diff --git a/src/Microsoft.Framework.DesignTimeHost/ApplicationContext.cs b/src/Microsoft.Framework.DesignTimeHost/ApplicationContext.cs
index d56d20770..f9488e54c 100644
--- a/src/Microsoft.Framework.DesignTimeHost/ApplicationContext.cs
+++ b/src/Microsoft.Framework.DesignTimeHost/ApplicationContext.cs
@@ -25,6 +25,8 @@ public class ApplicationContext
     {
         private readonly IServiceProvider _hostServices;
         private readonly ICache _cache;
+        private readonly ICacheContextAccessor _cacheContextAccessor;
+
         private readonly Queue<Message> _inbox = new Queue<Message>();
         private readonly object _processingLock = new object();
 
@@ -42,10 +44,11 @@ public class ApplicationContext
         private readonly List<CompiledAssemblyState> _waitingForCompiledAssemblies = new List<CompiledAssemblyState>();
         private readonly List<ConnectionContext> _waitingForDiagnostics = new List<ConnectionContext>();
 
-        public ApplicationContext(IServiceProvider services, ICache cache, int id)
+        public ApplicationContext(IServiceProvider services, ICache cache, ICacheContextAccessor cacheContextAccessor, int id)
         {
             _hostServices = services;
             _cache = cache;
+            _cacheContextAccessor = cacheContextAccessor;
             Id = id;
         }
 
@@ -501,7 +504,8 @@ private State Initialize(string appPath, FrameworkName targetFramework, string c
                                                                     packagesDirectory: null,
                                                                     configuration: configuration,
                                                                     targetFramework: targetFramework,
-                                                                    cache: _cache);
+                                                                    cache: _cache,
+                                                                    cacheContextAccessor: _cacheContextAccessor);
 
             Project project = applicationHostContext.Project;
 
diff --git a/src/Microsoft.Framework.DesignTimeHost/ConnectionContext.cs b/src/Microsoft.Framework.DesignTimeHost/ConnectionContext.cs
index 8f017cf28..2ebd3c380 100644
--- a/src/Microsoft.Framework.DesignTimeHost/ConnectionContext.cs
+++ b/src/Microsoft.Framework.DesignTimeHost/ConnectionContext.cs
@@ -15,18 +15,21 @@ public class ConnectionContext
         private readonly IDictionary<int, ApplicationContext> _contexts;
         private readonly IServiceProvider _services;
         private readonly ICache _cache;
+        private readonly ICacheContextAccessor _cacheContextAccessor;
         private ProcessingQueue _queue;
         private string _hostId;
 
         public ConnectionContext(IDictionary<int, ApplicationContext> contexts,
                                  IServiceProvider services,
                                  ICache cache,
+                                 ICacheContextAccessor cacheContextAccessor,
                                  ProcessingQueue queue,
                                  string hostId)
         {
             _contexts = contexts;
             _services = services;
             _cache = cache;
+            _cacheContextAccessor = cacheContextAccessor;
             _queue = queue;
             _hostId = hostId;
         }
@@ -53,7 +56,11 @@ public void OnReceive(Message message)
             {
                 Trace.TraceInformation("[ConnectionContext]: Creating new application context for {0}", message.ContextId);
 
-                applicationContext = new ApplicationContext(_services, _cache, message.ContextId);
+                applicationContext = new ApplicationContext(_services,
+                                                            _cache,
+                                                            _cacheContextAccessor,
+                                                            message.ContextId);
+
                 _contexts.Add(message.ContextId, applicationContext);
             }
 
diff --git a/src/Microsoft.Framework.DesignTimeHost/Program.cs b/src/Microsoft.Framework.DesignTimeHost/Program.cs
index 7c311d637..c5b01f07b 100644
--- a/src/Microsoft.Framework.DesignTimeHost/Program.cs
+++ b/src/Microsoft.Framework.DesignTimeHost/Program.cs
@@ -47,7 +47,8 @@ public void Main(string[] args)
 
         private async Task OpenChannel(int port, string hostId)
         {
-            var cache = new Cache();
+            var cacheContextAccessor = new CacheContextAccessor();
+            var cache = new Cache(cacheContextAccessor);
             var contexts = new Dictionary<int, ApplicationContext>();
 
             // This fixes the mono incompatibility but ties it to ipv4 connections
@@ -65,7 +66,7 @@ private async Task OpenChannel(int port, string hostId)
 
                 var stream = new NetworkStream(acceptSocket);
                 var queue = new ProcessingQueue(stream);
-                var connection = new ConnectionContext(contexts, _services, cache, queue, hostId);
+                var connection = new ConnectionContext(contexts, _services, cache, cacheContextAccessor, queue, hostId);
 
                 queue.OnReceive += message =>
                 {
diff --git a/src/Microsoft.Framework.PackageManager/Building/BuildContext.cs b/src/Microsoft.Framework.PackageManager/Building/BuildContext.cs
index 7a96a526f..7febfc553 100644
--- a/src/Microsoft.Framework.PackageManager/Building/BuildContext.cs
+++ b/src/Microsoft.Framework.PackageManager/Building/BuildContext.cs
@@ -17,7 +17,7 @@ public class BuildContext
         private readonly string _outputPath;
         private readonly ApplicationHostContext _applicationHostContext;
 
-        public BuildContext(ICache cache, Project project, FrameworkName targetFramework, string configuration, string outputPath)
+        public BuildContext(ICache cache, ICacheContextAccessor cacheContextAccessor, Project project, FrameworkName targetFramework, string configuration, string outputPath)
         {
             _project = project;
             _targetFramework = targetFramework;
@@ -30,7 +30,8 @@ public BuildContext(ICache cache, Project project, FrameworkName targetFramework
                 packagesDirectory: null,
                 configuration: configuration,
                 targetFramework: targetFramework,
-                cache: cache);
+                cache: cache,
+                cacheContextAccessor: cacheContextAccessor);
         }
 
         public void Initialize()
diff --git a/src/Microsoft.Framework.PackageManager/Building/BuildManager.cs b/src/Microsoft.Framework.PackageManager/Building/BuildManager.cs
index 943309b0a..2f39fc4f1 100644
--- a/src/Microsoft.Framework.PackageManager/Building/BuildManager.cs
+++ b/src/Microsoft.Framework.PackageManager/Building/BuildManager.cs
@@ -94,7 +94,8 @@ public bool Build()
 
             host.Initialize();
 
-            var cache = new Cache();
+            var cacheContextAccessor = new CacheContextAccessor();
+            var cache = new Cache(cacheContextAccessor);
 
             using (host.AddLoaders(loaderContainer))
             {
@@ -118,7 +119,12 @@ public bool Build()
                         var errors = new List<string>();
                         var warnings = new List<string>();
 
-                        var context = new BuildContext(cache, project, targetFramework, configuration, baseOutputPath);
+                        var context = new BuildContext(cache,
+                                                       cacheContextAccessor,
+                                                       project,
+                                                       targetFramework,
+                                                       configuration,
+                                                       baseOutputPath);
                         context.Initialize();
 
                         if (_buildOptions.CheckDiagnostics)
diff --git a/src/Microsoft.Framework.PackageManager/Packing/PackManager.cs b/src/Microsoft.Framework.PackageManager/Packing/PackManager.cs
index d4f31644c..6250f2af3 100644
--- a/src/Microsoft.Framework.PackageManager/Packing/PackManager.cs
+++ b/src/Microsoft.Framework.PackageManager/Packing/PackManager.cs
@@ -41,13 +41,17 @@ public class DependencyContext
         {
             public DependencyContext(string projectDirectory, string configuration, FrameworkName targetFramework)
             {
+                var cacheContextAccessor = new CacheContextAccessor();
+                var cache = new Cache(cacheContextAccessor);
+
                 var applicationHostContext = new ApplicationHostContext(
                     serviceProvider: null,
                     projectDirectory: projectDirectory,
                     packagesDirectory: null,
                     configuration: configuration,
                     targetFramework: targetFramework,
-                    cache: new Cache());
+                    cache: cache,
+                    cacheContextAccessor: cacheContextAccessor);
 
                 ProjectResolver = applicationHostContext.ProjectResolver;
                 NuGetDependencyResolver = applicationHostContext.NuGetDependencyProvider;
diff --git a/src/Microsoft.Framework.Runtime.Roslyn/RoslynCompiler.cs b/src/Microsoft.Framework.Runtime.Roslyn/RoslynCompiler.cs
index 698bc1472..92f721425 100644
--- a/src/Microsoft.Framework.Runtime.Roslyn/RoslynCompiler.cs
+++ b/src/Microsoft.Framework.Runtime.Roslyn/RoslynCompiler.cs
@@ -17,11 +17,15 @@ namespace Microsoft.Framework.Runtime.Roslyn
     public class RoslynCompiler
     {
         private readonly ICache _cache;
+        private readonly ICacheContextAccessor _cacheContextAccessor;
         private readonly IFileWatcher _watcher;
 
-        public RoslynCompiler(ICache cache, IFileWatcher watcher)
+        public RoslynCompiler(ICache cache, 
+                              ICacheContextAccessor cacheContextAccessor, 
+                              IFileWatcher watcher)
         {
             _cache = cache;
+            _cacheContextAccessor = cacheContextAccessor;
             _watcher = watcher;
         }
 
@@ -45,13 +49,6 @@ public CompilationContext CompileProject(
             Trace.TraceInformation("[{0}]: Compiling '{1}'", GetType().Name, name);
             var sw = Stopwatch.StartNew();
 
-            _watcher.WatchDirectory(path, ".cs");
-
-            foreach (var directory in Directory.EnumerateDirectories(path, "*.*", SearchOption.AllDirectories))
-            {
-                _watcher.WatchDirectory(directory, ".cs");
-            }
-
             var compilationSettings = project.GetCompilationSettings(targetFramework, configuration);
 
             IList<SyntaxTree> trees = GetSyntaxTrees(project, compilationSettings, incomingSourceReferences);
@@ -128,8 +125,13 @@ private IList<SyntaxTree> GetSyntaxTrees(Project project,
             var parseOptions = new CSharpParseOptions(languageVersion: compilationSettings.LanguageVersion,
                                                       preprocessorSymbols: compilationSettings.Defines.AsImmutable());
 
+            var dirs = new HashSet<string>();
+            dirs.Add(project.ProjectDirectory);
+
             foreach (var sourcePath in project.SourceFiles)
             {
+                dirs.Add(Path.GetDirectoryName(sourcePath));
+
                 _watcher.WatchFile(sourcePath);
 
                 var syntaxTree = CreateSyntaxTree(sourcePath, parseOptions);
@@ -141,6 +143,8 @@ private IList<SyntaxTree> GetSyntaxTrees(Project project,
             {
                 var sourcePath = sourceFileReference.Path;
 
+                dirs.Add(Path.GetDirectoryName(sourcePath));
+
                 _watcher.WatchFile(sourcePath);
 
                 var syntaxTree = CreateSyntaxTree(sourcePath, parseOptions);
@@ -148,6 +152,15 @@ private IList<SyntaxTree> GetSyntaxTrees(Project project,
                 trees.Add(syntaxTree);
             }
 
+            // Watch all directories
+            var ctx = _cacheContextAccessor.Current;
+
+            foreach (var d in dirs)
+            {
+                ctx.Monitor(new FileWriteTimeCacheDependency(d));
+                _watcher.WatchDirectory(d, ".cs");
+            }
+
             return trees;
         }
 
diff --git a/src/Microsoft.Framework.Runtime.Roslyn/RoslynProjectReferenceProvider.cs b/src/Microsoft.Framework.Runtime.Roslyn/RoslynProjectReferenceProvider.cs
index e879ae25a..5899f833c 100644
--- a/src/Microsoft.Framework.Runtime.Roslyn/RoslynProjectReferenceProvider.cs
+++ b/src/Microsoft.Framework.Runtime.Roslyn/RoslynProjectReferenceProvider.cs
@@ -8,9 +8,9 @@ public class RoslynProjectReferenceProvider : IProjectReferenceProvider
     {
         private readonly RoslynCompiler _compiler;
 
-        public RoslynProjectReferenceProvider(ICache cache, IFileWatcher watcher)
+        public RoslynProjectReferenceProvider(ICache cache, ICacheContextAccessor cacheContextAccessor, IFileWatcher watcher)
         {
-            _compiler = new RoslynCompiler(cache, watcher);
+            _compiler = new RoslynCompiler(cache, cacheContextAccessor, watcher);
         }
 
         public IMetadataProjectReference GetProjectReference(
diff --git a/src/Microsoft.Framework.Runtime/ApplicationHostContext.cs b/src/Microsoft.Framework.Runtime/ApplicationHostContext.cs
index 799bd8c21..b60d1eb4f 100644
--- a/src/Microsoft.Framework.Runtime/ApplicationHostContext.cs
+++ b/src/Microsoft.Framework.Runtime/ApplicationHostContext.cs
@@ -17,7 +17,8 @@ public ApplicationHostContext(IServiceProvider serviceProvider,
                                       string packagesDirectory,
                                       string configuration,
                                       FrameworkName targetFramework,
-                                      ICache cache)
+                                      ICache cache,
+                                      ICacheContextAccessor cacheContextAccessor)
         {
             ProjectDirectory = projectDirectory;
             RootDirectory = Runtime.ProjectResolver.ResolveRootDirectory(ProjectDirectory);
@@ -59,6 +60,7 @@ public ApplicationHostContext(IServiceProvider serviceProvider,
             _serviceProvider.Add(typeof(ProjectReferenceDependencyProvider), ProjectDepencyProvider);
             _serviceProvider.Add(typeof(ILibraryManager), new LibraryManager(targetFramework, configuration, DependencyWalker, compositeDependencyExporter, cache));
             _serviceProvider.Add(typeof(ICache), cache);
+            _serviceProvider.Add(typeof(ICacheContextAccessor), cacheContextAccessor);
         }
 
         public void AddService(Type type, object instance)
diff --git a/src/Microsoft.Framework.Runtime/Caching/Cache.cs b/src/Microsoft.Framework.Runtime/Caching/Cache.cs
index 341978953..8d806dd4e 100644
--- a/src/Microsoft.Framework.Runtime/Caching/Cache.cs
+++ b/src/Microsoft.Framework.Runtime/Caching/Cache.cs
@@ -10,10 +10,6 @@ public class Cache : ICache
         private readonly ConcurrentDictionary<object, Lazy<CacheEntry>> _entries = new ConcurrentDictionary<object, Lazy<CacheEntry>>();
         private readonly ICacheContextAccessor _accessor;
 
-        public Cache() : this(new CacheContextAccessor())
-        {
-        }
-
         public Cache(ICacheContextAccessor accessor)
         {
             _accessor = accessor;
diff --git a/src/Microsoft.Framework.Runtime/DefaultHost.cs b/src/Microsoft.Framework.Runtime/DefaultHost.cs
index dafe9459e..9045738c3 100644
--- a/src/Microsoft.Framework.Runtime/DefaultHost.cs
+++ b/src/Microsoft.Framework.Runtime/DefaultHost.cs
@@ -126,13 +126,17 @@ public void Dispose()
 
         private void Initialize(DefaultHostOptions options, IServiceProvider hostServices)
         {
+            var cacheContextAccessor = new CacheContextAccessor();
+            var cache = new Cache(cacheContextAccessor);
+
             _applicationHostContext = new ApplicationHostContext(
                 hostServices,
                 _projectDirectory,
                 options.PackageDirectory,
                 options.Configuration,
                 _targetFramework,
-                new Cache());
+                cache,
+                cacheContextAccessor);
 
             Trace.TraceInformation("[{0}]: Project path: {1}", GetType().Name, _projectDirectory);
             Trace.TraceInformation("[{0}]: Project root: {1}", GetType().Name, _applicationHostContext.RootDirectory);