diff --git a/build_library/base_image_util.sh b/build_library/base_image_util.sh
index 598785bdc0..97cd3b0c14 100755
--- a/build_library/base_image_util.sh
+++ b/build_library/base_image_util.sh
@@ -125,28 +125,13 @@ create_base_image() {
   sudo mount -o loop "${oem_fs_img}" "${oem_fs_dir}"
 
   # Prepare state partition with some pre-created directories.
-  for i in ${ROOT_OVERLAYS}; do
+  info "Binding directories from state partition onto the rootfs"
+  for i in "${ROOT_OVERLAYS[@]}"; do
     sudo mkdir -p "${state_fs_dir}/overlays/$i"
     sudo mkdir -p "${root_fs_dir}/$i"
     sudo mount --bind "${state_fs_dir}/overlays/$i" "${root_fs_dir}/$i"
   done
 
-  sudo mkdir -p "${state_fs_dir}/overlays/usr/local"
-
-  # Create symlinks so that /usr/local/usr based directories are symlinked to
-  # /usr/local/ directories e.g. /usr/local/usr/bin -> /usr/local/bin, etc.
-  setup_symlinks_on_root "${state_fs_dir}/overlays/usr/local" \
-    "${state_fs_dir}/overlays/var" \
-    "${state_fs_dir}"
-
-  # Perform binding rather than symlinking because directories must exist
-  # on rootfs so that we can bind at run-time since rootfs is read-only.
-  info "Binding directories from state partition onto the rootfs"
-
-  # Setup the dev image for developer tools
-  sudo mkdir -p "${root_fs_dir}/usr/local"
-  sudo mount --bind "${state_fs_dir}/overlays/usr/local" "${root_fs_dir}/usr/local"
-
   # TODO(bp): remove these temporary fixes for /mnt/stateful_partition going moving
   sudo mkdir -p "${root_fs_dir}/mnt/stateful_partition/"
   sudo ln -s /media/state/overlays/usr/local "${root_fs_dir}/mnt/stateful_partition/dev_image"
@@ -154,8 +139,6 @@ create_base_image() {
   sudo ln -s /media/state/overlays/var "${root_fs_dir}/mnt/stateful_partition/var_overlay"
   sudo ln -s /media/state/etc "${root_fs_dir}/mnt/stateful_partition/etc"
 
-  sudo mkdir -p "${root_fs_dir}/dev"
-
   info "Binding directories from OEM partition onto the rootfs"
   sudo mkdir -p "${root_fs_dir}/usr/share/oem"
   sudo mount --bind "${oem_fs_dir}" "${root_fs_dir}/usr/share/oem"
@@ -237,11 +220,6 @@ create_base_image() {
     test_image_content "$root_fs_dir"
   fi
 
-  # Clean up symlinks so they work on a running target rooted at "/".
-  # Here development packages are rooted at /usr/local.  However, do not
-  # create /usr/local or /var on host (already exist on target).
-  setup_symlinks_on_root "/usr/local" "/var" "${state_fs_dir}"
-
   # Zero all fs free space to make it more compressible so auto-update
   # payloads become smaller, not fatal since it won't work on linux < 3.2
   sudo fstrim "${root_fs_dir}" || true
diff --git a/build_library/dev_image_util.sh b/build_library/dev_image_util.sh
index c05410aed6..59140e6df5 100755
--- a/build_library/dev_image_util.sh
+++ b/build_library/dev_image_util.sh
@@ -19,26 +19,17 @@ install_dev_packages() {
   mount_image "${BUILD_DIR}/${image_name}" "${root_fs_dir}" \
     "${state_fs_dir}" "${esp_fs_dir}"
 
-  # Determine the root dir for developer packages.
-  local root_dev_dir="${root_fs_dir}/usr/local"
-
-  # Install developer packages described in chromeos-dev.
-  emerge_to_image --root="${root_dev_dir}" coreos-base/coreos-dev
+  # Install developer packages described in coreos-dev.
+  emerge_to_image --root="${root_fs_dir}" coreos-base/coreos-dev
 
   # Copy over the libc debug info so that gdb
   # works with threads and also for a better debugging experience.
-  sudo mkdir -p "${root_fs_dir}/usr/local/usr/lib/debug"
+  sudo mkdir -p "${root_fs_dir}/usr/lib/debug"
   pbzip2 -dc --ignore-trailing-garbage=1 "${LIBC_PATH}" | \
-    sudo tar xpf - -C "${root_fs_dir}/usr/local/usr/lib/debug" \
+    sudo tar xpf - -C "${root_fs_dir}/usr/lib/debug" \
       ./usr/lib/debug/usr/${CHOST} --strip-components=6
-  # Since gdb only looks in /usr/lib/debug, symlink the /usr/local
-  # path so that it is found automatically.
-  sudo ln -s /usr/local/usr/lib/debug "${root_fs_dir}/usr/lib/debug"
 
   # Install the bare necessary files so that the "emerge" command works
-  sudo sed -i s,/usr/bin/wget,wget, \
-    ${root_fs_dir}/usr/share/portage/config/make.globals
-
   sudo mkdir -p ${root_fs_dir}/etc/make.profile
 
   # Mark the image as a developer image (input to chromeos_startup).
@@ -48,53 +39,6 @@ install_dev_packages() {
   sudo mkdir -p "${root_fs_dir}/root"
   sudo touch "${root_fs_dir}/root/.dev_mode"
 
-  # Additional changes to developer image.
-
-  # Leave core files for developers to inspect.
-  sudo touch "${root_fs_dir}/root/.leave_core"
-
-  # This hack is only needed for devs who have old versions of glibc, which
-  # filtered out ldd when cross-compiling.  TODO(davidjames): Remove this hack
-  # once everybody has upgraded to a new version of glibc.
-  if [[ ! -x "${root_fs_dir}/usr/bin/ldd" ]]; then
-    sudo cp -a "$(which ldd)" "${root_fs_dir}/usr/bin"
-  fi
-
-  # If vim is installed, then a vi symlink would probably help.
-  if [[ -x "${root_fs_dir}/usr/local/bin/vim" ]]; then
-    sudo ln -sf vim "${root_fs_dir}/usr/local/bin/vi"
-  fi
-
-  # If pygtk is installed in stateful-dev, then install a path.
-  if [[ -d \
-      "${root_fs_dir}/usr/local/lib/python2.6/site-packages/gtk-2.0" ]]; then
-    sudo bash -c "\
-        echo gtk-2.0 > \
-        ${root_fs_dir}/usr/local/lib/python2.6/site-packages/pygtk.pth"
-  fi
-
-  # File searches /usr/share by default, so add a wrapper script so it
-  # can find the right path in /usr/local.
-  local path="${root_fs_dir}/usr/local/bin/file"
-  if [[ -x ${path} ]]; then
-    sudo mv "${path}" "${path}.bin"
-    sudo_clobber "${path}" <<EOF
-#!/bin/sh
-exec file.bin -m /usr/local/share/misc/magic.mgc "\$@"
-EOF
-    sudo chmod a+rx "${path}"
-  fi
-
-  # If git is installed in the state partition it needs some help
-  if [[ -x "${root_fs_dir}/usr/local/bin/git" ]]; then
-    sudo_clobber "${root_fs_dir}/etc/env.d/99git" <<EOF
-GIT_EXEC_PATH=/usr/local/libexec/git-core
-EOF
-  fi
-
-  # Re-run env-update/ldconfig to fix profile and ldconfig.so.cache.
-  sudo ROOT="${root_fs_dir}" env-update
-
   # Zero all fs free space, not fatal since it won't work on linux < 3.2
   sudo fstrim "${root_fs_dir}" || true
   sudo fstrim "${state_fs_dir}" || true
diff --git a/common.sh b/common.sh
index 068d1b75a5..4777180828 100644
--- a/common.sh
+++ b/common.sh
@@ -700,69 +700,6 @@ get_git_id() {
   git var GIT_COMMITTER_IDENT | sed -e 's/^.*<\(\S\+\)>.*$/\1/'
 }
 
-# Fixes symlinks that are incorrectly prefixed with the build root $1
-# rather than the real running root '/'.
-# TODO(sosa) - Merge setup - cleanup below with this method.
-fix_broken_symlinks() {
-  local build_root=$1
-  local symlinks=$(find "${build_root}/usr/local" -lname "${build_root}/*")
-  local symlink
-  for symlink in ${symlinks}; do
-    echo "Fixing ${symlink}"
-    local target=$(ls -l "${symlink}" | cut -f 2 -d '>')
-    # Trim spaces from target (bashism).
-    target=${target/ /}
-    # Make new target (removes rootfs prefix).
-    new_target=$(echo ${target} | sed "s#${build_root}##")
-
-    echo "Fixing symlink ${symlink}"
-    sudo unlink "${symlink}"
-    sudo ln -sf "${new_target}" "${symlink}"
-  done
-}
-
-# Sets up symlinks for the developer root. It is necessary to symlink
-# usr and local since the developer root is mounted at /usr/local and
-# applications expect to be installed under /usr/local/bin, etc.
-# This avoids packages installing into /usr/local/usr/local/bin.
-# $1 specifies the symlink target for the developer root.
-# $2 specifies the symlink target for the var directory.
-# $3 specifies the location of the stateful partition.
-setup_symlinks_on_root() {
-  # Give args better names.
-  local dev_image_target=$1
-  local var_target=$2
-  local dev_image_root="$3/overlays/usr/local"
-
-  # If our var target is actually the standard var, we are cleaning up the
-  # symlinks (could also check for /usr/local for the dev_image_target).
-  if [[ ${var_target} == "/var" ]]; then
-    echo "Cleaning up /usr/local symlinks for ${dev_image_root}"
-  else
-    echo "Setting up symlinks for /usr/local for ${dev_image_root}"
-  fi
-
-  # Set up symlinks that should point to ${dev_image_target}.
-  local path
-  for path in usr local; do
-    if [[ -h ${dev_image_root}/${path} ]]; then
-      sudo unlink "${dev_image_root}/${path}"
-    elif [[ -e ${dev_image_root}/${path} ]]; then
-      die "${dev_image_root}/${path} should be a symlink if exists"
-    fi
-    sudo ln -s "${dev_image_target}" "${dev_image_root}/${path}"
-  done
-
-  # Setup var symlink.
-  if [[ -h ${dev_image_root}/var ]]; then
-    sudo unlink "${dev_image_root}/var"
-  elif [[ -e ${dev_image_root}/var ]]; then
-    die "${dev_image_root}/var should be a symlink if it exists"
-  fi
-
-  sudo ln -s "${var_target}" "${dev_image_root}/var"
-}
-
 # These two helpers clobber the ro compat value in our root filesystem.
 #
 # When the system is built with --enable_rootfs_verification, bit-precise
diff --git a/mount_gpt_image.sh b/mount_gpt_image.sh
index e6302f7cd9..579f9d7853 100755
--- a/mount_gpt_image.sh
+++ b/mount_gpt_image.sh
@@ -79,12 +79,6 @@ unmount_image() {
       "and ${FLAGS_rootfs_mountpt}"
   # Don't die on error to force cleanup
   set +e
-  # Reset symlinks in /usr/local.
-  if mount | egrep -q ".* ${FLAGS_stateful_mountpt} .*\(rw,"; then
-    setup_symlinks_on_root "/usr/local" "/var" \
-      "${FLAGS_stateful_mountpt}"
-    fix_broken_symlinks "${FLAGS_rootfs_mountpt}"
-  fi
   safe_umount "${FLAGS_rootfs_mountpt}/usr/local"
   safe_umount "${FLAGS_rootfs_mountpt}/var"
   if [[ -n "${FLAGS_esp_mountpt}" ]]; then
@@ -183,12 +177,6 @@ mount_image() {
     "${FLAGS_rootfs_mountpt}/var"
   sudo mount --bind "${FLAGS_stateful_mountpt}/overlays/usr/local" \
     "${FLAGS_rootfs_mountpt}/usr/local"
-  # Setup symlinks in /usr/local so you can emerge packages into /usr/local.
-
-  if [ ${FLAGS_read_only} -eq ${FLAGS_FALSE} ]; then
-    setup_symlinks_on_root "${FLAGS_stateful_mountpt}/overlays/usr/local" \
-      "${FLAGS_stateful_mountpt}/overlays/var" "${FLAGS_stateful_mountpt}"
-  fi
   info "Image specified by ${FLAGS_from} mounted at"\
     "${FLAGS_rootfs_mountpt} successfully."
 }