diff --git a/core/filesystem/PKGBUILD b/core/filesystem/PKGBUILD
index fa3c2f4f9..6bf518c91 100644
--- a/core/filesystem/PKGBUILD
+++ b/core/filesystem/PKGBUILD
@@ -6,7 +6,7 @@
 #  - modifed os-release
 
 pkgname=filesystem
-pkgver=2016.12
+pkgver=2017.03
 pkgrel=2
 pkgdesc='Base Arch Linux files'
 arch=('i686' 'x86_64')
@@ -22,14 +22,14 @@ backup=('etc/fstab' 'etc/crypttab' 'etc/group' 'etc/hosts' 'etc/ld.so.conf' 'etc
 source=('group' 'issue' 'nsswitch.conf' 'securetty' 'host.conf' 'ld.so.conf'
         'passwd' 'shadow' 'fstab' 'crypttab' 'hosts' 'motd' 'os-release' 'resolv.conf'
         'shells' 'gshadow' 'profile' 'archlinux.7.txt' 'locale.sh')
-md5sums=('4d7417d2bf8872665c0907f09ae37c34'
+md5sums=('76c80215d8dd395d3be4b8a711d585b6'
          '7813c481156f6b280a3ba91fc6236368'
          '7b21f0f97f048988908bf93778bba65f'
          '4c4540eeb748bf1f71d631b8c1dcf0b3'
          'f28150d4c0b22a017be51b9f7f9977ed'
          '6e488ffecc8ba142c0cf7e2d7aeb832e'
-         'a998d1e6c7cc5791a7f4a2b49b2d10ce'
-         '1ec1b16e2a71fad63ab8f147069a5d97'
+         'cb1a751b05541d8eebaace316de0e809'
+         'c0c27476ee248355bf308c8502a8c860'
          '693c97f2c9a519bb97a17008e92c2b74'
          'f0a5071f50d8864d2810c44e23eb00cc'
          '7bc65f234dfb6abf24e7c3b03e86f4ff'
@@ -37,7 +37,7 @@ md5sums=('4d7417d2bf8872665c0907f09ae37c34'
          '52db9503314f639b8f47bd9a251a6ea9'
          '6f48288b6fcaf0065fcb7b0e525413e0'
          '22518e922891f9359f971f4f5b4e793c'
-         '69e460404f45bdb7288d1de662e56dd9'
+         'c08581d4f982be8806d3afa912a65203'
          'cfa3345c485c59e681ab39a44dc7ece1'
          '2e193c4a37245f2323ebe87f1a673563'
          '71ed98c52e11ada1f936ac8cb14eecd9')
@@ -91,14 +91,16 @@ package() {
 	# vsftpd won't run with write perms on /srv/ftp
 	install -d -m555 -g ftp srv/ftp
 
-	# setup /etc
-	install -d etc/{ld.so.conf.d,skel,profile.d}
+	# setup /etc and /usr/share/factory/etc
+	install -d etc/{ld.so.conf.d,skel,profile.d} usr/share/factory/etc
 	for f in fstab group host.conf hosts issue ld.so.conf motd nsswitch.conf passwd resolv.conf securetty shells profile; do
 		install -m644 "$srcdir"/$f etc/
+		install -m644 "$srcdir"/$f usr/share/factory/etc/
 	done
-	ln -s /proc/self/mounts etc/mtab
+	ln -s ../proc/self/mounts etc/mtab
 	for f in gshadow shadow crypttab; do
 		install -m600 "$srcdir"/$f etc/
+		install -m600 "$srcdir"/$f usr/share/factory/etc/
 	done
 	touch etc/arch-release
 	install -m755 "$srcdir"/locale.sh etc/profile.d/locale.sh
@@ -154,4 +156,7 @@ package() {
 		install -d -m755 usr/local/$d
 	done
 	ln -s ../man usr/local/share/man
+
+	# remove conflict with systemd
+	rm usr/share/factory/etc/nsswitch.conf
 }
diff --git a/core/filesystem/filesystem.install b/core/filesystem/filesystem.install
index 9793ad25c..478c049e7 100644
--- a/core/filesystem/filesystem.install
+++ b/core/filesystem/filesystem.install
@@ -30,10 +30,6 @@ post_upgrade() {
 	_addgroup scanner -g 96
 	_addgroup rfkill  -g 24
 	_addgroup lock    -g 54
-	_addgroup uuidd   -g 68
-	_adduser uuidd    -u 68 -d / -g uuidd -s /usr/bin/nologin
-	_addgroup dbus    -g 81
-	_adduser dbus     -u 81 -d / -g dbus -s /usr/bin/nologin
 	_addgroup input   -g 97
 	_addgroup systemd-journal -g 190
 	_addgroup systemd-journal-gateway -g 191
diff --git a/core/filesystem/group b/core/filesystem/group
index f922eadcf..2e6dcef93 100644
--- a/core/filesystem/group
+++ b/core/filesystem/group
@@ -21,8 +21,6 @@ proc:x:26:
 http:x:33:
 games:x:50:
 lock:x:54:
-uuidd:x:68:
-dbus:x:81:
 network:x:90:
 video:x:91:
 audio:x:92:
diff --git a/core/filesystem/gshadow b/core/filesystem/gshadow
index b89cf7709..ac5396ee0 100644
--- a/core/filesystem/gshadow
+++ b/core/filesystem/gshadow
@@ -21,8 +21,6 @@ proc:::
 http:::
 games:::
 lock:::
-uuidd:x::
-dbus:x::
 network:x::
 video:x::
 audio:::
diff --git a/core/filesystem/passwd b/core/filesystem/passwd
index b3e79eb9d..c0987cef1 100644
--- a/core/filesystem/passwd
+++ b/core/filesystem/passwd
@@ -4,8 +4,6 @@ daemon:x:2:2:daemon:/:/usr/bin/nologin
 mail:x:8:12:mail:/var/spool/mail:/usr/bin/nologin
 ftp:x:14:11:ftp:/srv/ftp:/usr/bin/nologin
 http:x:33:33:http:/srv/http:/usr/bin/nologin
-uuidd:x:68:68:uuidd:/:/usr/bin/nologin
-dbus:x:81:81:dbus:/:/usr/bin/nologin
 nobody:x:99:99:nobody:/:/usr/bin/nologin
 systemd-journal-gateway:x:191:191:systemd-journal-gateway:/:/usr/bin/nologin
 systemd-timesync:x:192:192:systemd-timesync:/:/usr/bin/nologin
diff --git a/core/filesystem/shadow b/core/filesystem/shadow
index 4c6e3d18f..9c99a6c34 100644
--- a/core/filesystem/shadow
+++ b/core/filesystem/shadow
@@ -4,8 +4,6 @@ daemon:x:14871::::::
 mail:x:14871::::::
 ftp:x:14871::::::
 http:x:14871::::::
-uuidd:x:14871::::::
-dbus:x:14871::::::
 nobody:x:14871::::::
 systemd-journal-gateway:x:14871::::::
 systemd-timesync:x:14871::::::