A method and system to configure proximity detection and reporting in a wireless device during a transition of the wireless device from one cell state to another cell state in a third generation (3G) wireless communication system. In a first cell state, the wireless device is configured for proximity indication. The wireless device is transitioned from using the first cell state to using a second cell state. Upon the transition from the first cell state, the wireless device receives information from a base transceiver to reconfigure the proximity indication configuration based on the second cell state. The reconfiguration allows the mobile device to retain the existing proximity indication configuration, remove the proximity indication configuration, or stop reporting proximity indication. Additionally, the base transceiver also adjusts proximity configuration stored at the base station based on the second cell state.