diff --git a/.test_patterns.yml b/.test_patterns.yml
index 098f71697288..506b15f4fe28 100644
--- a/.test_patterns.yml
+++ b/.test_patterns.yml
@@ -104,6 +104,10 @@ tests:
     error_regex: "TimeoutError: Timeout awaiting isMined"
     owners:
       - *palla
+  - regex: "simple e2e_p2p/gossip_network"
+    error_regex: "TimeoutError: Timeout awaiting isMined"
+    owners:
+      - *palla
   - regex: "simple e2e_fees/private_payments"
     owners:
       - *phil
diff --git a/yarn-project/archiver/src/test/mock_l2_block_source.ts b/yarn-project/archiver/src/test/mock_l2_block_source.ts
index 3f954b58aaa2..a2bcb65fdb9e 100644
--- a/yarn-project/archiver/src/test/mock_l2_block_source.ts
+++ b/yarn-project/archiver/src/test/mock_l2_block_source.ts
@@ -1,15 +1,19 @@
 import { DefaultL1ContractsConfig } from '@aztec/ethereum';
 import { Buffer32 } from '@aztec/foundation/buffer';
 import { EthAddress } from '@aztec/foundation/eth-address';
+import type { Fr } from '@aztec/foundation/fields';
 import { createLogger } from '@aztec/foundation/log';
+import type { FunctionSelector } from '@aztec/stdlib/abi';
+import type { AztecAddress } from '@aztec/stdlib/aztec-address';
 import { L2Block, L2BlockHash, type L2BlockSource, type L2Tips } from '@aztec/stdlib/block';
+import type { ContractClassPublic, ContractDataSource, ContractInstanceWithAddress } from '@aztec/stdlib/contract';
 import { type L1RollupConstants, getSlotRangeForEpoch } from '@aztec/stdlib/epoch-helpers';
 import { type BlockHeader, TxHash, TxReceipt, TxStatus } from '@aztec/stdlib/tx';
 
 /**
  * A mocked implementation of L2BlockSource to be used in tests.
  */
-export class MockL2BlockSource implements L2BlockSource {
+export class MockL2BlockSource implements L2BlockSource, ContractDataSource {
   protected l2Blocks: L2Block[] = [];
 
   private provenBlockNumber: number = 0;
@@ -221,4 +225,28 @@ export class MockL2BlockSource implements L2BlockSource {
     this.log.verbose('Stopping mock L2 block source');
     return Promise.resolve();
   }
+
+  getContractClass(_id: Fr): Promise<ContractClassPublic | undefined> {
+    return Promise.resolve(undefined);
+  }
+
+  getBytecodeCommitment(_id: Fr): Promise<Fr | undefined> {
+    return Promise.resolve(undefined);
+  }
+
+  getContract(_address: AztecAddress, _blockNumber?: number): Promise<ContractInstanceWithAddress | undefined> {
+    return Promise.resolve(undefined);
+  }
+
+  getContractClassIds(): Promise<Fr[]> {
+    return Promise.resolve([]);
+  }
+
+  getDebugFunctionName(_address: AztecAddress, _selector: FunctionSelector): Promise<string | undefined> {
+    return Promise.resolve(undefined);
+  }
+
+  registerContractFunctionSignatures(_address: AztecAddress, _signatures: string[]): Promise<void> {
+    return Promise.resolve();
+  }
 }
diff --git a/yarn-project/aztec-node/src/aztec-node/server.ts b/yarn-project/aztec-node/src/aztec-node/server.ts
index be053acd29cb..73d576dc15c1 100644
--- a/yarn-project/aztec-node/src/aztec-node/server.ts
+++ b/yarn-project/aztec-node/src/aztec-node/server.ts
@@ -23,7 +23,7 @@ import { openTmpStore } from '@aztec/kv-store/lmdb';
 import { RollupAbi } from '@aztec/l1-artifacts';
 import { SHA256Trunc, StandardTree, UnbalancedTree } from '@aztec/merkle-tree';
 import { trySnapshotSync, uploadSnapshot } from '@aztec/node-lib/actions';
-import { type P2P, createP2PClient } from '@aztec/p2p';
+import { type P2P, createP2PClient, getDefaultAllowedSetupFunctions } from '@aztec/p2p';
 import { ProtocolContractAddress } from '@aztec/protocol-contracts';
 import {
   GlobalVariableBuilder,
@@ -31,7 +31,6 @@ import {
   type SequencerPublisher,
   createSlasherClient,
   createValidatorForAcceptingTxs,
-  getDefaultAllowedSetupFunctions,
 } from '@aztec/sequencer-client';
 import { PublicProcessorFactory } from '@aztec/simulator/server';
 import { AztecAddress } from '@aztec/stdlib/aztec-address';
@@ -989,7 +988,7 @@ export class AztecNodeService implements AztecNode, AztecNodeAdmin, Traceable {
       blockNumber,
       l1ChainId: this.l1ChainId,
       rollupVersion: this.version,
-      setupAllowList: this.config.allowedInSetup ?? (await getDefaultAllowedSetupFunctions()),
+      setupAllowList: this.config.txPublicSetupAllowList ?? (await getDefaultAllowedSetupFunctions()),
       gasFees: await this.getCurrentBaseFees(),
       skipFeeEnforcement,
     });
diff --git a/yarn-project/foundation/src/config/env_var.ts b/yarn-project/foundation/src/config/env_var.ts
index 4c73fa2aafd5..868f9fa9fcad 100644
--- a/yarn-project/foundation/src/config/env_var.ts
+++ b/yarn-project/foundation/src/config/env_var.ts
@@ -148,7 +148,6 @@ export type EnvVar =
   | 'ROLLUP_CONTRACT_ADDRESS'
   | 'SENTINEL_ENABLED'
   | 'SENTINEL_HISTORY_LENGTH_IN_EPOCHS'
-  | 'SEQ_ALLOWED_SETUP_FN'
   | 'SEQ_MAX_BLOCK_SIZE_IN_BYTES'
   | 'SEQ_MAX_TX_PER_BLOCK'
   | 'SEQ_MIN_TX_PER_BLOCK'
@@ -169,6 +168,7 @@ export type EnvVar =
   | 'TEST_ACCOUNTS'
   | 'SPONSORED_FPC'
   | 'TX_GOSSIP_VERSION'
+  | 'TX_PUBLIC_SETUP_ALLOWLIST'
   | 'TXE_PORT'
   | 'VALIDATOR_ATTESTATIONS_POLLING_INTERVAL_MS'
   | 'VALIDATOR_DISABLED'
diff --git a/yarn-project/p2p/package.json b/yarn-project/p2p/package.json
index e25fd653cd31..57776c68f256 100644
--- a/yarn-project/p2p/package.json
+++ b/yarn-project/p2p/package.json
@@ -69,8 +69,10 @@
     "@aztec/epoch-cache": "workspace:^",
     "@aztec/foundation": "workspace:^",
     "@aztec/kv-store": "workspace:^",
+    "@aztec/noir-contracts.js": "workspace:^",
     "@aztec/noir-protocol-circuits-types": "workspace:^",
     "@aztec/protocol-contracts": "workspace:^",
+    "@aztec/simulator": "workspace:^",
     "@aztec/stdlib": "workspace:^",
     "@aztec/telemetry-client": "workspace:^",
     "@chainsafe/discv5": "9.0.0",
diff --git a/yarn-project/p2p/src/client/factory.ts b/yarn-project/p2p/src/client/factory.ts
index cfbffd945bdb..bf1ba3bd40d5 100644
--- a/yarn-project/p2p/src/client/factory.ts
+++ b/yarn-project/p2p/src/client/factory.ts
@@ -4,6 +4,7 @@ import type { AztecAsyncKVStore } from '@aztec/kv-store';
 import type { DataStoreConfig } from '@aztec/kv-store/config';
 import { createStore } from '@aztec/kv-store/lmdb-v2';
 import type { L2BlockSource } from '@aztec/stdlib/block';
+import type { ContractDataSource } from '@aztec/stdlib/contract';
 import type { ClientProtocolCircuitVerifier, WorldStateSynchronizer } from '@aztec/stdlib/interfaces/server';
 import { P2PClientType } from '@aztec/stdlib/p2p';
 import { type TelemetryClient, getTelemetryClient } from '@aztec/telemetry-client';
@@ -29,7 +30,7 @@ type P2PClientDeps<T extends P2PClientType> = {
 export const createP2PClient = async <T extends P2PClientType>(
   clientType: T,
   _config: P2PConfig & DataStoreConfig,
-  l2BlockSource: L2BlockSource,
+  archiver: L2BlockSource & ContractDataSource,
   proofVerifier: ClientProtocolCircuitVerifier,
   worldStateSynchronizer: WorldStateSynchronizer,
   epochCache: EpochCacheInterface,
@@ -73,7 +74,7 @@ export const createP2PClient = async <T extends P2PClientType>(
       discoveryService,
       peerId,
       mempools,
-      l2BlockSource,
+      archiver,
       epochCache,
       proofVerifier,
       worldStateSynchronizer,
@@ -85,5 +86,5 @@ export const createP2PClient = async <T extends P2PClientType>(
     logger.verbose('P2P is disabled. Using dummy P2P service');
     p2pService = new DummyP2PService();
   }
-  return new P2PClient(clientType, store, l2BlockSource, mempools, p2pService, config, telemetry);
+  return new P2PClient(clientType, store, archiver, mempools, p2pService, config, telemetry);
 };
diff --git a/yarn-project/p2p/src/client/p2p_client.ts b/yarn-project/p2p/src/client/p2p_client.ts
index d1b0747cccb1..6074e6cca71c 100644
--- a/yarn-project/p2p/src/client/p2p_client.ts
+++ b/yarn-project/p2p/src/client/p2p_client.ts
@@ -9,6 +9,7 @@ import type {
   L2Tips,
   PublishedL2Block,
 } from '@aztec/stdlib/block';
+import type { ContractDataSource } from '@aztec/stdlib/contract';
 import type { P2PApi, PeerInfo, ProverCoordination } from '@aztec/stdlib/interfaces/server';
 import { BlockAttestation, type BlockProposal, ConsensusPayload, type P2PClientType } from '@aztec/stdlib/p2p';
 import type { Tx, TxHash } from '@aztec/stdlib/tx';
@@ -211,7 +212,7 @@ export class P2PClient<T extends P2PClientType = P2PClientType.Full>
   constructor(
     _clientType: T,
     store: AztecAsyncKVStore,
-    private l2BlockSource: L2BlockSource,
+    private l2BlockSource: L2BlockSource & ContractDataSource,
     mempools: MemPools<T>,
     private p2pService: P2PService,
     config: Partial<P2PConfig> = {},
diff --git a/yarn-project/sequencer-client/src/config.test.ts b/yarn-project/p2p/src/config.test.ts
similarity index 80%
rename from yarn-project/sequencer-client/src/config.test.ts
rename to yarn-project/p2p/src/config.test.ts
index 77bf867dda67..4b84aed21d1e 100644
--- a/yarn-project/sequencer-client/src/config.test.ts
+++ b/yarn-project/p2p/src/config.test.ts
@@ -2,10 +2,10 @@ import { Fr } from '@aztec/foundation/fields';
 import { FunctionSelector } from '@aztec/stdlib/abi';
 import { AztecAddress } from '@aztec/stdlib/aztec-address';
 
-import { parseSequencerAllowList } from './config.js';
+import { parseAllowList } from './config.js';
 
-describe('sequencer config', () => {
-  it('parse a sequencer config', async () => {
+describe('config', () => {
+  it('parses allow list', async () => {
     const instance = { address: await AztecAddress.random() };
     const instanceFunction = { address: await AztecAddress.random(), selector: FunctionSelector.random() };
     const classId = { classId: Fr.random() };
@@ -21,7 +21,7 @@ describe('sequencer config', () => {
     ];
     const stringifiedAllowList = configStrings.join(',');
 
-    const allowList = parseSequencerAllowList(stringifiedAllowList);
+    const allowList = parseAllowList(stringifiedAllowList);
     expect(allowList).toEqual(config);
   });
 });
diff --git a/yarn-project/p2p/src/config.ts b/yarn-project/p2p/src/config.ts
index ce45457b02d1..d8dc390205d2 100644
--- a/yarn-project/p2p/src/config.ts
+++ b/yarn-project/p2p/src/config.ts
@@ -6,8 +6,11 @@ import {
   numberConfigHelper,
   pickConfigMappings,
 } from '@aztec/foundation/config';
+import { Fr } from '@aztec/foundation/fields';
 import { type DataStoreConfig, dataConfigMappings } from '@aztec/kv-store/config';
-import { type ChainConfig, chainConfigMappings } from '@aztec/stdlib/config';
+import { FunctionSelector } from '@aztec/stdlib/abi';
+import { AztecAddress } from '@aztec/stdlib/aztec-address';
+import { type AllowedElement, type ChainConfig, chainConfigMappings } from '@aztec/stdlib/config';
 
 import { type P2PReqRespConfig, p2pReqRespConfigMappings } from './services/reqresp/config.js';
 
@@ -169,6 +172,9 @@ export interface P2PConfig extends P2PReqRespConfig, ChainConfig {
    * The maximum possible size of the P2P DB in KB. Overwrites the general dataStoreMapSizeKB.
    */
   p2pStoreMapSizeKb?: number;
+
+  /** Which calls are allowed in the public setup phase of a tx. */
+  txPublicSetupAllowList: AllowedElement[];
 }
 
 export const p2pConfigMappings: ConfigMappingsType<P2PConfig> = {
@@ -341,6 +347,13 @@ export const p2pConfigMappings: ConfigMappingsType<P2PConfig> = {
     parseEnv: (val: string | undefined) => (val ? +val : undefined),
     description: 'The maximum possible size of the P2P DB in KB. Overwrites the general dataStoreMapSizeKB.',
   },
+  txPublicSetupAllowList: {
+    env: 'TX_PUBLIC_SETUP_ALLOWLIST',
+    parseEnv: (val: string) => parseAllowList(val),
+    description: 'The list of functions calls allowed to run in setup',
+    printDefault: () =>
+      'AuthRegistry, FeeJuice.increase_public_balance, Token.increase_public_balance, FPC.prepare_fee',
+  },
   ...p2pReqRespConfigMappings,
   ...chainConfigMappings,
 };
@@ -383,3 +396,53 @@ export const bootnodeConfigMappings = pickConfigMappings(
   { ...p2pConfigMappings, ...dataConfigMappings, ...chainConfigMappings },
   bootnodeConfigKeys,
 );
+
+/**
+ * Parses a string to a list of allowed elements.
+ * Each encoded is expected to be of one of the following formats
+ * `I:${address}`
+ * `I:${address}:${selector}`
+ * `C:${classId}`
+ * `C:${classId}:${selector}`
+ *
+ * @param value The string to parse
+ * @returns A list of allowed elements
+ */
+export function parseAllowList(value: string): AllowedElement[] {
+  const entries: AllowedElement[] = [];
+
+  if (!value) {
+    return entries;
+  }
+
+  for (const val of value.split(',')) {
+    const [typeString, identifierString, selectorString] = val.split(':');
+    const selector = selectorString !== undefined ? FunctionSelector.fromString(selectorString) : undefined;
+
+    if (typeString === 'I') {
+      if (selector) {
+        entries.push({
+          address: AztecAddress.fromString(identifierString),
+          selector,
+        });
+      } else {
+        entries.push({
+          address: AztecAddress.fromString(identifierString),
+        });
+      }
+    } else if (typeString === 'C') {
+      if (selector) {
+        entries.push({
+          classId: Fr.fromHexString(identifierString),
+          selector,
+        });
+      } else {
+        entries.push({
+          classId: Fr.fromHexString(identifierString),
+        });
+      }
+    }
+  }
+
+  return entries;
+}
diff --git a/yarn-project/sequencer-client/src/sequencer/allowed.ts b/yarn-project/p2p/src/msg_validators/tx_validator/allowed_public_setup.ts
similarity index 99%
rename from yarn-project/sequencer-client/src/sequencer/allowed.ts
rename to yarn-project/p2p/src/msg_validators/tx_validator/allowed_public_setup.ts
index 7afa2fb5a597..64578772ea82 100644
--- a/yarn-project/sequencer-client/src/sequencer/allowed.ts
+++ b/yarn-project/p2p/src/msg_validators/tx_validator/allowed_public_setup.ts
@@ -5,7 +5,6 @@ import { getContractClassFromArtifact } from '@aztec/stdlib/contract';
 import type { AllowedElement } from '@aztec/stdlib/interfaces/server';
 
 let defaultAllowedSetupFunctions: AllowedElement[] | undefined = undefined;
-
 export async function getDefaultAllowedSetupFunctions(): Promise<AllowedElement[]> {
   if (defaultAllowedSetupFunctions === undefined) {
     defaultAllowedSetupFunctions = [
diff --git a/yarn-project/sequencer-client/src/tx_validator/gas_validator.test.ts b/yarn-project/p2p/src/msg_validators/tx_validator/gas_validator.test.ts
similarity index 97%
rename from yarn-project/sequencer-client/src/tx_validator/gas_validator.test.ts
rename to yarn-project/p2p/src/msg_validators/tx_validator/gas_validator.test.ts
index 0e553c0debf7..46ac4608fa96 100644
--- a/yarn-project/sequencer-client/src/tx_validator/gas_validator.test.ts
+++ b/yarn-project/p2p/src/msg_validators/tx_validator/gas_validator.test.ts
@@ -6,11 +6,12 @@ import { FunctionSelector } from '@aztec/stdlib/abi';
 import { AztecAddress } from '@aztec/stdlib/aztec-address';
 import { GasFees, GasSettings } from '@aztec/stdlib/gas';
 import { mockTx } from '@aztec/stdlib/testing';
+import type { PublicStateSource } from '@aztec/stdlib/trees';
 import type { Tx } from '@aztec/stdlib/tx';
 
 import { type MockProxy, mock, mockFn } from 'jest-mock-extended';
 
-import { GasTxValidator, type PublicStateSource } from './gas_validator.js';
+import { GasTxValidator } from './gas_validator.js';
 import { patchNonRevertibleFn, patchRevertibleFn } from './test_utils.js';
 
 describe('GasTxValidator', () => {
diff --git a/yarn-project/sequencer-client/src/tx_validator/gas_validator.ts b/yarn-project/p2p/src/msg_validators/tx_validator/gas_validator.ts
similarity index 94%
rename from yarn-project/sequencer-client/src/tx_validator/gas_validator.ts
rename to yarn-project/p2p/src/msg_validators/tx_validator/gas_validator.ts
index ce68b853a77b..b6760290d83e 100644
--- a/yarn-project/sequencer-client/src/tx_validator/gas_validator.ts
+++ b/yarn-project/p2p/src/msg_validators/tx_validator/gas_validator.ts
@@ -1,17 +1,12 @@
-import { Fr } from '@aztec/foundation/fields';
 import { createLogger } from '@aztec/foundation/log';
 import { computeFeePayerBalanceStorageSlot } from '@aztec/protocol-contracts/fee-juice';
 import { getCallRequestsWithCalldataByPhase } from '@aztec/simulator/server';
 import { FunctionSelector } from '@aztec/stdlib/abi';
 import type { AztecAddress } from '@aztec/stdlib/aztec-address';
 import type { GasFees } from '@aztec/stdlib/gas';
+import type { PublicStateSource } from '@aztec/stdlib/trees';
 import { type Tx, TxExecutionPhase, type TxValidationResult, type TxValidator } from '@aztec/stdlib/tx';
 
-/** Provides a view into public contract state */
-export interface PublicStateSource {
-  storageRead: (contractAddress: AztecAddress, slot: Fr) => Promise<Fr>;
-}
-
 export class GasTxValidator implements TxValidator<Tx> {
   #log = createLogger('sequencer:tx_validator:tx_gas');
   #publicDataSource: PublicStateSource;
diff --git a/yarn-project/p2p/src/msg_validators/tx_validator/index.ts b/yarn-project/p2p/src/msg_validators/tx_validator/index.ts
index de02c4d7d966..09ccbfa163eb 100644
--- a/yarn-project/p2p/src/msg_validators/tx_validator/index.ts
+++ b/yarn-project/p2p/src/msg_validators/tx_validator/index.ts
@@ -4,3 +4,7 @@ export * from './double_spend_validator.js';
 export * from './metadata_validator.js';
 export * from './tx_proof_validator.js';
 export * from './block_header_validator.js';
+export * from './gas_validator.js';
+export * from './phases_validator.js';
+export * from './test_utils.js';
+export * from './allowed_public_setup.js';
diff --git a/yarn-project/sequencer-client/src/tx_validator/phases_validator.test.ts b/yarn-project/p2p/src/msg_validators/tx_validator/phases_validator.test.ts
similarity index 100%
rename from yarn-project/sequencer-client/src/tx_validator/phases_validator.test.ts
rename to yarn-project/p2p/src/msg_validators/tx_validator/phases_validator.test.ts
diff --git a/yarn-project/sequencer-client/src/tx_validator/phases_validator.ts b/yarn-project/p2p/src/msg_validators/tx_validator/phases_validator.ts
similarity index 98%
rename from yarn-project/sequencer-client/src/tx_validator/phases_validator.ts
rename to yarn-project/p2p/src/msg_validators/tx_validator/phases_validator.ts
index e69be753429f..e69301fcd1d2 100644
--- a/yarn-project/sequencer-client/src/tx_validator/phases_validator.ts
+++ b/yarn-project/p2p/src/msg_validators/tx_validator/phases_validator.ts
@@ -3,7 +3,7 @@ import { PublicContractsDB, getCallRequestsWithCalldataByPhase } from '@aztec/si
 import type { ContractDataSource } from '@aztec/stdlib/contract';
 import type { AllowedElement } from '@aztec/stdlib/interfaces/server';
 import {
-  PublicCallRequestWithCalldata,
+  type PublicCallRequestWithCalldata,
   Tx,
   TxExecutionPhase,
   type TxValidationResult,
diff --git a/yarn-project/sequencer-client/src/tx_validator/test_utils.ts b/yarn-project/p2p/src/msg_validators/tx_validator/test_utils.ts
similarity index 100%
rename from yarn-project/sequencer-client/src/tx_validator/test_utils.ts
rename to yarn-project/p2p/src/msg_validators/tx_validator/test_utils.ts
diff --git a/yarn-project/p2p/src/services/libp2p/libp2p_service.ts b/yarn-project/p2p/src/services/libp2p/libp2p_service.ts
index 3afa90be7350..15347435837b 100644
--- a/yarn-project/p2p/src/services/libp2p/libp2p_service.ts
+++ b/yarn-project/p2p/src/services/libp2p/libp2p_service.ts
@@ -4,7 +4,10 @@ import { createLibp2pComponentLogger, createLogger } from '@aztec/foundation/log
 import { SerialQueue } from '@aztec/foundation/queue';
 import { RunningPromise } from '@aztec/foundation/running-promise';
 import type { AztecAsyncKVStore } from '@aztec/kv-store';
+import { ProtocolContractAddress } from '@aztec/protocol-contracts';
 import type { L2BlockSource } from '@aztec/stdlib/block';
+import type { ContractDataSource } from '@aztec/stdlib/contract';
+import { GasFees } from '@aztec/stdlib/gas';
 import type { ClientProtocolCircuitVerifier, PeerInfo, WorldStateSynchronizer } from '@aztec/stdlib/interfaces/server';
 import {
   BlockAttestation,
@@ -16,7 +19,7 @@ import {
   getTopicTypeForClientType,
   metricsTopicStrToLabels,
 } from '@aztec/stdlib/p2p';
-import { MerkleTreeId } from '@aztec/stdlib/trees';
+import { DatabasePublicStateSource, MerkleTreeId } from '@aztec/stdlib/trees';
 import { Tx, type TxHash, type TxValidationResult } from '@aztec/stdlib/tx';
 import { Attributes, OtelMetricsAdapter, type TelemetryClient, WithTracer, trackSpan } from '@aztec/telemetry-client';
 
@@ -43,10 +46,13 @@ import { createLibp2p } from 'libp2p';
 import type { P2PConfig } from '../../config.js';
 import type { MemPools } from '../../mem_pools/interface.js';
 import { AttestationValidator, BlockProposalValidator } from '../../msg_validators/index.js';
+import { getDefaultAllowedSetupFunctions } from '../../msg_validators/tx_validator/allowed_public_setup.js';
 import {
   DataTxValidator,
   DoubleSpendTxValidator,
+  GasTxValidator,
   MetadataTxValidator,
+  PhasesTxValidator,
   TxProofValidator,
 } from '../../msg_validators/tx_validator/index.js';
 import { GossipSubEvent } from '../../types/index.js';
@@ -95,6 +101,8 @@ export class LibP2PService<T extends P2PClientType> extends WithTracer implement
   // Trusted peers ids
   private trustedPeersIds: PeerId[] = [];
 
+  private feesCache: { blockNumber: number; gasFees: GasFees } | undefined;
+
   /**
    * Callback for when a block is received from a peer.
    * @param block - The block received from the peer.
@@ -110,7 +118,7 @@ export class LibP2PService<T extends P2PClientType> extends WithTracer implement
     private node: PubSubLibp2p,
     private peerDiscoveryService: PeerDiscoveryService,
     private mempools: MemPools<T>,
-    private l2BlockSource: L2BlockSource,
+    private archiver: L2BlockSource & ContractDataSource,
     epochCache: EpochCacheInterface,
     private proofVerifier: ClientProtocolCircuitVerifier,
     private worldStateSynchronizer: WorldStateSynchronizer,
@@ -164,7 +172,7 @@ export class LibP2PService<T extends P2PClientType> extends WithTracer implement
     peerDiscoveryService: PeerDiscoveryService,
     peerId: PeerId,
     mempools: MemPools<T>,
-    l2BlockSource: L2BlockSource,
+    l2BlockSource: L2BlockSource & ContractDataSource,
     epochCache: EpochCacheInterface,
     proofVerifier: ClientProtocolCircuitVerifier,
     worldStateSynchronizer: WorldStateSynchronizer,
@@ -322,7 +330,7 @@ export class LibP2PService<T extends P2PClientType> extends WithTracer implement
     // Create request response protocol handlers
     const txHandler = reqRespTxHandler(this.mempools);
     const goodbyeHandler = reqGoodbyeHandler(this.peerManager);
-    const blockHandler = reqRespBlockHandler(this.l2BlockSource);
+    const blockHandler = reqRespBlockHandler(this.archiver);
 
     const requestResponseHandlers = {
       [ReqRespSubProtocol.PING]: pingHandler,
@@ -686,8 +694,8 @@ export class LibP2PService<T extends P2PClientType> extends WithTracer implement
     [Attributes.TX_HASH]: (await tx.getTxHash()).toString(),
   }))
   private async validatePropagatedTx(tx: Tx, peerId: PeerId): Promise<boolean> {
-    const blockNumber = (await this.l2BlockSource.getBlockNumber()) + 1;
-    const messageValidators = this.createMessageValidators(blockNumber);
+    const blockNumber = (await this.archiver.getBlockNumber()) + 1;
+    const messageValidators = await this.createMessageValidators(blockNumber);
     const outcome = await this.runValidations(tx, messageValidators);
 
     if (outcome.allPassed) {
@@ -705,6 +713,17 @@ export class LibP2PService<T extends P2PClientType> extends WithTracer implement
     return false;
   }
 
+  private async getGasFees(blockNumber: number): Promise<GasFees> {
+    if (blockNumber === this.feesCache?.blockNumber) {
+      return this.feesCache.gasFees;
+    }
+
+    const header = await this.archiver.getBlockHeader(blockNumber);
+    const gasFees = header?.globalVariables.gasFees ?? GasFees.empty();
+    this.feesCache = { blockNumber, gasFees };
+    return gasFees;
+  }
+
   /**
    * Create message validators for the given block number.
    *
@@ -714,7 +733,11 @@ export class LibP2PService<T extends P2PClientType> extends WithTracer implement
    * @param blockNumber - The block number to create validators for.
    * @returns The message validators.
    */
-  private createMessageValidators(blockNumber: number): Record<string, MessageValidator> {
+  private async createMessageValidators(blockNumber: number): Promise<Record<string, MessageValidator>> {
+    const merkleTree = this.worldStateSynchronizer.getCommitted();
+    const gasFees = await this.getGasFees(blockNumber - 1);
+    const allowedInSetup = this.config.txPublicSetupAllowList ?? (await getDefaultAllowedSetupFunctions());
+
     return {
       dataValidator: {
         validator: new DataTxValidator(),
@@ -742,6 +765,18 @@ export class LibP2PService<T extends P2PClientType> extends WithTracer implement
         }),
         severity: PeerErrorSeverity.HighToleranceError,
       },
+      gasValidator: {
+        validator: new GasTxValidator(
+          new DatabasePublicStateSource(merkleTree),
+          ProtocolContractAddress.FeeJuice,
+          gasFees,
+        ),
+        severity: PeerErrorSeverity.HighToleranceError,
+      },
+      phasesValidator: {
+        validator: new PhasesTxValidator(this.archiver, allowedInSetup, blockNumber),
+        severity: PeerErrorSeverity.MidToleranceError,
+      },
     };
   }
 
diff --git a/yarn-project/p2p/src/test-helpers/reqresp-nodes.ts b/yarn-project/p2p/src/test-helpers/reqresp-nodes.ts
index 0378a585e0ef..89a04dc70106 100644
--- a/yarn-project/p2p/src/test-helpers/reqresp-nodes.ts
+++ b/yarn-project/p2p/src/test-helpers/reqresp-nodes.ts
@@ -4,6 +4,7 @@ import type { DataStoreConfig } from '@aztec/kv-store/config';
 import { openTmpStore } from '@aztec/kv-store/lmdb-v2';
 import type { L2BlockSource } from '@aztec/stdlib/block';
 import { type ChainConfig, emptyChainConfig } from '@aztec/stdlib/config';
+import type { ContractDataSource } from '@aztec/stdlib/contract';
 import type { ClientProtocolCircuitVerifier, WorldStateSynchronizer } from '@aztec/stdlib/interfaces/server';
 import type { P2PClientType } from '@aztec/stdlib/p2p';
 import type { Tx } from '@aztec/stdlib/tx';
@@ -98,7 +99,7 @@ export async function createLibp2pNode(
 export async function createTestLibP2PService<T extends P2PClientType>(
   clientType: T,
   boostrapAddrs: string[] = [],
-  l2BlockSource: L2BlockSource,
+  archiver: L2BlockSource & ContractDataSource,
   worldStateSynchronizer: WorldStateSynchronizer,
   epochCache: EpochCache,
   mempools: MemPools<T>,
@@ -131,7 +132,7 @@ export async function createTestLibP2PService<T extends P2PClientType>(
     p2pNode as PubSubLibp2p,
     discoveryService,
     mempools,
-    l2BlockSource,
+    archiver,
     epochCache,
     proofVerifier,
     worldStateSynchronizer,
diff --git a/yarn-project/p2p/tsconfig.json b/yarn-project/p2p/tsconfig.json
index 07a8d5deb658..b998de96930c 100644
--- a/yarn-project/p2p/tsconfig.json
+++ b/yarn-project/p2p/tsconfig.json
@@ -18,12 +18,18 @@
     {
       "path": "../kv-store"
     },
+    {
+      "path": "../noir-contracts.js"
+    },
     {
       "path": "../noir-protocol-circuits-types"
     },
     {
       "path": "../protocol-contracts"
     },
+    {
+      "path": "../simulator"
+    },
     {
       "path": "../stdlib"
     },
diff --git a/yarn-project/sequencer-client/src/config.ts b/yarn-project/sequencer-client/src/config.ts
index 967ffe542edf..f39056ed737f 100644
--- a/yarn-project/sequencer-client/src/config.ts
+++ b/yarn-project/sequencer-client/src/config.ts
@@ -12,10 +12,9 @@ import {
   pickConfigMappings,
 } from '@aztec/foundation/config';
 import { EthAddress } from '@aztec/foundation/eth-address';
-import { Fr } from '@aztec/foundation/fields';
-import { FunctionSelector } from '@aztec/stdlib/abi';
+import { type P2PConfig, p2pConfigMappings } from '@aztec/p2p';
 import { AztecAddress } from '@aztec/stdlib/aztec-address';
-import { type AllowedElement, type ChainConfig, type SequencerConfig, chainConfigMappings } from '@aztec/stdlib/config';
+import { type ChainConfig, type SequencerConfig, chainConfigMappings } from '@aztec/stdlib/config';
 import { type ValidatorClientConfig, validatorClientConfigMappings } from '@aztec/validator-client';
 
 import {
@@ -37,6 +36,7 @@ export type SequencerClientConfig = PublisherConfig &
   SequencerConfig &
   L1ReaderConfig &
   ChainConfig &
+  Pick<P2PConfig, 'txPublicSetupAllowList'> &
   Pick<L1ContractsConfig, 'ethereumSlotDuration' | 'aztecSlotDuration' | 'aztecEpochDuration'>;
 
 export const sequencerConfigMappings: ConfigMappingsType<SequencerConfig> = {
@@ -83,13 +83,6 @@ export const sequencerConfigMappings: ConfigMappingsType<SequencerConfig> = {
     env: 'ACVM_BINARY_PATH',
     description: 'The path to the ACVM binary',
   },
-  allowedInSetup: {
-    env: 'SEQ_ALLOWED_SETUP_FN',
-    parseEnv: (val: string) => parseSequencerAllowList(val),
-    description: 'The list of functions calls allowed to run in setup',
-    printDefault: () =>
-      'AuthRegistry, FeeJuice.increase_public_balance, Token.increase_public_balance, FPC.prepare_fee',
-  },
   maxBlockSizeInBytes: {
     env: 'SEQ_MAX_BLOCK_SIZE_IN_BYTES',
     description: 'Max block size',
@@ -112,6 +105,7 @@ export const sequencerConfigMappings: ConfigMappingsType<SequencerConfig> = {
     description: 'How many seconds into an L1 slot we can still send a tx and get it mined.',
     parseEnv: (val: string) => (val ? parseInt(val, 10) : undefined),
   },
+  ...pickConfigMappings(p2pConfigMappings, ['txPublicSetupAllowList']),
 };
 
 export const sequencerClientConfigMappings: ConfigMappingsType<SequencerClientConfig> = {
@@ -130,53 +124,3 @@ export const sequencerClientConfigMappings: ConfigMappingsType<SequencerClientCo
 export function getConfigEnvVars(): SequencerClientConfig {
   return getConfigFromMappings<SequencerClientConfig>(sequencerClientConfigMappings);
 }
-
-/**
- * Parses a string to a list of allowed elements.
- * Each encoded is expected to be of one of the following formats
- * `I:${address}`
- * `I:${address}:${selector}`
- * `C:${classId}`
- * `C:${classId}:${selector}`
- *
- * @param value The string to parse
- * @returns A list of allowed elements
- */
-export function parseSequencerAllowList(value: string): AllowedElement[] {
-  const entries: AllowedElement[] = [];
-
-  if (!value) {
-    return entries;
-  }
-
-  for (const val of value.split(',')) {
-    const [typeString, identifierString, selectorString] = val.split(':');
-    const selector = selectorString !== undefined ? FunctionSelector.fromString(selectorString) : undefined;
-
-    if (typeString === 'I') {
-      if (selector) {
-        entries.push({
-          address: AztecAddress.fromString(identifierString),
-          selector,
-        });
-      } else {
-        entries.push({
-          address: AztecAddress.fromString(identifierString),
-        });
-      }
-    } else if (typeString === 'C') {
-      if (selector) {
-        entries.push({
-          classId: Fr.fromHexString(identifierString),
-          selector,
-        });
-      } else {
-        entries.push({
-          classId: Fr.fromHexString(identifierString),
-        });
-      }
-    }
-  }
-
-  return entries;
-}
diff --git a/yarn-project/sequencer-client/src/index.ts b/yarn-project/sequencer-client/src/index.ts
index d5fc13c50efa..8cc80d39d616 100644
--- a/yarn-project/sequencer-client/src/index.ts
+++ b/yarn-project/sequencer-client/src/index.ts
@@ -3,7 +3,7 @@ export * from './config.js';
 export * from './publisher/index.js';
 export * from './tx_validator/tx_validator_factory.js';
 export * from './slasher/index.js';
-export { Sequencer, SequencerState, getDefaultAllowedSetupFunctions } from './sequencer/index.js';
+export { Sequencer, SequencerState } from './sequencer/index.js';
 
 // Used by the node to simulate public parts of transactions. Should these be moved to a shared library?
 // ISSUE(#9832)
diff --git a/yarn-project/sequencer-client/src/sequencer/index.ts b/yarn-project/sequencer-client/src/sequencer/index.ts
index 316084b13f13..459a5cab42ff 100644
--- a/yarn-project/sequencer-client/src/sequencer/index.ts
+++ b/yarn-project/sequencer-client/src/sequencer/index.ts
@@ -1,3 +1,2 @@
 export * from './config.js';
 export * from './sequencer.js';
-export * from './allowed.js';
diff --git a/yarn-project/sequencer-client/src/sequencer/sequencer.ts b/yarn-project/sequencer-client/src/sequencer/sequencer.ts
index 0f68f9e9d3d8..93b1566380f6 100644
--- a/yarn-project/sequencer-client/src/sequencer/sequencer.ts
+++ b/yarn-project/sequencer-client/src/sequencer/sequencer.ts
@@ -8,6 +8,7 @@ import { createLogger } from '@aztec/foundation/log';
 import { RunningPromise } from '@aztec/foundation/running-promise';
 import { type DateProvider, Timer, elapsed } from '@aztec/foundation/timer';
 import type { P2P } from '@aztec/p2p';
+import { getDefaultAllowedSetupFunctions } from '@aztec/p2p/msg_validators';
 import type { BlockBuilderFactory } from '@aztec/prover-client/block-builder';
 import type { PublicProcessorFactory } from '@aztec/simulator/server';
 import { AztecAddress } from '@aztec/stdlib/aztec-address';
@@ -47,7 +48,6 @@ import type { GlobalVariableBuilder } from '../global_variable_builder/global_bu
 import { type SequencerPublisher, VoteType } from '../publisher/sequencer-publisher.js';
 import type { SlasherClient } from '../slasher/slasher_client.js';
 import { createValidatorForBlockBuilding } from '../tx_validator/tx_validator_factory.js';
-import { getDefaultAllowedSetupFunctions } from './allowed.js';
 import type { SequencerConfig } from './config.js';
 import { SequencerMetrics } from './metrics.js';
 import { SequencerTimetable, SequencerTooSlowError } from './timetable.js';
@@ -76,7 +76,7 @@ export class Sequencer {
   private _coinbase = EthAddress.ZERO;
   private _feeRecipient = AztecAddress.ZERO;
   private state = SequencerState.STOPPED;
-  private allowedInSetup: AllowedElement[] = [];
+  private txPublicSetupAllowList: AllowedElement[] = [];
   private maxBlockSizeInBytes: number = 1024 * 1024;
   private maxBlockGas: Gas = new Gas(100e9, 100e9);
   private metrics: SequencerMetrics;
@@ -131,7 +131,10 @@ export class Sequencer {
    * @param config - New parameters.
    */
   public async updateConfig(config: SequencerConfig) {
-    this.log.info(`Sequencer config set`, omit(pickFromSchema(config, SequencerConfigSchema), 'allowedInSetup'));
+    this.log.info(
+      `Sequencer config set`,
+      omit(pickFromSchema(config, SequencerConfigSchema), 'txPublicSetupAllowList'),
+    );
 
     if (config.transactionPollingIntervalMS !== undefined) {
       this.pollingIntervalMs = config.transactionPollingIntervalMS;
@@ -154,10 +157,10 @@ export class Sequencer {
     if (config.feeRecipient) {
       this._feeRecipient = config.feeRecipient;
     }
-    if (config.allowedInSetup) {
-      this.allowedInSetup = config.allowedInSetup;
+    if (config.txPublicSetupAllowList) {
+      this.txPublicSetupAllowList = config.txPublicSetupAllowList;
     } else {
-      this.allowedInSetup = await getDefaultAllowedSetupFunctions();
+      this.txPublicSetupAllowList = await getDefaultAllowedSetupFunctions();
     }
     if (config.maxBlockSizeInBytes !== undefined) {
       this.maxBlockSizeInBytes = config.maxBlockSizeInBytes;
@@ -469,7 +472,7 @@ export class Sequencer {
         publicProcessorDBFork,
         this.contractDataSource,
         newGlobalVariables,
-        this.allowedInSetup,
+        this.txPublicSetupAllowList,
       );
 
       // TODO(#11000): Public processor should just handle processing, one tx at a time. It should be responsibility
diff --git a/yarn-project/sequencer-client/src/tx_validator/tx_validator_factory.ts b/yarn-project/sequencer-client/src/tx_validator/tx_validator_factory.ts
index bdb7f104f46a..4c0115952a9a 100644
--- a/yarn-project/sequencer-client/src/tx_validator/tx_validator_factory.ts
+++ b/yarn-project/sequencer-client/src/tx_validator/tx_validator_factory.ts
@@ -1,30 +1,27 @@
-import { MerkleTreeId } from '@aztec/aztec.js';
 import { Fr } from '@aztec/foundation/fields';
 import {
   AggregateTxValidator,
   BlockHeaderTxValidator,
   DataTxValidator,
   DoubleSpendTxValidator,
+  GasTxValidator,
   MetadataTxValidator,
+  PhasesTxValidator,
   TxProofValidator,
 } from '@aztec/p2p';
 import { ProtocolContractAddress } from '@aztec/protocol-contracts';
-import type { AztecAddress } from '@aztec/stdlib/aztec-address';
 import type { ContractDataSource } from '@aztec/stdlib/contract';
 import type { GasFees } from '@aztec/stdlib/gas';
-import { computePublicDataTreeLeafSlot } from '@aztec/stdlib/hash';
 import type {
   AllowedElement,
   ClientProtocolCircuitVerifier,
   MerkleTreeReadOperations,
 } from '@aztec/stdlib/interfaces/server';
-import type { PublicDataTreeLeafPreimage } from '@aztec/stdlib/trees';
+import { DatabasePublicStateSource, type PublicStateSource } from '@aztec/stdlib/trees';
 import { GlobalVariables, type Tx, type TxValidator } from '@aztec/stdlib/tx';
 
 import { ArchiveCache } from './archive_cache.js';
-import { GasTxValidator, type PublicStateSource } from './gas_validator.js';
 import { NullifierCache } from './nullifier_cache.js';
-import { PhasesTxValidator } from './phases_validator.js';
 
 export function createValidatorForAcceptingTxs(
   db: MerkleTreeReadOperations,
@@ -91,26 +88,6 @@ export function createValidatorForBlockBuilding(
   };
 }
 
-class DatabasePublicStateSource implements PublicStateSource {
-  constructor(private db: MerkleTreeReadOperations) {}
-
-  async storageRead(contractAddress: AztecAddress, slot: Fr): Promise<Fr> {
-    const leafSlot = (await computePublicDataTreeLeafSlot(contractAddress, slot)).toBigInt();
-
-    const lowLeafResult = await this.db.getPreviousValueIndex(MerkleTreeId.PUBLIC_DATA_TREE, leafSlot);
-    if (!lowLeafResult || !lowLeafResult.alreadyPresent) {
-      return Fr.ZERO;
-    }
-
-    const preimage = (await this.db.getLeafPreimage(
-      MerkleTreeId.PUBLIC_DATA_TREE,
-      lowLeafResult.index,
-    )) as PublicDataTreeLeafPreimage;
-
-    return preimage.leaf.value;
-  }
-}
-
 function preprocessValidator(
   nullifierCache: NullifierCache,
   archiveCache: ArchiveCache,
diff --git a/yarn-project/stdlib/src/config/config.ts b/yarn-project/stdlib/src/config/config.ts
index b3a74e462ced..c0292fe76e8f 100644
--- a/yarn-project/stdlib/src/config/config.ts
+++ b/yarn-project/stdlib/src/config/config.ts
@@ -2,7 +2,8 @@ import { l1ContractAddressesMapping } from '@aztec/ethereum/l1-contract-addresse
 import type { ConfigMappingsType } from '@aztec/foundation/config';
 import { EthAddress } from '@aztec/foundation/eth-address';
 
-export { type AllowedElement, type SequencerConfig, SequencerConfigSchema } from '../interfaces/configs.js';
+export { type SequencerConfig, SequencerConfigSchema } from '../interfaces/configs.js';
+export { type AllowedElement } from '../interfaces/allowed_element.js';
 
 export const emptyChainConfig: ChainConfig = {
   l1ChainId: 0,
diff --git a/yarn-project/stdlib/src/interfaces/allowed_element.ts b/yarn-project/stdlib/src/interfaces/allowed_element.ts
new file mode 100644
index 000000000000..29d92f992b04
--- /dev/null
+++ b/yarn-project/stdlib/src/interfaces/allowed_element.ts
@@ -0,0 +1,21 @@
+import type { Fr } from '@aztec/foundation/fields';
+
+import { z } from 'zod';
+
+import type { FunctionSelector } from '../abi/function_selector.js';
+import type { AztecAddress } from '../aztec-address/index.js';
+import { type ZodFor, schemas } from '../schemas/index.js';
+
+type AllowedInstance = { address: AztecAddress };
+type AllowedInstanceFunction = { address: AztecAddress; selector: FunctionSelector };
+type AllowedClass = { classId: Fr };
+type AllowedClassFunction = { classId: Fr; selector: FunctionSelector };
+
+export type AllowedElement = AllowedInstance | AllowedInstanceFunction | AllowedClass | AllowedClassFunction;
+
+export const AllowedElementSchema = z.union([
+  z.object({ address: schemas.AztecAddress, selector: schemas.FunctionSelector }),
+  z.object({ address: schemas.AztecAddress }),
+  z.object({ classId: schemas.Fr, selector: schemas.FunctionSelector }),
+  z.object({ classId: schemas.Fr }),
+]) satisfies ZodFor<AllowedElement>;
diff --git a/yarn-project/stdlib/src/interfaces/configs.ts b/yarn-project/stdlib/src/interfaces/configs.ts
index 170f087e6211..0cd5662246be 100644
--- a/yarn-project/stdlib/src/interfaces/configs.ts
+++ b/yarn-project/stdlib/src/interfaces/configs.ts
@@ -1,18 +1,10 @@
 import type { EthAddress } from '@aztec/foundation/eth-address';
-import type { Fr } from '@aztec/foundation/fields';
 
 import { z } from 'zod';
 
-import type { FunctionSelector } from '../abi/function_selector.js';
 import type { AztecAddress } from '../aztec-address/index.js';
 import { type ZodFor, schemas } from '../schemas/index.js';
-
-type AllowedInstance = { address: AztecAddress };
-type AllowedInstanceFunction = { address: AztecAddress; selector: FunctionSelector };
-type AllowedClass = { classId: Fr };
-type AllowedClassFunction = { classId: Fr; selector: FunctionSelector };
-
-export type AllowedElement = AllowedInstance | AllowedInstanceFunction | AllowedClass | AllowedClassFunction;
+import { type AllowedElement, AllowedElementSchema } from './allowed_element.js';
 
 /**
  * The sequencer configuration.
@@ -37,7 +29,7 @@ export interface SequencerConfig {
   /** The path to the ACVM binary */
   acvmBinaryPath?: string;
   /** The list of functions calls allowed to run in setup */
-  allowedInSetup?: AllowedElement[];
+  txPublicSetupAllowList?: AllowedElement[];
   /** Max block size */
   maxBlockSizeInBytes?: number;
   /** Payload address to vote for */
@@ -48,13 +40,6 @@ export interface SequencerConfig {
   maxL1TxInclusionTimeIntoSlot?: number;
 }
 
-const AllowedElementSchema = z.union([
-  z.object({ address: schemas.AztecAddress, selector: schemas.FunctionSelector }),
-  z.object({ address: schemas.AztecAddress }),
-  z.object({ classId: schemas.Fr, selector: schemas.FunctionSelector }),
-  z.object({ classId: schemas.Fr }),
-]) satisfies ZodFor<AllowedElement>;
-
 export const SequencerConfigSchema = z.object({
   transactionPollingIntervalMS: z.number().optional(),
   maxTxsPerBlock: z.number().optional(),
@@ -65,7 +50,7 @@ export const SequencerConfigSchema = z.object({
   feeRecipient: schemas.AztecAddress.optional(),
   acvmWorkingDirectory: z.string().optional(),
   acvmBinaryPath: z.string().optional(),
-  allowedInSetup: z.array(AllowedElementSchema).optional(),
+  txPublicSetupAllowList: z.array(AllowedElementSchema).optional(),
   maxBlockSizeInBytes: z.number().optional(),
   governanceProposerPayload: schemas.EthAddress.optional(),
   maxL1TxInclusionTimeIntoSlot: z.number().optional(),
diff --git a/yarn-project/stdlib/src/interfaces/public_state_source.ts b/yarn-project/stdlib/src/interfaces/public_state_source.ts
new file mode 100644
index 000000000000..7123b3e833e5
--- /dev/null
+++ b/yarn-project/stdlib/src/interfaces/public_state_source.ts
@@ -0,0 +1,9 @@
+import type { Fr } from '@aztec/foundation/fields';
+
+import type { AztecAddress } from '../aztec-address/index.js';
+
+/** Provides a view into public contract state */
+export interface PublicStateSource {
+  /** Returns the value for a given slot at a given contract. */
+  storageRead: (contractAddress: AztecAddress, slot: Fr) => Promise<Fr>;
+}
diff --git a/yarn-project/stdlib/src/interfaces/server.ts b/yarn-project/stdlib/src/interfaces/server.ts
index d7b0416cac3e..ae6028ffbfcb 100644
--- a/yarn-project/stdlib/src/interfaces/server.ts
+++ b/yarn-project/stdlib/src/interfaces/server.ts
@@ -17,3 +17,4 @@ export * from './p2p.js';
 export * from './p2p-bootstrap.js';
 export * from './l2_logs_source.js';
 export * from './merkle_tree_operations.js';
+export * from './allowed_element.js';
diff --git a/yarn-project/stdlib/src/trees/database_public_state_source.ts b/yarn-project/stdlib/src/trees/database_public_state_source.ts
new file mode 100644
index 000000000000..a4689bf23383
--- /dev/null
+++ b/yarn-project/stdlib/src/trees/database_public_state_source.ts
@@ -0,0 +1,30 @@
+import { Fr } from '@aztec/foundation/fields';
+
+import type { AztecAddress } from '../aztec-address/index.js';
+import { computePublicDataTreeLeafSlot } from '../hash/hash.js';
+import type { MerkleTreeReadOperations } from '../interfaces/merkle_tree_operations.js';
+import type { PublicStateSource } from '../interfaces/public_state_source.js';
+import { MerkleTreeId } from './merkle_tree_id.js';
+import type { PublicDataTreeLeafPreimage } from './public_data_leaf.js';
+
+export type { PublicStateSource };
+
+export class DatabasePublicStateSource implements PublicStateSource {
+  constructor(private db: MerkleTreeReadOperations) {}
+
+  async storageRead(contractAddress: AztecAddress, slot: Fr): Promise<Fr> {
+    const leafSlot = (await computePublicDataTreeLeafSlot(contractAddress, slot)).toBigInt();
+
+    const lowLeafResult = await this.db.getPreviousValueIndex(MerkleTreeId.PUBLIC_DATA_TREE, leafSlot);
+    if (!lowLeafResult || !lowLeafResult.alreadyPresent) {
+      return Fr.ZERO;
+    }
+
+    const preimage = (await this.db.getLeafPreimage(
+      MerkleTreeId.PUBLIC_DATA_TREE,
+      lowLeafResult.index,
+    )) as PublicDataTreeLeafPreimage;
+
+    return preimage.leaf.value;
+  }
+}
diff --git a/yarn-project/stdlib/src/trees/index.ts b/yarn-project/stdlib/src/trees/index.ts
index 4acaf3de8b06..d7f1c087046c 100644
--- a/yarn-project/stdlib/src/trees/index.ts
+++ b/yarn-project/stdlib/src/trees/index.ts
@@ -6,3 +6,4 @@ export * from './merkle_tree_id.js';
 export * from './nullifier_membership_witness.js';
 export * from './public_data_witness.js';
 export * from '../interfaces/merkle_tree_operations.js';
+export * from './database_public_state_source.js';
diff --git a/yarn-project/yarn.lock b/yarn-project/yarn.lock
index 4a6cf09d3de5..4957063aaaa0 100644
--- a/yarn-project/yarn.lock
+++ b/yarn-project/yarn.lock
@@ -1083,8 +1083,10 @@ __metadata:
     "@aztec/epoch-cache": "workspace:^"
     "@aztec/foundation": "workspace:^"
     "@aztec/kv-store": "workspace:^"
+    "@aztec/noir-contracts.js": "workspace:^"
     "@aztec/noir-protocol-circuits-types": "workspace:^"
     "@aztec/protocol-contracts": "workspace:^"
+    "@aztec/simulator": "workspace:^"
     "@aztec/stdlib": "workspace:^"
     "@aztec/telemetry-client": "workspace:^"
     "@chainsafe/discv5": "npm:9.0.0"