diff --git a/activemodel/CHANGES b/activemodel/CHANGES
new file mode 100644
index 0000000000..a9f9c27507
--- /dev/null
+++ b/activemodel/CHANGES
@@ -0,0 +1,12 @@
+Changes from extracting bits to ActiveModel
+
+* ActiveModel::Observer#add_observer!
+
+  It has a custom hook to define after_find that should really be in a
+  ActiveRecord::Observer subclass:
+
+	  def add_observer!(klass)
+	    klass.add_observer(self)
+	    klass.class_eval 'def after_find() end' unless 
+				klass.respond_to?(:after_find)
+	  end
\ No newline at end of file
diff --git a/activemodel/README b/activemodel/README
new file mode 100644
index 0000000000..c20f732a12
--- /dev/null
+++ b/activemodel/README
@@ -0,0 +1,21 @@
+Active Model
+==============
+
+Totally experimental library that aims to extract common model mixins from
+ActiveRecord for use in ActiveResource (and other similar libraries).  
+This is in a very rough state (no autotest or spec rake tasks set up yet),
+so please excuse the mess.  
+
+Here's what I plan to extract:
+  * ActiveModel::Observing 
+  * ActiveModel::Callbacks
+  * ActiveModel::Validations
+
+	# for ActiveResource params and ActiveRecord options
+  * ActiveModel::Scoping
+
+	# to_json, to_xml, etc
+  * ActiveModel::Serialization
+
+I'm trying to keep ActiveRecord compatibility where possible, but I'm
+annotating the spots where I'm diverging a bit.
\ No newline at end of file
diff --git a/activemodel/Rakefile b/activemodel/Rakefile
new file mode 100644
index 0000000000..cb9a61773f
--- /dev/null
+++ b/activemodel/Rakefile
@@ -0,0 +1,4 @@
+#!/usr/bin/env ruby
+$LOAD_PATH << File.join(File.dirname(__FILE__), 'vendor', 'rspec', 'lib')
+require 'rake'
+require 'spec/rake/spectask'
\ No newline at end of file
diff --git a/activemodel/lib/active_model.rb b/activemodel/lib/active_model.rb
new file mode 100644
index 0000000000..369c7fed33
--- /dev/null
+++ b/activemodel/lib/active_model.rb
@@ -0,0 +1,17 @@
+$LOAD_PATH << File.join(File.dirname(__FILE__), '..', '..', 'activesupport', 'lib')
+
+# premature optimization?
+require 'active_support/inflector'
+require 'active_support/core_ext/string/inflections'
+String.send :include, ActiveSupport::CoreExtensions::String::Inflections
+
+require 'active_model/base'
+require 'active_model/observing'
+require 'active_model/callbacks'
+require 'active_model/validations'
+
+ActiveModel::Base.class_eval do
+  include ActiveModel::Observing
+  include ActiveModel::Callbacks
+  include ActiveModel::Validations
+end
\ No newline at end of file
diff --git a/activemodel/lib/active_model/base.rb b/activemodel/lib/active_model/base.rb
new file mode 100644
index 0000000000..1141156da4
--- /dev/null
+++ b/activemodel/lib/active_model/base.rb
@@ -0,0 +1,4 @@
+module ActiveModel
+  class Base
+  end
+end
\ No newline at end of file
diff --git a/activemodel/lib/active_model/callbacks.rb b/activemodel/lib/active_model/callbacks.rb
new file mode 100644
index 0000000000..0114fc386b
--- /dev/null
+++ b/activemodel/lib/active_model/callbacks.rb
@@ -0,0 +1,5 @@
+module ActiveModel
+  module Callbacks
+    
+  end
+end
\ No newline at end of file
diff --git a/activemodel/lib/active_model/observing.rb b/activemodel/lib/active_model/observing.rb
new file mode 100644
index 0000000000..db758f5185
--- /dev/null
+++ b/activemodel/lib/active_model/observing.rb
@@ -0,0 +1,100 @@
+require 'observer'
+
+module ActiveModel
+  module Observing
+    module ClassMethods
+      def observers
+        @observers ||= []
+      end
+      
+      def observers=(*values)
+        @observers = values.flatten
+      end
+      
+      def instantiate_observers
+        observers.each { |o| instantiate_observer(o) }
+      end
+    
+    protected
+      def instantiate_observer(observer)
+        # string/symbol
+        if observer.respond_to?(:to_sym)
+          observer = observer.to_s.camelize.constantize.instance
+        elsif observer.respond_to?(:instance)
+          observer.instance
+        else
+          raise ArgumentError, "#{observer} must be a lowercase, underscored class name (or an instance of the class itself) responding to the instance method. Example: Person.observers = :big_brother # calls BigBrother.instance"
+        end
+      end
+      
+      # Notify observers when the observed class is subclassed.
+      def inherited(subclass)
+        super
+        changed
+        notify_observers :observed_class_inherited, subclass
+      end
+    end
+    
+    def self.included(receiver)
+      receiver.extend Observable, ClassMethods
+    end
+  end
+
+  class Observer
+    include Singleton
+    attr_writer :observed_classes
+
+    class << self
+      attr_accessor :models
+      # Attaches the observer to the supplied model classes.
+      def observe(*models)
+        @models = models.flatten
+        @models.collect! { |model| model.respond_to?(:to_sym) ? model.to_s.camelize.constantize : model }
+      end
+
+      def observed_class_name
+        @observed_class_name ||= 
+          if guessed_name = name.scan(/(.*)Observer/)[0]
+            @observed_class_name = guessed_name[0]
+          end
+      end
+
+      # The class observed by default is inferred from the observer's class name:
+      #   assert_equal [Person], PersonObserver.observed_class
+      def observed_class
+        if observed_class_name
+          observed_class_name.constantize
+        else
+          nil
+        end
+      end
+    end
+
+    # Start observing the declared classes and their subclasses.
+    def initialize
+      self.observed_classes = self.class.models if self.class.models
+      observed_classes.each { |klass| add_observer! klass }
+    end
+
+    # Send observed_method(object) if the method exists.
+    def update(observed_method, object) #:nodoc:
+      send(observed_method, object) if respond_to?(observed_method)
+    end
+
+    # Special method sent by the observed class when it is inherited.
+    # Passes the new subclass.
+    def observed_class_inherited(subclass) #:nodoc:
+      self.class.observe(observed_classes + [subclass])
+      add_observer!(subclass)
+    end
+
+    protected
+      def observed_classes
+        @observed_classes ||= [self.class.observed_class]
+      end
+
+      def add_observer!(klass)
+        klass.add_observer(self)
+      end
+  end
+end
\ No newline at end of file
diff --git a/activemodel/lib/active_model/validations.rb b/activemodel/lib/active_model/validations.rb
new file mode 100644
index 0000000000..e3f6584e2b
--- /dev/null
+++ b/activemodel/lib/active_model/validations.rb
@@ -0,0 +1,4 @@
+module ActiveModel
+  module Validations
+  end
+end
\ No newline at end of file
diff --git a/activemodel/spec/observing_spec.rb b/activemodel/spec/observing_spec.rb
new file mode 100644
index 0000000000..1919bb5991
--- /dev/null
+++ b/activemodel/spec/observing_spec.rb
@@ -0,0 +1,120 @@
+require File.join(File.dirname(__FILE__), 'spec_helper')
+
+class ObservedModel < ActiveModel::Base
+  class Observer
+  end
+end
+
+class FooObserver < ActiveModel::Observer
+  class << self
+    public :new
+  end
+  
+  attr_accessor :stub
+
+  def on_spec(record)
+    stub.event_with(record) if stub
+  end
+end
+
+class Foo < ActiveModel::Base
+end
+
+module ActiveModel
+  describe Observing do
+    before do
+      ObservedModel.observers.clear
+    end
+
+    it "initializes model with no cached observers" do
+      ObservedModel.observers.should be_empty
+    end
+    
+    it "stores cached observers in an array" do
+      ObservedModel.observers << :foo
+      ObservedModel.observers.should include(:foo)
+    end
+    
+    it "flattens array of assigned cached observers" do
+      ObservedModel.observers = [[:foo], :bar]
+      ObservedModel.observers.should include(:foo)
+      ObservedModel.observers.should include(:bar)
+    end
+    
+    it "instantiates observer names passed as strings" do
+      ObservedModel.observers << 'foo_observer'
+      FooObserver.should_receive(:instance)
+      ObservedModel.instantiate_observers
+    end
+    
+    it "instantiates observer names passed as symbols" do
+      ObservedModel.observers << :foo_observer
+      FooObserver.should_receive(:instance)
+      ObservedModel.instantiate_observers
+    end
+    
+    it "instantiates observer classes" do
+      ObservedModel.observers << ObservedModel::Observer
+      ObservedModel::Observer.should_receive(:instance)
+      ObservedModel.instantiate_observers
+    end
+    
+    it "should pass observers to subclasses" do
+      FooObserver.instance
+      bar = Class.new(Foo)
+      bar.count_observers.should == 1
+    end
+  end
+  
+  describe Observer do
+    before do
+      ObservedModel.observers = :foo_observer
+      FooObserver.models = nil
+    end
+
+    it "guesses implicit observable model name" do
+      FooObserver.observed_class_name.should == 'Foo'
+    end
+
+    it "tracks implicit observable models" do
+      instance = FooObserver.new
+      instance.send(:observed_classes).should     include(Foo)
+      instance.send(:observed_classes).should_not include(ObservedModel)
+    end
+    
+    it "tracks explicit observed model class" do
+      FooObserver.new.send(:observed_classes).should_not include(ObservedModel)
+      FooObserver.observe ObservedModel
+      instance = FooObserver.new
+      instance.send(:observed_classes).should include(ObservedModel)
+    end
+    
+    it "tracks explicit observed model as string" do
+      FooObserver.new.send(:observed_classes).should_not include(ObservedModel)
+      FooObserver.observe 'observed_model'
+      instance = FooObserver.new
+      instance.send(:observed_classes).should include(ObservedModel)
+    end
+    
+    it "tracks explicit observed model as symbol" do
+      FooObserver.new.send(:observed_classes).should_not include(ObservedModel)
+      FooObserver.observe :observed_model
+      instance = FooObserver.new
+      instance.send(:observed_classes).should include(ObservedModel)
+    end
+    
+    it "calls existing observer event" do
+      foo = Foo.new
+      FooObserver.instance.stub = stub!(:stub)
+      FooObserver.instance.stub.should_receive(:event_with).with(foo)
+      Foo.send(:changed)
+      Foo.send(:notify_observers, :on_spec, foo)
+    end
+    
+    it "skips nonexistent observer event" do
+      foo = Foo.new
+      Foo.send(:changed)
+      Foo.send(:notify_observers, :whatever, foo)
+    end
+  end
+end
\ No newline at end of file
diff --git a/activemodel/spec/spec_helper.rb b/activemodel/spec/spec_helper.rb
new file mode 100644
index 0000000000..004fdfca07
--- /dev/null
+++ b/activemodel/spec/spec_helper.rb
@@ -0,0 +1,17 @@
+ENV['LOG_NAME'] = 'spec'
+$LOAD_PATH << File.join(File.dirname(__FILE__), '..', 'vendor', 'rspec', 'lib')
+$LOAD_PATH << File.join(File.dirname(__FILE__), '..', 'lib')
+require 'active_model'
+begin
+  require 'spec'
+rescue LoadError
+  require 'rubygems'
+  require 'spec'
+end
+
+begin
+  require 'ruby-debug'
+  Debugger.start
+rescue LoadError
+  # you do not know the ways of ruby-debug yet, what a shame
+end
\ No newline at end of file