diff --git a/src/Init/Prelude.lean b/src/Init/Prelude.lean
index f3cb9d96c1..96edf7c502 100644
--- a/src/Init/Prelude.lean
+++ b/src/Init/Prelude.lean
@@ -134,6 +134,12 @@ It can also be written as `()`.
 -/
 @[matchPattern] abbrev Unit.unit : Unit := PUnit.unit
 
+/-- Marker for information that has been erased by the code generator. -/
+unsafe axiom lcErased : Type
+
+/-- "Any" type in the simpler type system used by the code generator. -/
+unsafe axiom lcAny : Type
+
 /--
 Auxiliary unsafe constant used by the Compiler when erasing proofs from code.
 
diff --git a/src/Lean/Compiler.lean b/src/Lean/Compiler.lean
index 3e6970091e..e3901062b8 100644
--- a/src/Lean/Compiler.lean
+++ b/src/Lean/Compiler.lean
@@ -15,6 +15,7 @@ import Lean.Compiler.CSimpAttr
 import Lean.Compiler.FFI
 import Lean.Compiler.NoncomputableAttr
 import Lean.Compiler.CompilerM
+import Lean.Compiler.LCNFTypes
 import Lean.Compiler.LCNF
 import Lean.Compiler.Decl
 import Lean.Compiler.Main
diff --git a/src/Lean/Compiler/LCNFTypes.lean b/src/Lean/Compiler/LCNFTypes.lean
new file mode 100644
index 0000000000..b95c03de4b
--- /dev/null
+++ b/src/Lean/Compiler/LCNFTypes.lean
@@ -0,0 +1,127 @@
+/-
+Copyright (c) 2022 Microsoft Corporation. All rights reserved.
+Released under Apache 2.0 license as described in the file LICENSE.
+Authors: Leonardo de Moura
+-/
+import Lean.Compiler.BorrowedAnnotation
+import Lean.Meta.InferType
+
+namespace Lean.Compiler
+
+structure LCNFTypeExtState where
+  types : Std.PHashMap Name Expr := {}
+  deriving Inhabited
+
+builtin_initialize lcnfTypeExt : EnvExtension LCNFTypeExtState ←
+  registerEnvExtension (pure {})
+
+def erasedExpr := mkConst ``lcErased
+def anyTypeExpr := mkConst  ``lcAny
+
+/-!
+The code generator uses a format based on A-normal form.
+This normal form uses many let-expressions and it is very convenient for
+applying compiler transformations. However, it creates a few issues
+in a dependently typed programming language.
+
+- Many casts are needed.
+- It is too expensive to ensure we are not losing typeability when creating join points
+  and simplifying let-values
+- It may not be possible to create a join point because the resulting expression is
+  not type correct. For example, suppose we are trying to create a join point for
+  making the following `match` terminal.
+  ```
+  let x := match a with | true => b | false => c;
+  k[x]
+  ```
+  and want to transform this code into
+  ```
+  let jp := fun x => k[x]
+  match a with
+  | true => jp b
+  | false => jp c
+  ```
+  where `jp` is a new join point (i.e., a local function that is always fully applied and
+  tail recursive). In many examples in the Lean code-base, we have to skip this transformation
+  because it produces a type-incorrect term. Recall that types/propositions in `k[x]` may rely on
+  the fact that `x` is definitionally equal to `match a with ...` before the creation of
+  the join point.
+
+Thus, in the first code generator pass, we convert types into a `LCNFType` (Lean Compiler Normal Form Type).
+The method `toLCNFType` produces a type with the following properties:
+
+- All constants occurring in the result type are inductive datatypes.
+- The arguments of type formers are type formers, `◾`, or `⊤`. We use `◾` to denote erased information,
+  and `⊤` the any type.
+- All type definitions are expanded. If reduction gets stuck, it is replaced with `⊤`.
+
+
+The goal is to preserve as much information as possible and avoid the problems described above.
+Then, we don't have `let x := v; ...` in LCNF code when `x` is a type former.
+If the user provides a `let x := v; ...` where x is a type former, we can always expand it when
+converting into LCNF.
+Thus, given a `let x := v, ...` in occurring in LCNF, we know `x` cannot occur in any type since it is
+not a type former.
+
+We try to preserve type information because they unlock new optimizations, and we can type check
+the result produced by each code generator step.
+-/
+
+open Meta in
+/--
+Convert a Lean type into a LCNF type used by the code generator.
+-/
+partial def toLCNFType (type : Expr) : MetaM Expr := do
+  if (← isProp type) then
+    return erasedExpr
+  let type ← whnf type
+  match type with
+  | .sort u     => return .sort u
+  | .const ..   => visitApp type #[]
+  | .lam n d b bi =>
+    withLocalDecl n bi d fun x => do
+      let d ← toLCNFType d
+      let b ← toLCNFType (b.instantiate1 x)
+      return .lam n d (b.abstract #[x]) bi
+  | .forallE n d b bi =>
+    withLocalDecl n bi d fun x => do
+      let borrowed := isMarkedBorrowed d
+      let mut d ← toLCNFType d
+      if borrowed then
+        d := markBorrowed d
+      let b ← toLCNFType (b.instantiate1 x)
+      return .forallE n d (b.abstract #[x]) bi
+  | .app ..  => type.withApp visitApp
+  | .fvar .. => visitApp type #[]
+  | _        => return anyTypeExpr
+where
+  visitApp (f : Expr) (args : Array Expr) := do
+    let fNew ← match f with
+      | .const declName us =>
+        let .inductInfo _ ← getConstInfo declName | return anyTypeExpr
+        pure <| .const declName us
+      | .fvar .. => pure f
+      | _ => return anyTypeExpr
+    let mut result := fNew
+    for arg in args do
+      if (← isProp arg) then
+        result := mkApp result erasedExpr
+      else if (← isTypeFormer arg) then
+        result := mkApp result (← toLCNFType arg)
+      else
+        result := mkApp result erasedExpr
+    return result
+
+/--
+Return the LCNF type for the given declaration.
+-/
+def getDeclLCNFType (declName : Name) : CoreM Expr := do
+  match lcnfTypeExt.getState (← getEnv) |>.types.find? declName with
+  | some type => return type
+  | none =>
+    let info ← getConstInfo declName
+    let type ← Meta.MetaM.run' <| toLCNFType info.type
+    modifyEnv fun env => lcnfTypeExt.modifyState env fun s => { s with types := s.types.insert declName type }
+    return type
+
+end Lean.Compiler
\ No newline at end of file
diff --git a/tests/playground/simpleTypes.lean b/tests/playground/simpleTypes.lean
index 176231c4aa..3cf7b055f5 100644
--- a/tests/playground/simpleTypes.lean
+++ b/tests/playground/simpleTypes.lean
@@ -1,60 +1,12 @@
 import Lean
 
-opaque Erased : Type
-opaque Any : Type
-notation "◾" => Erased
-notation "⊤" => Any
+notation "◾" => lcErased
+notation "⊤" => lcAny
 
-open Lean Meta
-
-def erasedExpr := mkConst ``Erased
-def anyExpr := mkConst  ``Any
-
-partial def simpType (type : Expr) : MetaM Expr := do
-  if (← isProp type) then
-    return erasedExpr
-  let type ← whnf type
-  match type with
-  | .sort u     => return .sort u
-  | .const ..   => visitApp type #[]
-  | .lam n d b bi =>
-    withLocalDecl n bi d fun x => do
-      let d ← simpType d
-      let b ← simpType (b.instantiate1 x)
-      return .lam n d (b.abstract #[x]) bi
-  | .forallE n d b bi =>
-    withLocalDecl n bi d fun x => do
-      let borrowed := isMarkedBorrowed d
-      let mut d ← simpType d
-      if borrowed then
-        d := markBorrowed d
-      let b ← simpType (b.instantiate1 x)
-      return .forallE n d (b.abstract #[x]) bi
-  | .app ..  => type.withApp visitApp
-  | .fvar .. => visitApp type #[]
-  | _        => return anyExpr
-where
-  visitApp (f : Expr) (args : Array Expr) := do
-    let fNew ← match f with
-      | .const declName us =>
-        let .inductInfo _ ← getConstInfo declName | return anyExpr
-        pure <| .const declName us
-      | .fvar .. => pure f
-      | _ => return anyExpr
-    let mut result := fNew
-    for arg in args do
-      if (← isProp arg) then
-        result := mkApp result erasedExpr
-      else if (← isTypeFormer arg) then
-        result := mkApp result (← simpType arg)
-      else
-        result := mkApp result erasedExpr
-    return result
+open Lean Compiler Meta
 
 def test (declName : Name) : MetaM Unit := do
-  let info ← getConstInfo declName
-  let type ← simpType info.type
-  IO.println s!"{declName} : {← ppExpr type}"
+  IO.println s!"{declName} : {← ppExpr (← getDeclLCNFType declName)}"
 
 inductive Vec (α : Type u) : Nat → Type u
   | nil : Vec α 0
@@ -140,6 +92,6 @@ def Term.constFold : Term ctx ty → Term ctx ty
 #eval test ``Decidable.casesOn
 #eval test ``getConstInfo
 #eval test ``instMonadMetaM
-#eval test ``inferType
+#eval test ``Lean.Meta.inferType
 #eval test ``Elab.Term.elabTerm
 #eval test ``Nat.add