diff --git a/api/app.api.js b/api/app.api.js
index ce43545..5395f5d 100644
--- a/api/app.api.js
+++ b/api/app.api.js
@@ -3,29 +3,22 @@ var path = require('path');
 var loopback = require('loopback');
 var explorer = require('loopback-explorer');
 var CONFIG = require('global.config');
-var LOCAL_CONFIG = require('local.config');
+var boot = require('loopback-boot');
 
 // server
 var server = module.exports = loopback();
 
-// data source
-// var db = loopback.createDataSource(LOCAL_CONFIG.db);
-var db = loopback.createDataSource({
-  connector: require('loopback-connector-mongodb'),
-  database: 'todo-example'
+boot(server, {
+  appRootDir: path.resolve(__dirname),
+  modelsRootDir: path.resolve(__dirname, '..'),
+  appConfig: {
+    // No app config to load, we are processing it manually now
+    // TODO(bajtos) modify Gulp to create app.* config files
+  },
 });
 
-// models
-var User = require('models/user');
-var Todo = require('models/todo');
-
-// setup the model data sources
-User.attachTo(db);
-Todo.attachTo(db);
-server.model(User);
-server.model(Todo);
-
 // TODO(ritch) this should be unecessary soon....
+var Todo = server.models.Todo;
 server.model(Todo.getChangeModel());
 
 // root api path
diff --git a/api/configure.js b/api/configure.js
index 3ea2a2c..2a4e2b0 100644
--- a/api/configure.js
+++ b/api/configure.js
@@ -6,17 +6,3 @@ exports.global = function(env, global) {
     root: '/api'
   };
 }
-
-exports.local = function(env, global, local) {
-  var db = local.db = {};
-
-  if(env === 'staging' || env === 'production') {
-    db.host = process.env.DB_HOST || global.api.host;
-    db.port = process.env.DB_PORT || 27015;
-    db.connector = 'mongodb';
-    db.user = process.env.DB_USER;
-    db.password = process.env.DB_PASSWORD;
-  } else {
-    db.connector = 'memory';
-  }
-}
diff --git a/api/datasources.json b/api/datasources.json
new file mode 100644
index 0000000..ee53ada
--- /dev/null
+++ b/api/datasources.json
@@ -0,0 +1,6 @@
+{
+  "db": {
+    "connector": "memory",
+    "defaultForType": "db"
+  }
+}
diff --git a/api/datasources.production.js b/api/datasources.production.js
new file mode 100644
index 0000000..e1680e1
--- /dev/null
+++ b/api/datasources.production.js
@@ -0,0 +1,2 @@
+// Use the same environment-based configuration as in staging
+module.exports = require('./datasources.staging');
diff --git a/api/datasources.staging.js b/api/datasources.staging.js
new file mode 100644
index 0000000..2d40ca7
--- /dev/null
+++ b/api/datasources.staging.js
@@ -0,0 +1,12 @@
+var globalConfig = require('global.config');
+
+module.exports = {
+  db: {
+    connector: 'mongodb',
+    hostname: process.env.DB_HOST || globalConfig.api.host,
+    port: process.env.DB_PORT || 27017,
+    user: process.env.DB_USER,
+    password: process.env.DB_PASSWORD,
+    database: 'todo-example',
+  }
+};
diff --git a/gulpfile.js b/gulpfile.js
index 9468d11..2c62981 100644
--- a/gulpfile.js
+++ b/gulpfile.js
@@ -67,8 +67,10 @@ function findAndBuild(packageName, cb) {
 function findSrc(package) {
   var paths = [];
   findPackages(package).forEach(function(pkg) {
-    paths.push(path.join(__dirname, pkg, '*', '*') + '.js');
+    paths.push(path.join(__dirname, pkg, '*', '*.js'));
+    paths.push(path.join(__dirname, pkg, '*', '*.json'));
     paths.push(path.join(__dirname, pkg, '*.js'));
+    paths.push(path.join(__dirname, pkg, '*.json'));
   });
   return paths;
 }
diff --git a/html5/app.html5.js b/html5/app.html5.js
index c22d5c8..b78ae97 100644
--- a/html5/app.html5.js
+++ b/html5/app.html5.js
@@ -2,26 +2,41 @@
 var LOCAL_CONFIG = require('local.config');
 var loopback = require('loopback');
 var client = exports.client = loopback();
-var async = require('async');
 
 // angular.js dependencies
 require('./bower_components/angular/angular.js');
 require('./bower_components/angular-route/angular-route.js');
 
-// data sources
-var remote = loopback.createDataSource({
-  connector: loopback.Remote,
-  url: LOCAL_CONFIG.serverInfo.url
-});
-var memory = loopback.createDataSource({
-  connector: loopback.Memory,
-  localStorage: 'todo-db'
-});
-
-// models
-var User = require('models/user');
-var RemoteTodo = window.RemoteTodo = require('models/todo');
-var LocalTodo = window.LocalTodo = RemoteTodo.extend('LocalTodo');
+var lbapp = loopback();
+
+require('./build/datasources.js')(lbapp);
+require('./build/models.js')(lbapp);
+
+// TODO(bajtos) Move the bi-di replication to loopback core,
+// add model settings to enable the replication.
+// Example:
+//  LocalTodo: { options: {
+//    base: 'Todo',
+//    replicate: {
+//      target: 'Todo',
+//      mode: 'push' | 'pull' | 'bidi'
+//    }}}
+
+var LocalTodo = lbapp.models.LocalTodo;
+var RemoteTodo = lbapp.models.Todo;
+
+// setup model replication
+function sync(cb) {
+  if(window.connected()) {
+    RemoteTodo.replicate(LocalTodo, function() {
+      LocalTodo.replicate(RemoteTodo, cb);
+    });
+  }
+}
+
+// sync local changes if connected
+LocalTodo.on('changed', sync);
+LocalTodo.on('deleted', sync);
 
 // routes
 var routes = LOCAL_CONFIG.routes;
@@ -47,11 +62,6 @@ require('./controllers/login.ctrl');
 require('./controllers/register.ctrl');
 require('./controllers/change.ctrl');
 
-// setup the model data sources
-RemoteTodo.attachTo(remote);
-LocalTodo.attachTo(memory);
-
-
 window.isConnected = true;
 
 window.connected = function connected() {
@@ -59,19 +69,6 @@ window.connected = function connected() {
   return window.isConnected;
 }
 
-// setup model replication
-function sync(cb) {
-  if(connected()) {
-    RemoteTodo.replicate(LocalTodo, function() {
-      LocalTodo.replicate(RemoteTodo, cb);
-    });
-  }
-}
-
-// sync local changes if connected
-LocalTodo.on('changed', sync);
-LocalTodo.on('deleted', sync);
-
 // setup routes
 Object.keys(routes)
   .forEach(function(route) {
diff --git a/html5/client.models.json b/html5/client.models.json
new file mode 100644
index 0000000..226454e
--- /dev/null
+++ b/html5/client.models.json
@@ -0,0 +1,8 @@
+{
+  "LocalTodo": {
+    "dataSource": "local",
+    "options": {
+      "base": "Todo"
+    }
+  }
+}
diff --git a/html5/configure.js b/html5/configure.js
index 6b53f2c..37f89f5 100644
--- a/html5/configure.js
+++ b/html5/configure.js
@@ -1,9 +1,11 @@
 var gulp = require('gulp');
+var async = require('async');
 var path = require('path');
 var pkg = require('./package.json');
 var fs = require('fs');
 var browserify = require('browserify');
 var sh = require('shelljs');
+var BootConfigLoader = require('loopback-boot').ConfigLoader;
 
 exports.global = function(env, global) {
   // routes
@@ -61,6 +63,105 @@ exports.local = function configure(env, global, local) {
 }
 
 exports.build = function(env, global, local, cb) {
+  async.waterfall([
+    function(next) {
+      async.parallel([
+        function(next) {
+          buildDataSources(env, next);
+        },
+        function(next) {
+          buildModels(env, next);
+        }
+      ], function(err) { next(err); });
+    },
+    function(next) {
+      createBundle(env, global, next);
+    }
+  ], cb);
+};
+
+function buildDataSources(env, cb) {
+  var dataSources = BootConfigLoader.loadDataSources(__dirname, env);
+  for (var name in dataSources) {
+    var cfg = dataSources[name];
+    var connector = cfg.connector;
+    if (connector !== 'memory' && connector !== 'remote') {
+      return cb(new Error(
+          'Datasource ' + name + ' uses unknown connector ' + connector + '.'));
+    }
+  }
+
+  var dsconfig = 'var loopback = require(\'loopback\');' +
+    '\nvar config;' +
+    '\nmodule.exports = function(app) {\n' +
+    '  for (var name in config) {\n' +
+    '    app.dataSource(name, config[name]);\n' +
+    '  }\n'+
+    '};\n' +
+    '\n' +
+    'config = ' +
+    JSON.stringify(dataSources, null, 2) +
+    ';\n';
+
+  fs.writeFile(
+    path.resolve(__dirname, 'build', 'datasources.js'),
+    dsconfig,
+    'utf-8',
+    cb);
+}
+
+function buildModels(env, cb) {
+  var models = BootConfigLoader.loadModels(path.resolve(__dirname, '..'), env);
+  var clientModels = require('./client.models.json');
+
+  var modelsFile = path.resolve(__dirname, 'build', 'models.js');
+  var modelsDir = path.resolve(__dirname, '..', 'models');
+
+  fs.readdir(modelsDir, function(err, files) {
+    if (err) return cb(err);
+
+    var code = 'var loopback = require(\'loopback\');\n' +
+      'var models, clientModels;\n\n' +
+      'module.exports = function(app) {\n' +
+      '  for (var name in models) {\n' +
+      '    app.model(name, models[name]);\n' +
+      '  }\n\n';
+
+    files.forEach(function(f) {
+      f = path.resolve(modelsDir, f);
+      if (path.extname(f) !== '.js' || !fs.statSync(f).isFile()) return;
+      var relative = path.relative(path.dirname(modelsFile), f);
+      code += '  runExportedFn(app, require(' +
+        JSON.stringify(relative) + '));\n';
+    });
+
+    // It is important to create client models only after the shared models
+    // were fully initialized. Otherwise client models extending server models
+    // won't get static methods defined in models/*.js scripts.
+    code += '\n' +
+    '  for (name in clientModels) {\n' +
+    '    app.model(name, clientModels[name]);\n' +
+    '  }\n';
+
+    //TODO(bajtos) Require and run all files in `client.models/*`
+
+    // end of the exported fn
+    code += '};\n';
+
+    code += '\nmodels = ' + JSON.stringify(models, null, 2) + ';\n';
+    code += '\nclientModels = ' + JSON.stringify(clientModels, null, 2) + ';\n';
+    code += '\nfunction runExportedFn(app, fn) {\n' +
+      '  var executable = typeof fn === \'function\' &&\n' +
+      '    !(fn.prototype instanceof loopback.Model);\n' +
+      '  if (!executable) return;\n' +
+      '  fn(app);\n' +
+      '}';
+
+    fs.writeFile(modelsFile, code, 'utf-8', cb);
+  });
+}
+
+function createBundle(env, global, cb) {
   var b = browserify({basedir: __dirname});
   b.add('./' + pkg.main);
 
@@ -76,7 +177,11 @@ exports.build = function(env, global, local, cb) {
     }, 'uglifyify');
   }
 
-  b.bundle().pipe(out);
+  b.bundle({
+    // TODO(bajtos) debug should be always true, the sourcemaps should be
+    // saved to a standalone file when !isDev(env)
+    debug: isDev(env)
+  }).pipe(out);
 
   out.on('error', cb);
   out.on('close', cb);
diff --git a/html5/datasources.json b/html5/datasources.json
new file mode 100644
index 0000000..5ef7a4a
--- /dev/null
+++ b/html5/datasources.json
@@ -0,0 +1,9 @@
+{
+  "db": {
+    "connector": "remote"
+  },
+  "local": {
+    "connector": "memory",
+    "localStorage": "todo-db"
+  }
+}
diff --git a/html5/datasources.local.js b/html5/datasources.local.js
new file mode 100644
index 0000000..b578bc0
--- /dev/null
+++ b/html5/datasources.local.js
@@ -0,0 +1,7 @@
+var LOCAL_CONFIG = require('local.config');
+
+module.exports = {
+  db: {
+    url: LOCAL_CONFIG.serverInfo.url
+  }
+};
diff --git a/models.json b/models.json
new file mode 100644
index 0000000..0a6fd45
--- /dev/null
+++ b/models.json
@@ -0,0 +1,37 @@
+{
+  "Todo": {
+    "options": {
+      "trackChanges": true,
+      "base": "DataModel"
+    },
+    "properties": {
+      "id": {
+        "id": true,
+        "type": "string"
+      },
+      "title": "string",
+      "completed": {
+        "type": "boolean",
+        "default": false
+      },
+      "created": {
+        "type": "number",
+        "//default": "//TODO: Date.now"
+      }
+    },
+    "dataSource": "db"
+  },
+  "user": {
+    "options": {
+      "base": "User"
+    },
+    "properties": {
+      "title": "string",
+      "done": {
+        "type": "boolean",
+        "default": false
+      }
+    },
+    "dataSource": "db"
+  }
+}
diff --git a/models/index.js b/models/index.js
deleted file mode 100644
index 096a804..0000000
--- a/models/index.js
+++ /dev/null
@@ -1,2 +0,0 @@
-exports.Todo = require('./todo');
-exports.User = require('./user');
diff --git a/models/package.json b/models/package.json
deleted file mode 100644
index 9cd65fb..0000000
--- a/models/package.json
+++ /dev/null
@@ -1,11 +0,0 @@
-{
-  "name": "models",
-  "version": "0.0.0",
-  "description": "",
-  "main": "index.js",
-  "scripts": {
-    "test": "echo \"Error: no test specified\" && exit 1"
-  },
-  "author": "",
-  "license": "ISC"
-}
diff --git a/models/todo.js b/models/todo.js
index 2c908ee..298d181 100644
--- a/models/todo.js
+++ b/models/todo.js
@@ -1,50 +1,45 @@
 var loopback = require('loopback');
 var async = require('async');
 
-var Todo = module.exports = loopback.DataModel.extend('Todo', {
-  id: {id: true, type: String},
-  title: String,
-  completed: {type: Boolean, default: false},
-  created: {type: Number, default: Date.now}
-}, {
-  trackChanges: true
-});
+module.exports = function(app) {
+  var Todo = app.models.Todo;
 
-Todo.beforeSave = function(next, model) {
-  if(!model.id) model.id = 't-' + Math.floor(Math.random() * 10000).toString();
-  next();
-}
+  Todo.beforeSave = function(next, model) {
+    if (!model.id) model.id = 't-' + Math.floor(Math.random() * 10000).toString();
+    next();
+  };
 
-Todo.stats = function(filter, cb) {
-  var stats = {};
-  cb = arguments[arguments.length - 1];
-  var Todo = this;
-  
-  async.parallel([
-    countComplete,
-    count
-  ], function(err) {
-    if(err) return cb(err);
-    stats.remaining = stats.total - stats.completed;
-    cb(null, stats);
-  });
+  Todo.stats = function(filter, cb) {
+    var stats = {};
+    cb = arguments[arguments.length - 1];
+    var Todo = this;
 
-  function countComplete(cb) {
-    Todo.count({completed: true}, function(err, count) {
-      stats.completed = count;
-      cb(err);
+    async.parallel([
+      countComplete,
+      count
+    ], function(err) {
+      if (err) return cb(err);
+      stats.remaining = stats.total - stats.completed;
+      cb(null, stats);
     });
-  }
 
-  function count(cb) {
-    Todo.count(function(err, count) {
-      stats.total = count;
-      cb(err);
-    });
-  }
-}
+    function countComplete(cb) {
+      Todo.count({completed: true}, function(err, count) {
+        stats.completed = count;
+        cb(err);
+      });
+    }
 
-loopback.remoteMethod(Todo.stats, {
-  accepts: {arg: 'filter', type: 'object'},
-  returns: {arg: 'stats', type: 'object'}
-});
+    function count(cb) {
+      Todo.count(function(err, count) {
+        stats.total = count;
+        cb(err);
+      });
+    }
+  };
+
+  loopback.remoteMethod(Todo.stats, {
+    accepts: {arg: 'filter', type: 'object'},
+    returns: {arg: 'stats', type: 'object'}
+  });
+};
diff --git a/models/user.js b/models/user.js
deleted file mode 100644
index b7a2eae..0000000
--- a/models/user.js
+++ /dev/null
@@ -1,6 +0,0 @@
-var loopback = require('loopback');
-
-var User = module.exports = loopback.User.extend('User', {
-  title: String,
-  done: {type: Boolean, default: false}
-});
diff --git a/package.json b/package.json
index 7ec9d10..5381488 100644
--- a/package.json
+++ b/package.json
@@ -35,10 +35,11 @@
   },
   "dependencies": {
     "async": "~0.7.0",
-    "loopback": "2.0.0-beta2",
+    "loopback": "2.0.0-beta3",
     "loopback-explorer": "~1.1.0",
     "loopback-connector-mongodb": "^1.2.4",
     "loopback-datasource-juggler": "2.0.0-beta1",
+    "loopback-boot": "strongloop/loopback-boot",
     "ejs": "^1.0.0"
   }
 }