diff --git a/rpmostree-cxxrs.cxx b/rpmostree-cxxrs.cxx
index f237f326d3..3f53d35d09 100644
--- a/rpmostree-cxxrs.cxx
+++ b/rpmostree-cxxrs.cxx
@@ -2197,8 +2197,8 @@ extern "C"
   ::rust::repr::PtrLen rpmostreecxx$cxxbridge1$convert_var_to_tmpfiles_d (
       ::std::int32_t rootfs_dfd, ::rpmostreecxx::GCancellable const &cancellable) noexcept;
 
-  ::rust::repr::PtrLen
-  rpmostreecxx$cxxbridge1$rootfs_prepare_links (::std::int32_t rootfs_dfd) noexcept;
+  ::rust::repr::PtrLen rpmostreecxx$cxxbridge1$rootfs_prepare_links (::std::int32_t rootfs_dfd,
+                                                                     bool skip_usrlocal) noexcept;
 
   ::rust::repr::PtrLen rpmostreecxx$cxxbridge1$workaround_selinux_cross_labeling (
       ::std::int32_t rootfs_dfd, ::rpmostreecxx::GCancellable &cancellable) noexcept;
@@ -4032,9 +4032,10 @@ convert_var_to_tmpfiles_d (::std::int32_t rootfs_dfd,
 }
 
 void
-rootfs_prepare_links (::std::int32_t rootfs_dfd)
+rootfs_prepare_links (::std::int32_t rootfs_dfd, bool skip_usrlocal)
 {
-  ::rust::repr::PtrLen error$ = rpmostreecxx$cxxbridge1$rootfs_prepare_links (rootfs_dfd);
+  ::rust::repr::PtrLen error$
+      = rpmostreecxx$cxxbridge1$rootfs_prepare_links (rootfs_dfd, skip_usrlocal);
   if (error$.ptr)
     {
       throw ::rust::impl< ::rust::Error>::error (error$);
diff --git a/rpmostree-cxxrs.h b/rpmostree-cxxrs.h
index 5ec26d72d0..3798438655 100644
--- a/rpmostree-cxxrs.h
+++ b/rpmostree-cxxrs.h
@@ -1863,7 +1863,7 @@ void compose_postprocess_final (::std::int32_t rootfs_dfd,
 void convert_var_to_tmpfiles_d (::std::int32_t rootfs_dfd,
                                 ::rpmostreecxx::GCancellable const &cancellable);
 
-void rootfs_prepare_links (::std::int32_t rootfs_dfd);
+void rootfs_prepare_links (::std::int32_t rootfs_dfd, bool skip_usrlocal);
 
 void workaround_selinux_cross_labeling (::std::int32_t rootfs_dfd,
                                         ::rpmostreecxx::GCancellable &cancellable);
diff --git a/rust/src/composepost.rs b/rust/src/composepost.rs
index e3377d33b5..4d3871be32 100644
--- a/rust/src/composepost.rs
+++ b/rust/src/composepost.rs
@@ -963,18 +963,20 @@ fn convert_path_to_tmpfiles_d_recurse(
 ///  - If present, symlink /var/lib/alternatives -> /usr/lib/alternatives
 ///  - If present, symlink /var/lib/vagrant -> /usr/lib/vagrant
 #[context("Preparing symlinks in rootfs")]
-pub fn rootfs_prepare_links(rootfs_dfd: i32) -> CxxResult<()> {
+pub fn rootfs_prepare_links(rootfs_dfd: i32, skip_usrlocal: bool) -> CxxResult<()> {
     let rootfs = unsafe { &crate::ffiutil::ffi_dirfd(rootfs_dfd)? };
     let mut db = dirbuilder_from_mode(0o755);
     db.recursive(true);
 
-    if !crate::ostree_prepareroot::transient_root_enabled(rootfs)? {
-        // Unconditionally drop /usr/local and replace it with a symlink.
-        rootfs
-            .remove_all_optional("usr/local")
-            .context("Removing /usr/local")?;
-        ensure_symlink(rootfs, "../var/usrlocal", "usr/local")
-            .context("Creating /usr/local symlink")?;
+    if !skip_usrlocal {
+        if !crate::ostree_prepareroot::transient_root_enabled(rootfs)? {
+            // Unconditionally drop /usr/local and replace it with a symlink.
+            rootfs
+                .remove_all_optional("usr/local")
+                .context("Removing /usr/local")?;
+            ensure_symlink(rootfs, "../var/usrlocal", "usr/local")
+                .context("Creating /usr/local symlink")?;
+        }
     }
 
     // Move existing content to /usr/lib, then put a symlink in its
@@ -1568,7 +1570,7 @@ OSTREE_VERSION='33.4'
         rootfs.ensure_dir_with("var/lib/alternatives", &db).unwrap();
         rootfs.ensure_dir_with("var/lib/vagrant", &db).unwrap();
 
-        rootfs_prepare_links(rootfs.as_raw_fd()).unwrap();
+        rootfs_prepare_links(rootfs.as_raw_fd(), false).unwrap();
         {
             let usr_dir = rootfs.open_dir("usr").unwrap();
             let local_target = usr_dir.read_link("local").unwrap();
diff --git a/rust/src/lib.rs b/rust/src/lib.rs
index 6ec96d8ff3..6ea5d4df48 100644
--- a/rust/src/lib.rs
+++ b/rust/src/lib.rs
@@ -298,7 +298,7 @@ pub mod ffi {
         fn compose_postprocess_final_pre(rootfs_dfd: i32) -> Result<()>;
         fn compose_postprocess_final(rootfs_dfd: i32, treefile: &Treefile) -> Result<()>;
         fn convert_var_to_tmpfiles_d(rootfs_dfd: i32, cancellable: &GCancellable) -> Result<()>;
-        fn rootfs_prepare_links(rootfs_dfd: i32) -> Result<()>;
+        fn rootfs_prepare_links(rootfs_dfd: i32, skip_usrlocal: bool) -> Result<()>;
         fn workaround_selinux_cross_labeling(
             rootfs_dfd: i32,
             cancellable: Pin<&mut GCancellable>,
diff --git a/src/libpriv/rpmostree-core.cxx b/src/libpriv/rpmostree-core.cxx
index 5ba6ca23b6..552d7d2397 100644
--- a/src/libpriv/rpmostree-core.cxx
+++ b/src/libpriv/rpmostree-core.cxx
@@ -4287,7 +4287,11 @@ rpmostree_context_assemble (RpmOstreeContext *self, GCancellable *cancellable, G
    */
   if (!glnx_shutil_mkdir_p_at (tmprootfs_dfd, "var/tmp", 0755, cancellable, error))
     return FALSE;
-  ROSCXX_TRY (rootfs_prepare_links (tmprootfs_dfd), error);
+  /* Note `true` here; this function confusingly creates /usr/local, which is
+   * under /usr as well as symlinks under /var. We're really interested here
+   * in the / var part. We don't wnat to change the /usr/local setting from the
+   * base tree (or in a base compoase, `filesystem`). */
+  ROSCXX_TRY (rootfs_prepare_links (tmprootfs_dfd, true), error);
 
   CXX_TRY_VAR (etc_guard, rpmostreecxx::prepare_tempetc_guard (tmprootfs_dfd), error);
 
diff --git a/src/libpriv/rpmostree-postprocess.cxx b/src/libpriv/rpmostree-postprocess.cxx
index 4904f97e71..be65806ec2 100644
--- a/src/libpriv/rpmostree-postprocess.cxx
+++ b/src/libpriv/rpmostree-postprocess.cxx
@@ -423,7 +423,7 @@ postprocess_final (int rootfs_dfd, rpmostreecxx::Treefile &treefile, gboolean un
         return glnx_prefix_error (error, "SELinux postprocess");
     }
 
-  ROSCXX_TRY (rootfs_prepare_links (rootfs_dfd), error);
+  ROSCXX_TRY (rootfs_prepare_links (rootfs_dfd, false), error);
 
   if (!unified_core_mode)
     ROSCXX_TRY (convert_var_to_tmpfiles_d (rootfs_dfd, *cancellable), error);