this.keyDefinition)
           : null,
       ),
+      tap(() => {
+        // We have a new key, so we should forget about previous update promises
+        this.updatePromise = null;
+      }),
       shareReplay({ bufferSize: 1, refCount: false }),
     );
-
-    const activeAccountData$ = this.formattedKey$.pipe(
-      switchMap(async (key) => {
-        if (key == null) {
-          return FAKE_DEFAULT;
-        }
-        return await getStoredValue(
-          key,
-          this.chosenStorageLocation,
-          this.keyDefinition.deserializer,
-        );
-      }),
-      // Share the execution
-      shareReplay({ refCount: false, bufferSize: 1 }),
-    );
-
-    const storageUpdates$ = this.chosenStorageLocation.updates$.pipe(
-      combineLatestWith(this.formattedKey$),
-      filter(([update, key]) => key !== null && update.key === key),
-      switchMap(async ([update, key]) => {
-        if (update.updateType === "remove") {
-          return null;
-        }
-        const data = await getStoredValue(
-          key,
-          this.chosenStorageLocation,
-          this.keyDefinition.deserializer,
-        );
-        return data;
-      }),
-    );
-
-    // Whomever subscribes to this data, should be notified of updated data
-    // if someone calls my update() method, or the active user changes.
-    this.state$ = defer(() => {
-      const accountChangeSubscription = activeAccountData$.subscribe((data) => {
-        this.stateSubject.next(data);
-      });
-      const storageUpdateSubscription = storageUpdates$.subscribe((data) => {
-        this.stateSubject.next(data);
-      });
-
-      return this.stateSubject$.pipe(
-        tap({
-          complete: () => {
-            accountChangeSubscription.unsubscribe();
-            storageUpdateSubscription.unsubscribe();
-          },
-        }),
-      );
-    })
-      // I fake the generic here because I am filtering out the other union type
-      // and this makes it so that typescript understands the true type
-      .pipe(filter<T>((value) => value != FAKE_DEFAULT));
   }
 
   async update<TCombine>(
@@ -114,8 +72,34 @@ export class DefaultActiveUserState<T> implements ActiveUserState<T> {
     options: StateUpdateOptions<T, TCombine> = {},
   ): Promise<T> {
     options = populateOptionsWithDefault(options);
+    try {
+      if (this.updatePromise != null) {
+        await this.updatePromise;
+      }
+      this.updatePromise = this.internalUpdate(configureState, options);
+      const newState = await this.updatePromise;
+      return newState;
+    } finally {
+      this.updatePromise = null;
+    }
+  }
+
+  // TODO: this should be removed
+  async getFromState(): Promise<T> {
     const key = await this.createKey();
-    const currentState = await this.getGuaranteedState(key);
+    return await getStoredValue(key, this.chosenStorageLocation, this.keyDefinition.deserializer);
+  }
+
+  createDerived<TTo>(converter: Converter<T, TTo>): DerivedUserState<TTo> {
+    return new DefaultDerivedUserState<T, TTo>(converter, this.encryptService, this);
+  }
+
+  private async internalUpdate<TCombine>(
+    configureState: (state: T, dependency: TCombine) => T,
+    options: StateUpdateOptions<T, TCombine>,
+  ) {
+    const key = await this.createKey();
+    const currentState = await this.getStateForUpdate(key);
     const combinedDependencies =
       options.combineLatestWith != null
         ? await firstValueFrom(options.combineLatestWith.pipe(timeout(options.msTimeout)))
@@ -130,13 +114,53 @@ export class DefaultActiveUserState<T> implements ActiveUserState<T> {
     return newState;
   }
 
-  async getFromState(): Promise<T> {
-    const key = await this.createKey();
-    return await getStoredValue(key, this.chosenStorageLocation, this.keyDefinition.deserializer);
-  }
+  private initializeObservable() {
+    this.storageUpdateSubscription = this.chosenStorageLocation.updates$
+      .pipe(
+        combineLatestWith(this.formattedKey$),
+        filter(([update, key]) => key !== null && update.key === key),
+        switchMap(async ([update, key]) => {
+          if (update.updateType === "remove") {
+            return null;
+          }
+          return await this.getState(key);
+        }),
+      )
+      .subscribe((v) => this.stateSubject.next(v));
 
-  createDerived<TTo>(converter: Converter<T, TTo>): DerivedUserState<TTo> {
-    return new DefaultDerivedUserState<T, TTo>(converter, this.encryptService, this);
+    this.activeAccountUpdateSubscription = this.formattedKey$
+      .pipe(
+        switchMap(async (key) => {
+          if (key == null) {
+            return FAKE_DEFAULT;
+          }
+          return await this.getState(key);
+        }),
+      )
+      .subscribe((v) => this.stateSubject.next(v));
+
+    this.subscriberCount.subscribe((count) => {
+      if (count === 0 && this.stateObservable != null) {
+        this.triggerCleanup();
+      }
+    });
+
+    return new Observable<T>((subscriber) => {
+      this.incrementSubscribers();
+
+      const prevUnsubscribe = subscriber.unsubscribe.bind(subscriber);
+      subscriber.unsubscribe = () => {
+        this.decrementSubscribers();
+        prevUnsubscribe();
+      };
+
+      return this.stateSubject
+        .pipe(
+          // Filter out fake default, which is used to indicate that state is not ready to be emitted yet.
+          filter((i) => i !== FAKE_DEFAULT),
+        )
+        .subscribe(subscriber);
+    });
   }
 
   protected async createKey(): Promise<string> {
@@ -147,22 +171,47 @@ export class DefaultActiveUserState<T> implements ActiveUserState<T> {
     return formattedKey;
   }
 
-  protected async getGuaranteedState(key: string) {
+  /** For use in update methods, does not wait for update to complete before yielding state.
+   * The expectation is that that await is already done
+   */
+  protected async getStateForUpdate(key: string) {
     const currentValue = this.stateSubject.getValue();
-    return currentValue === FAKE_DEFAULT ? await this.seedInitial(key) : currentValue;
+    return currentValue === FAKE_DEFAULT
+      ? await getStoredValue(key, this.chosenStorageLocation, this.keyDefinition.deserializer)
+      : currentValue;
   }
 
-  private async seedInitial(key: string): Promise<T> {
-    const value = await getStoredValue(
-      key,
-      this.chosenStorageLocation,
-      this.keyDefinition.deserializer,
-    );
-    this.stateSubject.next(value);
-    return value;
+  /** To be used in observables. Awaits updates to ensure they are complete */
+  private async getState(key: string): Promise<T> {
+    if (this.updatePromise != null) {
+      await this.updatePromise;
+    }
+    return await getStoredValue(key, this.chosenStorageLocation, this.keyDefinition.deserializer);
   }
 
   protected saveToStorage(key: string, data: T): Promise<void> {
     return this.chosenStorageLocation.save(key, data);
   }
+
+  private incrementSubscribers() {
+    this.subscriberCount.next(this.subscriberCount.value + 1);
+  }
+
+  private decrementSubscribers() {
+    this.subscriberCount.next(this.subscriberCount.value - 1);
+  }
+
+  private triggerCleanup() {
+    setTimeout(() => {
+      if (this.subscriberCount.value === 0) {
+        this.updatePromise = null;
+        this.storageUpdateSubscription?.unsubscribe();
+        this.activeAccountUpdateSubscription?.unsubscribe();
+        this.stateObservable = null;
+        this.subscriberCount.complete();
+        this.subscriberCount = new BehaviorSubject<number>(0);
+        this.stateSubject.next(FAKE_DEFAULT);
+      }
+    }, this.keyDefinition.cleanupDelayMs);
+  }
 }
diff --git a/libs/common/src/platform/state/implementations/default-global-state.spec.ts b/libs/common/src/platform/state/implementations/default-global-state.spec.ts
index ae6cd1adbf..f9f95c652d 100644
--- a/libs/common/src/platform/state/implementations/default-global-state.spec.ts
+++ b/libs/common/src/platform/state/implementations/default-global-state.spec.ts
@@ -3,6 +3,7 @@
  * @jest-environment ../shared/test.environment.ts
  */
 
+import { anySymbol } from "jest-mock-extended";
 import { firstValueFrom, of } from "rxjs";
 import { Jsonify } from "type-fest";
 
@@ -28,9 +29,10 @@ class TestState {
 }
 
 const testStateDefinition = new StateDefinition("fake", "disk");
-
+const cleanupDelayMs = 10;
 const testKeyDefinition = new KeyDefinition<TestState>(testStateDefinition, "fake", {
   deserializer: TestState.fromJSON,
+  cleanupDelayMs,
 });
 const globalKey = globalKeyBuilder(testKeyDefinition);
 
@@ -79,6 +81,19 @@ describe("DefaultGlobalState", () => {
       expect(diskStorageService.mock.get).toHaveBeenCalledWith("global_fake_fake", undefined);
       expect(state).toBeTruthy();
     });
+
+    it("should not emit twice if there are two listeners", async () => {
+      const emissions = trackEmissions(globalState.state$);
+      const emissions2 = trackEmissions(globalState.state$);
+      await awaitAsync();
+
+      expect(emissions).toEqual([
+        null, // Initial value
+      ]);
+      expect(emissions2).toEqual([
+        null, // Initial value
+      ]);
+    });
   });
 
   describe("update", () => {
@@ -133,6 +148,7 @@ describe("DefaultGlobalState", () => {
 
     it("should not update if shouldUpdate returns false", async () => {
       const emissions = trackEmissions(globalState.state$);
+      await awaitAsync(); // storage updates are behind a promise
 
       const result = await globalState.update(
         (state) => {
@@ -198,4 +214,194 @@ describe("DefaultGlobalState", () => {
       expect(emissions).toEqual(expect.arrayContaining([initialState, newState]));
     });
   });
+
+  describe("update races", () => {
+    test("subscriptions during an update should receive the current and  latest data", async () => {
+      const oldData = { date: new Date(2019, 1, 1) };
+      await globalState.update(() => {
+        return oldData;
+      });
+      const initialData = { date: new Date(2020, 1, 1) };
+      await globalState.update(() => {
+        return initialData;
+      });
+
+      await awaitAsync();
+
+      const emissions = trackEmissions(globalState.state$);
+      await awaitAsync();
+      expect(emissions).toEqual([initialData]);
+
+      let emissions2: TestState[];
+      const originalSave = diskStorageService.save.bind(diskStorageService);
+      diskStorageService.save = jest.fn().mockImplementation(async (key: string, obj: any) => {
+        emissions2 = trackEmissions(globalState.state$);
+        await originalSave(key, obj);
+      });
+
+      const val = await globalState.update(() => {
+        return newData;
+      });
+
+      await awaitAsync(10);
+
+      expect(val).toEqual(newData);
+      expect(emissions).toEqual([initialData, newData]);
+      expect(emissions2).toEqual([initialData, newData]);
+    });
+
+    test("subscription during an aborted update should receive the last value", async () => {
+      // Seed with interesting data
+      const initialData = { date: new Date(2020, 1, 1) };
+      await globalState.update(() => {
+        return initialData;
+      });
+
+      await awaitAsync();
+
+      const emissions = trackEmissions(globalState.state$);
+      await awaitAsync();
+      expect(emissions).toEqual([initialData]);
+
+      let emissions2: TestState[];
+      const val = await globalState.update(
+        () => {
+          return newData;
+        },
+        {
+          shouldUpdate: () => {
+            emissions2 = trackEmissions(globalState.state$);
+            return false;
+          },
+        },
+      );
+
+      await awaitAsync();
+
+      expect(val).toEqual(initialData);
+      expect(emissions).toEqual([initialData]);
+
+      expect(emissions2).toEqual([initialData]);
+    });
+
+    test("updates should wait until previous update is complete", async () => {
+      trackEmissions(globalState.state$);
+      await awaitAsync(); // storage updates are behind a promise
+
+      const originalSave = diskStorageService.save.bind(diskStorageService);
+      diskStorageService.save = jest
+        .fn()
+        .mockImplementationOnce(async () => {
+          let resolved = false;
+          await Promise.race([
+            globalState.update(() => {
+              // deadlocks
+              resolved = true;
+              return newData;
+            }),
+            awaitAsync(100), // limit test to 100ms
+          ]);
+          expect(resolved).toBe(false);
+        })
+        .mockImplementation(originalSave);
+
+      await globalState.update((state) => {
+        return newData;
+      });
+    });
+
+    test("updates with FAKE_DEFAULT initial value should resolve correctly", async () => {
+      expect(globalState["stateSubject"].value).toEqual(anySymbol()); // FAKE_DEFAULT
+      const val = await globalState.update((state) => {
+        return newData;
+      });
+
+      expect(val).toEqual(newData);
+      const call = diskStorageService.mock.save.mock.calls[0];
+      expect(call[0]).toEqual("global_fake_fake");
+      expect(call[1]).toEqual(newData);
+    });
+  });
+
+  describe("cleanup", () => {
+    async function assertClean() {
+      const emissions = trackEmissions(globalState["stateSubject"]);
+      const initial = structuredClone(emissions);
+
+      diskStorageService.save(globalKey, newData);
+      await awaitAsync(); // storage updates are behind a promise
+
+      expect(emissions).toEqual(initial); // no longer listening to storage updates
+    }
+
+    it("should cleanup after last subscriber", async () => {
+      const subscription = globalState.state$.subscribe();
+      await awaitAsync(); // storage updates are behind a promise
+
+      subscription.unsubscribe();
+      expect(globalState["subscriberCount"].getValue()).toBe(0);
+      // Wait for cleanup
+      await awaitAsync(cleanupDelayMs * 2);
+
+      await assertClean();
+    });
+
+    it("should not cleanup if there are still subscribers", async () => {
+      const subscription1 = globalState.state$.subscribe();
+      const sub2Emissions: TestState[] = [];
+      const subscription2 = globalState.state$.subscribe((v) => sub2Emissions.push(v));
+      await awaitAsync(); // storage updates are behind a promise
+
+      subscription1.unsubscribe();
+
+      // Wait for cleanup
+      await awaitAsync(cleanupDelayMs * 2);
+
+      expect(globalState["subscriberCount"].getValue()).toBe(1);
+
+      // Still be listening to storage updates
+      diskStorageService.save(globalKey, newData);
+      await awaitAsync(); // storage updates are behind a promise
+      expect(sub2Emissions).toEqual([null, newData]);
+
+      subscription2.unsubscribe();
+      // Wait for cleanup
+      await awaitAsync(cleanupDelayMs * 2);
+
+      await assertClean();
+    });
+
+    it("can re-initialize after cleanup", async () => {
+      const subscription = globalState.state$.subscribe();
+      await awaitAsync();
+
+      subscription.unsubscribe();
+      // Wait for cleanup
+      await awaitAsync(cleanupDelayMs * 2);
+
+      const emissions = trackEmissions(globalState.state$);
+      await awaitAsync();
+
+      diskStorageService.save(globalKey, newData);
+      await awaitAsync();
+
+      expect(emissions).toEqual([null, newData]);
+    });
+
+    it("should not cleanup if a subscriber joins during the cleanup delay", async () => {
+      const subscription = globalState.state$.subscribe();
+      await awaitAsync();
+
+      await diskStorageService.save(globalKey, newData);
+      await awaitAsync();
+
+      subscription.unsubscribe();
+      expect(globalState["subscriberCount"].getValue()).toBe(0);
+      // Do not wait long enough for cleanup
+      await awaitAsync(cleanupDelayMs / 2);
+
+      expect(globalState["stateSubject"].value).toEqual(newData); // digging in to check that it hasn't been cleared
+      expect(globalState["storageUpdateSubscription"]).not.toBeNull(); // still listening to storage updates
+    });
+  });
 });
diff --git a/libs/common/src/platform/state/implementations/default-global-state.ts b/libs/common/src/platform/state/implementations/default-global-state.ts
index 8e08717f72..39430799a8 100644
--- a/libs/common/src/platform/state/implementations/default-global-state.ts
+++ b/libs/common/src/platform/state/implementations/default-global-state.ts
@@ -1,12 +1,10 @@
 import {
   BehaviorSubject,
   Observable,
-  defer,
+  Subscription,
   filter,
   firstValueFrom,
-  shareReplay,
   switchMap,
-  tap,
   timeout,
 } from "rxjs";
 
@@ -23,54 +21,25 @@ const FAKE_DEFAULT = Symbol("fakeDefault");
 
 export class DefaultGlobalState<T> implements GlobalState<T> {
   private storageKey: string;
+  private updatePromise: Promise<T> | null = null;
+  private storageUpdateSubscription: Subscription;
+  private subscriberCount = new BehaviorSubject<number>(0);
+  private stateObservable: Observable<T>;
 
   protected stateSubject: BehaviorSubject<T | typeof FAKE_DEFAULT> = new BehaviorSubject<
     T | typeof FAKE_DEFAULT
   >(FAKE_DEFAULT);
 
-  state$: Observable<T>;
+  get state$() {
+    this.stateObservable = this.stateObservable ?? this.initializeObservable();
+    return this.stateObservable;
+  }
 
   constructor(
     private keyDefinition: KeyDefinition<T>,
     private chosenLocation: AbstractStorageService & ObservableStorageService,
   ) {
     this.storageKey = globalKeyBuilder(this.keyDefinition);
-
-    const storageUpdates$ = this.chosenLocation.updates$.pipe(
-      filter((update) => update.key === this.storageKey),
-      switchMap(async (update) => {
-        if (update.updateType === "remove") {
-          return null;
-        }
-        return await getStoredValue(
-          this.storageKey,
-          this.chosenLocation,
-          this.keyDefinition.deserializer,
-        );
-      }),
-      shareReplay({ bufferSize: 1, refCount: false }),
-    );
-
-    this.state$ = defer(() => {
-      const storageUpdateSubscription = storageUpdates$.subscribe((value) => {
-        this.stateSubject.next(value);
-      });
-
-      this.getFromState().then((s) => {
-        this.stateSubject.next(s);
-      });
-
-      return this.stateSubject.pipe(
-        tap({
-          complete: () => {
-            storageUpdateSubscription.unsubscribe();
-          },
-        }),
-      );
-    }).pipe(
-      shareReplay({ refCount: false, bufferSize: 1 }),
-      filter<T>((i) => i != FAKE_DEFAULT),
-    );
   }
 
   async update<TCombine>(
@@ -78,7 +47,24 @@ export class DefaultGlobalState<T> implements GlobalState<T> {
     options: StateUpdateOptions<T, TCombine> = {},
   ): Promise<T> {
     options = populateOptionsWithDefault(options);
-    const currentState = await this.getGuaranteedState();
+    if (this.updatePromise != null) {
+      await this.updatePromise;
+    }
+
+    try {
+      this.updatePromise = this.internalUpdate(configureState, options);
+      const newState = await this.updatePromise;
+      return newState;
+    } finally {
+      this.updatePromise = null;
+    }
+  }
+
+  private async internalUpdate<TCombine>(
+    configureState: (state: T, dependency: TCombine) => T,
+    options: StateUpdateOptions<T, TCombine>,
+  ): Promise<T> {
+    const currentState = await this.getStateForUpdate();
     const combinedDependencies =
       options.combineLatestWith != null
         ? await firstValueFrom(options.combineLatestWith.pipe(timeout(options.msTimeout)))
@@ -93,16 +79,86 @@ export class DefaultGlobalState<T> implements GlobalState<T> {
     return newState;
   }
 
-  private async getGuaranteedState() {
+  private initializeObservable() {
+    this.storageUpdateSubscription = this.chosenLocation.updates$
+      .pipe(
+        filter((update) => update.key === this.storageKey),
+        switchMap(async (update) => {
+          if (update.updateType === "remove") {
+            return null;
+          }
+          return await this.getFromState();
+        }),
+      )
+      .subscribe((v) => this.stateSubject.next(v));
+
+    this.subscriberCount.subscribe((count) => {
+      if (count === 0 && this.stateObservable != null) {
+        this.triggerCleanup();
+      }
+    });
+
+    // Intentionally un-awaited promise, we don't want to delay return of observable, but we do want to
+    // trigger populating it immediately.
+    this.getFromState().then((s) => {
+      this.stateSubject.next(s);
+    });
+
+    return new Observable<T>((subscriber) => {
+      this.incrementSubscribers();
+
+      const prevUnsubscribe = subscriber.unsubscribe.bind(subscriber);
+      subscriber.unsubscribe = () => {
+        this.decrementSubscribers();
+        prevUnsubscribe();
+      };
+
+      return this.stateSubject
+        .pipe(
+          // Filter out fake default, which is used to indicate that state is not ready to be emitted yet.
+          filter<T>((i) => i != FAKE_DEFAULT),
+        )
+        .subscribe(subscriber);
+    });
+  }
+
+  /** For use in update methods, does not wait for update to complete before yielding state.
+   * The expectation is that that await is already done
+   */
+  private async getStateForUpdate() {
     const currentValue = this.stateSubject.getValue();
     return currentValue === FAKE_DEFAULT ? await this.getFromState() : currentValue;
   }
 
   async getFromState(): Promise<T> {
+    if (this.updatePromise != null) {
+      return await this.updatePromise;
+    }
     return await getStoredValue(
       this.storageKey,
       this.chosenLocation,
       this.keyDefinition.deserializer,
     );
   }
+
+  private incrementSubscribers() {
+    this.subscriberCount.next(this.subscriberCount.value + 1);
+  }
+
+  private decrementSubscribers() {
+    this.subscriberCount.next(this.subscriberCount.value - 1);
+  }
+
+  private triggerCleanup() {
+    setTimeout(() => {
+      if (this.subscriberCount.value === 0) {
+        this.updatePromise = null;
+        this.storageUpdateSubscription.unsubscribe();
+        this.stateObservable = null;
+        this.subscriberCount.complete();
+        this.subscriberCount = new BehaviorSubject<number>(0);
+        this.stateSubject.next(FAKE_DEFAULT);
+      }
+    }, this.keyDefinition.cleanupDelayMs);
+  }
 }
diff --git a/libs/common/src/platform/state/implementations/default-single-user-state.spec.ts b/libs/common/src/platform/state/implementations/default-single-user-state.spec.ts
index a25ee863e6..1c24c5f48c 100644
--- a/libs/common/src/platform/state/implementations/default-single-user-state.spec.ts
+++ b/libs/common/src/platform/state/implementations/default-single-user-state.spec.ts
@@ -3,6 +3,7 @@
  * @jest-environment ../shared/test.environment.ts
  */
 
+import { anySymbol } from "jest-mock-extended";
 import { firstValueFrom, of } from "rxjs";
 import { Jsonify } from "type-fest";
 
@@ -30,21 +31,22 @@ class TestState {
 }
 
 const testStateDefinition = new StateDefinition("fake", "disk");
-
+const cleanupDelayMs = 10;
 const testKeyDefinition = new KeyDefinition<TestState>(testStateDefinition, "fake", {
   deserializer: TestState.fromJSON,
+  cleanupDelayMs,
 });
 const userId = Utils.newGuid() as UserId;
 const userKey = userKeyBuilder(userId, testKeyDefinition);
 
 describe("DefaultSingleUserState", () => {
   let diskStorageService: FakeStorageService;
-  let globalState: DefaultSingleUserState<TestState>;
+  let userState: DefaultSingleUserState<TestState>;
   const newData = { date: new Date() };
 
   beforeEach(() => {
     diskStorageService = new FakeStorageService();
-    globalState = new DefaultSingleUserState(
+    userState = new DefaultSingleUserState(
       userId,
       testKeyDefinition,
       null, // Not testing anything with encrypt service
@@ -58,7 +60,7 @@ describe("DefaultSingleUserState", () => {
 
   describe("state$", () => {
     it("should emit when storage updates", async () => {
-      const emissions = trackEmissions(globalState.state$);
+      const emissions = trackEmissions(userState.state$);
       await diskStorageService.save(userKey, newData);
       await awaitAsync();
 
@@ -69,7 +71,7 @@ describe("DefaultSingleUserState", () => {
     });
 
     it("should not emit when update key does not match", async () => {
-      const emissions = trackEmissions(globalState.state$);
+      const emissions = trackEmissions(userState.state$);
       await diskStorageService.save("wrong_key", newData);
 
       expect(emissions).toHaveLength(0);
@@ -82,7 +84,7 @@ describe("DefaultSingleUserState", () => {
       });
       diskStorageService.internalUpdateStore(initialStorage);
 
-      const state = await firstValueFrom(globalState.state$);
+      const state = await firstValueFrom(userState.state$);
       expect(diskStorageService.mock.get).toHaveBeenCalledTimes(1);
       expect(diskStorageService.mock.get).toHaveBeenCalledWith(
         `user_${userId}_fake_fake`,
@@ -94,7 +96,7 @@ describe("DefaultSingleUserState", () => {
 
   describe("update", () => {
     it("should save on update", async () => {
-      const result = await globalState.update((state) => {
+      const result = await userState.update((state) => {
         return newData;
       });
 
@@ -103,10 +105,10 @@ describe("DefaultSingleUserState", () => {
     });
 
     it("should emit once per update", async () => {
-      const emissions = trackEmissions(globalState.state$);
+      const emissions = trackEmissions(userState.state$);
       await awaitAsync(); // storage updates are behind a promise
 
-      await globalState.update((state) => {
+      await userState.update((state) => {
         return newData;
       });
 
@@ -119,12 +121,12 @@ describe("DefaultSingleUserState", () => {
     });
 
     it("should provided combined dependencies", async () => {
-      const emissions = trackEmissions(globalState.state$);
+      const emissions = trackEmissions(userState.state$);
       await awaitAsync(); // storage updates are behind a promise
 
       const combinedDependencies = { date: new Date() };
 
-      await globalState.update(
+      await userState.update(
         (state, dependencies) => {
           expect(dependencies).toEqual(combinedDependencies);
           return newData;
@@ -143,9 +145,10 @@ describe("DefaultSingleUserState", () => {
     });
 
     it("should not update if shouldUpdate returns false", async () => {
-      const emissions = trackEmissions(globalState.state$);
+      const emissions = trackEmissions(userState.state$);
+      await awaitAsync(); // storage updates are behind a promise
 
-      const result = await globalState.update(
+      const result = await userState.update(
         (state) => {
           return newData;
         },
@@ -160,18 +163,18 @@ describe("DefaultSingleUserState", () => {
     });
 
     it("should provide the update callback with the current State", async () => {
-      const emissions = trackEmissions(globalState.state$);
+      const emissions = trackEmissions(userState.state$);
       await awaitAsync(); // storage updates are behind a promise
 
       // Seed with interesting data
       const initialData = { date: new Date(2020, 1, 1) };
-      await globalState.update((state, dependencies) => {
+      await userState.update((state, dependencies) => {
         return initialData;
       });
 
       await awaitAsync();
 
-      await globalState.update((state) => {
+      await userState.update((state) => {
         expect(state).toEqual(initialData);
         return newData;
       });
@@ -193,14 +196,14 @@ describe("DefaultSingleUserState", () => {
       initialStorage[userKey] = initialState;
       diskStorageService.internalUpdateStore(initialStorage);
 
-      const emissions = trackEmissions(globalState.state$);
+      const emissions = trackEmissions(userState.state$);
       await awaitAsync(); // storage updates are behind a promise
 
       const newState = {
         ...initialState,
         date: new Date(initialState.date.getFullYear(), initialState.date.getMonth() + 1),
       };
-      const actual = await globalState.update((existingState) => newState);
+      const actual = await userState.update((existingState) => newState);
 
       await awaitAsync();
 
@@ -209,4 +212,194 @@ describe("DefaultSingleUserState", () => {
       expect(emissions).toEqual(expect.arrayContaining([initialState, newState]));
     });
   });
+
+  describe("update races", () => {
+    test("subscriptions during an update should receive the current and latest data", async () => {
+      const oldData = { date: new Date(2019, 1, 1) };
+      await userState.update(() => {
+        return oldData;
+      });
+      const initialData = { date: new Date(2020, 1, 1) };
+      await userState.update(() => {
+        return initialData;
+      });
+
+      await awaitAsync();
+
+      const emissions = trackEmissions(userState.state$);
+      await awaitAsync();
+      expect(emissions).toEqual([initialData]);
+
+      let emissions2: TestState[];
+      const originalSave = diskStorageService.save.bind(diskStorageService);
+      diskStorageService.save = jest.fn().mockImplementation(async (key: string, obj: any) => {
+        emissions2 = trackEmissions(userState.state$);
+        await originalSave(key, obj);
+      });
+
+      const val = await userState.update(() => {
+        return newData;
+      });
+
+      await awaitAsync(10);
+
+      expect(val).toEqual(newData);
+      expect(emissions).toEqual([initialData, newData]);
+      expect(emissions2).toEqual([initialData, newData]);
+    });
+
+    test("subscription during an aborted update should receive the last value", async () => {
+      // Seed with interesting data
+      const initialData = { date: new Date(2020, 1, 1) };
+      await userState.update(() => {
+        return initialData;
+      });
+
+      await awaitAsync();
+
+      const emissions = trackEmissions(userState.state$);
+      await awaitAsync();
+      expect(emissions).toEqual([initialData]);
+
+      let emissions2: TestState[];
+      const val = await userState.update(
+        (state) => {
+          return newData;
+        },
+        {
+          shouldUpdate: () => {
+            emissions2 = trackEmissions(userState.state$);
+            return false;
+          },
+        },
+      );
+
+      await awaitAsync();
+
+      expect(val).toEqual(initialData);
+      expect(emissions).toEqual([initialData]);
+
+      expect(emissions2).toEqual([initialData]);
+    });
+
+    test("updates should wait until previous update is complete", async () => {
+      trackEmissions(userState.state$);
+      await awaitAsync(); // storage updates are behind a promise
+
+      const originalSave = diskStorageService.save.bind(diskStorageService);
+      diskStorageService.save = jest
+        .fn()
+        .mockImplementationOnce(async () => {
+          let resolved = false;
+          await Promise.race([
+            userState.update(() => {
+              // deadlocks
+              resolved = true;
+              return newData;
+            }),
+            awaitAsync(100), // limit test to 100ms
+          ]);
+          expect(resolved).toBe(false);
+        })
+        .mockImplementation(originalSave);
+
+      await userState.update((state) => {
+        return newData;
+      });
+    });
+
+    test("updates with FAKE_DEFAULT initial value should resolve correctly", async () => {
+      expect(userState["stateSubject"].value).toEqual(anySymbol()); // FAKE_DEFAULT
+      const val = await userState.update((state) => {
+        return newData;
+      });
+
+      expect(val).toEqual(newData);
+      const call = diskStorageService.mock.save.mock.calls[0];
+      expect(call[0]).toEqual(`user_${userId}_fake_fake`);
+      expect(call[1]).toEqual(newData);
+    });
+  });
+
+  describe("cleanup", () => {
+    async function assertClean() {
+      const emissions = trackEmissions(userState["stateSubject"]);
+      const initial = structuredClone(emissions);
+
+      diskStorageService.save(userKey, newData);
+      await awaitAsync(); // storage updates are behind a promise
+
+      expect(emissions).toEqual(initial); // no longer listening to storage updates
+    }
+
+    it("should cleanup after last subscriber", async () => {
+      const subscription = userState.state$.subscribe();
+      await awaitAsync(); // storage updates are behind a promise
+
+      subscription.unsubscribe();
+      expect(userState["subscriberCount"].getValue()).toBe(0);
+      // Wait for cleanup
+      await awaitAsync(cleanupDelayMs * 2);
+
+      await assertClean();
+    });
+
+    it("should not cleanup if there are still subscribers", async () => {
+      const subscription1 = userState.state$.subscribe();
+      const sub2Emissions: TestState[] = [];
+      const subscription2 = userState.state$.subscribe((v) => sub2Emissions.push(v));
+      await awaitAsync(); // storage updates are behind a promise
+
+      subscription1.unsubscribe();
+
+      // Wait for cleanup
+      await awaitAsync(cleanupDelayMs * 2);
+
+      expect(userState["subscriberCount"].getValue()).toBe(1);
+
+      // Still be listening to storage updates
+      diskStorageService.save(userKey, newData);
+      await awaitAsync(); // storage updates are behind a promise
+      expect(sub2Emissions).toEqual([null, newData]);
+
+      subscription2.unsubscribe();
+      // Wait for cleanup
+      await awaitAsync(cleanupDelayMs * 2);
+
+      await assertClean();
+    });
+
+    it("can re-initialize after cleanup", async () => {
+      const subscription = userState.state$.subscribe();
+      await awaitAsync();
+
+      subscription.unsubscribe();
+      // Wait for cleanup
+      await awaitAsync(cleanupDelayMs * 2);
+
+      const emissions = trackEmissions(userState.state$);
+      await awaitAsync();
+
+      diskStorageService.save(userKey, newData);
+      await awaitAsync();
+
+      expect(emissions).toEqual([null, newData]);
+    });
+
+    it("should not cleanup if a subscriber joins during the cleanup delay", async () => {
+      const subscription = userState.state$.subscribe();
+      await awaitAsync();
+
+      await diskStorageService.save(userKey, newData);
+      await awaitAsync();
+
+      subscription.unsubscribe();
+      expect(userState["subscriberCount"].getValue()).toBe(0);
+      // Do not wait long enough for cleanup
+      await awaitAsync(cleanupDelayMs / 2);
+
+      expect(userState["stateSubject"].value).toEqual(newData); // digging in to check that it hasn't been cleared
+      expect(userState["storageUpdateSubscription"]).not.toBeNull(); // still listening to storage updates
+    });
+  });
 });
diff --git a/libs/common/src/platform/state/implementations/default-single-user-state.ts b/libs/common/src/platform/state/implementations/default-single-user-state.ts
index 46fa00ffb3..0e9cacae51 100644
--- a/libs/common/src/platform/state/implementations/default-single-user-state.ts
+++ b/libs/common/src/platform/state/implementations/default-single-user-state.ts
@@ -1,12 +1,10 @@
 import {
   BehaviorSubject,
   Observable,
-  defer,
+  Subscription,
   filter,
   firstValueFrom,
-  shareReplay,
   switchMap,
-  tap,
   timeout,
 } from "rxjs";
 
@@ -23,16 +21,24 @@ import { Converter, SingleUserState } from "../user-state";
 
 import { DefaultDerivedUserState } from "./default-derived-state";
 import { getStoredValue } from "./util";
+
 const FAKE_DEFAULT = Symbol("fakeDefault");
 
 export class DefaultSingleUserState<T> implements SingleUserState<T> {
   private storageKey: string;
+  private updatePromise: Promise<T> | null = null;
+  private storageUpdateSubscription: Subscription;
+  private subscriberCount = new BehaviorSubject<number>(0);
+  private stateObservable: Observable<T>;
 
   protected stateSubject: BehaviorSubject<T | typeof FAKE_DEFAULT> = new BehaviorSubject<
     T | typeof FAKE_DEFAULT
   >(FAKE_DEFAULT);
 
-  state$: Observable<T>;
+  get state$() {
+    this.stateObservable = this.stateObservable ?? this.initializeObservable();
+    return this.stateObservable;
+  }
 
   constructor(
     readonly userId: UserId,
@@ -41,42 +47,6 @@ export class DefaultSingleUserState<T> implements SingleUserState<T> {
     private chosenLocation: AbstractStorageService & ObservableStorageService,
   ) {
     this.storageKey = userKeyBuilder(this.userId, this.keyDefinition);
-
-    const storageUpdates$ = this.chosenLocation.updates$.pipe(
-      filter((update) => update.key === this.storageKey),
-      switchMap(async (update) => {
-        if (update.updateType === "remove") {
-          return null;
-        }
-        return await getStoredValue(
-          this.storageKey,
-          this.chosenLocation,
-          this.keyDefinition.deserializer,
-        );
-      }),
-      shareReplay({ bufferSize: 1, refCount: false }),
-    );
-
-    this.state$ = defer(() => {
-      const storageUpdateSubscription = storageUpdates$.subscribe((value) => {
-        this.stateSubject.next(value);
-      });
-
-      this.getFromState().then((s) => {
-        this.stateSubject.next(s);
-      });
-
-      return this.stateSubject.pipe(
-        tap({
-          complete: () => {
-            storageUpdateSubscription.unsubscribe();
-          },
-        }),
-      );
-    }).pipe(
-      shareReplay({ refCount: false, bufferSize: 1 }),
-      filter<T>((i) => i != FAKE_DEFAULT),
-    );
   }
 
   async update<TCombine>(
@@ -84,7 +54,28 @@ export class DefaultSingleUserState<T> implements SingleUserState<T> {
     options: StateUpdateOptions<T, TCombine> = {},
   ): Promise<T> {
     options = populateOptionsWithDefault(options);
-    const currentState = await this.getGuaranteedState();
+    if (this.updatePromise != null) {
+      await this.updatePromise;
+    }
+
+    try {
+      this.updatePromise = this.internalUpdate(configureState, options);
+      const newState = await this.updatePromise;
+      return newState;
+    } finally {
+      this.updatePromise = null;
+    }
+  }
+
+  createDerived<TTo>(converter: Converter<T, TTo>): DerivedUserState<TTo> {
+    return new DefaultDerivedUserState<T, TTo>(converter, this.encryptService, this);
+  }
+
+  private async internalUpdate<TCombine>(
+    configureState: (state: T, dependency: TCombine) => T,
+    options: StateUpdateOptions<T, TCombine>,
+  ): Promise<T> {
+    const currentState = await this.getStateForUpdate();
     const combinedDependencies =
       options.combineLatestWith != null
         ? await firstValueFrom(options.combineLatestWith.pipe(timeout(options.msTimeout)))
@@ -99,20 +90,86 @@ export class DefaultSingleUserState<T> implements SingleUserState<T> {
     return newState;
   }
 
-  createDerived<TTo>(converter: Converter<T, TTo>): DerivedUserState<TTo> {
-    return new DefaultDerivedUserState<T, TTo>(converter, this.encryptService, this);
+  private initializeObservable() {
+    this.storageUpdateSubscription = this.chosenLocation.updates$
+      .pipe(
+        filter((update) => update.key === this.storageKey),
+        switchMap(async (update) => {
+          if (update.updateType === "remove") {
+            return null;
+          }
+          return await this.getFromState();
+        }),
+      )
+      .subscribe((v) => this.stateSubject.next(v));
+
+    this.subscriberCount.subscribe((count) => {
+      if (count === 0 && this.stateObservable != null) {
+        this.triggerCleanup();
+      }
+    });
+
+    // Intentionally un-awaited promise, we don't want to delay return of observable, but we do want to
+    // trigger populating it immediately.
+    this.getFromState().then((s) => {
+      this.stateSubject.next(s);
+    });
+
+    return new Observable<T>((subscriber) => {
+      this.incrementSubscribers();
+
+      const prevUnsubscribe = subscriber.unsubscribe.bind(subscriber);
+      subscriber.unsubscribe = () => {
+        this.decrementSubscribers();
+        prevUnsubscribe();
+      };
+
+      return this.stateSubject
+        .pipe(
+          // Filter out fake default, which is used to indicate that state is not ready to be emitted yet.
+          filter<T>((i) => i != FAKE_DEFAULT),
+        )
+        .subscribe(subscriber);
+    });
   }
 
-  private async getGuaranteedState() {
+  /** For use in update methods, does not wait for update to complete before yielding state.
+   * The expectation is that that await is already done
+   */
+  private async getStateForUpdate() {
     const currentValue = this.stateSubject.getValue();
     return currentValue === FAKE_DEFAULT ? await this.getFromState() : currentValue;
   }
 
   async getFromState(): Promise<T> {
+    if (this.updatePromise != null) {
+      return await this.updatePromise;
+    }
     return await getStoredValue(
       this.storageKey,
       this.chosenLocation,
       this.keyDefinition.deserializer,
     );
   }
+
+  private incrementSubscribers() {
+    this.subscriberCount.next(this.subscriberCount.value + 1);
+  }
+
+  private decrementSubscribers() {
+    this.subscriberCount.next(this.subscriberCount.value - 1);
+  }
+
+  private triggerCleanup() {
+    setTimeout(() => {
+      if (this.subscriberCount.value === 0) {
+        this.updatePromise = null;
+        this.storageUpdateSubscription.unsubscribe();
+        this.stateObservable = null;
+        this.subscriberCount.complete();
+        this.subscriberCount = new BehaviorSubject<number>(0);
+        this.stateSubject.next(FAKE_DEFAULT);
+      }
+    }, this.keyDefinition.cleanupDelayMs);
+  }
 }
diff --git a/libs/common/src/platform/state/key-definition.spec.ts b/libs/common/src/platform/state/key-definition.spec.ts
index cbb1e49a9a..ee926bccd8 100644
--- a/libs/common/src/platform/state/key-definition.spec.ts
+++ b/libs/common/src/platform/state/key-definition.spec.ts
@@ -18,6 +18,37 @@ describe("KeyDefinition", () => {
     });
   });
 
+  describe("cleanupDelayMs", () => {
+    it("defaults to 1000ms", () => {
+      const keyDefinition = new KeyDefinition<boolean>(fakeStateDefinition, "fake", {
+        deserializer: (value) => value,
+      });
+
+      expect(keyDefinition).toBeTruthy();
+      expect(keyDefinition.cleanupDelayMs).toBe(1000);
+    });
+
+    it("can be overridden", () => {
+      const keyDefinition = new KeyDefinition<boolean>(fakeStateDefinition, "fake", {
+        deserializer: (value) => value,
+        cleanupDelayMs: 500,
+      });
+
+      expect(keyDefinition).toBeTruthy();
+      expect(keyDefinition.cleanupDelayMs).toBe(500);
+    });
+
+    it.each([0, -1])("throws on 0 or negative (%s)", (testValue: number) => {
+      expect(
+        () =>
+          new KeyDefinition<boolean>(fakeStateDefinition, "fake", {
+            deserializer: (value) => value,
+            cleanupDelayMs: testValue,
+          }),
+      ).toThrow();
+    });
+  });
+
   describe("record", () => {
     it("runs custom deserializer for each record value", () => {
       const recordDefinition = KeyDefinition.record<boolean>(fakeStateDefinition, "fake", {
diff --git a/libs/common/src/platform/state/key-definition.ts b/libs/common/src/platform/state/key-definition.ts
index db65740388..9989bf37a2 100644
--- a/libs/common/src/platform/state/key-definition.ts
+++ b/libs/common/src/platform/state/key-definition.ts
@@ -19,6 +19,11 @@ type KeyDefinitionOptions<T> = {
    * @returns The fully typed version of your state.
    */
   readonly deserializer: (jsonValue: Jsonify<T>) => T;
+  /**
+   * The number of milliseconds to wait before cleaning up the state after the last subscriber has unsubscribed.
+   * Defaults to 1000ms.
+   */
+  readonly cleanupDelayMs?: number;
 };
 
 /**
@@ -42,8 +47,12 @@ export class KeyDefinition<T> {
     private readonly options: KeyDefinitionOptions<T>,
   ) {
     if (options.deserializer == null) {
+      throw new Error(`'deserializer' is a required property on key ${this.errorKeyName}`);
+    }
+
+    if (options.cleanupDelayMs <= 0) {
       throw new Error(
-        `'deserializer' is a required property on key ${stateDefinition.name} > ${key}`,
+        `'cleanupDelayMs' must be greater than 0. Value of ${options.cleanupDelayMs} passed to key ${this.errorKeyName} `,
       );
     }
   }
@@ -55,6 +64,13 @@ export class KeyDefinition<T> {
     return this.options.deserializer;
   }
 
+  /**
+   * Gets the number of milliseconds to wait before cleaning up the state after the last subscriber has unsubscribed.
+   */
+  get cleanupDelayMs() {
+    return this.options.cleanupDelayMs < 0 ? 0 : this.options.cleanupDelayMs ?? 1000;
+  }
+
   /**
    * Creates a {@link KeyDefinition} for state that is an array.
    * @param stateDefinition The state definition to be added to the KeyDefinition
@@ -137,6 +153,10 @@ export class KeyDefinition<T> {
       ? `${scope}_${userId}_${this.stateDefinition.name}_${this.key}`
       : `${scope}_${this.stateDefinition.name}_${this.key}`;
   }
+
+  private get errorKeyName() {
+    return `${this.stateDefinition.name} > ${this.key}`;
+  }
 }
 
 export type StorageKey = Opaque<string, "StorageKey">;