Word frequency effects have long served as an empirical andtheoretical test bed for theories of language processing. Anumber of recent studies have suggested that Contextual Di-versity (CD) is a better metric of retrieval processes than wordfrequency. Motivated by these findings, we sketch an activeaccount of lexical access during sentence processing: lan-guage users store statistics about contextualized lexical rep-resentations and use lexical-contextual relations to both con-struct context and predict words given the context. In linewith our account, we provide evidence from a frequency judg-ment experiment suggesting that words are not stored indepen-dently of their contexts of use. To further examine CD effectsin reading, we analyzed reading times in self-paced readingand eye-tracking corpora. We demonstrate that as context isconstructed, the role of CD in lexical retrieval is attenuated,reflecting a trade-off between context construction and contex-tualized word prediction.