diff --git a/package.json b/package.json
index 7d3a893ed1..411ebadfe9 100644
--- a/package.json
+++ b/package.json
@@ -49,7 +49,7 @@
     "karma-jasmine": "~1.1.0",
     "karma-webpack": "2.0.4",
     "prettier": "1.7.4",
-    "rxjs": "5.4.3",
+    "rxjs": "5.5.2",
     "tslint": "5.7.0",
     "typescript": "2.5.3"
   },
diff --git a/packages/nx/package.json b/packages/nx/package.json
index 473a7d1a97..c88e1766c5 100644
--- a/packages/nx/package.json
+++ b/packages/nx/package.json
@@ -4,10 +4,12 @@
   "description": "Nrwl Extensions for Angular",
   "main": "index.js",
   "types": "index.d.js",
-  "dependencies" :{
+  "dependencies": {
     "jasmine-marbles": "0.1.0"
   },
-  "peerDependencies" :{},
+  "peerDependencies": {
+    "rxjs": "^5.5.0"
+  },
   "author": "Victor Savkin",
   "license": "MIT"
 }
diff --git a/packages/nx/spec/data-persistence.spec.ts b/packages/nx/spec/data-persistence.spec.ts
index 774ee51004..dce48facaa 100644
--- a/packages/nx/spec/data-persistence.spec.ts
+++ b/packages/nx/spec/data-persistence.spec.ts
@@ -1,5 +1,3 @@
-import 'rxjs/add/operator/delay';
-
 import { Component, Injectable } from '@angular/core';
 import { ComponentFixture, fakeAsync, TestBed, tick } from '@angular/core/testing';
 import { ActivatedRouteSnapshot, Router } from '@angular/router';
@@ -11,7 +9,7 @@ import { Store, StoreModule } from '@ngrx/store';
 import { Observable } from 'rxjs/Observable';
 import { of } from 'rxjs/observable/of';
 import { _throw } from 'rxjs/observable/throw';
-import { delay } from 'rxjs/operator/delay';
+import { delay } from 'rxjs/operators';
 import { Subject } from 'rxjs/Subject';
 
 import { DataPersistence } from '../index';
@@ -249,7 +247,7 @@ describe('DataPersistence', () => {
             return of({
               type: 'TODOS',
               payload: { user: state.user, todos: 'some todos' }
-            }).delay(1);
+            }).pipe(delay(1));
           },
 
           onError: (a, e: any) => null
@@ -295,7 +293,7 @@ describe('DataPersistence', () => {
         @Effect()
         loadTodo = this.s.fetch<GetTodo>('GET_TODO', {
           id: (a, state) => a.payload.id,
-          run: (a, state) => of({ type: 'TODO', payload: a.payload }).delay(1),
+          run: (a, state) => of({ type: 'TODO', payload: a.payload }).pipe(delay(1)),
           onError: (a, e: any) => null
         });
 
diff --git a/packages/nx/src/data-persistence.ts b/packages/nx/src/data-persistence.ts
index 728b77b0a5..b801c61133 100644
--- a/packages/nx/src/data-persistence.ts
+++ b/packages/nx/src/data-persistence.ts
@@ -5,14 +5,7 @@ import { ROUTER_NAVIGATION, RouterNavigationAction } from '@ngrx/router-store';
 import { Action, State, Store } from '@ngrx/store';
 import { Observable } from 'rxjs/Observable';
 import { of } from 'rxjs/observable/of';
-import { _catch } from 'rxjs/operator/catch';
-import { concatMap } from 'rxjs/operator/concatMap';
-import { filter } from 'rxjs/operator/filter';
-import { groupBy } from 'rxjs/operator/groupBy';
-import { map } from 'rxjs/operator/map';
-import { mergeMap } from 'rxjs/operator/mergeMap';
-import { switchMap } from 'rxjs/operator/switchMap';
-import { withLatestFrom } from 'rxjs/operator/withLatestFrom';
+import { catchError, concatMap, filter, groupBy, map, mergeMap, switchMap, withLatestFrom } from 'rxjs/operators';
 
 /**
  * See {@link DataPersistence.pessimisticUpdate} for more information.
@@ -46,8 +39,6 @@ export interface HandleNavigationOpts<T> {
   onError?(a: ActivatedRouteSnapshot, e: any): Observable<any> | any;
 }
 
-type Pair = [Action, any];
-
 /**
  * @whatItDoes Provides convenience methods for implementing common operations of persisting data.
  */
@@ -91,10 +82,10 @@ export class DataPersistence<T> {
    * }
    * ```
    */
-  pessimisticUpdate<A = Action>(actionType: string, opts: PessimisticUpdateOpts<T, A>): Observable<any> {
-    const nav = this.actions.ofType(actionType);
-    const pairs = withLatestFrom.call(nav, this.store);
-    return concatMap.call(pairs, this.runWithErrorHandling(opts.run, opts.onError));
+  pessimisticUpdate<A extends Action = Action>(actionType: string, opts: PessimisticUpdateOpts<T, A>): Observable<any> {
+    const nav = this.actions.ofType<A>(actionType);
+    const pairs = nav.pipe(withLatestFrom(this.store));
+    return pairs.pipe(concatMap(this.runWithErrorHandling(opts.run, opts.onError)));
   }
 
   /**
@@ -133,10 +124,10 @@ export class DataPersistence<T> {
    * }
    * ```
    */
-  optimisticUpdate<A = Action>(actionType: string, opts: OptimisticUpdateOpts<T, A>): Observable<any> {
-    const nav = this.actions.ofType(actionType);
-    const pairs = withLatestFrom.call(nav, this.store);
-    return concatMap.call(pairs, this.runWithErrorHandling(opts.run, opts.undoAction));
+  optimisticUpdate<A extends Action = Action>(actionType: string, opts: OptimisticUpdateOpts<T, A>): Observable<any> {
+    const nav = this.actions.ofType<A>(actionType);
+    const pairs = nav.pipe(withLatestFrom(this.store));
+    return pairs.pipe(concatMap(this.runWithErrorHandling(opts.run, opts.undoAction)));
   }
 
   /**
@@ -206,17 +197,17 @@ export class DataPersistence<T> {
    * In addition, if DataPersistence notices that there are multiple requests for Todo 1 scheduled,
    * it will only run the last one.
    */
-  fetch<A = Action>(actionType: string, opts: FetchOpts<T, A>): Observable<any> {
-    const nav = this.actions.ofType(actionType);
-    const allPairs = withLatestFrom.call(nav, this.store);
+  fetch<A extends Action = Action>(actionType: string, opts: FetchOpts<T, A>): Observable<any> {
+    const nav = this.actions.ofType<A>(actionType);
+    const allPairs = nav.pipe(withLatestFrom(this.store));
 
     if (opts.id) {
-      const groupedFetches: Observable<Observable<Pair>> = groupBy.call(allPairs, p => opts.id(p[0], p[1]));
-      return mergeMap.call(groupedFetches, (pairs: Observable<Pair>) =>
-        switchMap.call(pairs, this.runWithErrorHandling(opts.run, opts.onError))
+      const groupedFetches = allPairs.pipe(groupBy(([action, store]) => opts.id(action, store)));
+      return groupedFetches.pipe(
+        mergeMap(pairs => pairs.pipe(switchMap(this.runWithErrorHandling(opts.run, opts.onError))))
       );
     } else {
-      return concatMap.call(allPairs, this.runWithErrorHandling(opts.run, opts.onError));
+      return allPairs.pipe(concatMap(this.runWithErrorHandling(opts.run, opts.onError)));
     }
   }
 
@@ -255,24 +246,21 @@ export class DataPersistence<T> {
    *
    */
   navigation(component: Type<any>, opts: HandleNavigationOpts<T>): Observable<any> {
-    const nav = filter.call(
-      map.call(this.actions.ofType(ROUTER_NAVIGATION), (a: RouterNavigationAction<RouterStateSnapshot>) =>
-        findSnapshot(component, a.payload.routerState.root)
-      ),
-      s => !!s
-    );
+    const nav = this.actions
+      .ofType<RouterNavigationAction<RouterStateSnapshot>>(ROUTER_NAVIGATION)
+      .pipe(map(a => findSnapshot(component, a.payload.routerState.root)), filter(s => !!s));
 
-    const pairs = withLatestFrom.call(nav, this.store);
-    return switchMap.call(pairs, this.runWithErrorHandling(opts.run, opts.onError));
+    const pairs = nav.pipe(withLatestFrom(this.store));
+    return pairs.pipe(switchMap(this.runWithErrorHandling(opts.run, opts.onError)));
   }
 
-  private runWithErrorHandling(run: any, onError: any) {
-    return a => {
+  private runWithErrorHandling<A, R>(run: (a: A, state?: T) => Observable<R> | R | void, onError: any) {
+    return ([action, state]: [A, T]): Observable<R> => {
       try {
-        const r = wrapIntoObservable(run(a[0], a[1]));
-        return _catch.call(r, e => wrapIntoObservable(onError(a[0], e)));
+        const r = wrapIntoObservable(run(action, state));
+        return r.pipe(catchError(e => wrapIntoObservable(onError(action, e))));
       } catch (e) {
-        return wrapIntoObservable(onError(a[0], e));
+        return wrapIntoObservable(onError(action, e));
       }
     };
   }
@@ -291,12 +279,12 @@ function findSnapshot(component: Type<any>, s: ActivatedRouteSnapshot): Activate
   return null;
 }
 
-function wrapIntoObservable(obj: any): Observable<any> {
-  if (!!obj && typeof obj.subscribe === 'function') {
+function wrapIntoObservable<O>(obj: Observable<O> | O | void): Observable<O> {
+  if (!!obj && obj instanceof Observable) {
     return obj;
   } else if (!obj) {
     return of();
   } else {
-    return of(obj);
+    return of(obj as O);
   }
 }
diff --git a/packages/nx/src/testing-utils.ts b/packages/nx/src/testing-utils.ts
index 140f231d87..ab0106961b 100644
--- a/packages/nx/src/testing-utils.ts
+++ b/packages/nx/src/testing-utils.ts
@@ -1,7 +1,5 @@
 import { Observable } from 'rxjs/Observable';
-import { first } from 'rxjs/operator/first';
-import { toArray } from 'rxjs/operator/toArray';
-import { toPromise } from 'rxjs/operator/toPromise';
+import { first, toArray } from 'rxjs/operators';
 
 /**
  * @whatItDoes reads all the values from an observable and returns a promise
@@ -16,7 +14,7 @@ import { toPromise } from 'rxjs/operator/toPromise';
  * ```
  */
 export function readAll<T>(o: Observable<T>): Promise<T[]> {
-  return toPromise.call(toArray.call(o));
+  return o.pipe(toArray()).toPromise();
 }
 
 /**
@@ -32,5 +30,5 @@ export function readAll<T>(o: Observable<T>): Promise<T[]> {
  * ```
  */
 export function readFirst<T>(o: Observable<T>): Promise<T> {
-  return toPromise.call(first.call(o));
+  return o.pipe(first()).toPromise();
 }
diff --git a/yarn.lock b/yarn.lock
index 55c061688a..15b54de426 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -5149,13 +5149,7 @@ run-queue@^1.0.0, run-queue@^1.0.3:
   dependencies:
     aproba "^1.1.1"
 
-rxjs@5.4.3:
-  version "5.4.3"
-  resolved "https://registry.yarnpkg.com/rxjs/-/rxjs-5.4.3.tgz#0758cddee6033d68e0fd53676f0f3596ce3d483f"
-  dependencies:
-    symbol-observable "^1.0.1"
-
-rxjs@^5.5.2:
+rxjs@5.5.2, rxjs@^5.5.2:
   version "5.5.2"
   resolved "https://registry.yarnpkg.com/rxjs/-/rxjs-5.5.2.tgz#28d403f0071121967f18ad665563255d54236ac3"
   dependencies: