diff --git a/gnomeos/yocto/classes/gnomeos-contents.bbclass b/gnomeos/yocto/classes/gnomeos-contents.bbclass
index f3ae87a3..469463d6 100644
--- a/gnomeos/yocto/classes/gnomeos-contents.bbclass
+++ b/gnomeos/yocto/classes/gnomeos-contents.bbclass
@@ -121,9 +121,6 @@ EOF
 	rm -f ${IMAGE_ROOTFS}/etc/group
 	ln -s /var/group ${IMAGE_ROOTFS}/etc/group
 
-	mkdir ${IMAGE_ROOTFS}/var/lib/gdm
-	chown 2:2 ${IMAGE_ROOTFS}/var/lib/gdm
-
 	TOPROOT_BIND_MOUNTS="home root tmp"
 	OSTREE_BIND_MOUNTS="var"
 	OSDIRS="dev proc mnt media run sys sysroot"
diff --git a/gnomeos/yocto/gnomeos-run.sh b/gnomeos/yocto/gnomeos-run.sh
index bd591c82..c6f3d572 100755
--- a/gnomeos/yocto/gnomeos-run.sh
+++ b/gnomeos/yocto/gnomeos-run.sh
@@ -73,6 +73,10 @@ if ! test -d ostree; then
     mkdir -p -m 0755 ./ostree/var/{log,run,tmp,spool}
     mkdir -p ./ostree/var/lib/dbus
     dbus-uuidgen > ./ostree/var/lib/dbus/machine-id
+
+    mkdir ./ostree/var/lib/gdm
+    chown 2:2 ./ostree/var/lib/gdm
+
     mkdir ostree/repo
     ostree --repo=ostree/repo init