diff --git a/docs/writing-helmfile.md b/docs/writing-helmfile.md
index e4eab93d..2e7fa56a 100644
--- a/docs/writing-helmfile.md
+++ b/docs/writing-helmfile.md
@@ -91,7 +91,9 @@ releases:
 
 See the [issue 428](https://github.com/roboll/helmfile/issues/428) for more context on how this is supposed to work.
 
-## Layering
+## Layering State Files
+
+> See **Layering State Template Files** if you're layering templates.
 
 You may occasionally end up with many helmfiles that shares common parts like which repositories to use, and whichi release to be bundled by default.
 
@@ -164,3 +166,117 @@ Great!
 Now, repeat the above steps for each your `helmfile.yaml`, so that all your helmfiles becomes DRY.
 
 Please also see [the discussion in the issue 388](https://github.com/roboll/helmfile/issues/388#issuecomment-491710348) for more advanced layering examples.
+
+## Layering State Template Files
+
+Do you need to make your state file even more DRY?
+
+Turned out layering state files wasn't enough for you?
+
+Helmfile supports an advanced feature that allows you to compose state "template" files to generate the final state to be processed.
+
+In the following example `helmfile.yaml.gotmpl`, each `---` separated part of the file is a go template.
+
+`helmfile.yaml.gotmpl`:
+
+```yaml
+# Part 1: Reused Enviroment Values
+bases:
+  - myenv.yaml
+---
+# Part 2: Reused Defaults
+bases:
+  - mydefaults.yaml
+---
+# Part 3: Dynamic Releases
+releases:
+  - name: test1
+    chart: mychart-{{ .Environment.Values.myname }}
+    values:
+      replicaCount: 1
+      image:
+        repository: "nginx"
+        tag: "latest"
+```
+
+Suppose the `myenv.yaml` and `test.env.yaml` loaded in the first part looks like:
+
+`myenv.yaml`:
+
+```yaml
+environments:
+  test:
+    values:
+      - test.env.yaml
+```
+
+`test.env.yaml`:
+
+```yaml
+kubeContext: test
+wait: false
+cvOnly: false
+myname: "dog"
+```
+
+Where the gotmpl file loaded in the second part looks like:
+
+`mydefaults.yaml.gotmpl`:
+
+```yaml
+helmDefaults:
+  tillerNamespace: kube-system
+  kubeContext: {{ .Environment.Values.kubeContext }}
+  verify: false
+  {{ if .Environment.Values.wait }}
+  wait: true
+  {{ else }}
+  wait: false
+  {{ end }}
+  timeout: 600
+  recreatePods: false
+  force: true
+```
+
+Each go template is rendered in the context where `.Environment.Values` is inherited from the previous part. 
+
+So in `mydefaults.yaml.gotmpl`, both `.Environment.Values.kubeContext` and `.Environment.Values.wait` are valid as they do exist in the environment values inherited from the previous part(=the first part) of your `helmfile.yaml.gotmpl`, and therefore the template is rendered to:
+
+```yaml
+helmDefaults:
+  tillerNamespace: kube-system
+  kubeContext: test
+  verify: false
+  wait: false
+  timeout: 600
+  recreatePods: false
+  force: true
+```
+
+Similarly, the third part of the top-level `helmfile.yaml.gotmpl`, `.Environment.Values.myname` is valid as it is included in the environment values inherited from the previous parts:
+
+```yaml
+# Part 3: Dynamic Releases
+releases:
+  - name: test1
+    chart: mychart-{{ .Environment.Values.myname }}
+    values:
+      replicaCount: 1
+      image:
+        repository: "nginx"
+        tag: "latest"
+````
+
+hence rendered to:
+
+```yaml
+# Part 3: Dynamic Releases
+releases:
+  - name: test1
+    chart: mychart-dog
+    values:
+      replicaCount: 1
+      image:
+        repository: "nginx"
+        tag: "latest"
+```
diff --git a/pkg/app/app_test.go b/pkg/app/app_test.go
index 3f90be0c..97e48bc4 100644
--- a/pkg/app/app_test.go
+++ b/pkg/app/app_test.go
@@ -865,6 +865,65 @@ helmDefaults:
 	}
 }
 
+func TestLoadDesiredStateFromYaml_EnvvalsInheritanceToBaseTemplate(t *testing.T) {
+	yamlFile := "/path/to/yaml/file"
+	yamlContent := `bases:
+- ../base.yaml
+---
+bases:
+# "envvals inheritance"
+# base.gotmpl should be able to reference environment values defined in the base.yaml and default/1.yaml
+- ../base.gotmpl
+---
+releases:
+- name: myrelease0
+  chart: mychart0
+`
+	testFs := state.NewTestFs(map[string]string{
+		yamlFile: yamlContent,
+		"/path/to/base.yaml": `environments:
+  default:
+    values:
+    - environments/default/1.yaml
+`,
+		"/path/to/base.gotmpl": `helmDefaults:
+  kubeContext: {{ .Environment.Values.foo }}
+  tillerNamespace: {{ .Environment.Values.tillerNs }}
+`,
+		"/path/to/yaml/environments/default/1.yaml": `tillerNs: TILLER_NS
+foo: FOO
+`,
+		"/path/to/yaml/templates.yaml": `templates:
+  default: &default
+    missingFileHandler: Warn
+    values: ["` + "{{`" + `{{.Release.Name}}` + "`}}" + `/values.yaml"]
+`,
+	})
+	app := &App{
+		readFile: testFs.ReadFile,
+		glob:     testFs.Glob,
+		abs:      testFs.Abs,
+		Env:      "default",
+		Logger:   helmexec.NewLogger(os.Stderr, "debug"),
+	}
+	st, err := app.loadDesiredStateFromYaml(yamlFile)
+	if err != nil {
+		t.Errorf("unexpected error: %v", err)
+	}
+
+	if st.HelmDefaults.TillerNamespace != "TILLER_NS" {
+		t.Errorf("unexpected helmDefaults.tillerNamespace: expected=TILLER_NS, got=%s", st.HelmDefaults.TillerNamespace)
+	}
+
+	if st.Releases[0].Name != "myrelease0" {
+		t.Errorf("unexpected releases[0].name: expected=myrelease0, got=%s", st.Releases[0].Name)
+	}
+
+	if st.HelmDefaults.KubeContext != "FOO" {
+		t.Errorf("unexpected helmDefaults.kubeContext: expected=FOO, got=%s", st.HelmDefaults.KubeContext)
+	}
+}
+
 func TestLoadDesiredStateFromYaml_MultiPartTemplate_WithNonDefaultEnv(t *testing.T) {
 	yamlFile := "/path/to/yaml/file"
 	yamlContent := `bases:
diff --git a/pkg/app/desired_state_file_loader.go b/pkg/app/desired_state_file_loader.go
index e101aba7..b82310fb 100644
--- a/pkg/app/desired_state_file_loader.go
+++ b/pkg/app/desired_state_file_loader.go
@@ -27,7 +27,7 @@ type desiredStateLoader struct {
 }
 
 func (ld *desiredStateLoader) Load(f string) (*state.HelmState, error) {
-	st, err := ld.loadFile(filepath.Dir(f), filepath.Base(f), true)
+	st, err := ld.loadFile(nil, filepath.Dir(f), filepath.Base(f), true)
 	if err != nil {
 		return nil, err
 	}
@@ -57,7 +57,7 @@ func (ld *desiredStateLoader) Load(f string) (*state.HelmState, error) {
 	return st, nil
 }
 
-func (ld *desiredStateLoader) loadFile(baseDir, file string, evaluateBases bool) (*state.HelmState, error) {
+func (ld *desiredStateLoader) loadFile(inheritedEnv *environment.Environment, baseDir, file string, evaluateBases bool) (*state.HelmState, error) {
 	var f string
 	if filepath.IsAbs(file) {
 		f = file
@@ -76,6 +76,7 @@ func (ld *desiredStateLoader) loadFile(baseDir, file string, evaluateBases bool)
 
 	if !experimentalModeEnabled() || ext == ".gotmpl" {
 		self, err = ld.renderAndLoad(
+			inheritedEnv,
 			baseDir,
 			f,
 			fileBytes,
@@ -87,7 +88,7 @@ func (ld *desiredStateLoader) loadFile(baseDir, file string, evaluateBases bool)
 			baseDir,
 			file,
 			evaluateBases,
-			nil,
+			inheritedEnv,
 		)
 	}
 
@@ -123,11 +124,10 @@ func (a *desiredStateLoader) load(yaml []byte, baseDir, file string, evaluateBas
 	return st, nil
 }
 
-func (ld *desiredStateLoader) renderAndLoad(baseDir, filename string, content []byte, evaluateBases bool) (*state.HelmState, error) {
+func (ld *desiredStateLoader) renderAndLoad(env *environment.Environment, baseDir, filename string, content []byte, evaluateBases bool) (*state.HelmState, error) {
 	parts := bytes.Split(content, []byte("\n---\n"))
 
 	var finalState *state.HelmState
-	var env *environment.Environment
 
 	for i, part := range parts {
 		var yamlBuf *bytes.Buffer
diff --git a/state/create.go b/state/create.go
index d5ef68a7..7fec9f09 100644
--- a/state/create.go
+++ b/state/create.go
@@ -42,7 +42,7 @@ type StateCreator struct {
 
 	Strict bool
 
-	LoadFile func(baseDir, file string, evaluateBases bool) (*HelmState, error)
+	LoadFile func(inheritedEnv *environment.Environment, baseDir, file string, evaluateBases bool) (*HelmState, error)
 }
 
 func NewCreator(logger *zap.SugaredLogger, readFile func(string) ([]byte, error), abs func(string) (string, error), glob func(string) ([]string, error)) *StateCreator {
@@ -143,7 +143,7 @@ func (c *StateCreator) ParseAndLoad(content []byte, baseDir, file string, envNam
 		}
 	}
 
-	state, err = c.loadBases(state, baseDir)
+	state, err = c.loadBases(envValues, state, baseDir)
 	if err != nil {
 		return nil, err
 	}
@@ -151,10 +151,10 @@ func (c *StateCreator) ParseAndLoad(content []byte, baseDir, file string, envNam
 	return c.LoadEnvValues(state, envName, envValues)
 }
 
-func (c *StateCreator) loadBases(st *HelmState, baseDir string) (*HelmState, error) {
+func (c *StateCreator) loadBases(envValues *environment.Environment, st *HelmState, baseDir string) (*HelmState, error) {
 	layers := []*HelmState{}
 	for _, b := range st.Bases {
-		base, err := c.LoadFile(baseDir, b, false)
+		base, err := c.LoadFile(envValues, baseDir, b, false)
 		if err != nil {
 			return nil, err
 		}