diff --git a/chroot_version_hooks.d/25_suppress_incremental_build_across_chroot b/chroot_version_hooks.d/25_suppress_incremental_build_across_chroot
new file mode 100644
index 0000000000..b2e1484afc
--- /dev/null
+++ b/chroot_version_hooks.d/25_suppress_incremental_build_across_chroot
@@ -0,0 +1,35 @@
+# Copyright (c) 2012 The Chromium OS Authors. All rights reserved.
+# Use of this source code is governed by a BSD-style license that can be
+# found in the LICENSE file.
+
+# As of update 24, we preserve distfiles across chroot rebuilds via storing
+# the content outside of the chroot, and binding it in.
+#
+# chromeos-chrome stores its build output in distdir however, which we
+# don't currently want preserved across chroot builds, thus this script
+# pulls the content out to the new location within the chroot.
+
+upgrade_path() {
+  local src="/var/cache/distfiles/target/$1"
+  local dest="/var/cache/chromeos-chrome/$1"
+
+  if [ -d "$src" ]; then
+    if [ -d "$dest" ]; then
+      # User has already built it- thus wipe the src and use what's in
+      # the chrome specific cache.
+      sudo rm -rf "$src"
+    else
+      sudo mv "$src" "$dest"
+    fi
+  fi
+}
+
+sudo mkdir -p 0775 /var/cache/chromeos-chrome/
+sudo chown "$USER:portage" /var/cache/chromeos-chrome/
+
+upgrade_path chrome-src
+upgrade_path chrome-src-internal
+upgrade_path chrome-src-custom
+upgrade_path chrome-src-custom-internal
+
+exit 0
diff --git a/sdk_lib/make_chroot.sh b/sdk_lib/make_chroot.sh
index 2ac5767657..5479a0fc33 100755
--- a/sdk_lib/make_chroot.sh
+++ b/sdk_lib/make_chroot.sh
@@ -198,7 +198,13 @@ EOF
    sudo chmod 0644 "${FLAGS_chroot}"/etc/make.conf.user
 
    # Create directories referred to by our conf files.
-   sudo mkdir -p -m 775 "${FLAGS_chroot}/var/lib/portage/pkgs"
+   sudo mkdir -p -m 775 "${FLAGS_chroot}/var/lib/portage/pkgs" \
+     "${FLAGS_chroot}/var/cache/distfiles" \
+     "${FLAGS_chroot}/var/cache/chromeos-chrome"
+
+   # Run this from w/in the chroot so we use whatever uid/gid
+   # these are defined as w/in the chroot.
+   sudo_chroot chown "${USER}:portage" /var/cache/chromeos-chrome
 
    # These are created for compatibility while transitioning
    # make.conf and friends over to the new location.