diff --git a/CHANGELOG b/CHANGELOG
index 9068181..48358b4 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -2,6 +2,7 @@
 	* Optional, pluggable verifier to protect state transition
 	* Change method for atomic simultaneous set and unset
 	* Optionally allow undefined composite states
+	* Dynamic bits
 - 0.1.0
 	* Release version bump
 - 0.0.19:
diff --git a/shep/state.py b/shep/state.py
index e4ae551..86a9b93 100644
--- a/shep/state.py
+++ b/shep/state.py
@@ -31,6 +31,7 @@ class State:
     base_state_name = 'NEW'
 
     def __init__(self, bits, logger=None, verifier=None, check_alias=True, event_callback=None):
+        self.__initial_bits = bits
         self.__bits = bits
         self.__limit = (1 << bits) - 1
         self.__c = 0
@@ -92,6 +93,9 @@ class State:
 
     # enforces state value within bit limit of instantiation
     def __check_limit(self, v):
+        if self.__initial_bits == 0:
+            self.__bits += 1
+        self.__limit = (1 << self.__bits) - 1
         if v > self.__limit:
             raise OverflowError(v)
         return v
diff --git a/tests/test_state.py b/tests/test_state.py
index d89470f..e80db73 100644
--- a/tests/test_state.py
+++ b/tests/test_state.py
@@ -208,5 +208,12 @@ class TestState(unittest.TestCase):
         self.assertEqual(events[3], states.BAZ)
 
 
+    def test_dynamic(self):
+        states = State(0)
+        states.add('foo')
+        states.add('bar')
+        states.alias('baz', states.FOO | states.BAR)
+
+
 if __name__ == '__main__':
     unittest.main()