diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-base/coreos-base-0-r60.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-base/coreos-base-0-r61.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-base/coreos-base-0-r60.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-base/coreos-base-0-r61.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-base/coreos-base-0.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-base/coreos-base-0.ebuild
index 7819f209f7..6231f02418 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-base/coreos-base-0.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-base/coreos-base-0.ebuild
@@ -106,6 +106,10 @@ src_install() {
 
 	# target-specific fun
 	if ! use cros_host ; then
+		# Add a /srv directory for mounting into later
+		dodir /srv
+		keepdir /srv
+
 		dodir /bin /usr/bin
 
 		# Make mount work in the way systemd prescribes
@@ -165,7 +169,7 @@ pkg_postinst() {
 	# build roots we copy over the user entries if they already exist.
 	local system_user="core"
 	local system_id="1000"
-	local system_home="/home/${system_user}/user"
+	local system_home="/home/${system_user}"
 	# Add a chronos-access group to provide non-chronos users,
 	# mostly system daemons running as a non-chronos user, group permissions
 	# to access files/directories owned by chronos.
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/gmerge/gmerge-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/gmerge/gmerge-9999.ebuild
index 5edbde3515..8bf1cf05d6 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/gmerge/gmerge-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/gmerge/gmerge-9999.ebuild
@@ -2,8 +2,10 @@
 # Distributed under the terms of the GNU General Public License v2
 
 EAPI="4"
-CROS_WORKON_PROJECT="chromiumos/platform/dev-util"
+CROS_WORKON_PROJECT="coreos/dev-util"
+CROS_WORKON_REPO="git://github.com"
 CROS_WORKON_LOCALNAME="dev"
+CROS_WORKON_LOCALDIR="src/platform"
 
 inherit cros-workon
 
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-ami/files/install-ec2-key.sh b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-ami/files/install-ec2-key.sh
index a7cda709fa..6144e1b120 100755
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-ami/files/install-ec2-key.sh
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-ami/files/install-ec2-key.sh
@@ -2,7 +2,7 @@
 
 /usr/bin/block-until-url http://169.254.169.254/
 
-USER_DIR="/home/core/user"
+USER_DIR="/home/core"
 
 if [ ! -d ${USER_DIR}/.ssh ] ; then
 	mkdir -p ${USER_DIR}/.ssh
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-ami/oem-ami-0.0.1-r6.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-ami/oem-ami-0.0.1-r7.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/oem-ami/oem-ami-0.0.1-r6.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/oem-ami/oem-ami-0.0.1-r7.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.common-target b/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.common-target
index f846f7f06b..77c7844678 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.common-target
+++ b/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.common-target
@@ -55,7 +55,7 @@ DISTDIR="/var/lib/portage/distfiles-target"
 
 # Username and home directory of the shared user.
 SHARED_USER_NAME="core"
-SHARED_USER_HOME="/home/core/user"
+SHARED_USER_HOME="/home/core"
 SHARED_USER_PASSWD_FILE="/etc/shared_user_passwd.txt"
 
 # the AC_FUNC_WAIT3 macro uses runtime-checks for the function, which
diff --git a/sdk_container/src/third_party/coreos-overlay/dev-db/etcd/files/coreos-c10n b/sdk_container/src/third_party/coreos-overlay/dev-db/etcd/files/coreos-c10n
index c5afd82baa..e264dd9079 100755
--- a/sdk_container/src/third_party/coreos-overlay/dev-db/etcd/files/coreos-c10n
+++ b/sdk_container/src/third_party/coreos-overlay/dev-db/etcd/files/coreos-c10n
@@ -22,9 +22,9 @@ if [ $? -eq 0 ] && [ ! -z "$USER_DATA" ]; then
         # validate ssh key
         ssh-keygen -l -f $TMP > /dev/null 2>&1
         if [ $? -eq 0 ]; then
-                cat $TMP >> /home/core/user/.ssh/authorized_keys
+                cat $TMP >> /home/core/.ssh/authorized_keys
                 echo "SSH key updated"
-                chown -R core: /home/core/user/.ssh/
+                chown -R core: /home/core/.ssh/
         else
                 echo "Not a valid ssh key"
         fi