diff --git a/build_library/build_image_util.sh b/build_library/build_image_util.sh
index 5769b64339..e2d36d06aa 100755
--- a/build_library/build_image_util.sh
+++ b/build_library/build_image_util.sh
@@ -530,7 +530,7 @@ start_image() {
   trap "cleanup_mounts '${root_fs_dir}' && delete_prompt" EXIT
 
   # First thing first, install baselayout to create a working filesystem.
-  emerge_to_image "${root_fs_dir}" --nodeps --oneshot sys-apps/baselayout
+  USE+=" build" emerge_to_image "${root_fs_dir}" --nodeps --oneshot sys-apps/baselayout
 
   # FIXME(marineam): Work around glibc setting EROOT=$ROOT
   # https://bugs.gentoo.org/show_bug.cgi?id=473728#c12
diff --git a/build_library/catalyst_toolchains.sh b/build_library/catalyst_toolchains.sh
index d1b032f79b..aabce2674a 100644
--- a/build_library/catalyst_toolchains.sh
+++ b/build_library/catalyst_toolchains.sh
@@ -35,7 +35,7 @@ build_target_toolchain() {
 
     # install baselayout first so we have the basic directory
     # structure for libraries and binaries copied from sysroot
-    btt_emerge --oneshot --nodeps sys-apps/baselayout
+    USE+=" build" btt_emerge --oneshot --nodeps sys-apps/baselayout
 
     # copy libraries, binaries and header files from sysroot to root -
     # sysroot may be using split-usr, whereas root does not, so take
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 3bdaf2afaf..7c7d35b803 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
@@ -20,7 +20,7 @@ fi
 
 LICENSE="GPL-2"
 SLOT="0"
-IUSE="cros_host"
+IUSE="build cros_host"
 
 # Make sure coreos-init is not installed in the SDK
 RDEPEND="
@@ -83,19 +83,24 @@ src_install() {
 	SYSTEMD_JOURNAL_GID=${ACCT_GROUP_SYSTEMD_JOURNAL_ID:-190} ROOT_UID=0 ROOT_GID=0 CORE_UID=500 CORE_GID=500 \
 		DESTDIR=${D} ./dumb-tmpfiles-proc.sh --exclude d "${ED}/usr/lib/tmpfiles.d" || die
 
-	insinto /usr/share/baselayout
-	doins Makefile
-	exeinto /usr/share/baselayout
-	doexe dumb-tmpfiles-proc.sh
+	if use build; then
+		insinto /usr/share/baselayout
+		doins Makefile
+		exeinto /usr/share/baselayout
+		doexe dumb-tmpfiles-proc.sh
+	fi
 }
 
 pkg_preinst() {
 	local libdirs
 	libdirs=$(get_all_libdirs)
-	emake -C "${ED}/usr/share/${PN}" DESTDIR="${EROOT}" LIBDIRS="${libdirs}" layout
-	SYSTEMD_JOURNAL_GID=${ACCT_GROUP_SYSTEMD_JOURNAL_ID:-190} ROOT_UID=0 ROOT_GID=0 CORE_UID=500 CORE_GID=500 \
-		DESTDIR=${D} "${ED}/usr/share/${PN}/dumb-tmpfiles-proc.sh" "${ED}/usr/lib/tmpfiles.d" || die
-	rm -f "${ED}/usr/share/${PN}/Makefile" "${ED}/usr/share/${PN}/dumb-tmpfiles-proc.sh" || die
+
+	if use build; then
+		emake -C "${ED}/usr/share/${PN}" DESTDIR="${EROOT}" LIBDIRS="${libdirs}" layout
+		SYSTEMD_JOURNAL_GID=${ACCT_GROUP_SYSTEMD_JOURNAL_ID:-190} ROOT_UID=0 ROOT_GID=0 CORE_UID=500 CORE_GID=500 \
+			DESTDIR=${ROOT} "${ED}/usr/share/${PN}/dumb-tmpfiles-proc.sh" --exclude CZL+ "${ED}/usr/lib/tmpfiles.d" || die
+		rm -f "${ED}/usr/share/${PN}/Makefile" "${ED}/usr/share/${PN}/dumb-tmpfiles-proc.sh" || die
+	fi
 }
 
 pkg_postinst() {
diff --git a/setup_board b/setup_board
index 3924776ca8..9d22604467 100755
--- a/setup_board
+++ b/setup_board
@@ -337,7 +337,7 @@ if [[ ${FLAGS_regen_configs} -eq ${FLAGS_FALSE} ]]; then
   fi
 
   info "Installing baselayout"
-  "${EMERGE_WRAPPER}" "${EMERGE_FLAGS[@]}" --nodeps sys-apps/baselayout
+  USE+=" build" "${EMERGE_WRAPPER}" "${EMERGE_FLAGS[@]}" --nodeps sys-apps/baselayout
 
   if [[ "${FLAGS_usepkg}" -ne "${FLAGS_TRUE}" ||
         "${FLAGS_getbinpkg}" -ne "${FLAGS_TRUE}" ]]