diff --git a/README.md b/README.md
index 44a80a31..570dc3f6 100644
--- a/README.md
+++ b/README.md
@@ -145,104 +145,7 @@ This should create an additional `styles.css.map` file.
 
 ### Hot Reload
 
-Hot reloading is turned off by default, you can turn it on using the `hotReload` option as shown below:
-
-```javascript
-  ...
-  module: {
-    rules: [
-      ...
-      {
-        test: /\.(html|svelte)$/,
-        exclude: /node_modules/,
-        use: {
-          loader: 'svelte-loader',
-          options: {
-            hotReload: true
-          }
-        }
-      }
-      ...
-    ]
-  }
-  ...
-```
-
-#### Hot reload rules and caveats:
-
- - `_rerender` and `_register` are reserved method names, please don't use them in `methods:{...}`
- - Turning `dev` mode on (`dev:true`) is **not** necessary.
- - Modifying the HTML (template) part of your component will replace and re-render the changes in place. Current local state of the component will also be preserved (this can be turned off per component see [Stop preserving state](#stop-preserving-state)).
- - When modifying the `<script>` part of your component, instances will be replaced and re-rendered in place too.
-  However if your component has lifecycle methods that produce global side-effects, you might need to reload the whole page.
- - If you are using `svelte/store`, a full reload is required if you modify `store` properties
-
-
-Components will **not** be hot reloaded in the following situations:
- 1. `process.env.NODE_ENV === 'production'`
- 2. Webpack is minifying code
- 3. Webpack's `target` is `node` (i.e SSR components)
- 4. `generate` option has a value of `ssr`
-
-#### Stop preserving state
-
-Sometimes it might be necessary for some components to avoid state preservation on hot reload.
-
-This can be configured on a per-component basis by adding a property `noPreserveState = true` to the component's constructor using the `setup()` method. For example:
-```js
-export default {
-  setup(comp){
-    comp.noPreserveState = true;
-  },
-  data(){return {...}},
-  oncreate(){...}
-}
-```
-
-Or, on a global basis by adding `{noPreserveState: true}` to `hotOptions`. For example:
-```js
-{
-    test: /\.(html|svelte)$/,
-    exclude: /node_modules/,
-    use: [
-      {
-        loader: 'svelte-loader',
-        options: {
-          hotReload: true,
-          hotOptions: {
-            noPreserveState: true
-          }
-        }
-      }
-    ]
-  }
-```
-
-**Please Note:** If you are using `svelte/store`, `noPreserveState` has no effect on `store` properties. Neither locally, nor globally.
-
-#### External Dependencies
-
-If you rely on any external dependencies (files required in a preprocessor for example) you might want to watch these files for changes and re-run svelte compile.
-
-Webpack allows [loader dependencies](https://webpack.js.org/contribute/writing-a-loader/#loader-dependencies) to trigger a recompile. svelte-loader exposes this API via `options.externalDependencies`.
- For example:
-
-```js
-...
-const variables = path.resolve('./variables.js');
-...
-{
-    test: /\.(html|svelte)$/,
-    use: [
-      {
-        loader: 'svelte-loader',
-        options: {
-          externalDependencies: [variables]
-        }
-      }
-    ]
-  }
-```
+See [rixo/svelte-hmr](https://github.com/rixo/svelte-hmr#webpack) for info on how to setup hot module reloading (HMR).
 
 ## License
 
diff --git a/index.js b/index.js
index 83cac61c..59804140 100644
--- a/index.js
+++ b/index.js
@@ -1,49 +1,18 @@
-const { relative } = require('path');
 const { getOptions } = require('loader-utils');
 
-const hotApi = require.resolve('./lib/hot-api.js');
-
 const { compile, preprocess } = require('svelte/compiler');
 
 const pluginOptions = {
-	externalDependencies: true,
-	hotReload: true,
-	hotOptions: true,
 	preprocess: true,
 	emitCss: true,
 
 	// legacy
 	onwarn: true,
-	shared: true,
 	style: true,
 	script: true,
 	markup: true
 };
 
-function makeHot(id, code, hotOptions) {
-	const options = JSON.stringify(hotOptions);
-	const replacement = `
-if (module.hot) {
-	const { configure, register, reload } = require('${posixify(hotApi)}');
-
-	module.hot.accept();
-
-	if (!module.hot.data) {
-		// initial load
-		configure(${options});
-		$2 = register(${id}, $2);
-	} else {
-		// hot update
-		$2 = reload(${id}, $2);
-	}
-}
-
-export default $2;
-`;
-
-	return code.replace(/(export default ([^;]*));/, () => replacement);
-}
-
 function posixify(file) {
 	return file.replace(/[/\\]/g, '/');
 }
@@ -94,9 +63,6 @@ module.exports = function(source, map) {
 		return;
 	}
 
-	const isServer = this.target === 'node' || (options.generate && options.generate == 'ssr');
-	const isProduction = this.minimize || process.env.NODE_ENV === 'production';
-
 	const compileOptions = {
 		filename: this.resourcePath,
 		format: options.format || 'esm'
@@ -128,12 +94,6 @@ module.exports = function(source, map) {
 				: handleWarning
 		);
 
-		if (options.hotReload && !isProduction && !isServer) {
-			const hotOptions = Object.assign({}, options.hotOptions);
-			const id = JSON.stringify(relative(process.cwd(), compileOptions.filename));
-			js.code = makeHot(id, js.code, hotOptions);
-		}
-
 		if (options.emitCss && css.code) {
 			const resource = posixify(compileOptions.filename);
 			const cssPath = `${resource}.${index++}.css`;
diff --git a/lib/hot-api.js b/lib/hot-api.js
deleted file mode 100644
index 73567782..00000000
--- a/lib/hot-api.js
+++ /dev/null
@@ -1,51 +0,0 @@
-import { Registry, configure as configureProxy, createProxy } from 'svelte-dev-helper';
-
-let hotOptions = {
-	noPreserveState: false
-};
-
-export function configure(options) {
-	hotOptions = Object.assign(hotOptions, options);
-	configureProxy(hotOptions);
-}
-
-export function register(id, component) {
-
-	//store original component in registry
-	Registry.set(id, {
-		rollback: null,
-		component,
-		instances: []
-	});
-
-	//create the proxy itself
-	const proxy = createProxy(id);
-
-	//patch the registry record with proxy constructor
-	const record = Registry.get(id);
-	record.proxy = proxy;
-	Registry.set(id, record);
-
-	return proxy;
-}
-
-export function reload(id, component) {
-
-	const record = Registry.get(id);
-
-	//keep reference to previous version to enable rollback
-	record.rollback = record.component;
-
-	//replace component in registry with newly loaded component
-	record.component = component;
-
-	Registry.set(id, record);
-
-	//re-render the proxy instances
-	record.instances.slice().forEach(function(instance) {
-		instance && instance._rerender();
-	});
-
-	//return the original proxy constructor that was `register()`-ed
-	return record.proxy;
-}
\ No newline at end of file
diff --git a/package-lock.json b/package-lock.json
index c9398d34..856fcbb3 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1252,11 +1252,6 @@
       "integrity": "sha512-TxZGrXzX2ggFH3BIKY5fmbeMdJuZrMIMDYPMX6R9255bueuYIuVaBQSLUeY2oD7W4IdeqRZiAVGCjDw2POKBRA==",
       "dev": true
     },
-    "svelte-dev-helper": {
-      "version": "1.1.9",
-      "resolved": "https://registry.npmjs.org/svelte-dev-helper/-/svelte-dev-helper-1.1.9.tgz",
-      "integrity": "sha1-fRh9tcbNu9ZNdaMvkbiZi94yc8M="
-    },
     "symbol-observable": {
       "version": "1.0.1",
       "resolved": "https://registry.npmjs.org/symbol-observable/-/symbol-observable-1.0.1.tgz",
diff --git a/package.json b/package.json
index eefd5d3a..06a38a5d 100644
--- a/package.json
+++ b/package.json
@@ -7,7 +7,7 @@
   "scripts": {
     "all": "npm run lint && npm run test",
     "test": "mocha --harmony --full-trace --check-leaks",
-    "lint": "eslint index.js lib/*.js test/**/*.js"
+    "lint": "eslint index.js test/**/*.js"
   },
   "keywords": [
     "svelte",
@@ -15,8 +15,7 @@
     "webpack-loader"
   ],
   "dependencies": {
-    "loader-utils": "^1.1.0",
-    "svelte-dev-helper": "^1.1.9"
+    "loader-utils": "^1.1.0"
   },
   "devDependencies": {
     "chai": "^4.1.2",
@@ -35,7 +34,6 @@
     "url": "git@github.com:sveltejs/svelte-loader.git"
   },
   "files": [
-    "lib",
     "index.js"
   ]
 }
diff --git a/test/loader.spec.js b/test/loader.spec.js
index e9c40b49..0a865143 100644
--- a/test/loader.spec.js
+++ b/test/loader.spec.js
@@ -298,83 +298,6 @@ describe('loader', () => {
 				)(done);
 			});
 		});
-
-		describe('hotReload', () => {
-			it(
-				'should configure hotReload=false (default)',
-				testLoader(
-					'test/fixtures/good.html',
-					function(err, code, map) {
-						expect(err).not.to.exist;
-
-						expect(code).not.to.contain('module.hot.accept();');
-					},
-					{}
-				)
-			);
-
-			it(
-				'should configure hotReload=true',
-				testLoader(
-					'test/fixtures/good.html',
-					function(err, code, map) {
-						expect(err).not.to.exist;
-
-						expect(code).to.contain('module.hot.accept();');
-						expect(code).not.to.contain('configure({"noPreserveState":true});');
-					},
-					{ hotReload: true }
-				)
-			);
-
-			it(
-				'should configure hotReload=true & hotOptions',
-				testLoader(
-					'test/fixtures/good.html',
-					function(err, code, map) {
-						expect(err).not.to.exist;
-
-						expect(code).to.contain('module.hot.accept();');
-						expect(code).to.contain('configure({"noPreserveState":true});');
-					},
-					{
-						hotReload: true,
-						hotOptions: {
-							noPreserveState: true
-						}
-					}
-				)
-			);
-
-			it(
-				'should ignore hotReload when generate=ssr',
-				testLoader(
-					'test/fixtures/good.html',
-					function(err, code, map) {
-						expect(err).not.to.exist;
-
-						expect(code).not.to.contain('module.hot.accept();');
-					},
-					{
-						hotReload: true,
-						generate: 'ssr'
-					}
-				)
-			);
-
-			it(
-				'should require resolved hot-api.js',
-				testLoader(
-					'test/fixtures/good.html',
-					function(err, code, map) {
-						expect(err).not.to.exist;
-
-						expect(code).to.contain(require.resolve('../lib/hot-api.js').replace(/[/\\]/g, '/'));
-					},
-					{ hotReload: true }
-				)
-			);
-		});
 	});
 });