diff --git a/packages/core/package.json b/packages/core/package.json
index 55b13b6..8786536 100644
--- a/packages/core/package.json
+++ b/packages/core/package.json
@@ -1,62 +1,62 @@
 {
-    "name": "react-forms-processor",
-    "version": "0.0.35",
-    "description": "A forms processor for statically declaring forms with dynamic behaviour",
-    "main": "dist/index.js",
-    "scripts": {
-        "test": "jest",
-        "glow": "glow",
-        "glow:watch": "glow --watch",
-        "start": "webpack-dev-server --mode development",
-        "transpile": "babel src -d dist --copy-files",
-        "prepublishOnly": "npm run transpile",
-        "build": "webpack --mode production",
-        "dev:watch": "webpack --mode development --watch",
-        "postbuild": "yarn build:flow",
-        "build:flow": "../../node_modules/flow-copy-source/bin/flow-copy-source.js --verbose --ignore '**/*{story,test}.js' src dist"
-    },
-    "license": "MIT",
-    "peerDependencies": {
-        "react": "^16.4",
-        "react-dom": "^16.4"
-    },
-    "devDependencies": {
-        "babel-cli": "^6.26.0",
-        "babel-core": "^6.26.3",
-        "babel-jest": "^22.4.3",
-        "babel-loader": "^7.1.4",
-        "babel-plugin-transform-class-properties": "^6.24.1",
-        "babel-plugin-transform-object-rest-spread": "^6.26.0",
-        "babel-preset-env": "^1.7.0",
-        "babel-preset-jest": "^22.4.3",
-        "babel-preset-react": "^6.24.1",
-        "chai": "^4.2.0",
-        "chai-enzyme": "^1.0.0-beta.1",
-        "css-loader": "^0.28.11",
-        "enzyme": "^3.7.0",
-        "enzyme-adapter-react-16.3": "^1.3.0",
-        "flow-bin": "0.79.1",
-        "flow-types": "^1.0.0",
-        "gh-pages": "^1.1.0",
-        "glow": "^1.1.1",
-        "html-webpack-plugin": "^3.2.0",
-        "jest": "^22.4.3",
-        "react": "^16.4",
-        "react-dom": "^16.4",
-        "react-test-renderer": "^16.4",
-        "regenerator-runtime": "^0.11.1",
-        "style-loader": "^0.21.0",
-        "webpack": "^4.8.1",
-        "webpack-cli": "^2.1.3",
-        "webpack-dev-server": "^3.1.4"
-    },
-    "dependencies": {
-        "flow-copy-source": "^2.0.2",
-        "lodash": "^4.17.10"
-    },
-    "jest": {
-        "verbose": true,
-        "bail": false,
-        "rootDir": "src"
-    }
+  "name": "react-forms-processor",
+  "version": "0.0.35",
+  "description": "A forms processor for statically declaring forms with dynamic behaviour",
+  "main": "dist/index.js",
+  "scripts": {
+    "test": "jest",
+    "glow": "glow",
+    "glow:watch": "glow --watch",
+    "start": "webpack-dev-server --mode development",
+    "transpile": "babel src -d dist --copy-files",
+    "prepublishOnly": "npm run transpile",
+    "build": "webpack --mode production",
+    "dev:watch": "webpack --mode development --watch",
+    "postbuild": "yarn build:flow",
+    "build:flow": "../../node_modules/flow-copy-source/bin/flow-copy-source.js --verbose --ignore '**/*{story,test}.js' src dist"
+  },
+  "license": "MIT",
+  "peerDependencies": {
+    "react": "^16.4",
+    "react-dom": "^16.4"
+  },
+  "devDependencies": {
+    "babel-cli": "^6.26.0",
+    "babel-core": "^6.26.3",
+    "babel-jest": "^22.4.3",
+    "babel-loader": "^7.1.4",
+    "babel-plugin-transform-class-properties": "^6.24.1",
+    "babel-plugin-transform-object-rest-spread": "^6.26.0",
+    "babel-preset-env": "^1.7.0",
+    "babel-preset-jest": "^22.4.3",
+    "babel-preset-react": "^6.24.1",
+    "chai": "^4.2.0",
+    "chai-enzyme": "^1.0.0-beta.1",
+    "css-loader": "^0.28.11",
+    "enzyme": "^3.7.0",
+    "enzyme-adapter-react-16.3": "^1.3.0",
+    "flow-bin": "0.79.1",
+    "flow-types": "^1.0.0",
+    "gh-pages": "^1.1.0",
+    "glow": "^1.1.1",
+    "html-webpack-plugin": "^3.2.0",
+    "jest": "^22.4.3",
+    "react": "^16.4",
+    "react-dom": "^16.4",
+    "react-test-renderer": "^16.4",
+    "regenerator-runtime": "^0.11.1",
+    "style-loader": "^0.21.0",
+    "webpack": "^4.8.1",
+    "webpack-cli": "^2.1.3",
+    "webpack-dev-server": "^3.1.4"
+  },
+  "dependencies": {
+    "flow-copy-source": "^2.0.2",
+    "lodash": "^4.17.10"
+  },
+  "jest": {
+    "verbose": false,
+    "bail": false,
+    "rootDir": "src"
+  }
 }
diff --git a/packages/core/src/components/Form.js b/packages/core/src/components/Form.js
index 29e5702..00750e5 100644
--- a/packages/core/src/components/Form.js
+++ b/packages/core/src/components/Form.js
@@ -33,11 +33,6 @@ const valueHasChanged = (
   prevState: FormComponentState
 ) => nextProps.value && nextProps.value !== prevState.value;
 
-const defaultValueHasChanged = (
-  nextProps: FormComponentProps,
-  prevState: FormComponentState
-) => nextProps.value && nextProps.value !== prevState.defaultValue;
-
 const formDisabledStateHasChanged = (
   nextProps: FormComponentProps,
   prevState: FormComponentState
@@ -59,8 +54,8 @@ export default class Form extends Component<
     super(props);
     this.state = {
       fields: [],
-      defaultValue: props.value || {},
-      value: props.value || {},
+      defaultValue: props.defaultValue || {},
+      value: props.value || props.defaultValue || {},
       isValid: false,
       defaultFields: [],
       disabled: props.disabled || false,
@@ -90,17 +85,22 @@ export default class Form extends Component<
     prevState: FormComponentState
   ) {
     const defaultFieldsChange = defaultFieldsHaveChanged(nextProps, prevState);
-    const defaultValueChange = defaultValueHasChanged(nextProps, prevState);
+    const valueChange = valueHasChanged(nextProps, prevState);
     if (
       defaultFieldsChange ||
-      valueHasChanged(nextProps, prevState) ||
+      valueChange ||
       formDisabledStateHasChanged(nextProps, prevState) ||
       formTouchedBehaviourHasChanged(nextProps, prevState)
     ) {
-      const { fields: fieldsFromState, value: valueFromState } = prevState;
+      const {
+        fields: fieldsFromState,
+        defaultValue: defaultValueFromState,
+        value: valueFromState
+      } = prevState;
 
       let {
         defaultFields: defaultFieldsFromProps,
+        defaultValue: defaultValueFromProps,
         value: valueFromProps,
         disabled = false
       } = nextProps;
@@ -111,10 +111,23 @@ export default class Form extends Component<
         showValidationBeforeTouched = false
       } = nextProps;
 
-      // If a new value has been passed to the Form as a prop then it should take precedence over the last calculated state
-      const value = valueFromProps || valueFromState || {};
+      const value = {
+        ...defaultValueFromProps,
+        ...valueFromState,
+        ...valueFromProps
+      };
 
       const defaultFields = defaultFieldsFromProps || fieldsFromState;
+
+      // TODO: Don't use the field value if the value prop has changed...
+      if (!valueChange) {
+        defaultFields.forEach(field => {
+          if (field.value) {
+            value[field.name] = field.value;
+          }
+        });
+      }
+
       let fields;
       if (defaultFieldsFromProps && defaultFieldsChange) {
         fields = registerFields(defaultFieldsFromProps, value);
@@ -125,7 +138,7 @@ export default class Form extends Component<
 
       // We should reset the touched state of all the fields if the value passed as a prop to the form
       // changes...
-      const resetTouchedState = defaultValueChange;
+      const resetTouchedState = valueChange;
 
       const nextState = getNextStateFromFields({
         fields,
@@ -139,12 +152,13 @@ export default class Form extends Component<
       return {
         ...nextState,
         defaultFields: defaultFieldsFromProps,
+        defaultValue: defaultValueFromProps || defaultValueFromState,
         disabled,
-        showValidationBeforeTouched
+        showValidationBeforeTouched,
+        value
       };
-    } else {
-      return null;
     }
+    return null;
   }
 
   onFieldChange(id: string, value: Value) {
@@ -158,6 +172,7 @@ export default class Form extends Component<
     let { fields } = this.state;
     fields = updateFieldTouchedState(id, true, fields);
     fields = updateFieldValue(id, value, fields);
+
     const nextState = getNextStateFromFields({
       fields,
       lastFieldUpdated: id,
@@ -254,7 +269,7 @@ export default class Form extends Component<
   }
 
   createFormContext() {
-    const { fields, value, isValid } = this.state;
+    const { fields, defaultValue, value, isValid } = this.state;
     const {
       renderer = defaultRenderer,
       optionsHandler,
@@ -271,6 +286,7 @@ export default class Form extends Component<
     const context: FormContextData = {
       fields,
       isValid,
+      defaultValue,
       value,
       registerField: this.registerField.bind(this),
       renderer,
diff --git a/packages/core/src/components/Form.test.js b/packages/core/src/components/Form.test.js
index d7eeb0f..c376961 100644
--- a/packages/core/src/components/Form.test.js
+++ b/packages/core/src/components/Form.test.js
@@ -31,7 +31,7 @@ describe("Context", () => {
       <Form
         defaultFields={singleField}
         onChange={onFormChange}
-        value={propValue}
+        defaultValue={propValue}
       >
         <FormContext.Consumer>
           {context => {
@@ -58,7 +58,7 @@ describe("Context", () => {
     const propValue = { prop1: "value1" };
     let value;
     const form = mount(
-      <Form onChange={onFormChange} value={propValue}>
+      <Form onChange={onFormChange} defaultValue={propValue}>
         <FormFragment defaultFields={singleField} />
       </Form>
     );
@@ -91,7 +91,7 @@ describe("validation warnings", () => {
 
   describe("shown immediately", () => {
     const form = mount(
-      <Form value={formValue} showValidationBeforeTouched>
+      <Form defaultValue={formValue} showValidationBeforeTouched>
         <FormFragment defaultFields={fields} />
         <FormButton onClick={onButtonClick} />
       </Form>
@@ -116,7 +116,7 @@ describe("validation warnings", () => {
 
   describe("shown when touched", () => {
     const form = mount(
-      <Form value={formValue}>
+      <Form defaultValue={formValue}>
         <FormFragment defaultFields={fields} />
         <FormButton onClick={onButtonClick} />
       </Form>
@@ -199,7 +199,7 @@ describe("changing form value prop", () => {
   };
 
   const form = mount(
-    <Form value={formValue1}>
+    <Form defaultValue={formValue1}>
       <FormFragment defaultFields={fields} />
     </Form>
   );
@@ -264,7 +264,7 @@ describe("Form and FormFragment behave the same with defaultFields and value", (
 
   test("Form field has correct value from value", () => {
     const form = mount(
-      <Form defaultFields={fruit} value={{ fruit: "melon" }} />
+      <Form defaultFields={fruit} defaultValue={{ fruit: "melon" }} />
     );
     const fieldValue = form.find("select").prop("value");
     expect(fieldValue).toEqual(["melon"]);
@@ -272,7 +272,7 @@ describe("Form and FormFragment behave the same with defaultFields and value", (
 
   test("FormFragment field has correct value from value", () => {
     const form = mount(
-      <Form value={{ fruit: "melon" }}>
+      <Form defaultValue={{ fruit: "melon" }}>
         <FormFragment defaultFields={fruit} />
       </Form>
     );
@@ -280,3 +280,27 @@ describe("Form and FormFragment behave the same with defaultFields and value", (
     expect(fieldValue).toEqual(["melon"]);
   });
 });
+
+describe("Form with initial value updates value on field change", () => {
+  const fields: FieldDef[] = [
+    {
+      id: "FIELD1",
+      type: "text",
+      name: "field1"
+    }
+  ];
+  const formValue1 = {
+    field1: "value1"
+  };
+
+  const form = mount(
+    <Form defaultValue={formValue1}>
+      <FormFragment defaultFields={fields} />
+    </Form>
+  );
+
+  test("moomin", () => {
+    form.find("input").prop("onChange")({ target: { value: "updated" } });
+    expect(form.state().value.field1).toBe("updated");
+  });
+});
diff --git a/packages/core/src/components/FormFragment.js b/packages/core/src/components/FormFragment.js
index b45abeb..460bc46 100644
--- a/packages/core/src/components/FormFragment.js
+++ b/packages/core/src/components/FormFragment.js
@@ -75,14 +75,18 @@ class FormFragment extends Component<
 > {
   constructor(props: FormFragmentComponentWithContextProps) {
     super(props);
-    const { defaultFields = [], registerField, fields = [] } = props;
-    defaultFields.forEach(field =>
-      registerFieldIfNew(field, fields, registerField)
-    );
+    const { defaultFields = [], registerField, fields = [], value } = props;
+    defaultFields.forEach(field => {
+      field.defaultValue =
+        value[field.name] !== undefined
+          ? value[field.name]
+          : field.defaultValue;
+      registerFieldIfNew(field, fields, registerField);
+    });
   }
 
   render() {
-    const { defaultFields = [] } = this.props;
+    const { defaultFields = [], value } = this.props;
     const renderedFields = defaultFields.map(field =>
       renderFieldIfVisible(field, this.props)
     );
diff --git a/packages/core/src/types.js b/packages/core/src/types.js
index c06366d..16b4a4c 100644
--- a/packages/core/src/types.js
+++ b/packages/core/src/types.js
@@ -342,6 +342,7 @@ export type OmitFieldValue = FieldDef => boolean;
 
 export type FormContextData = {
   fields: FieldDef[],
+  defaultValue: FormValue,
   value: FormValue,
   isValid: boolean,
   options: {
diff --git a/packages/core/src/types/components.js b/packages/core/src/types/components.js
index dc37189..82aa1e5 100644
--- a/packages/core/src/types/components.js
+++ b/packages/core/src/types/components.js
@@ -14,6 +14,7 @@ import type {
 
 export type FormComponentProps = {
   defaultFields?: FieldDef[],
+  defaultValue?: FormValue,
   value?: FormValue,
   onChange?: OnFormChange,
   onFieldFocus?: OnFieldFocus,