diff --git a/README.md b/README.md
index ebe6c734..50286451 100644
--- a/README.md
+++ b/README.md
@@ -135,6 +135,7 @@
   - [`useList`](./docs/useList.md) and [`useUpsert`](./docs/useUpsert.md) — tracks state of an array. [![][img-demo]](https://codesandbox.io/s/wonderful-mahavira-1sm0w)
   - [`useMap`](./docs/useMap.md) — tracks state of an object. [![][img-demo]](https://codesandbox.io/s/quirky-dewdney-gi161)
   - [`useStateValidator`](./docs/useStateValidator.md) — tracks state of an object. [![][img-demo]](https://streamich.github.io/react-use/?path=/story/state-usestatevalidator--demo)
+  - [`useMedisatedState`](./docs/useMediatedState.md) — like the regular `useState` but with mediation by custom function. [![][img-demo]](https://streamich.github.io/react-use/?path=/story/state-usemediatedstate--demo)
 
 <br />
 <br />
diff --git a/docs/useMediatedState.md b/docs/useMediatedState.md
new file mode 100644
index 00000000..34a5cdb5
--- /dev/null
+++ b/docs/useMediatedState.md
@@ -0,0 +1,42 @@
+# `useMediatedState`
+
+A lot like the standard `useState`, but with mediation process.
+
+## Usage
+```ts
+import * as React from 'react';
+import { useMediatedState } from '../useMediatedState';
+
+const InputMediator = s => s.replace(/[\s]+/, ' ');
+const Demo = () => {
+  const [state, setState] = useMediatedState('', InputMediator);
+
+  return (
+    <div>
+      <div>You will not be able to enter more than one space</div>
+      <input
+        type="number"
+        min="0"
+        max="10"
+        value={state}
+        onChange={(ev: React.ChangeEvent<HTMLInputElement>) => {
+          setState(ev.target.value);
+        }}
+      />
+    </div>
+  );
+};
+```
+
+## Reference
+```ts
+const [state, setState] = useMediatedState<S=any>(
+  mediator: StateMediator<S>,
+  initialState?: S
+);
+```
+
+> Initial state will be set as-is.
+
+In case mediator expects 2 arguments it will receive the `setState` function as second argument, it is useful for async mediators.  
+>This hook will not cancel previous mediation when new one been invoked, you have to handle it yourself._
diff --git a/src/__stories__/useMediatedState.story.tsx b/src/__stories__/useMediatedState.story.tsx
new file mode 100644
index 00000000..d3c946f6
--- /dev/null
+++ b/src/__stories__/useMediatedState.story.tsx
@@ -0,0 +1,28 @@
+import { storiesOf } from '@storybook/react';
+import * as React from 'react';
+import { useMediatedState } from '../useMediatedState';
+import ShowDocs from './util/ShowDocs';
+
+const InputMediator = s => s.replace(/[\s]+/, ' ');
+const Demo = () => {
+  const [state, setState] = useMediatedState(InputMediator, '');
+
+  return (
+    <div>
+      <div>You will not be able to enter more than one space</div>
+      <input
+        type="text"
+        min="0"
+        max="10"
+        value={state}
+        onChange={(ev: React.ChangeEvent<HTMLInputElement>) => {
+          setState(ev.target.value);
+        }}
+      />
+    </div>
+  );
+};
+
+storiesOf('State|useMediatedState', module)
+  .add('Docs', () => <ShowDocs md={require('../../docs/useMediatedState.md')} />)
+  .add('Demo', () => <Demo />);
diff --git a/src/__tests__/useMediatedState.test.ts b/src/__tests__/useMediatedState.test.ts
new file mode 100644
index 00000000..ef9838a9
--- /dev/null
+++ b/src/__tests__/useMediatedState.test.ts
@@ -0,0 +1,68 @@
+import { act, renderHook, RenderHookResult } from '@testing-library/react-hooks';
+import { Dispatch, SetStateAction } from 'react';
+import { useMediatedState } from '../';
+import { StateMediator, UseMediatedStateReturn } from '../useMediatedState';
+
+describe('useMediatedState', () => {
+  it('should be defined', () => {
+    expect(useMediatedState).toBeDefined();
+  });
+
+  function getHook(
+    initialState: number = 2,
+    fn: StateMediator<number> = jest.fn(newState => newState / 2)
+  ): [jest.Mock | StateMediator, RenderHookResult<any, UseMediatedStateReturn<number>>] {
+    return [fn, renderHook(() => useMediatedState<number>(fn, initialState))];
+  }
+
+  it('should return array of two elements', () => {
+    const [, hook] = getHook();
+
+    expect(Array.isArray(hook.result.current)).toBe(true);
+    expect(hook.result.current[0]).toBe(2);
+    expect(typeof hook.result.current[1]).toBe('function');
+  });
+
+  it('should act like regular useState but with mediator call on each setState', () => {
+    const [spy, hook] = getHook();
+
+    expect(hook.result.current[0]).toBe(2);
+
+    act(() => hook.result.current[1](3));
+    expect(hook.result.current[0]).toBe(1.5);
+    expect(spy).toHaveBeenCalledTimes(1);
+
+    act(() => hook.result.current[1](4));
+    expect(hook.result.current[0]).toBe(2);
+    expect(spy).toHaveBeenCalledTimes(2);
+  });
+
+  it('should not call mediator on init', () => {
+    const [spy] = getHook();
+
+    expect(spy).toHaveBeenCalledTimes(0);
+  });
+
+  it('mediator should receive setState argument as first argument', () => {
+    let val;
+    const spy = jest.fn(newState => {
+      val = newState;
+      return newState * 2;
+    });
+    const [, hook] = getHook(1, spy);
+
+    act(() => hook.result.current[1](3));
+    expect(val).toBe(3);
+    expect(hook.result.current[0]).toBe(6);
+  });
+
+  it('if mediator expects 2 args, second should be a function setting the state', () => {
+    const spy = (jest.fn((newState: number, setState: Dispatch<SetStateAction<number>>): void => {
+      setState(newState * 2);
+    }) as unknown) as StateMediator<number>;
+    const [, hook] = getHook(1, spy);
+
+    act(() => hook.result.current[1](3));
+    expect(hook.result.current[0]).toBe(6);
+  });
+});
diff --git a/src/index.ts b/src/index.ts
index 65872134..e1e9b337 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -44,6 +44,7 @@ export { default as useLogger } from './useLogger';
 export { default as useMap } from './useMap';
 export { default as useMedia } from './useMedia';
 export { default as useMediaDevices } from './useMediaDevices';
+export { useMediatedState } from './useMediatedState';
 export { default as useMotion } from './useMotion';
 export { default as useMount } from './useMount';
 export { default as useMountedState } from './useMountedState';
diff --git a/src/useMediatedState.ts b/src/useMediatedState.ts
new file mode 100644
index 00000000..708b2ecf
--- /dev/null
+++ b/src/useMediatedState.ts
@@ -0,0 +1,32 @@
+import { Dispatch, SetStateAction, useCallback, useRef, useState } from 'react';
+
+export interface StateMediator<S = any> {
+  (newState: any): S;
+
+  (newState: any, dispatch: Dispatch<SetStateAction<S>>): void;
+}
+
+export type UseMediatedStateReturn<S = any> = [S, Dispatch<SetStateAction<S>>];
+
+export function useMediatedState<S = undefined>(
+  mediator: StateMediator<S | undefined>
+): UseMediatedStateReturn<S | undefined>;
+export function useMediatedState<S = any>(mediator: StateMediator<S>, initialState: S): UseMediatedStateReturn<S>;
+
+export function useMediatedState<S = any>(mediator: StateMediator<S>, initialState?: S): UseMediatedStateReturn<S> {
+  const mediatorFn = useRef(mediator);
+
+  const [state, setMediatedState] = useState<S>(initialState!);
+  const setState = useCallback(
+    (newState: any) => {
+      if (mediatorFn.current.length === 2) {
+        mediatorFn.current(newState, setMediatedState);
+      } else {
+        setMediatedState(mediatorFn.current(newState));
+      }
+    },
+    [state]
+  );
+
+  return [state, setState];
+}