diff --git a/go.mod b/go.mod
index dc4c6c6..534821a 100644
--- a/go.mod
+++ b/go.mod
@@ -10,7 +10,7 @@ require (
 	github.com/onsi/ginkgo/v2 v2.7.1
 	github.com/onsi/gomega v1.26.0
 	github.com/rs/zerolog v1.29.0
-	github.com/spectrocloud-labs/herd v0.2.1
+	github.com/spectrocloud-labs/herd v0.3.0
 	github.com/urfave/cli v1.22.10
 )
 
@@ -28,6 +28,8 @@ require (
 	github.com/golang/groupcache v0.0.0-20210331224755-41bb18bfe9da // indirect
 	github.com/google/go-cmp v0.5.9 // indirect
 	github.com/gookit/color v1.5.2 // indirect
+	github.com/hashicorp/errwrap v1.1.0 // indirect
+	github.com/hashicorp/go-multierror v1.1.1 // indirect
 	github.com/joho/godotenv v1.4.0 // indirect
 	github.com/kendru/darwin/go/depgraph v0.0.0-20221105232959-877d6a81060c // indirect
 	github.com/lithammer/fuzzysearch v1.1.5 // indirect
diff --git a/go.sum b/go.sum
index 322c786..31fb1c4 100644
--- a/go.sum
+++ b/go.sum
@@ -411,8 +411,12 @@ github.com/grpc-ecosystem/grpc-gateway v1.9.5/go.mod h1:vNeuVxBJEsws4ogUvrchl83t
 github.com/grpc-ecosystem/grpc-gateway v1.16.0/go.mod h1:BDjrQk3hbvj6Nolgz8mAMFbcEtjT1g+wF4CSlocrBnw=
 github.com/hashicorp/errwrap v0.0.0-20141028054710-7554cd9344ce/go.mod h1:YH+1FKiLXxHSkmPseP+kNlulaMuP3n2brvKWEqk/Jc4=
 github.com/hashicorp/errwrap v1.0.0/go.mod h1:YH+1FKiLXxHSkmPseP+kNlulaMuP3n2brvKWEqk/Jc4=
+github.com/hashicorp/errwrap v1.1.0 h1:OxrOeh75EUXMY8TBjag2fzXGZ40LB6IKw45YeGUDY2I=
+github.com/hashicorp/errwrap v1.1.0/go.mod h1:YH+1FKiLXxHSkmPseP+kNlulaMuP3n2brvKWEqk/Jc4=
 github.com/hashicorp/go-multierror v0.0.0-20161216184304-ed905158d874/go.mod h1:JMRHfdO9jKNzS/+BTlxCjKNQHg/jZAft8U7LloJvN7I=
 github.com/hashicorp/go-multierror v1.0.0/go.mod h1:dHtQlpGsu+cZNNAkkCN/P3hoUDHhCYQXV3UM06sGGrk=
+github.com/hashicorp/go-multierror v1.1.1 h1:H5DkEtf6CXdFp0N0Em5UCwQpXMWke8IA0+lD48awMYo=
+github.com/hashicorp/go-multierror v1.1.1/go.mod h1:iw975J/qwKPdAO1clOe2L8331t/9/fmwbPZ6JB6eMoM=
 github.com/hashicorp/golang-lru v0.5.0/go.mod h1:/m3WP610KZHVQ1SGc6re/UDhFvYD7pJ4Ao+sR/qLZy8=
 github.com/hashicorp/golang-lru v0.5.1/go.mod h1:/m3WP610KZHVQ1SGc6re/UDhFvYD7pJ4Ao+sR/qLZy8=
 github.com/hashicorp/hcl v1.0.0/go.mod h1:E5yfLk+7swimpb2L/Alb/PJmXilQ/rhwaUYs4T20WEQ=
@@ -650,6 +654,8 @@ github.com/soheilhy/cmux v0.1.4/go.mod h1:IM3LyeVVIOuxMH7sFAkER9+bJ4dT7Ms6E4xg4k
 github.com/spaolacci/murmur3 v0.0.0-20180118202830-f09979ecbc72/go.mod h1:JwIasOWyU6f++ZhiEuf87xNszmSA2myDM2Kzu9HwQUA=
 github.com/spectrocloud-labs/herd v0.2.1 h1:Z08zjr8i+DFD6hB/51FnMSDIf2Q3nKGtA25UMYJwKMI=
 github.com/spectrocloud-labs/herd v0.2.1/go.mod h1:fcZ8fjFcEJUM7qF6YcgxF3z8CCLjJeF7r4K1m8JQbHs=
+github.com/spectrocloud-labs/herd v0.3.0 h1:n/VmHC/3NKfteYhiBonlFtohMRiMGuc6in0krqkyWMw=
+github.com/spectrocloud-labs/herd v0.3.0/go.mod h1:RHPSzrH+Jd05+ewEpqk8ZgBgTsnHN8erkxwRdQAiw3Q=
 github.com/spf13/afero v1.1.2/go.mod h1:j4pytiNVoe2o6bmDsKpLACNPDBIoEAkihy7loJ1B0CQ=
 github.com/spf13/afero v1.2.2/go.mod h1:9ZxEEn6pIJ8Rxe320qSDBk6AsU0r9pR7Q4OcevTdifk=
 github.com/spf13/cast v1.3.0/go.mod h1:Qx5cxh0v+4UWYiBimWS+eyWzqEqokIECu5etghLkUJE=
diff --git a/pkg/mount/mount.go b/pkg/mount/mount.go
index 9a813e5..ee34d7a 100644
--- a/pkg/mount/mount.go
+++ b/pkg/mount/mount.go
@@ -5,58 +5,49 @@ import (
 	"fmt"
 	"os"
 	"path/filepath"
+	"strings"
 	"time"
 
 	"github.com/containerd/containerd/mount"
 	"github.com/deniswernert/go-fstab"
+	"github.com/hashicorp/go-multierror"
+	"github.com/joho/godotenv"
 	"github.com/kairos-io/immucore/pkg/profile"
 	"github.com/kairos-io/kairos/pkg/utils"
 	"github.com/spectrocloud-labs/herd"
 )
 
 type State struct {
-	Rootdir      string            // e.g. /sysroot inside initrd with pivot, / with nopivot
-	TargetImage  string            // e.g. /cOS/active.img
+	Rootdir     string // e.g. /sysroot inside initrd with pivot, / with nopivot
+	TargetImage string // e.g. /cOS/active.img
+	TargetLabel string // e.g. COS_ACTIVE
+
+	// /run/cos-layout.env (different!)
 	OverlayDir   []string          // e.g. /var
 	BindMounts   []string          // e.g. /etc/kubernetes
-	StateDir     string            // e.g. "/usr/local/.state"
-	TargetLabel  string            // e.g. COS_ACTIVE
-	FStabFile    string            // e.g. /etc/fstab
-	MountRoot    bool              // e.g. if true, it tries to find the image to loopback mount
 	CustomMounts map[string]string // e.g. diskid : mountpoint
 
+	StateDir  string // e.g. "/usr/local/.state"
+	FStabFile string // e.g. /etc/fstab
+	MountRoot bool   // e.g. if true, it tries to find the image to loopback mount
+
 	fstabs []*fstab.Mount
 }
 
-func genOpreferenceName(op, s string) string {
-	return fmt.Sprintf("%s-%s", op, s)
-}
-
-func genOpreferenceFromMap(op string, m map[string]string) (res []string) {
-	values := []string{}
-	for _, n := range m {
-		values = append(values, n)
-	}
-
-	res = genOpreference(op, values)
-	return
-}
-func genOpreference(op string, s []string) (res []string) {
-	for _, n := range s {
-		res = append(res, genOpreferenceName(op, n))
-	}
-	return
-}
-
 const (
-	opCustomMounts     = "custom-mount"
-	opDiscoverState    = "discover-state"
-	opMountState       = "mount-state"
+	opCustomMounts  = "custom-mount"
+	opDiscoverState = "discover-state"
+	opMountState    = "mount-state"
+	opMountBind     = "mount-bind"
+
 	opMountRoot        = "mount-root"
 	opOverlayMount     = "overlay-mount"
 	opWriteFstab       = "write-fstab"
 	opMountBaseOverlay = "mount-base-overlay"
 	opMountOEM         = "mount-oem"
+
+	opRootfsHook = "rootfs-hook"
+	opLoadConfig = "load-config"
 )
 
 func (s *State) path(p ...string) string {
@@ -84,6 +75,14 @@ func (s *State) WriteFstab(fstabFile string) func(context.Context) error {
 	}
 }
 
+// ln -sf -t / /sysroot/system
+func (s *State) RunStageOp(stage string) func(context.Context) error {
+	return func(ctx context.Context) error {
+		_, err := utils.SH(fmt.Sprintf("elemental run-stage %s", stage))
+		return err
+	}
+}
+
 func (s *State) MountOP(what, where, t string, options []string, timeout time.Duration) func(context.Context) error {
 	return func(c context.Context) error {
 		for {
@@ -134,12 +133,36 @@ func (s *State) WriteDAG(g *herd.Graph) (out string) {
 	return
 }
 
+func readEnv(file string) (map[string]string, error) {
+	var envMap map[string]string
+	var err error
+
+	f, err := os.Open(file)
+	if err != nil {
+		return envMap, err
+	}
+	defer f.Close()
+
+	envMap, err = godotenv.Parse(f)
+	if err != nil {
+		return envMap, err
+	}
+
+	return envMap, err
+}
+
 func (s *State) Register(g *herd.Graph) error {
 
-	// TODO: add, hooks, fstab, systemd compat
+	// TODO: add hooks, fstab (might have missed some), systemd compat
+	// TODO: We should also set tmpfs here (not -related)
 
+	// symlink
+	// execute the rootfs hook
+
+	// All of this below need to run after rootfs stage runs (so the layout file is created)
 	// This is legacy - in UKI we don't need to found the img, this needs to run in a conditional
 	if s.MountRoot {
+		// setup loopback mount for the image target for booting
 		g.Add(opDiscoverState,
 			herd.WithDeps(opMountState),
 			herd.WithCallback(
@@ -149,6 +172,7 @@ func (s *State) Register(g *herd.Graph) error {
 				},
 			))
 
+		// mount the state partition so to find the loopback device
 		g.Add(opMountState,
 			herd.WithCallback(
 				s.MountOP(
@@ -161,6 +185,7 @@ func (s *State) Register(g *herd.Graph) error {
 			),
 		)
 
+		// mount the loopback device as root of the fs
 		g.Add(opMountRoot,
 			herd.WithDeps(opDiscoverState),
 			herd.WithCallback(
@@ -182,8 +207,37 @@ func (s *State) Register(g *herd.Graph) error {
 
 	}
 
+	// depending on /run/cos-layout.env
+	// This is building the mountRoot dependendency if it was enabled
 	mountRootCondition := herd.ConditionalOption(func() bool { return s.MountRoot }, herd.WithDeps(opMountRoot))
 
+	// TODO: this needs to be run after state is discovered
+	// TODO: add symlink if Rootdir != ""
+	// TODO: chroot?
+	g.Add(opRootfsHook, mountRootCondition, herd.WithDeps(opMountOEM), herd.WithCallback(s.RunStageOp("rootfs")))
+
+	// /run/cos-layout.env
+	// populate state bindmounts, overlaymounts, custommounts
+	g.Add(opLoadConfig,
+		herd.WithDeps(opRootfsHook),
+		herd.WithCallback(func(ctx context.Context) error {
+
+			env, err := readEnv("/run/cos-layout.env")
+			if err != nil {
+				return err
+			}
+
+			// populate from env here
+			s.OverlayDir = strings.Split(env["RW_PATHS"], " ")
+
+			// TODO: PERSISTENT_STATE_TARGET /usr/local/.state
+			s.BindMounts = strings.Split(env["PERSISTENT_STATE_PATHS"], " ")
+
+			// TODO: this needs to be parsed
+			//	s.CustomMounts = strings.Split(env["VOLUMES"], " ")
+			return nil
+		}))
+
 	// end sysroot mount
 
 	// overlay mount start
@@ -206,65 +260,80 @@ func (s *State) Register(g *herd.Graph) error {
 	}
 
 	overlayCondition := herd.ConditionalOption(func() bool { return rootFSType(s.Rootdir) != "overlay" }, herd.WithDeps(opMountBaseOverlay))
-
 	// TODO: Add fsck
 	// mount overlay
-	for _, p := range s.OverlayDir {
-		g.Add(
-			genOpreferenceName(opOverlayMount, p),
-			overlayCondition,
-			mountRootCondition,
-			herd.WithCallback(
-				func(ctx context.Context) error {
+
+	g.Add(
+		opOverlayMount,
+		overlayCondition,
+		herd.WithDeps(opLoadConfig),
+		mountRootCondition,
+		herd.WithCallback(
+			func(ctx context.Context) error {
+				var err error
+				for _, p := range s.OverlayDir {
 					op, err := mountWithBaseOverlay(p, s.Rootdir, "/run/overlay")
 					if err != nil {
 						return err
 					}
 					s.fstabs = append(s.fstabs, &op.FstabEntry)
-					return op.run()
-				},
-			),
-		)
-	}
+					err = multierror.Append(err, op.run())
+				}
 
-	// custom mounts TODO: disk/path
-	for id, mountpoint := range s.CustomMounts {
-		g.Add(
-			genOpreferenceName(opCustomMounts, mountpoint),
-			mountRootCondition,
-			overlayCondition,
-			herd.WithCallback(
-				s.MountOP(
+				return err
+			},
+		),
+	)
+
+	g.Add(
+		opCustomMounts,
+		mountRootCondition,
+		overlayCondition,
+		herd.WithDeps(opLoadConfig),
+		herd.WithCallback(func(ctx context.Context) error {
+			var err error
+
+			for id, mountpoint := range s.CustomMounts {
+
+				err = multierror.Append(err, s.MountOP(
 					id,
 					s.path(mountpoint),
 					"auto",
 					[]string{
 						"ro", // or rw
-					}, 60*time.Second),
-			),
-		)
-	}
+					},
+					60*time.Second,
+				)(ctx))
+
+			}
+			return err
+		}),
+	)
 
 	// mount state
 	// mount state is defined over a custom mount (/usr/local/.state for instance, needs to be mounted over a device)
-	for _, p := range s.BindMounts {
-		g.Add(
-			genOpreferenceName(opMountState, p),
-			overlayCondition,
-			mountRootCondition,
-			herd.WithDeps(genOpreferenceFromMap(opCustomMounts, s.CustomMounts)...),
-			herd.WithCallback(
-				func(ctx context.Context) error {
+	g.Add(
+		opMountBind,
+		overlayCondition,
+		mountRootCondition,
+		herd.WithDeps(opCustomMounts, opLoadConfig),
+		herd.WithCallback(
+			func(ctx context.Context) error {
+				var err error
+
+				for _, p := range s.BindMounts {
+
 					op, err := mountBind(p, s.Rootdir, s.StateDir)
 					if err != nil {
 						return err
 					}
 					s.fstabs = append(s.fstabs, &op.FstabEntry)
-					return op.run()
-				},
-			),
-		)
-	}
+					err = multierror.Append(err, op.run())
+				}
+				return err
+			},
+		),
+	)
 
 	// overlay mount end
 	g.Add(opMountOEM,
@@ -289,12 +358,9 @@ func (s *State) Register(g *herd.Graph) error {
 
 	g.Add(opWriteFstab,
 		overlayCondition,
-		herd.ConditionalOption(func() bool { return s.MountRoot }, herd.WithDeps(opMountRoot)),
-		herd.WithDeps(opMountOEM),
+		mountRootCondition,
+		herd.WithDeps(opMountOEM, opCustomMounts, opMountBind, opOverlayMount),
 		herd.WeakDeps,
-		herd.WithDeps(genOpreferenceFromMap(opCustomMounts, s.CustomMounts)...),
-		herd.WithDeps(genOpreference(opMountState, s.BindMounts)...),
-		herd.WithDeps(genOpreference(opOverlayMount, s.OverlayDir)...),
 		herd.WithCallback(s.WriteFstab(s.FStabFile)))
 
 	return nil
diff --git a/pkg/mount/mount_test.go b/pkg/mount/mount_test.go
index fc95623..875e609 100644
--- a/pkg/mount/mount_test.go
+++ b/pkg/mount/mount_test.go
@@ -22,14 +22,20 @@ var _ = Describe("mounting immutable setup", func() {
 
 			dag := g.Analyze()
 
-			Expect(len(dag)).To(Equal(3))    // Expect 3 layers
-			Expect(len(dag[0])).To(Equal(1)) // 1 Item for each layer, as are tight deps
-			Expect(len(dag[1])).To(Equal(1))
-			Expect(len(dag[2])).To(Equal(1))
+			Expect(len(dag)).To(Equal(7), s.WriteDAG(g))    // Expect 3 layers
+			Expect(len(dag[0])).To(Equal(1), s.WriteDAG(g)) // 1 Item for each layer, as are tight deps
+			Expect(len(dag[1])).To(Equal(1), s.WriteDAG(g))
+			Expect(len(dag[2])).To(Equal(1), s.WriteDAG(g))
+			Expect(len(dag[4])).To(Equal(2), s.WriteDAG(g))
 
-			Expect(dag[0][0].Name).To(Equal("mount-base-overlay"))
-			Expect(dag[1][0].Name).To(Equal("mount-oem"))
-			Expect(dag[2][0].Name).To(Equal("write-fstab"))
+			Expect(dag[0][0].Name).To(Equal("mount-base-overlay"), s.WriteDAG(g))
+			Expect(dag[1][0].Name).To(Equal("mount-oem"), s.WriteDAG(g))
+			Expect(dag[2][0].Name).To(Equal("rootfs-hook"), s.WriteDAG(g))
+			Expect(dag[3][0].Name).To(Equal("load-config"), s.WriteDAG(g))
+			Expect(dag[4][0].Name).To(Or(Equal("overlay-mount"), Equal("custom-mount")), s.WriteDAG(g))
+			Expect(dag[4][1].Name).To(Or(Equal("overlay-mount"), Equal("custom-mount")), s.WriteDAG(g))
+			Expect(dag[5][0].Name).To(Equal("mount-bind"), s.WriteDAG(g))
+			Expect(dag[6][0].Name).To(Equal("write-fstab"), s.WriteDAG(g))
 		})
 
 		It("mounts base overlay, attempt to mount oem, and updates the fstab", func() {
@@ -39,49 +45,57 @@ var _ = Describe("mounting immutable setup", func() {
 
 			dag := g.Analyze()
 
-			Expect(len(dag)).To(Equal(5), s.WriteDAG(g))    // Expect 4 layers
+			Expect(len(dag)).To(Equal(9), s.WriteDAG(g))    // Expect 4 layers
 			Expect(len(dag[0])).To(Equal(2), s.WriteDAG(g)) // 2 items in first layer
 			Expect(len(dag[1])).To(Equal(1))                // 1 Item for each layer, as are tight deps
 			Expect(len(dag[2])).To(Equal(1))
 			Expect(len(dag[3])).To(Equal(1))
-			Expect(len(dag[4])).To(Equal(1))
-
-			Expect(dag[0][0].Name).To(Or(Equal("mount-base-overlay"), Equal("mount-state")))
-			Expect(dag[0][1].Name).To(Or(Equal("mount-base-overlay"), Equal("mount-state")))
+			Expect(len(dag[6])).To(Equal(2))
 
+			Expect(dag[0][0].Name).To(Or(Equal("mount-base-overlay"), Equal("mount-state")), s.WriteDAG(g))
+			Expect(dag[0][1].Name).To(Or(Equal("mount-base-overlay"), Equal("mount-state")), s.WriteDAG(g))
 			Expect(dag[1][0].Name).To(Equal("discover-state"))
 			Expect(dag[2][0].Name).To(Equal("mount-root"))
 			Expect(dag[3][0].Name).To(Equal("mount-oem"))
-			Expect(dag[4][0].Name).To(Equal("write-fstab"))
+			Expect(dag[4][0].Name).To(Equal("rootfs-hook"))
+			Expect(dag[5][0].Name).To(Equal("load-config"))
+			Expect(dag[6][0].Name).To(Or(Equal("overlay-mount"), Equal("custom-mount")), s.WriteDAG(g))
+			Expect(dag[6][1].Name).To(Or(Equal("overlay-mount"), Equal("custom-mount")), s.WriteDAG(g))
+
+			Expect(dag[7][0].Name).To(Equal("mount-bind"))
+			Expect(dag[8][0].Name).To(Equal("write-fstab"))
+
 		})
 
 		It("mounts all", func() {
-			s := &mount.State{Rootdir: "/", MountRoot: true, OverlayDir: []string{"/etc"}, BindMounts: []string{"/etc/kubernetes"}, CustomMounts: map[string]string{"COS_PERSISTENT": "/usr/local"}}
+			s := &mount.State{Rootdir: "/", MountRoot: true,
+				OverlayDir:   []string{"/etc"},
+				BindMounts:   []string{"/etc/kubernetes"},
+				CustomMounts: map[string]string{"COS_PERSISTENT": "/usr/local"}}
 
 			s.Register(g)
 
 			dag := g.Analyze()
 
-			Expect(len(dag)).To(Equal(6), s.WriteDAG(g))    // Expect 6 layers
+			Expect(len(dag)).To(Equal(9), s.WriteDAG(g))    // Expect 6 layers
 			Expect(len(dag[0])).To(Equal(2), s.WriteDAG(g)) // 2 items in first layer
-			Expect(len(dag[1])).To(Equal(1), s.WriteDAG(g)) // 1 Item for each layer, as are tight deps
-			Expect(len(dag[2])).To(Equal(1), s.WriteDAG(g))
-			Expect(len(dag[3])).To(Equal(3), s.WriteDAG(g))
-			Expect(len(dag[4])).To(Equal(1), s.WriteDAG(g))
-			Expect(len(dag[5])).To(Equal(1), s.WriteDAG(g))
-
-			Expect(dag[0][0].Name).To(Or(Equal("mount-base-overlay"), Equal("mount-state")))
-			Expect(dag[0][1].Name).To(Or(Equal("mount-base-overlay"), Equal("mount-state")))
+			Expect(len(dag[1])).To(Equal(1))                // 1 Item for each layer, as are tight deps
+			Expect(len(dag[2])).To(Equal(1))
+			Expect(len(dag[3])).To(Equal(1))
+			Expect(len(dag[6])).To(Equal(2))
 
+			Expect(dag[0][0].Name).To(Or(Equal("mount-base-overlay"), Equal("mount-state")), s.WriteDAG(g))
+			Expect(dag[0][1].Name).To(Or(Equal("mount-base-overlay"), Equal("mount-state")), s.WriteDAG(g))
 			Expect(dag[1][0].Name).To(Equal("discover-state"))
 			Expect(dag[2][0].Name).To(Equal("mount-root"))
+			Expect(dag[3][0].Name).To(Equal("mount-oem"))
+			Expect(dag[4][0].Name).To(Equal("rootfs-hook"))
+			Expect(dag[5][0].Name).To(Equal("load-config"))
+			Expect(dag[6][0].Name).To(Or(Equal("overlay-mount"), Equal("custom-mount")), s.WriteDAG(g))
+			Expect(dag[6][1].Name).To(Or(Equal("overlay-mount"), Equal("custom-mount")), s.WriteDAG(g))
 
-			Expect(dag[3][0].Name).To(Or(Equal("mount-oem"), Equal("overlay-mount-/etc"), Equal("custom-mount-/usr/local")))
-			Expect(dag[3][1].Name).To(Or(Equal("mount-oem"), Equal("overlay-mount-/etc"), Equal("custom-mount-/usr/local")))
-			Expect(dag[3][2].Name).To(Or(Equal("mount-oem"), Equal("overlay-mount-/etc"), Equal("custom-mount-/usr/local")))
-
-			Expect(dag[4][0].Name).To(Equal("mount-state-/etc/kubernetes"))
-			Expect(dag[5][0].Name).To(Equal("write-fstab"))
+			Expect(dag[7][0].Name).To(Equal("mount-bind"))
+			Expect(dag[8][0].Name).To(Equal("write-fstab"))
 		})
 	})
 })