diff --git a/build_library/vm_image_util.sh b/build_library/vm_image_util.sh
index 03d1bd7289..f7b74f45db 100644
--- a/build_library/vm_image_util.sh
+++ b/build_library/vm_image_util.sh
@@ -195,17 +195,10 @@ _disk_ext() {
     esac
 }
 
-# Unpack the source disk to individual partitions, optionally using an
-# alternate filesystem image for the state partition instead of the one
-# from VM_SRC_IMG. Start new image using the given disk layout.
+# Unpack the source disk to individual partitions.
+# Start new image using the given disk layout.
 unpack_source_disk() {
     get_disk_layout_type $(_get_vm_opt DISK_LAYOUT)
-    local alternate_state_image="$1"
-
-    if [[ -n "${alternate_state_image}" && ! -f "${alternate_state_image}" ]]
-    then
-        die "State image does not exist: $alternate_state_image"
-    fi
 
     info "Unpacking source image to $(relpath "${VM_TMP_DIR}")"
 
@@ -222,10 +215,6 @@ unpack_source_disk() {
     TEMP_OEM="${VM_TMP_DIR}"/part_${NUM_OEM}
     TEMP_ROOTFS="${VM_TMP_DIR}"/part_${NUM_ROOTFS_A}
     TEMP_STATE="${VM_TMP_DIR}"/part_${NUM_STATEFUL}
-    # Copy the replacement STATE image if it is set
-    if [[ -n "${alternate_state_image}" ]]; then
-        cp --sparse=always "${alternate_state_image}" "${TEMP_STATE}"
-    fi
 
     if [[ $(_get_vm_opt PARTITIONED_IMG) -eq 1 ]]; then
       info "Initializing new partition table..."
diff --git a/image_to_vm.sh b/image_to_vm.sh
index 149b791d79..b7a7cafd5f 100755
--- a/image_to_vm.sh
+++ b/image_to_vm.sh
@@ -39,8 +39,6 @@ DEFINE_string disk_layout "" \
   "The disk layout type to use for this image."
 DEFINE_integer mem "${DEFAULT_MEM}" \
   "Memory size for the vm config in MBs."
-DEFINE_string state_image "" \
-  "Stateful partition image (defaults to creating new statful partition)"
 DEFINE_boolean prod_image "${FLAGS_FALSE}" \
   "Use the production image instead of the default developer image."
 DEFINE_string to "" \
@@ -105,9 +103,9 @@ legacy_offset_size_export ${VM_SRC_IMG}
 # Make sure things are cleaned up on failure
 trap vm_cleanup EXIT
 
-# Unpack image, using alternate state image if defined
+# Unpack image
 # Resize to use all available space in new disk layout
-unpack_source_disk "${FLAGS_state_image}"
+unpack_source_disk
 resize_state_partition
 
 # Optionally install any OEM packages