diff --git a/boot/boot-stage-2-init.sh b/boot/boot-stage-2-init.sh
index e5ab202ea14..df5a399b1aa 100644
--- a/boot/boot-stage-2-init.sh
+++ b/boot/boot-stage-2-init.sh
@@ -131,21 +131,26 @@ echo "hosts: files dns" > /etc/nsswitch.conf
 if test -z "@readOnlyRoot@"; then
 
     for i in $(seq 1 10); do
-        account=nix-build-$i
+        account=nixbld$i
         if ! userExists $account; then
             createUser $account x \
-                $((i + 30000)) $((i + 30000)) \
+                $((i + 30000)) 30000 \
                 'Nix build user' /var/empty /noshell
         fi
-        accounts="$accounts $account"
+        accounts="$accounts${accounts:+,}$account"
     done
 
+    if ! grep -q "^nixbld:" /etc/group; then
+        echo "nixbld:*:30000:$accounts" >> /etc/group
+    fi
+
     mkdir -p /nix/etc/nix
     cat > /nix/etc/nix/nix.conf <<EOF
-build-allow-root = false
-build-users = $accounts
+build-users-group = nixbld
 EOF
 
+    chown root.nixbld /nix/store
+    chmod 1775 /nix/store
 fi
 
 
diff --git a/boot/boot-stage-2.nix b/boot/boot-stage-2.nix
index ec28a5005ae..f167731ef28 100644
--- a/boot/boot-stage-2.nix
+++ b/boot/boot-stage-2.nix
@@ -1,5 +1,5 @@
 { genericSubstituter, buildEnv, shell, coreutils, findutils
-, utillinux, kernel, udev, upstart, setuidWrapper
+, gnugrep, utillinux, kernel, udev, upstart, setuidWrapper
 , path ? []
 
 , # Whether the root device is root only.  If so, we'll mount a
@@ -17,6 +17,7 @@ let
   startPath = [
     coreutils
     findutils
+    gnugrep
     utillinux
     udev
     upstart
diff --git a/configuration/boot-environment.nix b/configuration/boot-environment.nix
index cc7dd45bc10..426b639aa33 100644
--- a/configuration/boot-environment.nix
+++ b/configuration/boot-environment.nix
@@ -195,7 +195,7 @@ rec {
   # everything else to bring up the system.
   bootStage2 = import ../boot/boot-stage-2.nix {
     inherit (pkgs) genericSubstituter buildEnv coreutils findutils
-      utillinux kernel udev upstart;
+      gnugrep utillinux kernel udev upstart;
     inherit setuidWrapper;
     inherit upstartJobs;
     shell = pkgs.bash + "/bin/sh";
@@ -207,7 +207,6 @@ rec {
       pkgs.cpio
       pkgs.curl
       pkgs.e2fsprogs
-      pkgs.gnugrep
       pkgs.gnused
       pkgs.gnutar
       pkgs.grub
@@ -243,7 +242,7 @@ rec {
     # The user configuration.
     config = {
       networking = {
-        hostname = "vindaloo";
+        hostname = "nixos";
       };
     };