diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-0.10.0.ebuild b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-0.11.1.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-0.10.0.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-0.11.1.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-9999.ebuild
index 29c4e78d6d..6730c62093 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/docker-9999.ebuild
@@ -14,12 +14,11 @@ CROS_WORKON_REPO="git://github.com"
 GITHUB_URI="github.com/crosbymichael/docker"
 
 if [[ ${PV} == *9999 ]]; then
-	SRC_URI=""
-	EGIT_REPO_URI="git://${GITHUB_URI}.git"
-	inherit git-2
-	KEYWORDS=""
+	DOCKER_GITCOMMIT="deadbee"
+	KEYWORDS="~amd64"
 else
-	CROS_WORKON_COMMIT="dc9c28f51d669d6b09e81c2381f800f1a33bb659" # v0.10.0
+	CROS_WORKON_COMMIT="fb99f992c081a1d433c97c99ffb46d12693eeb76" # v0.11.1
+	DOCKER_GITCOMMIT="fb99f99" # hack(philips): delete when an epatch isn't in use
 	KEYWORDS="amd64"
 fi
 
@@ -132,7 +131,14 @@ pkg_setup() {
 	check_extra_config
 }
 
+src_prepare() {
+	epatch "${FILESDIR}"/daemon-ensure-the-var-lib-docker-dir-exists.patch
+}
+
 src_compile() {
+	# hack(philips): to keep the git commit from being dirty
+	mv .git .git.old
+
 	# if we treat them right, Docker's build scripts will set up a
 	# reasonable GOPATH for us
 	export AUTO_GOPATH=1
@@ -142,6 +148,7 @@ src_compile() {
 	export CGO_CFLAGS="-I${ROOT}/usr/include"
 	export CGO_LDFLAGS="-L${ROOT}/usr/lib"
 
+	[ "$DOCKER_GITCOMMIT" ] && export DOCKER_GITCOMMIT
 	# time to build!
 	./hack/make.sh dynbinary || die
 
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/daemon-ensure-the-var-lib-docker-dir-exists.patch b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/daemon-ensure-the-var-lib-docker-dir-exists.patch
new file mode 100644
index 0000000000..f22795d874
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/docker/files/daemon-ensure-the-var-lib-docker-dir-exists.patch
@@ -0,0 +1,41 @@
+From b4ccd7cbfb5f2c7c4b6c963c4c12e41500e7ad55 Mon Sep 17 00:00:00 2001
+From: Brandon Philips <brandon@ifup.co>
+Date: Fri, 9 May 2014 18:05:54 -0700
+Subject: [PATCH] fix(daemon): ensure the /var/lib/docker dir exists
+
+The btrfs driver attempts to stat the /var/lib/docker directory to
+ensure it exists. If it doesn't exist then it bails with an unhelpful
+log line:
+
+```
+2014/05/10 00:51:30 no such file or directory
+```
+
+In 0.10 the directory was created but quickly digging through the logs I
+can't tell what sort of re-ordering of code caused this regression.
+
+Docker-DCO-1.1-Signed-off-by: Brandon Philips <brandon.philips@coreos.com> (github: philips)
+---
+ daemon/daemon.go | 6 ++++++
+ 1 file changed, 6 insertions(+)
+
+diff --git a/daemon/daemon.go b/daemon/daemon.go
+index 00b6d9e..7901f8e 100644
+--- a/daemon/daemon.go
++++ b/daemon/daemon.go
+@@ -680,6 +680,12 @@ func NewDaemonFromDirectory(config *daemonconfig.Config, eng *engine.Engine) (*D
+ 	if !config.EnableSelinuxSupport {
+ 		selinux.SetDisabled()
+ 	}
++
++	// Create the root directory if it doesn't exists
++	if err := os.MkdirAll(config.Root, 0700); err != nil && !os.IsExist(err) {
++		return nil, err
++	}
++
+ 	// Set the default driver
+ 	graphdriver.DefaultDriver = config.GraphDriver
+ 
+-- 
+1.9.1
+