diff --git a/chroot_version_hooks.d/178_merge_distdir b/chroot_version_hooks.d/178_merge_distdir
new file mode 100644
index 0000000..f0598a2
--- /dev/null
+++ b/chroot_version_hooks.d/178_merge_distdir
@@ -0,0 +1,46 @@
+# Copyright 2020 The Chromium OS Authors. All rights reserved.
+# Use of this source code is governed by a BSD-style license that can be
+# found in the LICENSE file.
+
+# We changed the distfile download dirs to a combined one, so move the old
+# content up to the common location.
+
+# Delete the old symlinks.
+sudo rm -f /var/lib/portage/distfiles /var/lib/portage/distfiles-target
+
+# Merge the content.
+echo "Merging old distfiles paths"
+cd /var/cache/distfiles
+for srcdir in target host; do
+  if [[ ! -d "${srcdir}" ]]; then
+    continue
+  fi
+
+  echo "  ${srcdir} ..."
+  # Merge the two git subdirs.
+  for gitdir in egit-src git3-src; do
+    mkdir -p "${gitdir}"
+    if [[ -d "${srcdir}/${gitdir}" ]]; then
+      for d in $(find "${srcdir}/${gitdir}/" -mindepth 1 -maxdepth 1 -type d \
+                   -printf '%f\n'); do
+        if [[ ! -d "${gitdir}/${d}" ]]; then
+          mv "${srcdir}/${gitdir}/${d}" "${gitdir}/" || exit 1
+        fi
+      done
+    fi
+  done
+
+  # Clear all the subdirs now that they're migrated.
+  sudo rm -rf "${srcdir}"/*/
+
+  # Merge the files.
+  rm -f "${srcdir}"/*._checksum_failure_.*
+  for f in "${srcdir}"/*; do
+    if [[ ! -e "${f##*/}" ]]; then
+      mv "${f}" ./ || exit 1
+    fi
+  done
+
+  # Delete the dir.
+  sudo rm -rf "${srcdir}" || exit 1
+done
diff --git a/sdk_lib/enter_chroot.sh b/sdk_lib/enter_chroot.sh
index ab52b36..5199de5 100755
--- a/sdk_lib/enter_chroot.sh
+++ b/sdk_lib/enter_chroot.sh
@@ -476,7 +476,7 @@
 
     chroot_cache='/var/cache/chromeos-cache'
     debug "Setting up shared cache dir directory."
-    user_mkdir "${FLAGS_cache_dir}"/distfiles/{target,host}
+    user_mkdir "${FLAGS_cache_dir}"/distfiles
     user_mkdir "${FLAGS_chroot}/${chroot_cache}"
     setup_mount "${FLAGS_cache_dir}" "--bind" "${chroot_cache}"
     # TODO(build): remove this as of 12/01/12.
diff --git a/sdk_lib/make_chroot.sh b/sdk_lib/make_chroot.sh
index 61879f0..037b190 100755
--- a/sdk_lib/make_chroot.sh
+++ b/sdk_lib/make_chroot.sh
@@ -280,14 +280,6 @@
    # these are defined as w/in the chroot.
    bare_chroot chown "${SUDO_USER}:portage" /var/cache/chromeos-chrome
 
-   # These are created for compatibility while transitioning
-   # make.conf and friends over to the new location.
-   # TODO(ferringb): remove this 01/13 or so.
-   ln -s ../../cache/chromeos-cache/distfiles/host \
-     "${FLAGS_chroot}/var/lib/portage/distfiles"
-   ln -s ../../cache/chromeos-cache/distfiles/target \
-     "${FLAGS_chroot}/var/lib/portage/distfiles-target"
-
    # Add chromite/bin and depot_tools into the path globally; note that the
    # chromite wrapper itself might also be found in depot_tools.
    # We rely on 'env-update' getting called below.