diff --git a/config/default.go b/config/default.go
index 8bd24695..0df37636 100644
--- a/config/default.go
+++ b/config/default.go
@@ -12,14 +12,33 @@ func NewConfig() *Config {
 			Dev:      "LABEL=RANCHER_STATE",
 			FsType:   "auto",
 		},
-		SystemDockerArgs: []string{"docker", "-d", "-s", "overlay", "-b", "none", "--restart=false"},
+		SystemDockerArgs: []string{"docker", "-d", "-s", "overlay", "-b", "none", "--restart=false", "-H", DOCKER_SYSTEM_HOST},
 		Modules:          []string{},
 		SystemContainers: []ContainerConfig{
 			{
-				Cmd: "--name=system-state " +
+				Cmd: "--name=system-volumes " +
 					"--net=none " +
 					"--read-only " +
 					"-v=/var/lib/rancher/conf:/var/lib/rancher/conf " +
+					"-v=/lib/modules:/lib/modules:ro " +
+					"-v=/var/run:/var/run " +
+					"state",
+			},
+			{
+				Cmd: "--name=console-volumes " +
+					"--net=none " +
+					"--read-only " +
+					"-v=/init:/sbin/halt:ro " +
+					"-v=/init:/sbin/poweroff:ro " +
+					"-v=/init:/sbin/reboot:ro " +
+					"-v=/init:/sbin/tlsconf:ro " +
+					"-v=/init:/usr/bin/rancherctl:ro " +
+					"-v=/init:/usr/bin/respawn:ro " +
+					"-v=/init:/usr/bin/system-docker:ro " +
+					"-v=/lib/modules:/lib/modules:ro " +
+					"-v=/usr/bin/docker:/usr/bin/docker:ro " +
+					"-v=/var/lib/rancher/state/home:/home " +
+					"-v=/var/lib/rancher/state/opt:/opt " +
 					"state",
 			},
 			{
@@ -38,38 +57,6 @@ func NewConfig() *Config {
 					"--rm " +
 					"network",
 			},
-			{
-				Cmd: "--name=userdocker " +
-					"-d " +
-					"--restart=always " +
-					"--pid=host " +
-					"--net=host " +
-					"--privileged " +
-					"-v=/lib/modules:/lib/modules:ro " +
-					"-v=/usr/bin/docker:/usr/bin/docker:ro " +
-					"--volumes-from=system-state " +
-					"userdocker",
-			},
-			{
-				Cmd: "--name=console " +
-					"-d " +
-					"--rm " +
-					"--privileged " +
-					"-v=/lib/modules:/lib/modules:ro " +
-					"-v=/usr/bin/docker:/usr/bin/docker:ro " +
-					"-v=/init:/usr/bin/system-docker:ro " +
-					"-v=/init:/usr/bin/respawn:ro " +
-					"-v=/var/run/docker.sock:/var/run/system-docker.sock:ro " +
-					"-v=/init:/sbin/poweroff:ro " +
-					"-v=/init:/sbin/reboot:ro " +
-					"-v=/init:/sbin/halt:ro " +
-					"-v=/init:/sbin/tlsconf:ro " +
-					"-v=/init:/usr/bin/rancherctl:ro " +
-					"--volumes-from=system-state " +
-					"--net=host " +
-					"--pid=host " +
-					"console",
-			},
 			{
 				Cmd: "--name=ntp " +
 					"--rm " +
@@ -78,17 +65,41 @@ func NewConfig() *Config {
 					"--net=host " +
 					"ntp",
 			},
+			{
+				Cmd: "--name=userdocker " +
+					"-d " +
+					"--rm " +
+					"--restart=always " +
+					"--ipc=host " +
+					"--pid=host " +
+					"--net=host " +
+					"--privileged " +
+					"--volumes-from=system-volumes " +
+					"-v=/usr/bin/docker:/usr/bin/docker:ro " +
+					"-v=/var/lib/rancher/state/docker:/var/lib/docker " +
+					"userdocker",
+			},
+			{
+				Cmd: "--name=console " +
+					"-d " +
+					"--rm " +
+					"--privileged " +
+					"--volumes-from=console-volumes " +
+					"--volumes-from=system-volumes " +
+					"--ipc=host " +
+					"--net=host " +
+					"--pid=host " +
+					"console",
+			},
 		},
 		RescueContainer: &ContainerConfig{
 			Cmd: "--name=rescue " +
 				"-d " +
 				"--rm " +
 				"--privileged " +
-				"-v=/lib/modules:/lib/modules:ro " +
-				"-v=/usr/bin/docker:/usr/bin/docker:ro " +
-				"-v=/init:/usr/bin/system-docker:ro " +
-				"-v=/init:/usr/bin/respawn:ro " +
-				"-v=/var/run/docker.sock:/var/run/system-docker.sock:ro " +
+				"--volumes-from=console-volumes " +
+				"--volumes-from=system-volumes " +
+				"--ipc=host " +
 				"--net=host " +
 				"--pid=host " +
 				"rescue",
diff --git a/init/init.go b/init/init.go
index e801c08f..bf5997e5 100644
--- a/init/init.go
+++ b/init/init.go
@@ -14,8 +14,9 @@ import (
 )
 
 const (
-	STATE  string = "/var"
-	DOCKER string = "/usr/bin/docker"
+	STATE   string = "/var"
+	DOCKER  string = "/usr/bin/docker"
+	SYSINIT string = "/sbin/rancher-sysinit"
 )
 
 var (
@@ -23,37 +24,37 @@ var (
 		"/etc/ssl/certs",
 		"/sbin",
 		"/usr/bin",
-		"/var",
 	}
 	mounts [][]string = [][]string{
+		[]string{"devtmpfs", "/dev", "devtmpfs", ""},
+		[]string{"none", "/dev/pts", "devpts", ""},
 		[]string{"none", "/etc/docker", "tmpfs", ""},
 		[]string{"none", "/proc", "proc", ""},
-		[]string{"devtmpfs", "/dev", "devtmpfs", ""},
+		[]string{"none", "/run", "tmpfs", ""},
 		[]string{"none", "/sys", "sysfs", ""},
 		[]string{"none", "/sys/fs/cgroup", "tmpfs", ""},
-		[]string{"none", "/dev/pts", "devpts", ""},
-		[]string{"none", "/run", "tmpfs", ""},
+	}
+	postMounts [][]string = [][]string{
+		[]string{"none", "/var/run", "tmpfs", ""},
 	}
 	cgroups []string = []string{
-		"perf_event",
-		"net_cls",
-		"freezer",
-		"devices",
 		"blkio",
-		"memory",
-		"cpuacct",
 		"cpu",
+		"cpuacct",
 		"cpuset",
+		"devices",
+		"freezer",
+		"memory",
+		"net_cls",
+		"perf_event",
 	}
 	// Notice this map is the reverse order of a "ln -s x y" command
 	// so map[y] = x
 	symlinks map[string]string = map[string]string{
 		"/etc/ssl/certs/ca-certificates.crt": "/ca.crt",
-		"/sbin/init-sys":                     "/init",
-		"/sbin/init-user":                    "/init",
 		"/sbin/modprobe":                     "/busybox",
-		"/var/run":                           "/run",
 		DOCKER:                               "/docker",
+		SYSINIT:                              "/init",
 	}
 )
 
@@ -177,7 +178,7 @@ func loadModules(cfg *config.Config) error {
 }
 
 func sysInit(cfg *config.Config) error {
-	args := append([]string{"/sbin/init-sys"}, os.Args[1:]...)
+	args := append([]string{SYSINIT}, os.Args[1:]...)
 
 	var cmd *exec.Cmd
 	if util.IsRunningInTty() {
@@ -275,6 +276,9 @@ func RunInit() error {
 		extractModules,
 		loadModules,
 		mountState,
+		func(cfg *config.Config) error {
+			return createMounts(postMounts...)
+		},
 		func(cfg *config.Config) error {
 			return cfg.Reload()
 		},
diff --git a/main.go b/main.go
index 2a117a75..16128325 100644
--- a/main.go
+++ b/main.go
@@ -35,7 +35,7 @@ func registerCmd(cmd string, mainFunc func()) {
 
 func main() {
 	registerCmd("/init", osInit.MainInit)
-	registerCmd("/sbin/init-sys", sysinit.SysInit)
+	registerCmd(osInit.SYSINIT, sysinit.SysInit)
 	registerCmd("/usr/bin/system-docker", systemdocker.Main)
 	registerCmd("/sbin/poweroff", power.PowerOff)
 	registerCmd("/sbin/reboot", power.Reboot)
diff --git a/sysinit/sysinit.go b/sysinit/sysinit.go
index 2fae9276..de92c1ff 100644
--- a/sysinit/sysinit.go
+++ b/sysinit/sysinit.go
@@ -83,7 +83,7 @@ func loadImages(cfg *config.Config) error {
 		return err
 	}
 
-	client, err := docker.NewDefaultClient()
+	client, err := docker.NewSystemClient()
 	if err != nil {
 		return err
 	}
@@ -122,7 +122,7 @@ func runContainers(cfg *config.Config) error {
 	}
 
 	for _, containerConfig := range containerConfigs {
-		container := docker.NewContainer(config.DOCKER_HOST, &containerConfig)
+		container := docker.NewContainer(config.DOCKER_SYSTEM_HOST, &containerConfig)
 		container.Parse()
 
 		if util.Contains(cfg.Disable, containerConfig.Id) {