diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.0-r10.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.0-r11.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.0-r10.ebuild
rename to sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.0-r11.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild
index 69d4e6b063..760cb4a2a5 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild
@@ -9,7 +9,7 @@ CROS_WORKON_REPO="git://github.com"
 if [[ "${PV}" == 9999 ]]; then
 	KEYWORDS="~amd64 ~arm ~x86"
 else
-	CROS_WORKON_COMMIT="aa12816e0637a2ef800854e7343246d6a8177dd9"
+	CROS_WORKON_COMMIT="45a1b989acecdeba5fd2499b56fdbe158ef367bb"
 	KEYWORDS="amd64 arm x86"
 fi
 
@@ -169,9 +169,9 @@ src_install() {
 		fi
 
 		# Initialize /etc/passwd, group, and friends on boot.
-		bash "${FILESDIR}/coreos-tmpfiles" "${D}" || die
-		dosbin "${FILESDIR}/coreos-tmpfiles"
-		systemd_dounit "${FILESDIR}/coreos-tmpfiles.service"
+		bash "scripts/coreos-tmpfiles" "${D}" || die
+		dosbin "scripts/coreos-tmpfiles"
+		systemd_dounit "scripts/coreos-tmpfiles.service"
 		systemd_enable_service sysinit.target coreos-tmpfiles.service
 	fi
 }
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/files/coreos-tmpfiles b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/files/coreos-tmpfiles
deleted file mode 100644
index 5d58b2f4a9..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/files/coreos-tmpfiles
+++ /dev/null
@@ -1,26 +0,0 @@
-#!/bin/bash
-# systemd-tmpfiles doesn't support skipping writing to files that already exist
-# - copy the docker group to /etc because docker reads /etc/group directly
-# - copy the core user to /etc so the passwd utility works correctly
-
-# Inherit root from environment or command line
-ROOT="${1:-$ROOT}"
-BASE="${ROOT}/usr/share/baselayout"
-
-# readable files
-umask 022
-if [[ ! -e "${ROOT}/etc/passwd" ]]; then
-    grep -e "^root:" -e "^core:" "${BASE}/passwd" > "${ROOT}/etc/passwd"
-fi
-if [[ ! -e "${ROOT}/etc/group" ]]; then
-    grep "^docker:" "${BASE}/group" > "${ROOT}/etc/group"
-fi
-
-# secure files
-umask 027
-if [[ ! -e "${ROOT}/etc/shadow" ]]; then
-    grep -e "^root:" -e "^core:" "${BASE}/shadow" > "${ROOT}/etc/shadow"
-fi
-if [[ ! -e "${ROOT}/etc/gshadow" ]]; then
-    grep "^docker:" "${BASE}/gshadow" > "${ROOT}/etc/gshadow"
-fi
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/files/coreos-tmpfiles.service b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/files/coreos-tmpfiles.service
deleted file mode 100644
index 2cc4eff825..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/files/coreos-tmpfiles.service
+++ /dev/null
@@ -1,10 +0,0 @@
-[Unit]
-Description=Create missing system files
-DefaultDependencies=no
-After=local-fs.target
-Before=sysinit.target
-ConditionPathIsReadWrite=/etc
-
-[Service]
-Type=oneshot
-ExecStart=/usr/sbin/coreos-tmpfiles