diff --git a/deno.json b/deno.json
index 406b653..1470073 100644
--- a/deno.json
+++ b/deno.json
@@ -1,6 +1,6 @@
 {
   "name": "@serve.zone/baseos",
-  "version": "0.1.0",
+  "version": "0.2.0",
   "exports": "./mod.ts",
   "tasks": {
     "start": "deno run --allow-env --allow-net --allow-read=/data/baseos,. --allow-write=/data/baseos mod.ts start",
diff --git a/docker-compose.yml b/docker-compose.yml
index 5ba81ff..41e1332 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -11,6 +11,7 @@ services:
       io.balena.features.supervisor-api: '1'
     environment:
       BASEOS_STATE_PATH: /data/baseos/state.json
+      BASEOS_PRELOAD_TARGET_STATE_PATH: /data/baseos/preload-target-state.json
       BASEOS_HEARTBEAT_INTERVAL_MS: '60000'
     volumes:
       - baseos-data:/data/baseos
diff --git a/package.json b/package.json
index 36b98dd..24f8f97 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@serve.zone/baseos",
-  "version": "0.1.0",
+  "version": "0.2.0",
   "private": false,
   "description": "Cloudly-enrolled BaseOS runtime layer for balenaOS-derived devices.",
   "type": "module",
diff --git a/ts/classes.baserunner.ts b/ts/classes.baserunner.ts
index d287ac5..4f5bf20 100644
--- a/ts/classes.baserunner.ts
+++ b/ts/classes.baserunner.ts
@@ -2,6 +2,7 @@ import { CloudlyConnector } from './classes.cloudlyconnector.ts';
 import { SupervisorClient } from './classes.supervisorclient.ts';
 import type {
   IBaseOsRuntimeInfo,
+  IBaseOsDesiredState,
   IBaseRunnerConfig,
   IBaseRunnerState,
   TCloudlyConnectionStatus,
@@ -28,6 +29,7 @@ export class BaseRunner {
       heartbeatIntervalMs: Number(Deno.env.get('BASEOS_HEARTBEAT_INTERVAL_MS') || '60000'),
       supervisorAddress: Deno.env.get('BALENA_SUPERVISOR_ADDRESS') || undefined,
       supervisorApiKey: Deno.env.get('BALENA_SUPERVISOR_API_KEY') || undefined,
+      preloadTargetStatePath: Deno.env.get('BASEOS_PRELOAD_TARGET_STATE_PATH') || undefined,
     });
   }
 
@@ -118,6 +120,7 @@ export class BaseRunner {
 
   private async syncCloudlyOnce() {
     await this.ensureInitialized();
+    await this.applyPreloadTargetStateIfPresent();
     if (!this.cloudlyConnector.isConfigured()) {
       this.cloudlyConnectionStatus = 'not-configured';
       return;
@@ -134,15 +137,93 @@ export class BaseRunner {
       } else if (!result.accepted) {
         throw new Error(result.message || 'Cloudly did not accept node registration');
       }
+      await this.applyDesiredState(result.desiredState);
     } else {
       const result = await this.cloudlyConnector.sendHeartbeat(status);
       if (!result.accepted) {
         throw new Error(result.message || 'Cloudly did not accept node heartbeat');
       }
+      await this.applyDesiredState(result.desiredState);
     }
     this.cloudlyConnectionStatus = 'connected';
   }
 
+  private async applyPreloadTargetStateIfPresent() {
+    if (!this.config.preloadTargetStatePath) {
+      return;
+    }
+    let preloadText: string;
+    try {
+      preloadText = await Deno.readTextFile(this.config.preloadTargetStatePath);
+    } catch (errorArg) {
+      if (errorArg instanceof Deno.errors.NotFound) {
+        return;
+      }
+      throw errorArg;
+    }
+    const targetState = this.normalizeTargetState(JSON.parse(preloadText) as Record<string, unknown>);
+    await this.applyTargetState(targetState, 'preload target state');
+  }
+
+  private async applyDesiredState(desiredStateArg?: IBaseOsDesiredState) {
+    if (!desiredStateArg) {
+      return;
+    }
+    if (desiredStateArg.targetState) {
+      await this.applyTargetState(desiredStateArg.targetState, 'Cloudly desired target state');
+    }
+    if (desiredStateArg.release && desiredStateArg.release !== this.state!.lastRelease) {
+      if (!(await this.supervisorClient.isAvailable())) {
+        console.warn('Skipping desired release update because Balena Supervisor API is unavailable');
+        return;
+      }
+      await this.supervisorClient.triggerUpdate({ force: true });
+      this.state!.lastRelease = desiredStateArg.release;
+      this.state!.lastReleaseUpdateTriggeredAt = Date.now();
+      this.state!.updatedAt = Date.now();
+      await this.saveState();
+    }
+  }
+
+  private async applyTargetState(targetStateArg: Record<string, unknown>, sourceArg: string) {
+    const targetStateHash = await this.hashJson(targetStateArg);
+    if (this.state!.lastTargetStateHash === targetStateHash) {
+      return;
+    }
+    if (!(await this.supervisorClient.isAvailable())) {
+      console.warn(`Skipping ${sourceArg} because Balena Supervisor API is unavailable`);
+      return;
+    }
+    await this.supervisorClient.setLocalTargetState(targetStateArg);
+    this.state!.lastTargetStateHash = targetStateHash;
+    this.state!.lastTargetStateAppliedAt = Date.now();
+    this.state!.updatedAt = Date.now();
+    await this.saveState();
+    console.log(`Applied ${sourceArg}`);
+  }
+
+  private normalizeTargetState(targetStateArg: Record<string, unknown>) {
+    if (this.isRecord(targetStateArg.local)) {
+      return targetStateArg;
+    }
+    if (this.isRecord(targetStateArg.targetState)) {
+      return targetStateArg.targetState;
+    }
+    throw new Error('BaseOS target state must contain a local target state object');
+  }
+
+  private async hashJson(valueArg: unknown) {
+    const encoded = new TextEncoder().encode(JSON.stringify(valueArg));
+    const digest = await crypto.subtle.digest('SHA-256', encoded);
+    return Array.from(new Uint8Array(digest))
+      .map((byteArg) => byteArg.toString(16).padStart(2, '0'))
+      .join('');
+  }
+
+  private isRecord(valueArg: unknown): valueArg is Record<string, unknown> {
+    return Boolean(valueArg) && typeof valueArg === 'object' && !Array.isArray(valueArg);
+  }
+
   private async ensureInitialized() {
     if (!this.state) {
       await this.init();
diff --git a/ts/classes.supervisorclient.ts b/ts/classes.supervisorclient.ts
index 938c120..a412d7e 100644
--- a/ts/classes.supervisorclient.ts
+++ b/ts/classes.supervisorclient.ts
@@ -39,6 +39,29 @@ export class SupervisorClient {
     return await this.requestJson<IBalenaStateStatus>('/v2/state/status');
   }
 
+  public async getLocalTargetState(): Promise<Record<string, unknown>> {
+    const response = await this.requestJson<{ state?: Record<string, unknown> }>(
+      '/v2/local/target-state',
+      {},
+      false,
+    );
+    return response.state || {};
+  }
+
+  public async setLocalTargetState(targetStateArg: Record<string, unknown>) {
+    await this.requestJson<{ status?: string; message?: string }>(
+      '/v2/local/target-state',
+      {
+        method: 'POST',
+        body: JSON.stringify(targetStateArg),
+        headers: {
+          'content-type': 'application/json',
+        },
+      },
+      false,
+    );
+  }
+
   public async getSupervisorVersion(): Promise<string | undefined> {
     const response = await this.requestJson<{ version?: string }>('/v2/version');
     return response.version;
@@ -72,8 +95,9 @@ export class SupervisorClient {
   private async requestJson<TResponse>(
     pathArg: string,
     initArg: RequestInit = {},
+    includeApiKeyArg = true,
   ): Promise<TResponse> {
-    const response = await fetch(this.buildUrl(pathArg, true), initArg);
+    const response = await fetch(this.buildUrl(pathArg, includeApiKeyArg), initArg);
     if (!response.ok) {
       throw new Error(`Supervisor request failed: ${pathArg} -> HTTP ${response.status}`);
     }
diff --git a/ts/types.ts b/ts/types.ts
index 2bca9a5..482a235 100644
--- a/ts/types.ts
+++ b/ts/types.ts
@@ -15,11 +15,16 @@ export interface IBaseRunnerConfig {
   heartbeatIntervalMs: number;
   supervisorAddress?: string;
   supervisorApiKey?: string;
+  preloadTargetStatePath?: string;
 }
 
 export interface IBaseRunnerState {
   nodeId: string;
   nodeToken?: string;
+  lastTargetStateHash?: string;
+  lastTargetStateAppliedAt?: number;
+  lastRelease?: string;
+  lastReleaseUpdateTriggeredAt?: number;
   createdAt: number;
   updatedAt: number;
 }
@@ -73,6 +78,7 @@ export interface ICloudlyRegisterResult {
   nodeToken?: string;
   accepted: boolean;
   message?: string;
+  desiredState?: IBaseOsDesiredState;
 }
 
 export interface ICloudlyHeartbeatResult {