diff --git a/constretto-api/src/main/java/org/constretto/model/CArray.java b/constretto-api/src/main/java/org/constretto/model/CArray.java
index e5e29016..2c8d75e0 100644
--- a/constretto-api/src/main/java/org/constretto/model/CArray.java
+++ b/constretto-api/src/main/java/org/constretto/model/CArray.java
@@ -1,8 +1,11 @@
 package org.constretto.model;
 
-import org.apache.commons.lang.StringUtils;
+import java.util.ArrayList;
+import java.util.Arrays;
+import java.util.Collections;
+import java.util.List;
 
-import java.util.*;
+import org.apache.commons.lang.StringUtils;
 
 /**
  * @author <a href="mailto:kaare.nilsen@arktekk.no">Kaare Nilsen</a>
@@ -23,12 +26,13 @@ public List<CValue> data() {
     }
 
     @Override
-    public Set<String> referencedKeys() {
-        Set<String> referencedKeys = new HashSet<String>();
+    public Iterable<String> referencedKeys() {
+        List<Iterable<String>> referencedKeys = new ArrayList<Iterable<String>>();
         for (CValue value : data) {
-            referencedKeys.addAll(value.referencedKeys());
+            referencedKeys.add(value.referencedKeys());
         }
-        return referencedKeys;
+        return new Iter<String>(referencedKeys.toArray(new Iterable[0]));
+
     }
 
     @Override
diff --git a/constretto-api/src/main/java/org/constretto/model/CObject.java b/constretto-api/src/main/java/org/constretto/model/CObject.java
index 7ddfec36..5bf7a272 100644
--- a/constretto-api/src/main/java/org/constretto/model/CObject.java
+++ b/constretto-api/src/main/java/org/constretto/model/CObject.java
@@ -1,8 +1,9 @@
 package org.constretto.model;
 
-import org.apache.commons.lang.StringUtils;
-
-import java.util.*;
+import java.util.ArrayList;
+import java.util.Collections;
+import java.util.List;
+import java.util.Map;
 
 /**
  * @author <a href="mailto:kaare.nilsen@arktekk.no">Kaare Nilsen</a>
@@ -23,12 +24,12 @@ public Map<String, CValue> data() {
     }
 
     @Override
-    public Set<String> referencedKeys() {
-        Set<String> referencedKeys = new HashSet<String>();
+    public Iterable<String> referencedKeys() {
+        List<Iterable<String>> referencedKeys = new ArrayList<Iterable<String>>();
         for (CValue value : data.values()) {
-            referencedKeys.addAll(value.referencedKeys());
+            referencedKeys.add(value.referencedKeys());
         }
-        return referencedKeys;
+        return new Iter<String>(referencedKeys.toArray(new Iterable[0]));
     }
 
     @Override
diff --git a/constretto-api/src/main/java/org/constretto/model/CPrimitive.java b/constretto-api/src/main/java/org/constretto/model/CPrimitive.java
index 50e3e5ae..0a524d3f 100644
--- a/constretto-api/src/main/java/org/constretto/model/CPrimitive.java
+++ b/constretto-api/src/main/java/org/constretto/model/CPrimitive.java
@@ -1,15 +1,12 @@
 package org.constretto.model;
 
-import java.util.HashSet;
-import java.util.Set;
+import java.util.Iterator;
 import java.util.regex.Matcher;
-import java.util.regex.Pattern;
 
 /**
  * @author <a href="mailto:kaare.nilsen@arktekk.no">Kaare Nilsen</a>
  */
 public class CPrimitive extends CValue {
-    private static final Pattern VARIABLE_PATTERN = Pattern.compile("#\\{(.*?)}");
     private String value;
 
     public CPrimitive(String value) {
@@ -25,14 +22,53 @@ public String value() {
     }
 
     @Override
-    public Set<String> referencedKeys() {
-        Set<String> referencedKeys = new HashSet<String>();
-        Matcher matcher = VARIABLE_PATTERN.matcher(value);
-        while (matcher.find()) {
-            String group = matcher.group(1);
-            referencedKeys.add(group);
-        }
-        return referencedKeys;
+    public Iterable<String> referencedKeys() {
+
+        final Iterator<String> iterator = new Iterator<String>() {
+
+            Boolean hasNext;
+            String s;
+
+            @Override
+            public boolean hasNext() {
+                if (hasNext != null) {
+                    return hasNext;
+                }
+
+                String prefix = "#{", postfix = "}";
+
+                int startIndex = value.lastIndexOf(prefix);
+                if (startIndex < 0) {
+                    hasNext = false;
+                    return false;
+                }
+                int endIndex = value.indexOf(postfix, startIndex);
+                if (endIndex < 0) {
+                    hasNext = false;
+                    return false;
+                }
+                s = value.substring(startIndex + prefix.length(), endIndex);
+
+                return true;
+            }
+
+            @Override
+            public String next() {
+                return s;
+            }
+
+            @Override
+            public void remove() {
+                throw new UnsupportedOperationException("Remove not supported");
+            }
+        };
+
+        return new Iterable<String>() {
+            @Override
+            public Iterator<String> iterator() {
+                return iterator;
+            }
+        };
     }
 
     @Override
diff --git a/constretto-api/src/main/java/org/constretto/model/CValue.java b/constretto-api/src/main/java/org/constretto/model/CValue.java
index df4bf2ca..3ade6485 100644
--- a/constretto-api/src/main/java/org/constretto/model/CValue.java
+++ b/constretto-api/src/main/java/org/constretto/model/CValue.java
@@ -1,5 +1,6 @@
 package org.constretto.model;
 
+import java.util.Iterator;
 import java.util.Set;
 
 /**
@@ -7,10 +8,10 @@
  */
 public abstract class CValue {
 
-    public abstract Set<String> referencedKeys();
+    public abstract Iterable<String> referencedKeys();
 
     public boolean containsVariables() {
-        return !referencedKeys().isEmpty();
+        return referencedKeys().iterator().hasNext();
     }
 
     public boolean isArray(){
diff --git a/constretto-api/src/main/java/org/constretto/model/Iter.java b/constretto-api/src/main/java/org/constretto/model/Iter.java
new file mode 100644
index 00000000..d3f24837
--- /dev/null
+++ b/constretto-api/src/main/java/org/constretto/model/Iter.java
@@ -0,0 +1,38 @@
+package org.constretto.model;
+
+import java.util.Iterator;
+
+public class Iter<T> implements Iterable<T> {
+
+    private Iterable<T>[] input;
+
+    public Iter(Iterable<T>... input) {
+        this.input = input;
+    }
+
+    @Override
+    public Iterator<T> iterator() {
+        return new Iterator<T>() {
+
+            int index = 0;
+
+            @Override
+            public boolean hasNext() {
+                if (index >= input.length) {
+                    return false;
+                }
+                return input[index].iterator().hasNext();
+            }
+
+            @Override
+            public T next() {
+                return input[index++].iterator().next();
+            }
+
+            @Override
+            public void remove() {
+                throw new UnsupportedOperationException();
+            }
+        };
+    }
+}
diff --git a/constretto-api/src/test/java/org/constretto/model/CArrayTest.java b/constretto-api/src/test/java/org/constretto/model/CArrayTest.java
index f2e077da..5e7d538e 100644
--- a/constretto-api/src/test/java/org/constretto/model/CArrayTest.java
+++ b/constretto-api/src/test/java/org/constretto/model/CArrayTest.java
@@ -3,6 +3,7 @@
 import org.junit.Before;
 import org.junit.Test;
 
+import java.util.ArrayList;
 import java.util.Arrays;
 
 import static org.junit.Assert.assertArrayEquals;
@@ -32,7 +33,7 @@ public void testData() throws Exception {
 
     @Test
     public void testReferencedKeys() throws Exception {
-        assertEquals(0, cArray.referencedKeys().size());
+        assertEquals(false, cArray.referencedKeys().iterator().hasNext());
     }
 
     @Test(expected = NullPointerException.class)
@@ -44,7 +45,13 @@ public void testNull() throws Exception {
     @Test
     public void testReplace() throws Exception {
         final CArray arrayWithKey = new CArray(Arrays.<CValue>asList(new CPrimitive("#{key}")));
-        assertEquals(1, arrayWithKey.referencedKeys().size());
+
+        ArrayList<String> objects = new ArrayList<String>();
+        for (String s : arrayWithKey.referencedKeys()) {
+            objects.add(s);
+        }
+
+        assertEquals(1, objects.size());
         arrayWithKey.replace("key", VALUE_ONE);
         assertArrayEquals(new CValue[]{PRIMITIVE_ONE}, arrayWithKey.data().toArray(new CValue[]{}));
 
diff --git a/constretto-core/src/test/java/org/constretto/internal/provider/AbstractConfigurationProviderLookupTest.java b/constretto-core/src/test/java/org/constretto/internal/provider/AbstractConfigurationProviderLookupTest.java
index bab90986..68db5dbf 100644
--- a/constretto-core/src/test/java/org/constretto/internal/provider/AbstractConfigurationProviderLookupTest.java
+++ b/constretto-core/src/test/java/org/constretto/internal/provider/AbstractConfigurationProviderLookupTest.java
@@ -118,6 +118,18 @@ public void simpleLookupForKeyContainingReferencesToOtherKeys() {
         assertEquals("it works when its at the end", constrettoConfiguration.evaluateToString("at-end"));
     }
 
+    @Test
+    public void simpleLookupForKeyContainingReferencesToOtherKeyRecurive() {
+        ConstrettoConfiguration constrettoConfiguration = prepareTests();
+        assertEquals("recursive works at end", constrettoConfiguration.evaluateToString("recursive"));
+    }
+
+    @Test
+    public void simpleLookupForKeyContainingReferencesToOtherKeyNested() {
+        ConstrettoConfiguration constrettoConfiguration = prepareTests();
+        assertEquals("testuser", constrettoConfiguration.evaluateToString("nested"));
+    }
+
     @Test
     public void taggedLookupForKeyContainingReferencesToOtherKeys() {
         ConstrettoConfiguration constrettoConfiguration = prepareTests();
diff --git a/constretto-core/src/test/resources/org/constretto/internal/provider/helper/provider-test.ini b/constretto-core/src/test/resources/org/constretto/internal/provider/helper/provider-test.ini
index a97dbcea..f45969b1 100644
--- a/constretto-core/src/test/resources/org/constretto/internal/provider/helper/provider-test.ini
+++ b/constretto-core/src/test/resources/org/constretto/internal/provider/helper/provider-test.ini
@@ -13,6 +13,13 @@
     transitive=It should not work for #{transitive-circular} either
     transitive-circular=#{transitive}
 
+    recursive=recursive works at #{#{end-value}-value}
+
+    environment=test
+    db.test.username=testuser
+    nested=#{db.#{environment}.username}
+
+
     webservices-base-url=http://webservice
     webservice.customer=#{webservices-base-url}/customer
 
diff --git a/constretto-core/src/test/resources/org/constretto/internal/provider/helper/provider-test.properties b/constretto-core/src/test/resources/org/constretto/internal/provider/helper/provider-test.properties
index 0c840631..aac76ae0 100644
--- a/constretto-core/src/test/resources/org/constretto/internal/provider/helper/provider-test.properties
+++ b/constretto-core/src/test/resources/org/constretto/internal/provider/helper/provider-test.properties
@@ -25,6 +25,11 @@ multiple-replacements=#{start-value} at the beginning and in the #{middle-value}
 circular=but when used in a #{circular}. It better throw an exception before giving a stack overflow :)
 transitive=It should not work for #{transitive-circular} either
 transitive-circular=#{transitive}
+recursive=recursive works at #{#{end-value}-value}
+
+environment=test
+db.test.username=testuser
+nested=#{db.#{environment}.username}
 
 #
 # Used for testing that variable resolving works well together