diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-1.7.1-r4.ebuild b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-1.7.1-r5.ebuild
similarity index 97%
rename from sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-1.7.1-r4.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-1.7.1-r5.ebuild
index 516cc2830d..e44e9cddb2 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-1.7.1-r4.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-1.7.1-r5.ebuild
@@ -216,11 +216,11 @@ src_install() {
 	newconfd contrib/init/openrc/docker.confd docker
 
 	exeinto /usr/lib/coreos
-	newexe "${FILESDIR}/dockerd-1.7" dockerd
+	doexe "${FILESDIR}/dockerd"
 
-	systemd_dounit "${FILESDIR}/docker.service"
+	systemd_newunit "${FILESDIR}/docker.service-1.7" docker.service
 	systemd_dounit "${FILESDIR}/docker.socket"
-	systemd_dounit "${FILESDIR}/early-docker.service"
+	systemd_newunit "${FILESDIR}/early-docker.service-1.7" early-docker.service
 	systemd_dounit "${FILESDIR}/early-docker.socket"
 	systemd_dounit "${FILESDIR}/early-docker.target"
 
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/docker.service-1.7 b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/docker.service-1.7
new file mode 100644
index 0000000000..dd34cda8d5
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/docker.service-1.7
@@ -0,0 +1,15 @@
+[Unit]
+Description=Docker Application Container Engine
+Documentation=http://docs.docker.com
+After=docker.socket early-docker.target network.target
+Requires=docker.socket early-docker.target
+
+[Service]
+EnvironmentFile=-/run/flannel_docker_opts.env
+MountFlags=slave
+LimitNOFILE=1048576
+LimitNPROC=1048576
+ExecStart=/usr/lib/coreos/dockerd --daemon --host=fd:// $DOCKER_OPTS $DOCKER_OPT_BIP $DOCKER_OPT_MTU $DOCKER_OPT_IPMASQ
+
+[Install]
+WantedBy=multi-user.target
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/dockerd-1.7 b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/dockerd-1.7
deleted file mode 100644
index adb0f2a9f1..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/dockerd-1.7
+++ /dev/null
@@ -1,67 +0,0 @@
-#!/bin/bash
-# Wrapper for launching docker daemons with an appropriate backend.
-
-set -e
-
-parse_docker_args() {
-    local flag
-    while [[ $# -gt 0 ]]; do
-        flag="$1"
-        shift
-
-        # treat --flag=foo and --flag foo identically
-        if [[ "${flag}" == *=* ]]; then
-            set -- "${flag#*=}" "$@"
-            flag="${flag%=*}"
-        fi
-
-        case "${flag}" in
-            -g|--graph)
-                ARG_ROOT="$1"
-                shift
-                ;;
-            -s|--storage-driver)
-                ARG_DRIVER="$1"
-                shift
-                ;;
-            *)
-                # ignore everything else
-                ;;
-        esac
-    done
-}
-
-select_docker_driver() {
-    local fstype
-
-    # mimic docker's behavior to ensure we stat the right filesystem.
-    if [[ -L "${ARG_ROOT}" ]]; then
-        ARG_ROOT="$(readlink -f "${ARG_ROOT}")"
-    fi
-
-    mkdir --parents --mode=0700 "${ARG_ROOT}"
-    fstype=$(findmnt --noheadings --output FSTYPE --target "${ARG_ROOT}")
-
-    case "${fstype}" in
-        btrfs)
-            export DOCKER_DRIVER=btrfs
-            ;;
-        ext4|tmpfs) # As of 3.18
-            export DOCKER_DRIVER=overlay
-            ;;
-        *)
-            # Fall back to whatever docker's default behavior is.
-            ;;
-    esac
-}
-
-ARG_ROOT="/var/lib/docker"
-ARG_DRIVER=""
-parse_docker_args "$@"
-
-# Do not override the driver if it is already explicitly configured.
-if [[ -z "${ARG_DRIVER}" && -z "${DOCKER_DRIVER}" ]]; then
-    select_docker_driver
-fi
-
-exec docker "$@"
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/early-docker.service-1.7 b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/early-docker.service-1.7
new file mode 100644
index 0000000000..1c11c7b3cd
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/early-docker.service-1.7
@@ -0,0 +1,15 @@
+[Unit]
+Description=Early Docker Application Container Engine
+Documentation=http://docs.docker.com
+After=early-docker.socket
+Requires=early-docker.socket
+
+[Service]
+Environment=TMPDIR=/var/tmp
+MountFlags=slave
+LimitNOFILE=1048576
+LimitNPROC=1048576
+ExecStart=/usr/lib/coreos/dockerd --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