diff --git a/cmd/dagger/cmd/common/common.go b/cmd/dagger/cmd/common/common.go
index 295b20ae..05114deb 100644
--- a/cmd/dagger/cmd/common/common.go
+++ b/cmd/dagger/cmd/common/common.go
@@ -12,78 +12,8 @@ import (
 	"go.dagger.io/dagger/client"
 	"go.dagger.io/dagger/compiler"
 	"go.dagger.io/dagger/plancontext"
-	"go.dagger.io/dagger/state"
 )
 
-func CurrentProject(ctx context.Context) *state.Project {
-	lg := log.Ctx(ctx)
-
-	if projectPath := viper.GetString("project"); projectPath != "" {
-		project, err := state.Open(ctx, projectPath)
-		if err != nil {
-			lg.
-				Fatal().
-				Err(err).
-				Str("path", projectPath).
-				Msg("failed to open project")
-		}
-		return project
-	}
-
-	project, err := state.Current(ctx)
-	if err != nil {
-		lg.
-			Fatal().
-			Err(err).
-			Msg("failed to determine current project")
-	}
-	return project
-}
-
-func CurrentEnvironmentState(ctx context.Context, project *state.Project) *state.State {
-	lg := log.Ctx(ctx)
-
-	environmentName := viper.GetString("environment")
-	if environmentName != "" {
-		st, err := project.Get(ctx, environmentName)
-		if err != nil {
-			lg.
-				Fatal().
-				Err(err).
-				Msg("failed to load environment")
-		}
-		return st
-	}
-
-	environments, err := project.List(ctx)
-	if err != nil {
-		lg.
-			Fatal().
-			Err(err).
-			Msg("failed to list environments")
-	}
-
-	if len(environments) == 0 {
-		lg.
-			Fatal().
-			Msg("no environments")
-	}
-
-	if len(environments) > 1 {
-		envNames := []string{}
-		for _, e := range environments {
-			envNames = append(envNames, e.Name)
-		}
-		lg.
-			Fatal().
-			Err(err).
-			Strs("environments", envNames).
-			Msg("multiple environments available in the project, select one with `--environment`")
-	}
-
-	return environments[0]
-}
-
 // FormatValue returns the String representation of the cue value
 func FormatValue(val *compiler.Value) string {
 	switch {
diff --git a/cmd/dagger/cmd/common/track.go b/cmd/dagger/cmd/common/track.go
index f9ab140f..67bfe77a 100644
--- a/cmd/dagger/cmd/common/track.go
+++ b/cmd/dagger/cmd/common/track.go
@@ -8,7 +8,6 @@ import (
 
 	"github.com/go-git/go-git/v5"
 	"github.com/spf13/cobra"
-	"go.dagger.io/dagger/state"
 	"go.dagger.io/dagger/telemetry"
 )
 
@@ -32,34 +31,6 @@ func commandName(cmd *cobra.Command) string {
 	return strings.Join(parts, " ")
 }
 
-// TrackProjectCommand is like TrackCommand but includes project and
-// optionally environment metadata.
-func TrackProjectCommand(ctx context.Context, cmd *cobra.Command, w *state.Project, env *state.State, props ...*telemetry.Property) chan struct{} {
-	props = append([]*telemetry.Property{
-		{
-			// Hash the repository URL for privacy
-			Name:  "git_repository_hash",
-			Value: hash(gitRepoURL(w.Path)),
-		},
-		{
-			// The project path might contain the username (e.g. /home/user/project), so we hash it for privacy.
-			Name:  "project_path_hash",
-			Value: hash(w.Path),
-		},
-	}, props...)
-
-	if env != nil {
-		props = append([]*telemetry.Property{
-			{
-				Name:  "environment_name",
-				Value: env.Name,
-			},
-		}, props...)
-	}
-
-	return TrackCommand(ctx, cmd, props...)
-}
-
 // hash returns the sha256 digest of the string
 func hash(s string) string {
 	return fmt.Sprintf("%x", sha256.Sum256([]byte(s)))
diff --git a/cmd/dagger/cmd/init.go b/cmd/dagger/cmd/init.go
index 26f9eeda..aa575fb4 100644
--- a/cmd/dagger/cmd/init.go
+++ b/cmd/dagger/cmd/init.go
@@ -5,9 +5,8 @@ import (
 
 	"github.com/spf13/cobra"
 	"github.com/spf13/viper"
-	"go.dagger.io/dagger/cmd/dagger/cmd/common"
 	"go.dagger.io/dagger/cmd/dagger/logger"
-	"go.dagger.io/dagger/state"
+	"go.dagger.io/dagger/pkg"
 )
 
 var initCmd = &cobra.Command{
@@ -37,12 +36,13 @@ var initCmd = &cobra.Command{
 			dir = cwd
 		}
 
-		project, err := state.Init(ctx, dir)
+		err := pkg.CueModInit(ctx, dir)
 		if err != nil {
 			lg.Fatal().Err(err).Msg("failed to initialize project")
 		}
 
-		<-common.TrackProjectCommand(ctx, cmd, project, nil)
+		// TODO: Add telemtry for init
+		// <-common.TrackProjectCommand(ctx, cmd, project, nil)
 
 	},
 }
diff --git a/cmd/dagger/cmd/mod/get.go b/cmd/dagger/cmd/mod/get.go
index 60ee43c2..16b2d015 100644
--- a/cmd/dagger/cmd/mod/get.go
+++ b/cmd/dagger/cmd/mod/get.go
@@ -6,7 +6,6 @@ import (
 	"go.dagger.io/dagger/cmd/dagger/logger"
 	"go.dagger.io/dagger/mod"
 	"go.dagger.io/dagger/pkg"
-	"go.dagger.io/dagger/state"
 )
 
 var getCmd = &cobra.Command{
@@ -28,10 +27,10 @@ var getCmd = &cobra.Command{
 		var err error
 
 		cueModPath := pkg.GetCueModParent()
-		// err = pkg.CueModInit(ctx, cueModPath)
-		_, err = state.Init(ctx, cueModPath)
-		if err != nil && err != state.ErrAlreadyInit {
+		err = pkg.CueModInit(ctx, cueModPath)
+		if err != nil {
 			lg.Fatal().Err(err).Msg("failed to initialize cue.mod")
+			panic(err)
 		}
 
 		var update = viper.GetBool("update")
diff --git a/pkg/pkg.go b/pkg/pkg.go
index 5c6b5f1c..cd11e84d 100644
--- a/pkg/pkg.go
+++ b/pkg/pkg.go
@@ -59,7 +59,7 @@ func Vendor(ctx context.Context, p string) error {
 	}()
 
 	// ensure cue module is initialized
-	if err := cueModInit(ctx, p); err != nil {
+	if err := CueModInit(ctx, p); err != nil {
 		return err
 	}
 
@@ -167,7 +167,7 @@ func GetCueModParent() string {
 	return parentDir
 }
 
-func cueModInit(ctx context.Context, parentDir string) error {
+func CueModInit(ctx context.Context, parentDir string) error {
 	lg := log.Ctx(ctx)
 
 	modDir := path.Join(parentDir, "cue.mod")
diff --git a/state/input.go b/state/input.go
deleted file mode 100644
index 726ec5b7..00000000
--- a/state/input.go
+++ /dev/null
@@ -1,300 +0,0 @@
-package state
-
-import (
-	"encoding/json"
-	"fmt"
-	"io/ioutil"
-	"os"
-	"path"
-	"path/filepath"
-	"strings"
-
-	"cuelang.org/go/cue"
-
-	"go.dagger.io/dagger/compiler"
-)
-
-// An input is a value or artifact supplied by the user.
-//
-// - A value is any structured data which can be encoded as cue.
-//
-// - An artifact is a piece of data, like a source code checkout,
-//   binary bundle, docker image, database backup etc.
-//
-//   Artifacts can be passed as inputs, generated dynamically from
-//   other inputs, and received as outputs.
-//   Under the hood, an artifact is encoded as a LLB pipeline, and
-//   attached to the cue configuration as a
-//
-
-type Input struct {
-	Dir    *dirInput    `yaml:"dir,omitempty"`
-	Git    *gitInput    `yaml:"git,omitempty"`
-	Secret *secretInput `yaml:"secret,omitempty"`
-	Text   *textInput   `yaml:"text,omitempty"`
-	JSON   *jsonInput   `yaml:"json,omitempty"`
-	YAML   *yamlInput   `yaml:"yaml,omitempty"`
-	File   *fileInput   `yaml:"file,omitempty"`
-	Bool   *boolInput   `yaml:"bool,omitempty"`
-	Socket *socketInput `yaml:"socket,omitempty"`
-}
-
-func (i Input) Compile(state *State) (*compiler.Value, error) {
-	switch {
-	case i.Dir != nil:
-		return i.Dir.Compile(state)
-	case i.Git != nil:
-		return i.Git.Compile(state)
-	case i.Text != nil:
-		return i.Text.Compile(state)
-	case i.Secret != nil:
-		return i.Secret.Compile(state)
-	case i.JSON != nil:
-		return i.JSON.Compile(state)
-	case i.YAML != nil:
-		return i.YAML.Compile(state)
-	case i.File != nil:
-		return i.File.Compile(state)
-	case i.Bool != nil:
-		return i.Bool.Compile(state)
-	case i.Socket != nil:
-		return i.Socket.Compile(state)
-	default:
-		return nil, fmt.Errorf("input has not been set")
-	}
-}
-
-// An input artifact loaded from a local directory
-func DirInput(path string, include []string, exclude []string) Input {
-	return Input{
-		Dir: &dirInput{
-			Path:    path,
-			Include: include,
-			Exclude: exclude,
-		},
-	}
-}
-
-type dirInput struct {
-	Path    string   `yaml:"path,omitempty"`
-	Include []string `yaml:"include,omitempty"`
-	Exclude []string `yaml:"exclude,omitempty"`
-}
-
-func (dir dirInput) Compile(state *State) (*compiler.Value, error) {
-	// FIXME: serialize an intermediate struct, instead of generating cue source
-
-	// json.Marshal([]string{}) returns []byte("null"), which wreaks havoc
-	// in Cue because `null` is not a `[...string]`
-	includeLLB := []byte("[]")
-	if len(dir.Include) > 0 {
-		var err error
-		includeLLB, err = json.Marshal(dir.Include)
-		if err != nil {
-			return nil, err
-		}
-	}
-	excludeLLB := []byte("[]")
-	if len(dir.Exclude) > 0 {
-		var err error
-		excludeLLB, err = json.Marshal(dir.Exclude)
-		if err != nil {
-			return nil, err
-		}
-	}
-
-	p := dir.Path
-	if !filepath.IsAbs(p) {
-		p = filepath.Clean(path.Join(state.Project, dir.Path))
-	}
-	if !strings.HasPrefix(p, state.Project) {
-		return nil, fmt.Errorf("%q is outside the project", dir.Path)
-	}
-	// Check that directory exists
-	if _, err := os.Stat(p); os.IsNotExist(err) {
-		return nil, fmt.Errorf("%q dir doesn't exist", dir.Path)
-	}
-
-	dirPath, err := json.Marshal(p)
-	if err != nil {
-		return nil, err
-	}
-
-	state.Context.LocalDirs.Add(p)
-
-	llb := fmt.Sprintf(
-		`#up: [{do: "local", dir: %s, include: %s, exclude: %s}]`,
-		dirPath,
-		includeLLB,
-		excludeLLB,
-	)
-	return compiler.Compile("", llb)
-}
-
-// An input artifact loaded from a git repository
-type gitInput struct {
-	Remote string `yaml:"remote,omitempty"`
-	Ref    string `yaml:"ref,omitempty"`
-	Dir    string `yaml:"dir,omitempty"`
-}
-
-func GitInput(remote, ref, dir string) Input {
-	return Input{
-		Git: &gitInput{
-			Remote: remote,
-			Ref:    ref,
-			Dir:    dir,
-		},
-	}
-}
-
-func (git gitInput) Compile(_ *State) (*compiler.Value, error) {
-	ref := "HEAD"
-	if git.Ref != "" {
-		ref = git.Ref
-	}
-
-	dir := ""
-	if git.Dir != "" {
-		dir = fmt.Sprintf(`,{do:"subdir", dir:"%s"}`, git.Dir)
-	}
-
-	return compiler.Compile("", fmt.Sprintf(
-		`#up: [{do:"fetch-git", remote:"%s", ref:"%s"}%s]`,
-		git.Remote,
-		ref,
-		dir,
-	))
-}
-
-// An input value encoded as text
-func TextInput(data string) Input {
-	i := textInput(data)
-	return Input{
-		Text: &i,
-	}
-}
-
-type textInput string
-
-func (i textInput) Compile(_ *State) (*compiler.Value, error) {
-	return compiler.Compile("", fmt.Sprintf("%q", i))
-}
-
-// A secret input value
-func SecretInput(data string) Input {
-	i := secretInput(data)
-	return Input{
-		Secret: &i,
-	}
-}
-
-type secretInput string
-
-func (i secretInput) Compile(st *State) (*compiler.Value, error) {
-	secret := st.Context.Secrets.New(i.PlainText())
-	return secret.MarshalCUE(), nil
-}
-
-func (i secretInput) PlainText() string {
-	return string(i)
-}
-
-// An input value encoded as Bool
-func BoolInput(data string) Input {
-	i := boolInput(data)
-	return Input{
-		Bool: &i,
-	}
-}
-
-type boolInput string
-
-func (i boolInput) Compile(_ *State) (*compiler.Value, error) {
-	s := map[boolInput]struct{}{
-		"true":  {},
-		"false": {},
-	}
-	if _, ok := s[i]; ok {
-		return compiler.DecodeJSON("", []byte(i))
-	}
-	return nil, fmt.Errorf("%q is not a valid boolean: <true|false>", i)
-}
-
-// An input value encoded as JSON
-func JSONInput(data string) Input {
-	i := jsonInput(data)
-	return Input{
-		JSON: &i,
-	}
-}
-
-type jsonInput string
-
-func (i jsonInput) Compile(_ *State) (*compiler.Value, error) {
-	return compiler.DecodeJSON("", []byte(i))
-}
-
-// An input value encoded as YAML
-func YAMLInput(data string) Input {
-	i := yamlInput(data)
-	return Input{
-		YAML: &i,
-	}
-}
-
-type yamlInput string
-
-func (i yamlInput) Compile(_ *State) (*compiler.Value, error) {
-	return compiler.DecodeYAML("", []byte(i))
-}
-
-func FileInput(data string) Input {
-	return Input{
-		File: &fileInput{
-			Path: data,
-		},
-	}
-}
-
-type fileInput struct {
-	Path string `yaml:"path,omitempty"`
-}
-
-func (i fileInput) Compile(_ *State) (*compiler.Value, error) {
-	data, err := ioutil.ReadFile(i.Path)
-	if err != nil {
-		return nil, err
-	}
-	value := compiler.NewValue()
-	if err := value.FillPath(cue.MakePath(), data); err != nil {
-		return nil, err
-	}
-	return value, nil
-}
-
-// A socket input value
-func SocketInput(data, socketType string) Input {
-	i := socketInput{}
-
-	switch socketType {
-	case "npipe":
-		i.Npipe = data
-	case "unix":
-		i.Unix = data
-	}
-
-	return Input{
-		Socket: &i,
-	}
-}
-
-type socketInput struct {
-	Unix  string `json:"unix,omitempty" yaml:"unix,omitempty"`
-	Npipe string `json:"npipe,omitempty" yaml:"npipe,omitempty"`
-}
-
-func (i socketInput) Compile(st *State) (*compiler.Value, error) {
-	service := st.Context.Services.New(i.Unix, i.Npipe)
-	return service.MarshalCUE(), nil
-}
diff --git a/state/project.go b/state/project.go
deleted file mode 100644
index bc530d9e..00000000
--- a/state/project.go
+++ /dev/null
@@ -1,354 +0,0 @@
-package state
-
-import (
-	"bytes"
-	"context"
-	"errors"
-	"fmt"
-	"os"
-	"path"
-	"path/filepath"
-	"strings"
-
-	"github.com/rs/zerolog/log"
-	"go.dagger.io/dagger/keychain"
-	"go.dagger.io/dagger/pkg"
-	"go.dagger.io/dagger/plancontext"
-	"gopkg.in/yaml.v3"
-)
-
-var (
-	ErrNotInit     = errors.New("not initialized")
-	ErrAlreadyInit = errors.New("already initialized")
-	ErrNotExist    = errors.New("environment doesn't exist")
-	ErrExist       = errors.New("environment already exists")
-)
-
-const (
-	daggerDir    = ".dagger"
-	envDir       = "env"
-	stateDir     = "state"
-	planDir      = "plan"
-	manifestFile = "values.yaml"
-	computedFile = "computed.json"
-)
-
-type Project struct {
-	Path string
-}
-
-func Init(ctx context.Context, dir string) (*Project, error) {
-	root, err := filepath.Abs(dir)
-	if err != nil {
-		return nil, err
-	}
-
-	daggerRoot := path.Join(root, daggerDir)
-	if err := os.Mkdir(daggerRoot, 0755); err != nil {
-		if errors.Is(err, os.ErrExist) {
-			return nil, ErrAlreadyInit
-		}
-		return nil, err
-	}
-
-	if err := os.Mkdir(path.Join(daggerRoot, envDir), 0755); err != nil {
-		return nil, err
-	}
-
-	if err := pkg.Vendor(ctx, root); err != nil {
-		return nil, err
-	}
-
-	return &Project{
-		Path: root,
-	}, nil
-}
-
-func Open(ctx context.Context, dir string) (*Project, error) {
-	_, err := os.Stat(path.Join(dir, daggerDir))
-	if err != nil {
-		if errors.Is(err, os.ErrNotExist) {
-			return nil, ErrNotInit
-		}
-		return nil, err
-	}
-
-	root, err := filepath.Abs(dir)
-	if err != nil {
-		return nil, err
-	}
-
-	return &Project{
-		Path: root,
-	}, nil
-}
-
-func Current(ctx context.Context) (*Project, error) {
-	current, err := os.Getwd()
-	if err != nil {
-		return nil, err
-	}
-
-	// Walk every parent directory to find .dagger
-	for {
-		_, err := os.Stat(path.Join(current, daggerDir, envDir))
-		if err == nil {
-			return Open(ctx, current)
-		}
-		parent := filepath.Dir(current)
-		if parent == current {
-			break
-		}
-		current = parent
-	}
-
-	return nil, ErrNotInit
-}
-
-func (w *Project) envPath(name string) string {
-	return path.Join(w.Path, daggerDir, envDir, name)
-}
-
-func (w *Project) List(ctx context.Context) ([]*State, error) {
-	var (
-		environments = []*State{}
-		err          error
-	)
-
-	files, err := os.ReadDir(path.Join(w.Path, daggerDir, envDir))
-	if err != nil {
-		return nil, err
-	}
-	for _, f := range files {
-		if !f.IsDir() {
-			continue
-		}
-		st, err := w.Get(ctx, f.Name())
-		if err != nil {
-			// If the environment doesn't exist (e.g. no values.yaml, skip silently)
-			if !errors.Is(err, ErrNotExist) {
-				log.
-					Ctx(ctx).
-					Err(err).
-					Str("name", f.Name()).
-					Msg("failed to load environment")
-			}
-			continue
-		}
-		environments = append(environments, st)
-	}
-
-	return environments, nil
-}
-
-func (w *Project) Get(ctx context.Context, name string) (*State, error) {
-	envPath, err := filepath.Abs(w.envPath(name))
-	if err != nil {
-		return nil, err
-	}
-	if _, err := os.Stat(envPath); err != nil {
-		if errors.Is(err, os.ErrNotExist) {
-			return nil, ErrNotExist
-		}
-		return nil, err
-	}
-
-	manifest, err := os.ReadFile(path.Join(envPath, manifestFile))
-	if err != nil {
-		if errors.Is(err, os.ErrNotExist) {
-			return nil, ErrNotExist
-		}
-		return nil, err
-	}
-	manifest, err = keychain.Decrypt(ctx, manifest)
-	if err != nil {
-		return nil, fmt.Errorf("unable to decrypt state: %w", err)
-	}
-
-	var st State
-	if err := yaml.Unmarshal(manifest, &st); err != nil {
-		return nil, err
-	}
-	st.Context = plancontext.New()
-	if platform := st.Platform; platform != "" {
-		if err := st.Context.Platform.Set(platform); err != nil {
-			return nil, err
-		}
-	}
-	st.Path = envPath
-	// FIXME: Backward compat: Support for old-style `.dagger/env/<name>/plan`
-	if st.Plan.Module == "" {
-		planPath := path.Join(envPath, planDir)
-		if _, err := os.Stat(planPath); err == nil {
-			planRelPath, err := filepath.Rel(w.Path, planPath)
-			if err != nil {
-				return nil, err
-			}
-			st.Plan.Module = planRelPath
-		}
-	}
-	st.Project = w.Path
-
-	computed, err := os.ReadFile(path.Join(envPath, stateDir, computedFile))
-	if err == nil {
-		st.Computed = string(computed)
-	}
-
-	return &st, nil
-}
-
-func (w *Project) Save(ctx context.Context, st *State) error {
-	data, err := yaml.Marshal(st)
-	if err != nil {
-		return err
-	}
-
-	manifestPath := path.Join(st.Path, manifestFile)
-
-	currentEncrypted, err := os.ReadFile(manifestPath)
-	if err != nil {
-		return err
-	}
-	currentPlain, err := keychain.Decrypt(ctx, currentEncrypted)
-	if err != nil {
-		return fmt.Errorf("unable to decrypt state: %w", err)
-	}
-
-	// Only update the encrypted file if there were changes
-	if !bytes.Equal(data, currentPlain) {
-		encrypted, err := keychain.Reencrypt(ctx, manifestPath, data)
-		if err != nil {
-			return err
-		}
-		if err := os.WriteFile(manifestPath, encrypted, 0600); err != nil {
-			return err
-		}
-	}
-
-	if st.Computed != "" {
-		state := path.Join(st.Path, stateDir)
-		if err := os.MkdirAll(state, 0755); err != nil {
-			return err
-		}
-		err := os.WriteFile(
-			path.Join(state, "computed.json"),
-			[]byte(st.Computed),
-			0600)
-		if err != nil {
-			return err
-		}
-	}
-
-	return nil
-}
-
-func (w *Project) Create(ctx context.Context, name string, plan Plan, platform string) (*State, error) {
-	if _, err := w.Get(ctx, name); err == nil {
-		return nil, ErrExist
-	}
-
-	pkg, err := w.cleanPackageName(ctx, plan.Package)
-	if err != nil {
-		return nil, err
-	}
-
-	envPath, err := filepath.Abs(w.envPath(name))
-	if err != nil {
-		return nil, err
-	}
-
-	// Environment directory
-	if err := os.MkdirAll(envPath, 0755); err != nil {
-		return nil, err
-	}
-
-	manifestPath := path.Join(envPath, manifestFile)
-
-	st := &State{
-		Context: plancontext.New(),
-
-		Path:    envPath,
-		Project: w.Path,
-		Plan: Plan{
-			Package: pkg,
-		},
-		Name:     name,
-		Platform: platform,
-	}
-
-	data, err := yaml.Marshal(st)
-	if err != nil {
-		return nil, err
-	}
-	key, err := keychain.Default(ctx)
-	if err != nil {
-		return nil, err
-	}
-	encrypted, err := keychain.Encrypt(ctx, manifestPath, data, key)
-	if err != nil {
-		return nil, err
-	}
-	if err := os.WriteFile(manifestPath, encrypted, 0600); err != nil {
-		return nil, err
-	}
-
-	err = os.WriteFile(
-		path.Join(envPath, ".gitignore"),
-		[]byte("# dagger state\nstate/**\n"),
-		0600,
-	)
-	if err != nil {
-		return nil, err
-	}
-
-	return st, nil
-}
-
-func (w *Project) cleanPackageName(ctx context.Context, pkg string) (string, error) {
-	lg := log.
-		Ctx(ctx).
-		With().
-		Str("package", pkg).
-		Logger()
-
-	if pkg == "" {
-		return pkg, nil
-	}
-
-	// If the package is not a path, then it must be a domain (e.g. foo.bar/mypackage)
-	if _, err := os.Stat(pkg); err != nil {
-		if !errors.Is(err, os.ErrNotExist) {
-			return "", err
-		}
-
-		// Make sure the domain is in the correct form
-		if !strings.Contains(pkg, ".") || !strings.Contains(pkg, "/") {
-			return "", fmt.Errorf("invalid package %q", pkg)
-		}
-
-		return pkg, nil
-	}
-
-	p, err := filepath.Abs(pkg)
-	if err != nil {
-		lg.Error().Err(err).Msg("unable to resolve path")
-		return "", err
-	}
-
-	if !strings.HasPrefix(p, w.Path) {
-		lg.Fatal().Err(err).Msg("package is outside the project")
-		return "", err
-	}
-
-	p, err = filepath.Rel(w.Path, p)
-	if err != nil {
-		lg.Fatal().Err(err).Msg("unable to resolve path")
-		return "", err
-	}
-
-	if !strings.HasPrefix(p, ".") {
-		p = "./" + p
-	}
-
-	return p, nil
-}
diff --git a/state/project_test.go b/state/project_test.go
deleted file mode 100644
index 9d3d3223..00000000
--- a/state/project_test.go
+++ /dev/null
@@ -1,120 +0,0 @@
-package state
-
-import (
-	"context"
-	"os"
-	"path"
-	"strings"
-	"testing"
-
-	"github.com/stretchr/testify/require"
-	"go.dagger.io/dagger/keychain"
-	"gopkg.in/yaml.v3"
-)
-
-func TestProject(t *testing.T) {
-	ctx := context.TODO()
-
-	keychain.EnsureDefaultKey(ctx)
-
-	root, err := os.MkdirTemp(os.TempDir(), "dagger-*")
-	require.NoError(t, err)
-
-	// Open should fail since the directory is not initialized
-	_, err = Open(ctx, root)
-	require.ErrorIs(t, ErrNotInit, err)
-
-	// Init
-	project, err := Init(ctx, root)
-	require.NoError(t, err)
-	require.Equal(t, root, project.Path)
-
-	// Create
-	st, err := project.Create(ctx, "test", Plan{
-		Module: ".",
-	}, "linux/amd64")
-	require.NoError(t, err)
-	require.Equal(t, "test", st.Name)
-	require.Equal(t, "linux/amd64", st.Platform)
-
-	// Open
-	project, err = Open(ctx, root)
-	require.NoError(t, err)
-	require.Equal(t, root, project.Path)
-
-	// List
-	envs, err := project.List(ctx)
-	require.NoError(t, err)
-	require.Len(t, envs, 1)
-	require.Equal(t, "test", envs[0].Name)
-
-	// Get
-	env, err := project.Get(ctx, "test")
-	require.NoError(t, err)
-	require.Equal(t, "test", env.Name)
-	require.Equal(t, "linux/amd64", env.Platform)
-
-	// Save
-	require.NoError(t, env.SetInput("foo", TextInput("bar")))
-	require.NoError(t, project.Save(ctx, env))
-	project, err = Open(ctx, root)
-	require.NoError(t, err)
-	env, err = project.Get(ctx, "test")
-	require.NoError(t, err)
-	require.Contains(t, env.Inputs, "foo")
-}
-
-func TestEncryption(t *testing.T) {
-	ctx := context.TODO()
-
-	keychain.EnsureDefaultKey(ctx)
-
-	readManifest := func(st *State) *State {
-		data, err := os.ReadFile(path.Join(st.Path, manifestFile))
-		require.NoError(t, err)
-		m := State{}
-		require.NoError(t, yaml.Unmarshal(data, &m))
-		return &m
-	}
-
-	root, err := os.MkdirTemp(os.TempDir(), "dagger-*")
-	require.NoError(t, err)
-	project, err := Init(ctx, root)
-	require.NoError(t, err)
-
-	_, err = project.Create(ctx, "test", Plan{
-		Module: ".",
-	}, "linux/amd64")
-	require.NoError(t, err)
-
-	// Set a plaintext input, make sure it is not encrypted
-	st, err := project.Get(ctx, "test")
-	require.NoError(t, err)
-	require.NoError(t, st.SetInput("plain", TextInput("plain")))
-	require.NoError(t, project.Save(ctx, st))
-	o := readManifest(st)
-	require.Contains(t, o.Inputs, "plain")
-	require.Equal(t, "plain", string(*o.Inputs["plain"].Text))
-
-	// Set a secret input, make sure it's encrypted
-	st, err = project.Get(ctx, "test")
-	require.NoError(t, err)
-	require.NoError(t, st.SetInput("secret", SecretInput("secret")))
-	require.NoError(t, project.Save(ctx, st))
-	o = readManifest(st)
-	require.Contains(t, o.Inputs, "secret")
-	secretValue := string(*o.Inputs["secret"].Secret)
-	require.NotEqual(t, "secret", secretValue)
-	require.True(t, strings.HasPrefix(secretValue, "ENC["))
-
-	// Change another input, make sure our secret didn't change
-	st, err = project.Get(ctx, "test")
-	require.NoError(t, err)
-	require.NoError(t, st.SetInput("plain", TextInput("different")))
-	require.NoError(t, project.Save(ctx, st))
-	o = readManifest(st)
-	require.Contains(t, o.Inputs, "plain")
-	require.Equal(t, "different", string(*o.Inputs["plain"].Text))
-	require.Contains(t, o.Inputs, "secret")
-	require.Equal(t, secretValue, string(*o.Inputs["secret"].Secret))
-}
diff --git a/state/state.go b/state/state.go
deleted file mode 100644
index df68d2bd..00000000
--- a/state/state.go
+++ /dev/null
@@ -1,112 +0,0 @@
-package state
-
-import (
-	"context"
-	"path"
-
-	"cuelang.org/go/cue"
-	"go.dagger.io/dagger/compiler"
-	"go.dagger.io/dagger/pkg"
-	"go.dagger.io/dagger/plancontext"
-)
-
-// Contents of an environment serialized to a file
-type State struct {
-	// Plan Context.
-	// FIXME: this is used as a bridge and is temporary.
-	Context *plancontext.Context `yaml:"-"`
-
-	// State path
-	Path string `yaml:"-"`
-
-	// Project path
-	Project string `yaml:"-"`
-
-	// Plan
-	Plan Plan `yaml:"plan,omitempty"`
-
-	// Human-friendly environment name.
-	// A environment may have more than one name.
-	// FIXME: store multiple names?
-	Name string `yaml:"name,omitempty"`
-
-	// Platform execution
-	Platform string `yaml:"platform,omitempty"`
-
-	// User Inputs
-	Inputs map[string]Input `yaml:"inputs,omitempty"`
-
-	// Computed values
-	Computed string `yaml:"-"`
-}
-
-// Cue module containing the environment plan
-func (s *State) CompilePlan(ctx context.Context) (*compiler.Value, error) {
-	w := s.Project
-	// FIXME: backward compatibility
-	if planModule := s.Plan.Module; planModule != "" {
-		w = path.Join(w, planModule)
-	}
-
-	// FIXME: universe vendoring
-	// This is already done on `dagger init` and shouldn't be done here too.
-	// However:
-	// 1) As of right now, there's no way to update universe through the
-	// CLI, so we are lazily updating on `dagger up` using the embedded `universe`
-	// 2) For backward compatibility: if the project was `dagger
-	// init`-ed before we added support for vendoring universe, it might not
-	// contain a `cue.mod`.
-	if err := pkg.Vendor(ctx, w); err != nil {
-		return nil, err
-	}
-
-	var args []string
-	if pkg := s.Plan.Package; pkg != "" {
-		args = append(args, pkg)
-	}
-
-	return compiler.Build(w, nil, args...)
-}
-
-func (s *State) CompileInputs() (*compiler.Value, error) {
-	v := compiler.NewValue()
-
-	// Prepare inputs
-	for key, input := range s.Inputs {
-		i, err := input.Compile(s)
-		if err != nil {
-			return nil, err
-		}
-		if key == "" {
-			err = v.FillPath(cue.MakePath(), i)
-		} else {
-			err = v.FillPath(cue.ParsePath(key), i)
-		}
-		if err != nil {
-			return nil, err
-		}
-	}
-
-	return v, nil
-}
-
-type Plan struct {
-	Module  string `yaml:"module,omitempty"`
-	Package string `yaml:"package,omitempty"`
-}
-
-func (s *State) SetInput(key string, value Input) error {
-	if s.Inputs == nil {
-		s.Inputs = make(map[string]Input)
-	}
-	s.Inputs[key] = value
-	return nil
-}
-
-// Remove all inputs at the given key, including sub-keys.
-// For example RemoveInputs("foo.bar") will remove all inputs
-//   at foo.bar, foo.bar.baz, etc.
-func (s *State) RemoveInputs(key string) error {
-	delete(s.Inputs, key)
-	return nil
-}
diff --git a/state/state_test.go b/state/state_test.go
deleted file mode 100644
index 7bf2df5b..00000000
--- a/state/state_test.go
+++ /dev/null
@@ -1 +0,0 @@
-package state