diff --git a/sdk_container/src/third_party/coreos-overlay/coreos/config/env/sys-apps/util-linux b/sdk_container/src/third_party/coreos-overlay/coreos/config/env/sys-apps/util-linux
new file mode 100644
index 0000000000..d7da140d7a
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/coreos/config/env/sys-apps/util-linux
@@ -0,0 +1,3 @@
+# New mount API does not work very well for mounting overlayfs when we
+# are building sysexts.
+export EXTRA_ECONF="--disable-libmount-mountfd-support"