This document discusses domain state modeling. It explains that some domain objects pass through distinct states, each with different properties and constraints. A domain state model identifies classes with states, finds the states and events that cause transitions, builds state diagrams, and evaluates the diagrams. The document provides steps for domain state modeling and examples using an ATM machine to illustrate states like account types and events like incorrect PIN. It emphasizes iteratively refining the analysis model to improve consistency and structure.