diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4e8a71a..934424c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,9 @@
 # CHANGELOG
 
+## 3.0.7 (not yet released)
+
+ * removed deprecation warning when localizing aasm state names (look at https://github.com/rubyist/aasm/issues/38 for details)
+
 ## 3.0.6
 
  * bugfix: if configured to skip validation the code does not validate anymore
diff --git a/lib/aasm/supporting_classes/localizer.rb b/lib/aasm/supporting_classes/localizer.rb
index d211bf7..64a2aad 100644
--- a/lib/aasm/supporting_classes/localizer.rb
+++ b/lib/aasm/supporting_classes/localizer.rb
@@ -2,20 +2,35 @@ module AASM
   module SupportingClasses
     class Localizer
       def human_event_name(klass, event)
-        defaults = ancestors_list(klass).map do |ancestor|
-          :"#{i18n_scope(klass)}.events.#{i18n_klass(ancestor)}.#{event}"
-        end << event.to_s.humanize
-
-        I18n.translate(defaults.shift, :default => defaults, :raise => true)
+        checklist = ancestors_list(klass).inject([]) do |list, ancestor|
+          list << :"#{i18n_scope(klass)}.events.#{i18n_klass(ancestor)}.#{event}"
+          list
+        end
+        (0...(checklist.size-1)).each do |i|
+          begin
+            return I18n.translate(checklist.shift, :raise => true)
+          rescue I18n::MissingTranslationData
+            # that's okay
+          end
+        end
+        I18n.translate(checklist.shift, :default => event.to_s.humanize)
       end
 
       def human_state(obj)
         klass = obj.class
-        defaults = ancestors_list(klass).map do |ancestor|
-          :"#{i18n_scope(klass)}.attributes.#{i18n_klass(ancestor)}.#{klass.aasm_column}.#{obj.aasm_current_state}"
-        end << obj.aasm_current_state.to_s.humanize
-
-        I18n.translate(defaults.shift, :default => defaults, :raise => true)
+        checklist = ancestors_list(klass).inject([]) do |list, ancestor|
+          list << :"#{i18n_scope(klass)}.attributes.#{i18n_klass(ancestor)}.#{klass.aasm_column}/#{obj.aasm_current_state}"
+          list << :"#{i18n_scope(klass)}.attributes.#{i18n_klass(ancestor)}.#{klass.aasm_column}.#{obj.aasm_current_state}"
+          list
+        end
+        (0...(checklist.size-1)).each do |i|
+          begin
+            return I18n.translate(checklist.shift, :raise => true)
+          rescue I18n::MissingTranslationData
+            # that's okay
+          end
+        end
+        I18n.translate(checklist.shift, :default => obj.aasm_current_state.to_s.humanize)
       end
 
       private
diff --git a/spec/en.yml b/spec/en.yml
index 38ab0bb..31d10b6 100644
--- a/spec/en.yml
+++ b/spec/en.yml
@@ -6,5 +6,4 @@ en:
 
     attributes:
       localizer_test_model:
-        aasm_state:
-          open: "It's opened now!"
+        aasm_state/open: "It's opened now!"
diff --git a/spec/en_deprecated_style.yml b/spec/en_deprecated_style.yml
new file mode 100644
index 0000000..38ab0bb
--- /dev/null
+++ b/spec/en_deprecated_style.yml
@@ -0,0 +1,10 @@
+en:
+  activerecord:
+    events:
+      localizer_test_model:
+        close: "Let's close it!"
+
+    attributes:
+      localizer_test_model:
+        aasm_state:
+          open: "It's opened now!"
diff --git a/spec/unit/localizer_spec.rb b/spec/unit/localizer_spec.rb
index 307b198..a59cc20 100644
--- a/spec/unit/localizer_spec.rb
+++ b/spec/unit/localizer_spec.rb
@@ -16,7 +16,7 @@ class LocalizerTestModel < ActiveRecord::Base
   aasm_event :open
 end
 
-describe AASM::SupportingClasses::Localizer do
+describe AASM::SupportingClasses::Localizer, "new style" do
   before(:all) do
     I18n.load_path << 'spec/en.yml'
     I18n.default_locale = :en
@@ -50,3 +50,38 @@ describe AASM::SupportingClasses::Localizer do
     end
   end
 end
+
+describe AASM::SupportingClasses::Localizer, "deprecated style" do
+  before(:all) do
+    I18n.load_path << 'spec/en_deprecated_style.yml'
+    I18n.default_locale = :en
+    I18n.reload!
+  end
+
+  after(:all) do
+    I18n.load_path.clear
+  end
+
+  let (:foo_opened) { LocalizerTestModel.new }
+  let (:foo_closed) { LocalizerTestModel.new.tap { |x| x.aasm_state = :closed  } }
+
+  context 'aasm_human_state' do
+    it 'should return translated state value' do
+      foo_opened.aasm_human_state.should == "It's opened now!"
+    end
+
+    it 'should return humanized value if not localized' do
+      foo_closed.aasm_human_state.should == "Closed"
+    end
+  end
+
+  context 'aasm_human_event_name' do
+    it 'should return translated event name' do
+      LocalizerTestModel.aasm_human_event_name(:close).should == "Let's close it!"
+    end
+
+    it 'should return humanized event name' do
+      LocalizerTestModel.aasm_human_event_name(:open).should == "Open"
+    end
+  end
+end