diff --git a/Data/Conduit/TMChan.hs b/Data/Conduit/TMChan.hs
--- a/Data/Conduit/TMChan.hs
+++ b/Data/Conduit/TMChan.hs
@@ -1,3 +1,4 @@
+{-# LANGUAGE NoMonomorphismRestriction, FlexibleContexts, RankNTypes,KindSignatures #-}
 -- | * Introduction
 --
 --   Contains a simple source and sink for linking together conduits in
@@ -52,7 +53,7 @@
 
 import Control.Applicative
 import Control.Monad
-import Control.Monad.IO.Class ( liftIO )
+import Control.Monad.IO.Class ( liftIO, MonadIO )
 import Control.Monad.Trans.Resource
 import Control.Concurrent.STM
 import Control.Concurrent.STM.TBMChan
@@ -61,33 +62,34 @@
 import Data.Conduit
 
 chanSource 
-    :: ResourceIO m 
+    :: MonadIO m
     => chan                     -- ^ The channel.
     -> (chan -> STM (Maybe a))  -- ^ The 'read' function.
     -> (chan -> STM ())         -- ^ The 'close' function.
     -> Source m a
 chanSource ch reader closer = src
     where
-        src = Source pull close
+        src = PipeM pull close
         pull = do a <- liftSTM $ reader ch
                   case a of
-                    Just x  -> return $ Open src x
-                    Nothing -> return Closed
-        close = liftIO . atomically $ closer ch
+                    Just x  -> return $ HaveOutput src close x
+                    Nothing -> return $ Done Nothing ()
+        close = liftSTM $ closer ch
 {-# INLINE chanSource #-}
 
-chanSink 
-    :: ResourceIO m
+chanSink
+    :: MonadIO m
     => chan                     -- ^ The channel.
     -> (chan -> a -> STM ())    -- ^ The 'write' function.
     -> (chan -> STM ())         -- ^ The 'close' function.
     -> Sink a m ()
 chanSink ch writer closer = sink
     where
-        sink = SinkData push close
-        push input = do liftSTM $ writer ch input
-                        return $ Processing push close
-        close = liftIO . atomically $ closer ch
+        sink = NeedInput push close
+
+        push input = PipeM ((liftIO . atomically $ writer ch input) 
+                            >> (return $ NeedInput push close)) close
+        close = liftSTM $ closer ch
 {-# INLINE chanSink #-}
 
 -- | A simple wrapper around a TBMChan. As data is pushed into the channel, the
@@ -95,14 +97,14 @@
 --   channel is closed, the source will close also.
 --
 --   If the channel fills up, the pipeline will stall until values are read.
-sourceTBMChan :: ResourceIO m => TBMChan a -> Source m a
+sourceTBMChan :: MonadIO m => TBMChan a -> Source m a
 sourceTBMChan ch = chanSource ch readTBMChan closeTBMChan
 {-# INLINE sourceTBMChan #-}
 
 -- | A simple wrapper around a TMChan. As data is pushed into the channel, the
 --   source will read it and pass it down the conduit pipeline. When the
 --   channel is closed, the source will close also.
-sourceTMChan :: ResourceIO m => TMChan a -> Source m a
+sourceTMChan :: MonadIO m => TMChan a -> Source m a
 sourceTMChan ch = chanSource ch readTMChan closeTMChan
 {-# INLINE sourceTMChan #-}
 
@@ -110,14 +112,14 @@
 --   will magically begin to appear in the channel. If the channel is full,
 --   the sink will block until space frees up. When the sink is closed, the
 --   channel will close too.
-sinkTBMChan :: ResourceIO m => TBMChan a -> Sink a m ()
+sinkTBMChan :: MonadIO m => TBMChan a -> Sink a m ()
 sinkTBMChan ch = chanSink ch writeTBMChan closeTBMChan
 {-# INLINE sinkTBMChan #-}
 
 -- | A simple wrapper around a TMChan. As data is pushed into this sink, it
 --   will magically begin to appear in the channel. When the sink is closed,
 --   the channel will close too.
-sinkTMChan :: ResourceIO m => TMChan a -> Sink a m ()
+sinkTMChan :: MonadIO m => TMChan a -> Sink a m ()
 sinkTMChan ch = chanSink ch writeTMChan closeTMChan
 {-# INLINE sinkTMChan #-}
 
@@ -128,8 +130,7 @@
 modifyTVar'' tv f = do x <- f <$> readTVar tv
                        writeTVar tv x
                        return x
-
-liftSTM :: ResourceIO m => STM a -> ResourceT m a
+liftSTM :: forall (m :: * -> *) a. MonadIO m => STM a -> m a
 liftSTM = liftIO . atomically
 
 -- | Combines two sources with an unbounded channel, creating a new source
@@ -137,10 +138,10 @@
 --
 --   The order of the new source's data is undefined, but it will be some
 --   combination of the two given sources.
-(>=<) :: ResourceIO m
-      => Source m a
-      -> Source m a
-      -> ResourceT m (Source m a)
+(>=<) :: (MonadIO m, MonadBaseControl IO m)
+      => Source (ResourceT m) a
+      -> Source (ResourceT m) a
+      -> ResourceT m (Source (ResourceT m) a)
 sa >=< sb = mergeSources [ sa, sb ] 16
 {-# INLINE (>=<) #-}
 
@@ -155,11 +156,12 @@
 --
 --   The order of the new source's data is undefined, but it will be some
 --   combination of the given sources.
-mergeSources :: ResourceIO m
-             => [Source m a] -- ^ The sources to merge.
+mergeSources :: (MonadIO m, MonadBaseControl IO m)
+             => [Source (ResourceT m) a] -- ^ The sources to merge.
              -> Int -- ^ The bound of the intermediate channel.
-             -> ResourceT m (Source m a)
-mergeSources sx bound = do c <- liftIO . atomically $ newTBMChan bound
+             -> ResourceT m (Source (ResourceT m) a)
+mergeSources sx bound = do c <- liftSTM $ newTBMChan bound
                            refcount <- liftSTM . newTVar $ length sx
                            mapM_ (\s -> resourceForkIO $ s $$ chanSink c writeTBMChan $ decRefcount refcount) sx
                            return $ sourceTBMChan c
+
diff --git a/Setup.hs b/Setup.hs
deleted file mode 100644
--- a/Setup.hs
+++ /dev/null
@@ -1,2 +0,0 @@
-import Distribution.Simple
-main = defaultMain
diff --git a/Setup.lhs b/Setup.lhs
new file mode 100644
--- /dev/null
+++ b/Setup.lhs
@@ -0,0 +1,4 @@
+#!/usr/bin/env runhaskell
+ 
+> import Distribution.Simple
+> main = defaultMain
diff --git a/stm-conduit.cabal b/stm-conduit.cabal
--- a/stm-conduit.cabal
+++ b/stm-conduit.cabal
@@ -1,5 +1,5 @@
 Name:                stm-conduit
-Version:             0.2.4.1
+Version:             0.4.0
 Synopsis:            Introduces conduits to channels, and promotes using
                      conduits concurrently.
 Description:         Provides two simple conduit wrappers around STM
@@ -23,7 +23,8 @@
                        transformers ==0.2.*,
                        stm == 2.3.*,
                        stm-chans ==1.3.*,
-                       conduit ==0.2.*
+                       conduit ==0.4.*,
+                       resourcet == 0.3.*
 
     ghc-options:       -Wall -fwarn-tabs
 
@@ -43,6 +44,7 @@
                     stm,
                     stm-conduit,
                     conduit,
+                    transformers,
                     stm-chans
   
 source-repository head
diff --git a/test/Test.hs b/test/Test.hs
--- a/test/Test.hs
+++ b/test/Test.hs
@@ -9,6 +9,8 @@
 import Test.QuickCheck
 import Test.HUnit
 
+import Control.Monad.IO.Class (liftIO)
+import Control.Monad.Trans.Class (lift)
 import Control.Concurrent
 import Control.Concurrent.STM
 import Data.Conduit
@@ -35,8 +37,8 @@
     where
         testList = [1..10000]
 
-test_multipleWriters = do ms <- runResourceT $ mergeSources [ sourceList [1..10]
-                                                           , sourceList [11..20]
-                                                           ] 3
+test_multipleWriters = do ms <- runResourceT $ mergeSources [ sourceList ([1..10]::[Integer])
+                                                            , sourceList ([11..20]::[Integer])
+                                                            ] 3
                           xs <- runResourceT $ ms $$ consume
-                          assertEqual "for the numbers [1..10] and [11..20]," [1..20] $ sort xs
+                          liftIO $ assertEqual "for the numbers [1..10] and [11..20]," [1..20] $ sort xs