diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/google-compute-engine-20160930.ebuild b/sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/google-compute-engine-20160930-r1.ebuild
similarity index 83%
rename from sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/google-compute-engine-20160930.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/google-compute-engine-20160930-r1.ebuild
index 56092ae0d3..179bf9adbf 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/google-compute-engine-20160930.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/google-compute-engine-20160930-r1.ebuild
@@ -30,12 +30,6 @@ RDEPEND="
 
 S="${WORKDIR}/compute-image-packages-${PV}"
 
-src_prepare() {
-	# Don't attempt to mess with our host keys.
-	sed -i -e '/set_host_keys/s/true/false/i' \
-		"${S}"/google_compute_engine/instance_setup/instance_config.py
-}
-
 src_compile() {
 	(cd "${S}" && exec python setup.py build)
 }
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/coreos-oem-gce-0.0.1-r1.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/coreos-oem-gce-0.0.1-r1.ebuild
new file mode 120000
index 0000000000..348c68c571
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/coreos-oem-gce-0.0.1-r1.ebuild
@@ -0,0 +1 @@
+coreos-oem-gce-0.0.1.ebuild
\ No newline at end of file
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/files/manglefs.sh b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/files/manglefs.sh
index cee4b02818..013b990370 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/files/manglefs.sh
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/files/manglefs.sh
@@ -7,6 +7,11 @@ set -e
 cat << 'EOF' > init.sh && chmod 755 init.sh
 #!/bin/bash -ex
 
+# Write a configuration template if it does not exist.
+[ -e /etc/default/instance_configs.cfg.template ] ||
+echo -e > /etc/default/instance_configs.cfg.template \
+    '[InstanceSetup]\nset_host_keys = false'
+
 # Run the initialization scripts.
 /usr/bin/google_instance_setup
 /usr/bin/google_network_setup