diff --git a/etc/default.nix b/etc/default.nix
index 88d4d39e21e..6ecfedf7897 100644
--- a/etc/default.nix
+++ b/etc/default.nix
@@ -132,16 +132,22 @@ import ../helpers/make-etc.nix {
           # other paths in the store, we need the closure of /bin/sh
           # in `build-chroot-dirs' - otherwise any builder that uses
           # /bin/sh won't work.
-          refs = pkgs.writeReferencesToFile binsh;
+          binshDeps = pkgs.writeReferencesToFile binsh;
+
+          # Likewise, if chroots are turned on, we need Nix's own
+          # closure in the chroot.  Otherwise nix-channel and nix-env
+          # won't work because the dependencies of its builders (like
+          # coreutils and Perl) aren't visible.  Sigh.
+          nixDeps = pkgs.writeReferencesToFile config.environment.nix;
         in 
           pkgs.runCommand "nix.conf" {} ''
-            binshDeps=$(for i in $(cat ${refs}); do if test -d $i; then echo $i; fi; done)
+            extraPaths=$(for i in $(cat ${binshDeps} ${nixDeps}); do if test -d $i; then echo $i; fi; done)
             cat > $out <<END
             # WARNING: this file is generated.
             build-users-group = nixbld
             build-max-jobs = ${toString (config.nix.maxJobs)}
             build-use-chroot = ${if config.nix.useChroot then "true" else "false"}
-            build-chroot-dirs = /dev /dev/pts /proc /bin $(echo $binshDeps)
+            build-chroot-dirs = /dev /dev/pts /proc /bin $(echo $extraPaths)
             ${config.nix.extraOptions}
             END
           '';