diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/DeclarationResolver.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/DeclarationResolver.java
index 0f3efc2e955..fcc95cd36c9 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/DeclarationResolver.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/DeclarationResolver.java
@@ -204,7 +204,12 @@ public class DeclarationResolver {
 
                 @Override
                 public void visitProperty(JetProperty property) {
-                    PropertyDescriptor propertyDescriptor = descriptorResolver.resolvePropertyDescriptor(namespaceLike.getOwnerForChildren(), scopeForPropertyInitializers, property, trace);
+                    PropertyDescriptor propertyDescriptor = descriptorResolver.resolvePropertyDescriptor(
+                            namespaceLike.getOwnerForChildren(),
+                            scopeForPropertyInitializers,
+                            property,
+                            trace,
+                            context.getOuterDataFlowInfo());
                     namespaceLike.addPropertyDescriptor(propertyDescriptor);
                     context.getProperties().put(property, propertyDescriptor);
                     context.registerDeclaringScope(property, scopeForPropertyInitializers);
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/DescriptorResolver.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/DescriptorResolver.java
index da20441d96f..7de7dfd3a8a 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/DescriptorResolver.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/DescriptorResolver.java
@@ -941,7 +941,8 @@ public class DescriptorResolver {
             @NotNull DeclarationDescriptor containingDeclaration,
             @NotNull JetScope scope,
             @NotNull JetProperty property,
-            BindingTrace trace
+            @NotNull BindingTrace trace,
+            @NotNull DataFlowInfo dataFlowInfo
     ) {
 
         JetModifierList modifierList = property.getModifierList();
@@ -994,7 +995,7 @@ public class DescriptorResolver {
         JetScope propertyScope = getPropertyDeclarationInnerScope(propertyDescriptor, scope, typeParameterDescriptors,
                                                                   NO_RECEIVER_PARAMETER, trace);
 
-        JetType type = getVariableType(propertyDescriptor, propertyScope, property, DataFlowInfo.EMPTY, true, trace);
+        JetType type = getVariableType(propertyDescriptor, propertyScope, property, dataFlowInfo, true, trace);
 
         propertyDescriptor.setType(type, typeParameterDescriptors, getExpectedThisObjectIfNeeded(containingDeclaration),
                                    receiverDescriptor);
@@ -1031,7 +1032,7 @@ public class DescriptorResolver {
             @NotNull final JetVariableDeclaration variable,
             @NotNull final DataFlowInfo dataFlowInfo,
             boolean notLocal,
-            final BindingTrace trace
+            @NotNull final BindingTrace trace
     ) {
         JetTypeReference propertyTypeRef = variable.getTypeRef();
 
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/lazy/descriptors/AbstractLazyMemberScope.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/lazy/descriptors/AbstractLazyMemberScope.java
index a5a209ea358..5d411a19fbf 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/lazy/descriptors/AbstractLazyMemberScope.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/lazy/descriptors/AbstractLazyMemberScope.java
@@ -186,9 +186,13 @@ public abstract class AbstractLazyMemberScope<D extends DeclarationDescriptor, D
         for (JetProperty propertyDeclaration : declarations) {
             JetScope resolutionScope = getScopeForMemberDeclarationResolution(propertyDeclaration);
             PropertyDescriptor propertyDescriptor =
-                    resolveSession.getInjector().getDescriptorResolver().resolvePropertyDescriptor(thisDescriptor, resolutionScope,
-                                                                                                   propertyDeclaration,
-                                                                                                   resolveSession.getTrace());
+                    resolveSession.getInjector().getDescriptorResolver().resolvePropertyDescriptor(
+                           thisDescriptor, resolutionScope,
+                           propertyDeclaration,
+                           resolveSession.getTrace(),
+                           // this relies on the assumption that a lazily resolved declaration is not a local one,
+                           // thus doesn't have a surrounding data flow
+                           DataFlowInfo.EMPTY);
             result.add(propertyDescriptor);
             resolveSession.getInjector().getAnnotationResolver().resolveAnnotationsArguments(propertyDescriptor, resolveSession.getTrace(), resolutionScope);
         }
diff --git a/compiler/testData/diagnostics/tests/dataFlow/local/PropertyInLocalClass.kt b/compiler/testData/diagnostics/tests/dataFlow/local/PropertyInLocalClass.kt
new file mode 100644
index 00000000000..9cfe397eb70
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/dataFlow/local/PropertyInLocalClass.kt
@@ -0,0 +1,9 @@
+fun test(x: Any?) {
+  if (x !is String) return
+  class C {
+    val v = x.length
+  }
+  object {
+    val v = x.length
+  }
+}
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index ccb2e9cacbc..fcc1b171826 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -1486,6 +1486,11 @@ public class JetDiagnosticsTestGenerated extends AbstractDiagnosticsTestWithEage
                     doTest("compiler/testData/diagnostics/tests/dataFlow/local/LocalObjectDelegation.kt");
                 }
                 
+                @TestMetadata("PropertyInLocalClass.kt")
+                public void testPropertyInLocalClass() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/dataFlow/local/PropertyInLocalClass.kt");
+                }
+                
             }
             
             public static Test innerSuite() {
diff --git a/compiler/tests/org/jetbrains/jet/types/JetDefaultModalityModifiersTest.java b/compiler/tests/org/jetbrains/jet/types/JetDefaultModalityModifiersTest.java
index 8baa50cbf4b..55ac65da5c0 100644
--- a/compiler/tests/org/jetbrains/jet/types/JetDefaultModalityModifiersTest.java
+++ b/compiler/tests/org/jetbrains/jet/types/JetDefaultModalityModifiersTest.java
@@ -126,7 +126,8 @@ public class JetDefaultModalityModifiersTest extends JetLiteFixture {
 
             List<JetDeclaration> declarations = aClass.getDeclarations();
             JetProperty property = (JetProperty) declarations.get(0);
-            PropertyDescriptor propertyDescriptor = descriptorResolver.resolvePropertyDescriptor(classDescriptor, scope, property, JetTestUtils.DUMMY_TRACE);
+            PropertyDescriptor propertyDescriptor = descriptorResolver.resolvePropertyDescriptor(classDescriptor, scope, property,
+                                                                                                 JetTestUtils.DUMMY_TRACE, DataFlowInfo.EMPTY);
 
             assertEquals(expectedPropertyModality, propertyDescriptor.getModality());
         }
@@ -138,7 +139,8 @@ public class JetDefaultModalityModifiersTest extends JetLiteFixture {
 
             List<JetDeclaration> declarations = aClass.getDeclarations();
             JetProperty property = (JetProperty) declarations.get(0);
-            PropertyDescriptor propertyDescriptor = descriptorResolver.resolvePropertyDescriptor(classDescriptor, scope, property, JetTestUtils.DUMMY_TRACE);
+            PropertyDescriptor propertyDescriptor = descriptorResolver.resolvePropertyDescriptor(classDescriptor, scope, property,
+                                                                                                 JetTestUtils.DUMMY_TRACE, DataFlowInfo.EMPTY);
             PropertyAccessorDescriptor propertyAccessor = isGetter
                                                           ? propertyDescriptor.getGetter()
                                                           : propertyDescriptor.getSetter();