diff --git a/README.md b/README.md
index b1e89e15..5dcf5bd9 100644
--- a/README.md
+++ b/README.md
@@ -99,6 +99,51 @@ vault_attribute :credit_card,
 
 - **Note** Changing this value for an existing application will make existing values no longer decryptable!
 
+#### Specifying a context (key derivation)
+
+Vault Transit supports key derivation, which allows the same key to be used for multiple purposes by deriving a new key based on a context value.
+
+The context can be specified as a string, symbol, or proc. Symbols (an instance method on the model) and procs are called for each encryption or decryption request, and should return a string.
+
+- **Note** Changing the context or context generator for an attribute will make existing values no longer decryptable!
+
+##### String
+
+With a string, all records will use the same context for this attribute:
+
+```ruby
+vault_attribute :credit_card,
+  context: "user-cc"
+```
+
+##### Symbol
+
+When using a symbol, a method will be called on the record to compute the context:
+
+```ruby
+belongs_to :user
+
+vault_attribute :credit_card,
+  context: :encryption_context
+
+def encryption_context
+  "user_#{user.id}"
+end
+```
+
+##### Proc
+
+Given a proc, it will be called each time to compute the key name:
+
+```ruby
+belongs_to :user
+
+vault_attribute :credit_card,
+  context: ->(record) { "user_#{record.user.id}" }
+```
+
+The proc must take a single argument for the record.
+
 #### Specifying a different Vault path
 By default, the path to the transit backend in Vault is `transit/`. This is customizable by setting the `:path` option when declaring the attribute:
 
diff --git a/lib/vault/encrypted_model.rb b/lib/vault/encrypted_model.rb
index 64441ed1..f57cc548 100644
--- a/lib/vault/encrypted_model.rb
+++ b/lib/vault/encrypted_model.rb
@@ -29,6 +29,9 @@ module ClassMethods
       #   the path to the transit backend (default: +transit+)
       # @option options [String] :key
       #   the name of the encryption key (default: +#{app}_#{table}_#{column}+)
+      # @option options [String, Symbol, Proc] :context
+      #   either a string context, or a symbol or proc used to generate a
+      #   context for key generation
       # @option options [Symbol, Class] :serializer
       #   the name of the serializer to use (or a class)
       # @option options [Proc] :encode
@@ -39,6 +42,7 @@ def vault_attribute(attribute, options = {})
         encrypted_column = options[:encrypted_column] || "#{attribute}_encrypted"
         path = options[:path] || "transit"
         key = options[:key] || "#{Vault::Rails.application}_#{table_name}_#{attribute}"
+        context = options[:context]
 
         # Sanity check options!
         _vault_validate_options!(options)
@@ -111,6 +115,7 @@ def vault_attribute(attribute, options = {})
           path: path,
           serializer: serializer,
           encrypted_column: encrypted_column,
+          context: context,
         }
 
         self
@@ -142,6 +147,13 @@ def _vault_validate_options!(options)
           raise Vault::Rails::ValidationFailedError, "Cannot specify " \
             "`:decode' without specifying `:encode' as well!"
         end
+
+        if context = options[:context]
+          if context.is_a?(Proc) && context.arity != 1
+            raise Vault::Rails::ValidationFailedError, "Proc passed to " \
+              "`:context' must take 1 argument!"
+          end
+        end
       end
 
       def vault_lazy_decrypt
@@ -193,6 +205,7 @@ def __vault_load_attribute!(attribute, options)
         path       = options[:path]
         serializer = options[:serializer]
         column     = options[:encrypted_column]
+        context    = options[:context]
 
         # Load the ciphertext
         ciphertext = read_attribute(column)
@@ -203,8 +216,14 @@ def __vault_load_attribute!(attribute, options)
           return
         end
 
+        # Generate context if needed
+        generated_context = __vault_generate_context(context)
+
         # Load the plaintext value
-        plaintext = Vault::Rails.decrypt(path, key, ciphertext)
+        plaintext = Vault::Rails.decrypt(
+          path, key, ciphertext,
+          context: generated_context
+        )
 
         # Deserialize the plaintext value, if a serializer exists
         if serializer
@@ -244,6 +263,7 @@ def __vault_persist_attribute!(attribute, options)
         path       = options[:path]
         serializer = options[:serializer]
         column     = options[:encrypted_column]
+        context    = options[:context]
 
         # Only persist changed attributes to minimize requests - this helps
         # minimize the number of requests to Vault.
@@ -259,8 +279,14 @@ def __vault_persist_attribute!(attribute, options)
           plaintext = serializer.encode(plaintext)
         end
 
+        # Generate context if needed
+        generated_context = __vault_generate_context(context)
+
         # Generate the ciphertext and store it back as an attribute
-        ciphertext = Vault::Rails.encrypt(path, key, plaintext)
+        ciphertext = Vault::Rails.encrypt(
+          path, key, plaintext,
+          context: generated_context
+        )
 
         # Write the attribute back, so that we don't have to reload the record
         # to get the ciphertext
@@ -270,6 +296,20 @@ def __vault_persist_attribute!(attribute, options)
         { column => ciphertext }
       end
 
+      # Generates an Vault Transit encryption context for use on derived keys.
+      def __vault_generate_context(context)
+        case context
+        when String
+          context
+        when Symbol
+          send(context)
+        when Proc
+          context.call(self)
+        else
+          nil
+        end
+      end
+
       # Override the reload method to reload the Vault attributes. This will
       # ensure that we always have the most recent data from Vault when we
       # reload a record from the database.
diff --git a/lib/vault/rails.rb b/lib/vault/rails.rb
index 032e71be..1441288e 100644
--- a/lib/vault/rails.rb
+++ b/lib/vault/rails.rb
@@ -72,7 +72,7 @@ def respond_to_missing?(m, include_private = false)
       #
       # @return [String]
       #   the encrypted cipher text
-      def encrypt(path, key, plaintext, client = self.client)
+      def encrypt(path, key, plaintext, client: self.client, context: nil)
         if plaintext.blank?
           return plaintext
         end
@@ -82,9 +82,9 @@ def encrypt(path, key, plaintext, client = self.client)
 
         with_retries do
           if self.enabled?
-            result = self.vault_encrypt(path, key, plaintext, client)
+            result = self.vault_encrypt(path, key, plaintext, client: client, context: context)
           else
-            result = self.memory_encrypt(path, key, plaintext, client)
+            result = self.memory_encrypt(path, key, plaintext, client: client, context: context)
           end
 
           return self.force_encoding(result)
@@ -104,7 +104,7 @@ def encrypt(path, key, plaintext, client = self.client)
       #
       # @return [String]
       #   the decrypted plaintext text
-      def decrypt(path, key, ciphertext, client = self.client)
+      def decrypt(path, key, ciphertext, client: self.client, context: nil)
         if ciphertext.blank?
           return ciphertext
         end
@@ -114,9 +114,9 @@ def decrypt(path, key, ciphertext, client = self.client)
 
         with_retries do
           if self.enabled?
-            result = self.vault_decrypt(path, key, ciphertext, client)
+            result = self.vault_decrypt(path, key, ciphertext, client: client, context: context)
           else
-            result = self.memory_decrypt(path, key, ciphertext, client)
+            result = self.memory_decrypt(path, key, ciphertext, client: client, context: context)
           end
 
           return self.force_encoding(result)
@@ -143,48 +143,56 @@ def serializer_for(key)
       protected
 
       # Perform in-memory encryption. This is useful for testing and development.
-      def memory_encrypt(path, key, plaintext, client)
+      def memory_encrypt(path, key, plaintext, client: , context: nil)
         log_warning(DEV_WARNING) if self.in_memory_warnings_enabled?
 
         return nil if plaintext.nil?
 
         cipher = OpenSSL::Cipher::AES.new(128, :CBC)
         cipher.encrypt
-        cipher.key = memory_key_for(path, key)
+        cipher.key = memory_key_for(path, key) + context
         return Base64.strict_encode64(cipher.update(plaintext) + cipher.final)
       end
 
       # Perform in-memory decryption. This is useful for testing and development.
-      def memory_decrypt(path, key, ciphertext, client)
+      def memory_decrypt(path, key, ciphertext, client: , context: nil)
         log_warning(DEV_WARNING) if self.in_memory_warnings_enabled?
 
         return nil if ciphertext.nil?
 
         cipher = OpenSSL::Cipher::AES.new(128, :CBC)
         cipher.decrypt
-        cipher.key = memory_key_for(path, key)
+        cipher.key = memory_key_for(path, key) + context
         return cipher.update(Base64.strict_decode64(ciphertext)) + cipher.final
       end
 
       # Perform encryption using Vault. This will raise exceptions if Vault is
       # unavailable.
-      def vault_encrypt(path, key, plaintext, client)
+      def vault_encrypt(path, key, plaintext, client: , context: nil)
         return nil if plaintext.nil?
 
-        route  = File.join(path, "encrypt", key)
-        secret = client.logical.write(route,
-          plaintext: Base64.strict_encode64(plaintext),
-        )
+        route = File.join(path, "encrypt", key)
+
+        data = { plaintext: Base64.strict_encode64(plaintext) }
+        data[:context] = Base64.strict_encode64(context) if context
+
+        secret = client.logical.write(route, data)
+
         return secret.data[:ciphertext]
       end
 
       # Perform decryption using Vault. This will raise exceptions if Vault is
       # unavailable.
-      def vault_decrypt(path, key, ciphertext, client)
+      def vault_decrypt(path, key, ciphertext, client: , context: nil)
         return nil if ciphertext.nil?
 
-        route  = File.join(path, "decrypt", key)
-        secret = client.logical.write(route, ciphertext: ciphertext)
+        route = File.join(path, "decrypt", key)
+
+        data = { ciphertext: ciphertext }
+        data[:context] = Base64.strict_encode64(context) if context
+
+        secret = client.logical.write(route, data)
+
         return Base64.strict_decode64(secret.data[:plaintext])
       end
 
diff --git a/spec/dummy/app/models/lazy_person.rb b/spec/dummy/app/models/lazy_person.rb
index 51c6f3b3..d853dfb6 100644
--- a/spec/dummy/app/models/lazy_person.rb
+++ b/spec/dummy/app/models/lazy_person.rb
@@ -25,4 +25,14 @@ class LazyPerson < ActiveRecord::Base
     decode: ->(raw) { raw && raw[3...-3] }
 
   vault_attribute :non_ascii
+
+  vault_attribute :context_symbol,
+    context: :encryption_context
+
+  vault_attribute :context_proc,
+    context: ->(record) { record.encryption_context }
+
+  def encryption_context
+    "user_#{id}"
+  end
 end
diff --git a/spec/dummy/app/models/person.rb b/spec/dummy/app/models/person.rb
index c52ccae2..460f22a3 100644
--- a/spec/dummy/app/models/person.rb
+++ b/spec/dummy/app/models/person.rb
@@ -21,5 +21,18 @@ class Person < ActiveRecord::Base
     decode: ->(raw) { raw && raw[3...-3] }
 
   vault_attribute :non_ascii
+
+  vault_attribute :context_string,
+    context: "production"
+
+  vault_attribute :context_symbol,
+    context: :encryption_context
+
+  vault_attribute :context_proc,
+    context: ->(record) { record.encryption_context }
+
+  def encryption_context
+    "user_#{id}"
+  end
 end
 
diff --git a/spec/dummy/db/migrate/20150428220101_create_people.rb b/spec/dummy/db/migrate/20150428220101_create_people.rb
index 7c3d5cac..7b13e820 100644
--- a/spec/dummy/db/migrate/20150428220101_create_people.rb
+++ b/spec/dummy/db/migrate/20150428220101_create_people.rb
@@ -8,6 +8,9 @@ def change
       t.string :business_card_encrypted
       t.string :favorite_color_encrypted
       t.string :non_ascii_encrypted
+      t.string :context_string_encrypted
+      t.string :context_symbol_encrypted
+      t.string :context_proc_encrypted
 
       t.timestamps null: false
     end
diff --git a/spec/dummy/db/schema.rb b/spec/dummy/db/schema.rb
index fb33ca3f..98635e28 100644
--- a/spec/dummy/db/schema.rb
+++ b/spec/dummy/db/schema.rb
@@ -10,18 +10,21 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema.define(version: 20150428220101) do
+ActiveRecord::Schema.define(version: 2015_04_28_220101) do
 
   create_table "people", force: :cascade do |t|
-    t.string   "name"
-    t.string   "ssn_encrypted"
-    t.string   "cc_encrypted"
-    t.string   "details_encrypted"
-    t.string   "business_card_encrypted"
-    t.string   "favorite_color_encrypted"
-    t.string   "non_ascii_encrypted"
-    t.datetime "created_at",               null: false
-    t.datetime "updated_at",               null: false
+    t.string "name"
+    t.string "ssn_encrypted"
+    t.string "cc_encrypted"
+    t.string "details_encrypted"
+    t.string "business_card_encrypted"
+    t.string "favorite_color_encrypted"
+    t.string "non_ascii_encrypted"
+    t.string "context_string_encrypted"
+    t.string "context_symbol_encrypted"
+    t.string "context_proc_encrypted"
+    t.datetime "created_at", null: false
+    t.datetime "updated_at", null: false
   end
 
 end
diff --git a/spec/integration/rails_spec.rb b/spec/integration/rails_spec.rb
index bb5c8049..6719ffcd 100644
--- a/spec/integration/rails_spec.rb
+++ b/spec/integration/rails_spec.rb
@@ -356,6 +356,89 @@
     end
   end
 
+  context "with context" do
+    it "encodes and decodes with a string context" do
+      person = Person.create!(context_string: "foobar")
+      person.reload
+
+      raw = Vault::Rails.decrypt(
+        "transit", "dummy_people_context_string",
+        person.context_string_encrypted, context: "production")
+
+      expect(raw).to eq("foobar")
+
+      expect(person.context_string).to eq("foobar")
+
+      # Decrypting without the correct context fails
+      expect {
+        Vault::Rails.decrypt(
+          "transit", "dummy_people_context_string",
+          person.context_string_encrypted, context: "wrongcontext")
+      }.to raise_error(Vault::HTTPClientError, /invalid ciphertext/)
+
+      # Decrypting without a context fails
+      expect {
+        Vault::Rails.decrypt(
+          "transit", "dummy_people_context_string",
+          person.context_string_encrypted)
+      }.to raise_error(Vault::HTTPClientError, /context/)
+    end
+
+    it "encodes and decodes with a symbol context" do
+      person = Person.create!(context_symbol: "foobar")
+      person.reload
+
+      raw = Vault::Rails.decrypt(
+        "transit", "dummy_people_context_symbol",
+        person.context_symbol_encrypted, context: person.encryption_context)
+
+      expect(raw).to eq("foobar")
+
+      expect(person.context_symbol).to eq("foobar")
+
+      # Decrypting without the correct context fails
+      expect {
+        Vault::Rails.decrypt(
+          "transit", "dummy_people_context_symbol",
+          person.context_symbol_encrypted, context: "wrongcontext")
+      }.to raise_error(Vault::HTTPClientError, /invalid ciphertext/)
+
+      # Decrypting without a context fails
+      expect {
+        Vault::Rails.decrypt(
+          "transit", "dummy_people_context_symbol",
+          person.context_symbol_encrypted)
+      }.to raise_error(Vault::HTTPClientError, /context/)
+    end
+
+    it "encodes and decodes with a proc context" do
+      person = Person.create!(context_proc: "foobar")
+      person.reload
+
+      raw = Vault::Rails.decrypt(
+        "transit", "dummy_people_context_proc",
+        person.context_proc_encrypted, context: person.encryption_context)
+
+      expect(raw).to eq("foobar")
+
+      expect(person.context_proc).to eq("foobar")
+
+      # Decrypting without the correct context fails
+      expect {
+        Vault::Rails.decrypt(
+          "transit", "dummy_people_context_proc",
+          person.context_proc_encrypted, context: "wrongcontext")
+      }.to raise_error(Vault::HTTPClientError, /invalid ciphertext/)
+
+      # Decrypting without a context fails
+      expect {
+        Vault::Rails.decrypt(
+          "transit", "dummy_people_context_proc",
+          person.context_proc_encrypted)
+      }.to raise_error(Vault::HTTPClientError, /context/)
+    end
+  end
+
   context 'with errors' do
     it 'raises the appropriate exception' do
       expect {