diff --git a/src/generators/dom/Block.ts b/src/generators/dom/Block.ts
index 68947da456..e7770bccfe 100644
--- a/src/generators/dom/Block.ts
+++ b/src/generators/dom/Block.ts
@@ -182,22 +182,10 @@ export default class Block {
 			this.builders.mount.addLine(`${this.autofocus}.focus();`);
 		}
 
-		// TODO `this.contexts` is possibly redundant post-#1122
-		const initializers = [];
-
-		this.contexts.forEach((name, context) => {
-			// TODO only the ones that are actually used in this block...
-			const listName = this.listNames.get(context);
-			const indexName = this.indexNames.get(context);
-
-			initializers.push(
-				`${name} = ctx.${context}`,
-				`${listName} = ctx.${listName}`,
-				`${indexName} = ctx.${indexName}`
-			);
-
+		if (this.maintainContext) {
+			this.builders.update.addLineAtStart(`ctx = _ctx;`);
 			this.hasUpdateMethod = true;
-		});
+		}
 
 		// minor hack – we need to ensure that any {{{triples}}} are detached first
 		this.builders.unmount.addBlockAtStart(this.builders.detachRaw.toString());
@@ -258,11 +246,11 @@ export default class Block {
 		}
 
 		if (this.hasUpdateMethod) {
-			if (this.builders.update.isEmpty() && initializers.length === 0) {
+			if (this.builders.update.isEmpty()) {
 				properties.addBlock(`p: @noop,`);
 			} else {
 				properties.addBlock(deindent`
-					p: function update(changed, ctx) {
+					p: function update(changed, ${this.maintainContext ? '_ctx' : 'ctx'}) {
 						${this.builders.update}
 					},
 				`);
@@ -334,8 +322,6 @@ export default class Block {
 		return deindent`
 			${this.comment && `// ${escape(this.comment)}`}
 			function ${this.name}(#component${this.key ? `, ${localKey}` : ''}, ctx) {
-				${initializers.length > 0 &&
-					`var ${initializers.join(', ')};`}
 				${this.variables.size > 0 &&
 					`var ${Array.from(this.variables.keys())
 						.map(key => {
diff --git a/src/generators/nodes/Binding.ts b/src/generators/nodes/Binding.ts
index 43db14e270..b377317936 100644
--- a/src/generators/nodes/Binding.ts
+++ b/src/generators/nodes/Binding.ts
@@ -198,8 +198,8 @@ function getEventHandler(
 			? getTailSnippet(binding.value.node)
 			: '';
 
-		const list = `context.${block.listNames.get(name)}`;
-		const index = `context.${block.indexNames.get(name)}`;
+		const list = `ctx.${block.listNames.get(name)}`;
+		const index = `ctx.${block.indexNames.get(name)}`;
 
 		return {
 			usesContext: true,
diff --git a/src/generators/nodes/Element.ts b/src/generators/nodes/Element.ts
index 1858ddf727..cdcaabb7b1 100644
--- a/src/generators/nodes/Element.ts
+++ b/src/generators/nodes/Element.ts
@@ -301,7 +301,7 @@ export default class Element extends Node {
 		}
 
 		let hasHoistedEventHandlerOrBinding = (
-			(this.hasAncestor('EachBlock') && this.bindings.length > 0) ||
+			//(this.hasAncestor('EachBlock') && this.bindings.length > 0) ||
 			this.handlers.some(handler => handler.shouldHoist)
 		);
 		let eventHandlerOrBindingUsesComponent;
@@ -334,6 +334,10 @@ export default class Element extends Node {
 					${name}._svelte = { ${initialProps.join(', ')} };
 				`);
 			}
+		} else {
+			if (eventHandlerOrBindingUsesContext) {
+				block.maintainContext = true;
+			}
 		}
 
 		this.addBindings(block, allUsedContexts);
@@ -457,8 +461,6 @@ export default class Element extends Node {
 							cancelAnimationFrame(${animation_frame});
 							if (!${this.var}.paused) ${animation_frame} = requestAnimationFrame(${handler});`
 					}
-					${usesContext && `var context = ${this.var}._svelte;`}
-					${usesState && `var ctx = #component.get();`}
 					${usesStore && `var $ = #component.store.get();`}
 					${needsLock && `${lock} = true;`}
 					${mutations.length > 0 && mutations}