diff --git a/app/app.go b/app/app.go
index 8080a39..1bae25c 100644
--- a/app/app.go
+++ b/app/app.go
@@ -1,6 +1,7 @@
 package app
 
 import (
+	"fmt"
 	"io"
 	"os"
 	"path/filepath"
@@ -38,8 +39,6 @@ import (
 )
 
 const appName = "WasmApp"
-const flagLRUCacheSize = "lru_size"
-const flagQueryGasLimit = "query_gas_limit"
 
 var (
 	// DefaultCLIHome default home directories for wasmcli
@@ -184,13 +183,13 @@ func NewWasmApp(
 	homeDir := viper.GetString(cli.HomeFlag)
 	wasmDir := filepath.Join(homeDir, "wasm")
 
-	// Read LRU cache size from config (app.toml), defaults to `0`
-	cacheSize := uint64(viper.GetInt64(flagLRUCacheSize))
-	// Read query gas limit from config
-	smartQueryGasLimit := uint64(viper.GetInt64(flagQueryGasLimit))
+	wasmConfig := wasm.DefaultWasmConfig()
+	err := viper.Unmarshal(&wasmConfig)
+	if err != nil {
+		fmt.Println("error while reading wasm config:", err.Error())
+	}
 
-	app.wasmKeeper = wasm.NewKeeper(app.cdc, keys[wasm.StoreKey], app.accountKeeper, app.bankKeeper, wasmRouter,
-		wasmDir, cacheSize, smartQueryGasLimit)
+	app.wasmKeeper = wasm.NewKeeper(app.cdc, keys[wasm.StoreKey], app.accountKeeper, app.bankKeeper, wasmRouter, wasmDir, wasmConfig)
 
 	// create evidence keeper with evidence router
 	app.evidenceKeeper = evidence.NewKeeper(
diff --git a/x/wasm/alias.go b/x/wasm/alias.go
index 3ffd16d..4bfaaa1 100644
--- a/x/wasm/alias.go
+++ b/x/wasm/alias.go
@@ -54,6 +54,7 @@ var (
 	NewWasmCoins              = types.NewWasmCoins
 	NewContractInfo           = types.NewContractInfo
 	CosmosResult              = types.CosmosResult
+	DefaultWasmConfig         = types.DefaultWasmConfig
 
 	// genesis aliases
 	ValidateGenesis = types.ValidateGenesis
@@ -77,6 +78,7 @@ type (
 	MsgExecuteContract     = types.MsgExecuteContract
 	CodeInfo               = types.CodeInfo
 	ContractInfo           = types.ContractInfo
+	WasmConfig             = types.WasmConfig
 
 	GenesisState = types.GenesisState
 )
diff --git a/x/wasm/internal/keeper/keeper.go b/x/wasm/internal/keeper/keeper.go
index c889e16..0a6cd05 100644
--- a/x/wasm/internal/keeper/keeper.go
+++ b/x/wasm/internal/keeper/keeper.go
@@ -43,8 +43,8 @@ type Keeper struct {
 
 // NewKeeper creates a new contract Keeper instance
 func NewKeeper(cdc *codec.Codec, storeKey sdk.StoreKey, accountKeeper auth.AccountKeeper, bankKeeper bank.Keeper,
-	router sdk.Router, homeDir string, cacheSize uint64, smartQueryGasLimit uint64) Keeper {
-	wasmer, err := wasm.NewWasmer(filepath.Join(homeDir, "wasm"), cacheSize)
+	router sdk.Router, homeDir string, wasmConfig types.WasmConfig) Keeper {
+	wasmer, err := wasm.NewWasmer(filepath.Join(homeDir, "wasm"), wasmConfig.CacheSize)
 	if err != nil {
 		panic(err)
 	}
@@ -56,7 +56,7 @@ func NewKeeper(cdc *codec.Codec, storeKey sdk.StoreKey, accountKeeper auth.Accou
 		accountKeeper: accountKeeper,
 		bankKeeper:    bankKeeper,
 		router:        router,
-		queryGasLimit: smartQueryGasLimit,
+		queryGasLimit: wasmConfig.SmartQueryGasLimit,
 	}
 }
 
diff --git a/x/wasm/internal/keeper/test_common.go b/x/wasm/internal/keeper/test_common.go
index 304391b..f22eef0 100644
--- a/x/wasm/internal/keeper/test_common.go
+++ b/x/wasm/internal/keeper/test_common.go
@@ -16,6 +16,8 @@ import (
 	abci "github.com/tendermint/tendermint/abci/types"
 	"github.com/tendermint/tendermint/libs/log"
 	dbm "github.com/tendermint/tm-db"
+
+	wasmTypes "github.com/cosmwasm/wasmd/x/wasm/internal/types"
 )
 
 const flagLRUCacheSize = "lru_size"
@@ -72,11 +74,10 @@ func CreateTestInput(t *testing.T, isCheckTx bool, tempDir string) (sdk.Context,
 	h := bank.NewHandler(bk)
 	router.AddRoute(bank.RouterKey, h)
 
-	// TODO Read LRU cache size, query gas limit from app.toml
-	cacheSize := uint64(3)
-	smartQueryGasLimit := uint64(3000000)
+	// Load default wasm config
+	wasmConfig := wasmTypes.DefaultWasmConfig()
 
-	keeper := NewKeeper(cdc, keyContract, accountKeeper, bk, router, tempDir, cacheSize, smartQueryGasLimit)
+	keeper := NewKeeper(cdc, keyContract, accountKeeper, bk, router, tempDir, wasmConfig)
 
 	return ctx, accountKeeper, keeper
 }
diff --git a/x/wasm/internal/types/types.go b/x/wasm/internal/types/types.go
index 7e5ffe7..f56392e 100644
--- a/x/wasm/internal/types/types.go
+++ b/x/wasm/internal/types/types.go
@@ -6,6 +6,9 @@ import (
 	auth "github.com/cosmos/cosmos-sdk/x/auth/exported"
 )
 
+const defaultLRUCacheSize = uint64(0)
+const defaultQueryGasLimit = uint64(3000000)
+
 // Model is a struct that holds a KV pair
 type Model struct {
 	Key   string `json:"key"`
@@ -81,3 +84,15 @@ func CosmosResult(wasmResult wasmTypes.Result) sdk.Result {
 		GasUsed: wasmResult.GasUsed,
 	}
 }
+
+type WasmConfig struct {
+	SmartQueryGasLimit uint64 `mapstructure:"query_gas_limit"`
+	CacheSize          uint64 `mapstructure:"lru_size"`
+}
+
+func DefaultWasmConfig() WasmConfig {
+	return WasmConfig{
+		SmartQueryGasLimit: defaultQueryGasLimit,
+		CacheSize:          defaultLRUCacheSize,
+	}
+}