I was thinking there might be an issue with this: 1) StateTransferIntegrator gets InputStream IS from the JGroups layer. 2) Uses it to create ObjectInputStream OIS#1. Uses that to read off the in-memory state and any marker we insert in the stream. 3) Closes OIS#1. 4) Passes IS to the cache loader. 5) Cacheloader creates ObjectInputStream OIS#2 from IS. Reads the persistent state. Maybe that will work fine; it would be good if it did as it allows for a more flexible API.