diff --git a/synapse/handlers/room.py b/synapse/handlers/room.py
index 9b02ce0df..47dcc6544 100644
--- a/synapse/handlers/room.py
+++ b/synapse/handlers/room.py
@@ -133,7 +133,7 @@ class MessageHandler(BaseRoomHandler):
         if stamp_event:
             event.content["hsob_ts"] = int(self.clock.time_msec())
 
-        yield self.state_handler.handle_new_event(event)
+        yield self.state_handler.handle_new_event(event, snapshot)
 
         yield self._on_new_room_event(event, snapshot)
 
@@ -362,6 +362,13 @@ class RoomCreationHandler(BaseRoomHandler):
             content=config,
         )
 
+        snapshot = yield self.store.snapshot_room(
+            room_id=room_id,
+            user_id=user_id,
+            state_type=RoomConfigEvent.TYPE,
+            state_key="",
+        )
+
         if room_alias:
             yield self.store.create_room_alias_association(
                 room_id=room_id,
@@ -369,11 +376,11 @@ class RoomCreationHandler(BaseRoomHandler):
                 servers=[self.hs.hostname],
             )
 
-        yield self.state_handler.handle_new_event(config_event)
+        yield self.state_handler.handle_new_event(config_event, snapshot)
         # store_id = persist...
 
         federation_handler = self.hs.get_handlers().federation_handler
-        yield federation_handler.handle_new_event(config_event)
+        yield federation_handler.handle_new_event(config_event, snapshot)
         # self.notifier.on_new_room_event(event, store_id)
 
         content = {"membership": Membership.JOIN}
diff --git a/synapse/state.py b/synapse/state.py
index ca8e1ca63..e1a1a159b 100644
--- a/synapse/state.py
+++ b/synapse/state.py
@@ -45,7 +45,7 @@ class StateHandler(object):
 
     @defer.inlineCallbacks
     @log_function
-    def handle_new_event(self, event):
+    def handle_new_event(self, event, snapshot):
         """ Given an event this works out if a) we have sufficient power level
         to update the state and b) works out what the prev_state should be.
 
@@ -70,25 +70,13 @@ class StateHandler(object):
         # Now I need to fill out the prev state and work out if it has auth
         # (w.r.t. to power levels)
 
-        results = yield self.store.get_latest_pdus_in_context(
-            event.room_id
-        )
+        snapshot.fill_out_prev_events(event)
 
-        event.prev_events = [
-            encode_event_id(p_id, origin) for p_id, origin, _ in results
-        ]
         event.prev_events = [
             e for e in event.prev_events if e != event.event_id
         ]
 
-        if results:
-            event.depth = max([int(v) for _, _, v in results]) + 1
-        else:
-            event.depth = 0
-
-        current_state = yield self.store.get_current_state_pdu(
-            key.context, key.type, key.state_key
-        )
+        current_state = snapshot.prev_state_pdu
 
         if current_state:
             event.prev_state = encode_event_id(
diff --git a/tests/handlers/test_room.py b/tests/handlers/test_room.py
index 613f5c307..a84dbcc47 100644
--- a/tests/handlers/test_room.py
+++ b/tests/handlers/test_room.py
@@ -330,6 +330,7 @@ class RoomCreationTest(unittest.TestCase):
             db_pool=None,
             datastore=NonCallableMock(spec_set=[
                 "store_room",
+                "snapshot_room",
             ]),
             http_client=NonCallableMock(spec_set=[]),
             notifier=NonCallableMock(spec_set=["on_new_room_event"]),
diff --git a/tests/test_state.py b/tests/test_state.py
index e64d15a3a..58fd0bf3b 100644
--- a/tests/test_state.py
+++ b/tests/test_state.py
@@ -243,21 +243,24 @@ class StateTestCase(unittest.TestCase):
 
         state_pdu = new_fake_pdu_entry("C", "test", "mem", "x", "A", 20)
 
-        tup = ("pdu_id", "origin.com", 5)
-        pdus = [tup]
+        snapshot = Mock()
+        snapshot.prev_state_pdu = state_pdu
+        event_id = "pdu_id@origin.com"
 
-        self.persistence.get_latest_pdus_in_context.return_value = pdus
-        self.persistence.get_current_state_pdu.return_value = state_pdu
+        def fill_out_prev_events(event):
+            event.prev_events = [event_id]
+            event.depth = 6
+        snapshot.fill_out_prev_events = fill_out_prev_events
 
-        yield self.state.handle_new_event(event)
+        yield self.state.handle_new_event(event, snapshot)
 
-        self.assertLess(tup[2], event.depth)
+        self.assertLess(5, event.depth)
 
         self.assertEquals(1, len(event.prev_events))
 
         prev_id = event.prev_events[0]
 
-        self.assertEqual(encode_event_id(tup[0], tup[1]), prev_id)
+        self.assertEqual(event_id, prev_id)
 
         self.assertEqual(
             encode_event_id(state_pdu.pdu_id, state_pdu.origin),