diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-1.3.2-r1.ebuild b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-1.3.2-r2.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-1.3.2-r1.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-1.3.2-r2.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-9999.ebuild
index 75d61e263d..eb091b55d6 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-9999.ebuild
@@ -13,9 +13,13 @@ CROS_WORKON_REPO="git://github.com"
 
 GITHUB_URI="github.com/crosbymichael/docker"
 
+# TODO: Remove this logic once we cross the 1.4.0 threshold
+BTRFS_VER="0.20"
+
 if [[ ${PV} == *9999 ]]; then
 	DOCKER_GITCOMMIT="deadbee"
 	KEYWORDS="~amd64"
+	BTRFS_VER="3.16.1"
 else
 	CROS_WORKON_COMMIT="39fa2faad2f3d6fa5133de4eb740677202f53ef4" # v1.3.2
 	DOCKER_GITCOMMIT="39fa2fa"
@@ -38,7 +42,7 @@ DEPEND="
 	${CDEPEND}
 	>=dev-lang/go-1.2
 	btrfs? (
-		>=sys-fs/btrfs-progs-0.20
+		>=sys-fs/btrfs-progs-${BTRFS_VER}
 	)
 	dev-vcs/git
 	dev-vcs/mercurial
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/docker.service b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/docker.service
index 0400e81275..a81e8f156e 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/docker.service
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/docker.service
@@ -5,14 +5,15 @@ After=docker.socket early-docker.target
 Requires=docker.socket early-docker.target
 
 [Service]
-Environment="TMPDIR=/var/tmp/"
+Environment=TMPDIR=/var/tmp
+Environment=DOCKER_DRIVER=btrfs
 ExecStartPre=/bin/mount --make-rprivate /
 EnvironmentFile=-/run/docker_opts.env
 LimitNOFILE=1048576
 LimitNPROC=1048576
 # Run docker but don't have docker automatically restart
 # containers. This is a job for systemd and unit files.
-ExecStart=/usr/bin/docker --daemon --storage-driver=btrfs --host=fd:// $DOCKER_OPTS
+ExecStart=/usr/bin/docker --daemon --host=fd:// $DOCKER_OPTS
 
 [Install]
 WantedBy=multi-user.target
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/early-docker.service b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/early-docker.service
index af080a11f5..5f8a9f3907 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/early-docker.service
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/early-docker.service
@@ -5,13 +5,14 @@ After=early-docker.socket
 Requires=early-docker.socket
 
 [Service]
-Environment="TMPDIR=/var/tmp/"
+Environment=TMPDIR=/var/tmp
+Environment=DOCKER_DRIVER=btrfs
 ExecStartPre=/bin/mount --make-rprivate /
 LimitNOFILE=1048576
 LimitNPROC=1048576
 # Run docker but don't have docker automatically restart
 # containers. This is a job for systemd and unit files.
-ExecStart=/usr/bin/docker --daemon --storage-driver=btrfs --host=fd:// --bridge=none --iptables=false --ip-masq=false --graph=/var/lib/early-docker --pidfile=/var/run/early-docker.pid
+ExecStart=/usr/bin/docker --daemon --host=fd:// --bridge=none --iptables=false --ip-masq=false --graph=/var/lib/early-docker --pidfile=/var/run/early-docker.pid
 
 [Install]
 WantedBy=early-docker.target