diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index fa1ab99f036..01256d0f638 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -1421,7 +1421,10 @@ module ts {
             else if (links.type === resolvingType) {
                 links.type = anyType;
                 if (compilerOptions.noImplicitAny) {
-                    error(symbol.valueDeclaration, Diagnostics._0_implicitly_has_type_any_because_type_inference_encountered_a_circularity, symbolToString(symbol));
+                    var diagnostic = (<VariableDeclaration>symbol.valueDeclaration).type ?
+                        Diagnostics._0_implicitly_has_type_any_because_it_is_referenced_directly_or_indirectly_in_its_own_type_annotation :
+                        Diagnostics._0_implicitly_has_type_any_because_it_is_does_not_have_a_type_annotation_and_is_referenced_directly_or_indirectly_in_its_own_initializer;
+                    error(symbol.valueDeclaration, diagnostic, symbolToString(symbol));
                 }
             }
             return links.type;
@@ -1494,7 +1497,7 @@ module ts {
                 links.type = anyType;
                 if (compilerOptions.noImplicitAny) {
                     var getter = <AccessorDeclaration>getDeclarationOfKind(symbol, SyntaxKind.GetAccessor);
-                    error(getter, Diagnostics._0_implicitly_has_type_any_because_type_inference_encountered_a_circularity, symbolToString(symbol));
+                    error(getter, Diagnostics._0_implicitly_has_return_type_any_because_it_does_not_have_a_return_type_annotation_and_is_referenced_directly_or_indirectly_in_one_of_its_return_expressions, symbolToString(symbol));
                 }
             }
         }
@@ -2046,10 +2049,10 @@ module ts {
                 if (compilerOptions.noImplicitAny) {
                     var declaration = <Declaration>signature.declaration;
                     if (declaration.name) {
-                        error(declaration.name, Diagnostics._0_implicitly_has_return_type_any_because_type_inference_encountered_a_circularity, identifierToString(declaration.name));
+                        error(declaration.name, Diagnostics._0_implicitly_has_return_type_any_because_it_does_not_have_a_return_type_annotation_and_is_referenced_directly_or_indirectly_in_one_of_its_return_expressions, identifierToString(declaration.name));
                     }
                     else {
-                        error(declaration, Diagnostics.Function_implicitly_has_return_type_any_because_type_inference_encountered_a_circularity);
+                        error(declaration, Diagnostics.Function_implicitly_has_return_type_any_because_it_does_not_have_a_return_type_annotation_and_is_referenced_directly_or_indirectly_in_one_of_its_return_expressions);
                     }
                 }
             }
diff --git a/src/compiler/diagnosticInformationMap.generated.ts b/src/compiler/diagnosticInformationMap.generated.ts
index cadf64f0140..40d27c93dd0 100644
--- a/src/compiler/diagnosticInformationMap.generated.ts
+++ b/src/compiler/diagnosticInformationMap.generated.ts
@@ -390,9 +390,10 @@ module ts {
         Object_literal_s_property_0_implicitly_has_an_1_type: { code: 7018, category: DiagnosticCategory.Error, key: "Object literal's property '{0}' implicitly has an '{1}' type." },
         Rest_parameter_0_implicitly_has_an_any_type: { code: 7019, category: DiagnosticCategory.Error, key: "Rest parameter '{0}' implicitly has an 'any[]' type." },
         Call_signature_which_lacks_return_type_annotation_implicitly_has_an_any_return_type: { code: 7020, category: DiagnosticCategory.Error, key: "Call signature, which lacks return-type annotation, implicitly has an 'any' return type." },
-        _0_implicitly_has_type_any_because_type_inference_encountered_a_circularity: { code: 7021, category: DiagnosticCategory.Error, key: "'{0}' implicitly has type 'any' because type inference encountered a circularity." },
-        _0_implicitly_has_return_type_any_because_type_inference_encountered_a_circularity: { code: 7022, category: DiagnosticCategory.Error, key: "'{0}' implicitly has return type 'any' because type inference encountered a circularity." },
-        Function_implicitly_has_return_type_any_because_type_inference_encountered_a_circularity: { code: 7023, category: DiagnosticCategory.Error, key: "Function implicitly has return type 'any' because type inference encountered a circularity." },
+        _0_implicitly_has_type_any_because_it_is_referenced_directly_or_indirectly_in_its_own_type_annotation: { code: 7021, category: DiagnosticCategory.Error, key: "'{0}' implicitly has type 'any' because it is referenced directly or indirectly in its own type annotation." },
+        _0_implicitly_has_type_any_because_it_is_does_not_have_a_type_annotation_and_is_referenced_directly_or_indirectly_in_its_own_initializer: { code: 7022, category: DiagnosticCategory.Error, key: "'{0}' implicitly has type 'any' because it is does not have a type annotation and is referenced directly or indirectly in its own initializer." },
+        _0_implicitly_has_return_type_any_because_it_does_not_have_a_return_type_annotation_and_is_referenced_directly_or_indirectly_in_one_of_its_return_expressions: { code: 7023, category: DiagnosticCategory.Error, key: "'{0}' implicitly has return type 'any' because it does not have a return type annotation and is referenced directly or indirectly in one of its return expressions." },
+        Function_implicitly_has_return_type_any_because_it_does_not_have_a_return_type_annotation_and_is_referenced_directly_or_indirectly_in_one_of_its_return_expressions: { code: 7024, category: DiagnosticCategory.Error, key: "Function implicitly has return type 'any' because it does not have a return type annotation and is referenced directly or indirectly in one of its return expressions." },
         You_cannot_rename_this_element: { code: 8000, category: DiagnosticCategory.Error, key: "You cannot rename this element." },
     };
 }
\ No newline at end of file
diff --git a/src/compiler/diagnosticMessages.json b/src/compiler/diagnosticMessages.json
index d30c4e399fc..3c67e8de224 100644
--- a/src/compiler/diagnosticMessages.json
+++ b/src/compiler/diagnosticMessages.json
@@ -1557,18 +1557,22 @@
         "category": "Error",
         "code": 7020
     },
-    "'{0}' implicitly has type 'any' because type inference encountered a circularity.": {
+    "'{0}' implicitly has type 'any' because it is referenced directly or indirectly in its own type annotation.": {
         "category": "Error",
         "code": 7021
     },
-    "'{0}' implicitly has return type 'any' because type inference encountered a circularity.": {
+    "'{0}' implicitly has type 'any' because it is does not have a type annotation and is referenced directly or indirectly in its own initializer.": {
         "category": "Error",
         "code": 7022
     },
-    "Function implicitly has return type 'any' because type inference encountered a circularity.": {
+    "'{0}' implicitly has return type 'any' because it does not have a return type annotation and is referenced directly or indirectly in one of its return expressions.": {
         "category": "Error",
         "code": 7023
     },
+    "Function implicitly has return type 'any' because it does not have a return type annotation and is referenced directly or indirectly in one of its return expressions.": {
+        "category": "Error",
+        "code": 7024
+    },
     "You cannot rename this element.": {
         "category": "Error",
         "code": 8000
diff --git a/tests/baselines/reference/implicitAnyFromCircularInference.errors.txt b/tests/baselines/reference/implicitAnyFromCircularInference.errors.txt
index f1d32b750f5..84366f86ec7 100644
--- a/tests/baselines/reference/implicitAnyFromCircularInference.errors.txt
+++ b/tests/baselines/reference/implicitAnyFromCircularInference.errors.txt
@@ -3,25 +3,25 @@
     // Error expected
     var a: typeof a;
         ~
-!!! 'a' implicitly has type 'any' because type inference encountered a circularity.
+!!! 'a' implicitly has type 'any' because it is referenced directly or indirectly in its own type annotation.
     
     // Error expected on b or c
     var b: typeof c;
     var c: typeof b;
         ~
-!!! 'c' implicitly has type 'any' because type inference encountered a circularity.
+!!! 'c' implicitly has type 'any' because it is referenced directly or indirectly in its own type annotation.
     
     // Error expected
     var d: Array<typeof d>;
         ~
-!!! 'd' implicitly has type 'any' because type inference encountered a circularity.
+!!! 'd' implicitly has type 'any' because it is referenced directly or indirectly in its own type annotation.
     
     function f() { return f; }
     
     // Error expected
     function g() { return g(); }
              ~
-!!! 'g' implicitly has return type 'any' because type inference encountered a circularity.
+!!! 'g' implicitly has return type 'any' because it does not have a return type annotation and is referenced directly or indirectly in one of its return expressions.
     
     // Error expected
     var f1 = function () {
@@ -30,17 +30,17 @@
     ~~~~~~~~~~~~~~~~
     };
     ~
-!!! Function implicitly has return type 'any' because type inference encountered a circularity.
+!!! Function implicitly has return type 'any' because it does not have a return type annotation and is referenced directly or indirectly in one of its return expressions.
     
     // Error expected
     var f2 = () => f2();
              ~~~~~~~~~~
-!!! Function implicitly has return type 'any' because type inference encountered a circularity.
+!!! Function implicitly has return type 'any' because it does not have a return type annotation and is referenced directly or indirectly in one of its return expressions.
     
     // Error expected
     function h() {
              ~
-!!! 'h' implicitly has return type 'any' because type inference encountered a circularity.
+!!! 'h' implicitly has return type 'any' because it does not have a return type annotation and is referenced directly or indirectly in one of its return expressions.
         return foo();
         function foo() {
             return h() || "hello";
@@ -57,7 +57,7 @@
         // Error expected
         s = foo(this);
         ~~~~~~~~~~~~~~
-!!! 's' implicitly has type 'any' because type inference encountered a circularity.
+!!! 's' implicitly has type 'any' because it is does not have a type annotation and is referenced directly or indirectly in its own initializer.
     }
     
     class D {
@@ -68,6 +68,6 @@
     ~~~~~~~~~~~~~~~~~~~~~~
         }
     ~~~~~
-!!! 'x' implicitly has type 'any' because type inference encountered a circularity.
+!!! 'x' implicitly has return type 'any' because it does not have a return type annotation and is referenced directly or indirectly in one of its return expressions.
     }
     
\ No newline at end of file