diff --git a/init/README.md b/init/README.md
index cdf3487..e8df4ec 100644
--- a/init/README.md
+++ b/init/README.md
@@ -505,12 +505,23 @@
 > Used to mark the point right after /data is mounted. Used to implement the
   `class_reset_post_data` and `class_start_post_data` commands.
 
-`mkdir <path> [mode] [owner] [group]`
+`mkdir <path> [<mode>] [<owner>] [<group>] [encryption=<action>] [key=<key>]`
 > Create a directory at _path_, optionally with the given mode, owner, and
   group. If not provided, the directory is created with permissions 755 and
   owned by the root user and root group. If provided, the mode, owner and group
   will be updated if the directory exists already.
 
+ > _action_ can be one of:
+  * `None`: take no encryption action; directory will be encrypted if parent is.
+  * `Require`: encrypt directory, abort boot process if encryption fails
+  * `Attempt`: try to set an encryption policy, but continue if it fails
+  * `DeleteIfNecessary`: recursively delete directory if necessary to set
+  encryption policy.
+
+  > _key_ can be one of:
+  * `ref`: use the systemwide DE key
+  * `per_boot_ref`: use the key freshly generated on each boot.
+
 `mount_all <fstab> [ <path> ]\* [--<option>]`
 > Calls fs\_mgr\_mount\_all on the given fs\_mgr-format fstab with optional
   options "early" and "late".
diff --git a/init/builtins.cpp b/init/builtins.cpp
index b2c6461..67c05b2 100644
--- a/init/builtins.cpp
+++ b/init/builtins.cpp
@@ -364,67 +364,52 @@
     return {};
 }
 
-// mkdir <path> [mode] [owner] [group]
+// mkdir <path> [mode] [owner] [group] [<option> ...]
 static Result<void> do_mkdir(const BuiltinArguments& args) {
-    mode_t mode = 0755;
-    Result<uid_t> uid = -1;
-    Result<gid_t> gid = -1;
-
-    switch (args.size()) {
-        case 5:
-            gid = DecodeUid(args[4]);
-            if (!gid) {
-                return Error() << "Unable to decode GID for '" << args[4] << "': " << gid.error();
-            }
-            FALLTHROUGH_INTENDED;
-        case 4:
-            uid = DecodeUid(args[3]);
-            if (!uid) {
-                return Error() << "Unable to decode UID for '" << args[3] << "': " << uid.error();
-            }
-            FALLTHROUGH_INTENDED;
-        case 3:
-            mode = std::strtoul(args[2].c_str(), 0, 8);
-            FALLTHROUGH_INTENDED;
-        case 2:
-            break;
-        default:
-            return Error() << "Unexpected argument count: " << args.size();
+    auto options = ParseMkdir(args.args);
+    if (!options) return options.error();
+    std::string ref_basename;
+    if (options->ref_option == "ref") {
+        ref_basename = fscrypt_key_ref;
+    } else if (options->ref_option == "per_boot_ref") {
+        ref_basename = fscrypt_key_per_boot_ref;
+    } else {
+        return Error() << "Unknown key option: '" << options->ref_option << "'";
     }
-    std::string target = args[1];
+
     struct stat mstat;
-    if (lstat(target.c_str(), &mstat) != 0) {
+    if (lstat(options->target.c_str(), &mstat) != 0) {
         if (errno != ENOENT) {
-            return ErrnoError() << "lstat() failed on " << target;
+            return ErrnoError() << "lstat() failed on " << options->target;
         }
-        if (!make_dir(target, mode)) {
-            return ErrnoErrorIgnoreEnoent() << "mkdir() failed on " << target;
+        if (!make_dir(options->target, options->mode)) {
+            return ErrnoErrorIgnoreEnoent() << "mkdir() failed on " << options->target;
         }
-        if (lstat(target.c_str(), &mstat) != 0) {
-            return ErrnoError() << "lstat() failed on new " << target;
+        if (lstat(options->target.c_str(), &mstat) != 0) {
+            return ErrnoError() << "lstat() failed on new " << options->target;
         }
     }
     if (!S_ISDIR(mstat.st_mode)) {
-        return Error() << "Not a directory on " << target;
+        return Error() << "Not a directory on " << options->target;
     }
-    bool needs_chmod = (mstat.st_mode & ~S_IFMT) != mode;
-    if ((*uid != static_cast<uid_t>(-1) && *uid != mstat.st_uid) ||
-        (*gid != static_cast<gid_t>(-1) && *gid != mstat.st_gid)) {
-        if (lchown(target.c_str(), *uid, *gid) == -1) {
-            return ErrnoError() << "lchown failed on " << target;
+    bool needs_chmod = (mstat.st_mode & ~S_IFMT) != options->mode;
+    if ((options->uid != static_cast<uid_t>(-1) && options->uid != mstat.st_uid) ||
+        (options->gid != static_cast<gid_t>(-1) && options->gid != mstat.st_gid)) {
+        if (lchown(options->target.c_str(), options->uid, options->gid) == -1) {
+            return ErrnoError() << "lchown failed on " << options->target;
         }
         // chown may have cleared S_ISUID and S_ISGID, chmod again
         needs_chmod = true;
     }
     if (needs_chmod) {
-        if (fchmodat(AT_FDCWD, target.c_str(), mode, AT_SYMLINK_NOFOLLOW) == -1) {
-            return ErrnoError() << "fchmodat() failed on " << target;
+        if (fchmodat(AT_FDCWD, options->target.c_str(), options->mode, AT_SYMLINK_NOFOLLOW) == -1) {
+            return ErrnoError() << "fchmodat() failed on " << options->target;
         }
     }
     if (fscrypt_is_native()) {
-        if (fscrypt_set_directory_policy(target)) {
+        if (!FscryptSetDirectoryPolicy(ref_basename, options->fscrypt_action, options->target)) {
             return reboot_into_recovery(
-                    {"--prompt_and_wipe_data", "--reason=set_policy_failed:"s + target});
+                    {"--prompt_and_wipe_data", "--reason=set_policy_failed:"s + options->target});
         }
     }
     return {};
@@ -589,8 +574,8 @@
         return reboot_into_recovery(options);
         /* If reboot worked, there is no return. */
     } else if (code == FS_MGR_MNTALL_DEV_FILE_ENCRYPTED) {
-        if (fscrypt_install_keyring()) {
-            return Error() << "fscrypt_install_keyring() failed";
+        if (!FscryptInstallKeyring()) {
+            return Error() << "FscryptInstallKeyring() failed";
         }
         property_set("ro.crypto.state", "encrypted");
         property_set("ro.crypto.type", "file");
@@ -600,8 +585,8 @@
         ActionManager::GetInstance().QueueEventTrigger("nonencrypted");
         return {};
     } else if (code == FS_MGR_MNTALL_DEV_IS_METADATA_ENCRYPTED) {
-        if (fscrypt_install_keyring()) {
-            return Error() << "fscrypt_install_keyring() failed";
+        if (!FscryptInstallKeyring()) {
+            return Error() << "FscryptInstallKeyring() failed";
         }
         property_set("ro.crypto.state", "encrypted");
         property_set("ro.crypto.type", "file");
@@ -611,8 +596,8 @@
         ActionManager::GetInstance().QueueEventTrigger("nonencrypted");
         return {};
     } else if (code == FS_MGR_MNTALL_DEV_NEEDS_METADATA_ENCRYPTION) {
-        if (fscrypt_install_keyring()) {
-            return Error() << "fscrypt_install_keyring() failed";
+        if (!FscryptInstallKeyring()) {
+            return Error() << "FscryptInstallKeyring() failed";
         }
         property_set("ro.crypto.state", "encrypted");
         property_set("ro.crypto.type", "file");
@@ -1257,7 +1242,7 @@
         {"load_system_props",       {0,     0,    {false,  do_load_system_props}}},
         {"loglevel",                {1,     1,    {false,  do_loglevel}}},
         {"mark_post_data",          {0,     0,    {false,  do_mark_post_data}}},
-        {"mkdir",                   {1,     4,    {true,   do_mkdir}}},
+        {"mkdir",                   {1,     6,    {true,   do_mkdir}}},
         // TODO: Do mount operations in vendor_init.
         // mount_all is currently too complex to run in vendor_init as it queues action triggers,
         // imports rc scripts, etc.  It should be simplified and run in vendor_init context.
diff --git a/init/check_builtins.cpp b/init/check_builtins.cpp
index 2efaeea..9d23921 100644
--- a/init/check_builtins.cpp
+++ b/init/check_builtins.cpp
@@ -121,22 +121,10 @@
 }
 
 Result<void> check_mkdir(const BuiltinArguments& args) {
-    if (args.size() >= 4) {
-        if (!args[3].empty()) {
-            auto uid = DecodeUid(args[3]);
-            if (!uid) {
-                return Error() << "Unable to decode UID for '" << args[3] << "': " << uid.error();
-            }
-        }
-
-        if (args.size() == 5 && !args[4].empty()) {
-            auto gid = DecodeUid(args[4]);
-            if (!gid) {
-                return Error() << "Unable to decode GID for '" << args[4] << "': " << gid.error();
-            }
-        }
+    auto options = ParseMkdir(args.args);
+    if (!options) {
+        return options.error();
     }
-
     return {};
 }
 
diff --git a/init/fscrypt_init_extensions.cpp b/init/fscrypt_init_extensions.cpp
index 5fa07dd..7820f3d 100644
--- a/init/fscrypt_init_extensions.cpp
+++ b/init/fscrypt_init_extensions.cpp
@@ -41,19 +41,15 @@
 
 using namespace android::fscrypt;
 
-static int set_policy_on(const std::string& ref_basename, const std::string& dir);
-
-int fscrypt_install_keyring() {
+bool FscryptInstallKeyring() {
     key_serial_t device_keyring = add_key("keyring", "fscrypt", 0, 0, KEY_SPEC_SESSION_KEYRING);
 
     if (device_keyring == -1) {
         PLOG(ERROR) << "Failed to create keyring";
-        return -1;
+        return false;
     }
-
     LOG(INFO) << "Keyring created with id " << device_keyring << " in process " << getpid();
-
-    return 0;
+    return true;
 }
 
 // TODO(b/139378601): use a single central implementation of this.
@@ -97,102 +93,57 @@
     }
 }
 
-int fscrypt_set_directory_policy(const std::string& dir) {
-    const std::string prefix = "/data/";
-
-    if (!android::base::StartsWith(dir, prefix)) {
-        return 0;
-    }
-
-    // Special-case /data/media/obb per b/64566063
-    if (dir == "/data/media/obb") {
-        // Try to set policy on this directory, but if it is non-empty this may fail.
-        set_policy_on(fscrypt_key_ref, dir);
-        return 0;
-    }
-
-    // Only set policy on first level /data directories
-    // To make this less restrictive, consider using a policy file.
-    // However this is overkill for as long as the policy is simply
-    // to apply a global policy to all /data folders created via makedir
-    if (dir.find_first_of('/', prefix.size()) != std::string::npos) {
-        return 0;
-    }
-
-    // Special case various directories that must not be encrypted,
-    // often because their subdirectories must be encrypted.
-    // This isn't a nice way to do this, see b/26641735
-    std::vector<std::string> directories_to_exclude = {
-        "lost+found",
-        "system_ce", "system_de",
-        "misc_ce", "misc_de",
-        "vendor_ce", "vendor_de",
-        "media",
-        "data", "user", "user_de",
-        "apex", "preloads", "app-staging",
-        "gsi",
-    };
-    for (const auto& d : directories_to_exclude) {
-        if ((prefix + d) == dir) {
-            LOG(INFO) << "Not setting policy on " << dir;
-            return 0;
-        }
-    }
-    std::vector<std::string> per_boot_directories = {
-            "per_boot",
-    };
-    for (const auto& d : per_boot_directories) {
-        if ((prefix + d) == dir) {
-            LOG(INFO) << "Setting per_boot key on " << dir;
-            return set_policy_on(fscrypt_key_per_boot_ref, dir);
-        }
-    }
-    int err = set_policy_on(fscrypt_key_ref, dir);
-    if (err == 0) {
-        return 0;
-    }
-    // Empty these directories if policy setting fails.
-    std::vector<std::string> wipe_on_failure = {
-            "rollback", "rollback-observer",  // b/139193659
-    };
-    for (const auto& d : wipe_on_failure) {
-        if ((prefix + d) == dir) {
-            LOG(ERROR) << "Setting policy failed, deleting: " << dir;
-            delete_dir_contents(dir);
-            err = set_policy_on(fscrypt_key_ref, dir);
-            break;
-        }
-    }
-    return err;
-}
-
-// Set an encryption policy on the given directory.  The policy (key reference
+// Look up an encryption policy  The policy (key reference
 // and encryption options) to use is read from files that were written by vold.
-static int set_policy_on(const std::string& ref_basename, const std::string& dir) {
-    EncryptionPolicy policy;
+static bool LookupPolicy(const std::string& ref_basename, EncryptionPolicy* policy) {
     std::string ref_filename = std::string("/data") + ref_basename;
-    if (!android::base::ReadFileToString(ref_filename, &policy.key_raw_ref)) {
-        LOG(ERROR) << "Unable to read system policy to set on " << dir;
-        return -1;
+    if (!android::base::ReadFileToString(ref_filename, &policy->key_raw_ref)) {
+        LOG(ERROR) << "Unable to read system policy with name " << ref_filename;
+        return false;
     }
 
     auto options_filename = std::string("/data") + fscrypt_key_mode;
     std::string options_string;
     if (!android::base::ReadFileToString(options_filename, &options_string)) {
         LOG(ERROR) << "Cannot read encryption options string";
-        return -1;
+        return false;
     }
-    if (!ParseOptions(options_string, &policy.options)) {
+    if (!ParseOptions(options_string, &policy->options)) {
         LOG(ERROR) << "Invalid encryption options string: " << options_string;
-        return -1;
+        return false;
     }
+    return true;
+}
 
+static bool EnsurePolicyOrLog(const EncryptionPolicy& policy, const std::string& dir) {
     if (!EnsurePolicy(policy, dir)) {
         std::string ref_hex;
         BytesToHex(policy.key_raw_ref, &ref_hex);
         LOG(ERROR) << "Setting " << ref_hex << " policy on " << dir << " failed!";
-        return -1;
+        return false;
     }
+    return true;
+}
 
-    return 0;
+static bool SetPolicyOn(const std::string& ref_basename, const std::string& dir) {
+    EncryptionPolicy policy;
+    if (!LookupPolicy(ref_basename, &policy)) return false;
+    if (!EnsurePolicyOrLog(policy, dir)) return false;
+    return true;
+}
+
+bool FscryptSetDirectoryPolicy(const std::string& ref_basename, FscryptAction action,
+                               const std::string& dir) {
+    if (action == FscryptAction::kNone) {
+        return true;
+    }
+    if (SetPolicyOn(ref_basename, dir) || action == FscryptAction::kAttempt) {
+        return true;
+    }
+    if (action == FscryptAction::kDeleteIfNecessary) {
+        LOG(ERROR) << "Setting policy failed, deleting: " << dir;
+        delete_dir_contents(dir);
+        return SetPolicyOn(ref_basename, dir);
+    }
+    return false;
 }
diff --git a/init/fscrypt_init_extensions.h b/init/fscrypt_init_extensions.h
index 2163ef6..d357bb2 100644
--- a/init/fscrypt_init_extensions.h
+++ b/init/fscrypt_init_extensions.h
@@ -18,5 +18,13 @@
 
 #include <string>
 
-int fscrypt_install_keyring();
-int fscrypt_set_directory_policy(const std::string& dir);
+enum class FscryptAction {
+    kNone,
+    kAttempt,
+    kRequire,
+    kDeleteIfNecessary,
+};
+
+bool FscryptInstallKeyring();
+bool FscryptSetDirectoryPolicy(const std::string& ref_basename, FscryptAction action,
+                               const std::string& dir);
diff --git a/init/util.cpp b/init/util.cpp
index 40db838..ada9e78 100644
--- a/init/util.cpp
+++ b/init/util.cpp
@@ -434,6 +434,142 @@
     return {};
 }
 
+static FscryptAction FscryptInferAction(const std::string& dir) {
+    const std::string prefix = "/data/";
+
+    if (!android::base::StartsWith(dir, prefix)) {
+        return FscryptAction::kNone;
+    }
+
+    // Special-case /data/media/obb per b/64566063
+    if (dir == "/data/media/obb") {
+        // Try to set policy on this directory, but if it is non-empty this may fail.
+        return FscryptAction::kAttempt;
+    }
+
+    // Only set policy on first level /data directories
+    // To make this less restrictive, consider using a policy file.
+    // However this is overkill for as long as the policy is simply
+    // to apply a global policy to all /data folders created via makedir
+    if (dir.find_first_of('/', prefix.size()) != std::string::npos) {
+        return FscryptAction::kNone;
+    }
+
+    // Special case various directories that must not be encrypted,
+    // often because their subdirectories must be encrypted.
+    // This isn't a nice way to do this, see b/26641735
+    std::vector<std::string> directories_to_exclude = {
+            "lost+found", "system_ce", "system_de", "misc_ce",     "misc_de",
+            "vendor_ce",  "vendor_de", "media",     "data",        "user",
+            "user_de",    "apex",      "preloads",  "app-staging", "gsi",
+    };
+    for (const auto& d : directories_to_exclude) {
+        if ((prefix + d) == dir) {
+            return FscryptAction::kNone;
+        }
+    }
+    // Empty these directories if policy setting fails.
+    std::vector<std::string> wipe_on_failure = {
+            "rollback", "rollback-observer",  // b/139193659
+    };
+    for (const auto& d : wipe_on_failure) {
+        if ((prefix + d) == dir) {
+            return FscryptAction::kDeleteIfNecessary;
+        }
+    }
+    return FscryptAction::kRequire;
+}
+
+Result<MkdirOptions> ParseMkdir(const std::vector<std::string>& args) {
+    mode_t mode = 0755;
+    Result<uid_t> uid = -1;
+    Result<gid_t> gid = -1;
+    FscryptAction fscrypt_inferred_action = FscryptInferAction(args[1]);
+    FscryptAction fscrypt_action = fscrypt_inferred_action;
+    std::string ref_option = "ref";
+    bool set_option_encryption = false;
+    bool set_option_key = false;
+
+    for (size_t i = 2; i < args.size(); i++) {
+        switch (i) {
+            case 2:
+                mode = std::strtoul(args[2].c_str(), 0, 8);
+                break;
+            case 3:
+                uid = DecodeUid(args[3]);
+                if (!uid) {
+                    return Error()
+                           << "Unable to decode UID for '" << args[3] << "': " << uid.error();
+                }
+                break;
+            case 4:
+                gid = DecodeUid(args[4]);
+                if (!gid) {
+                    return Error()
+                           << "Unable to decode GID for '" << args[4] << "': " << gid.error();
+                }
+                break;
+            default:
+                auto parts = android::base::Split(args[i], "=");
+                if (parts.size() != 2) {
+                    return Error() << "Can't parse option: '" << args[i] << "'";
+                }
+                auto optname = parts[0];
+                auto optval = parts[1];
+                if (optname == "encryption") {
+                    if (set_option_encryption) {
+                        return Error() << "Duplicated option: '" << optname << "'";
+                    }
+                    if (optval == "Require") {
+                        fscrypt_action = FscryptAction::kRequire;
+                    } else if (optval == "None") {
+                        fscrypt_action = FscryptAction::kNone;
+                    } else if (optval == "Attempt") {
+                        fscrypt_action = FscryptAction::kAttempt;
+                    } else if (optval == "DeleteIfNecessary") {
+                        fscrypt_action = FscryptAction::kDeleteIfNecessary;
+                    } else {
+                        return Error() << "Unknown encryption option: '" << optval << "'";
+                    }
+                    set_option_encryption = true;
+                } else if (optname == "key") {
+                    if (set_option_key) {
+                        return Error() << "Duplicated option: '" << optname << "'";
+                    }
+                    if (optval == "ref" || optval == "per_boot_ref") {
+                        ref_option = optval;
+                    } else {
+                        return Error() << "Unknown key option: '" << optval << "'";
+                    }
+                    set_option_key = true;
+                } else {
+                    return Error() << "Unknown option: '" << args[i] << "'";
+                }
+        }
+    }
+    if (set_option_key && fscrypt_action == FscryptAction::kNone) {
+        return Error() << "Key option set but encryption action is none";
+    }
+    const std::string prefix = "/data/";
+    if (StartsWith(args[1], prefix) &&
+        args[1].find_first_of('/', prefix.size()) == std::string::npos) {
+        if (!set_option_encryption) {
+            LOG(WARNING) << "Top-level directory needs encryption action, eg mkdir " << args[1]
+                         << " <mode> <uid> <gid> encryption=Require";
+        }
+        if (fscrypt_action == FscryptAction::kNone) {
+            LOG(INFO) << "Not setting encryption policy on: " << args[1];
+        }
+    }
+    if (fscrypt_action != fscrypt_inferred_action) {
+        LOG(WARNING) << "Inferred action different from explicit one, expected "
+                     << static_cast<int>(fscrypt_inferred_action) << " but got "
+                     << static_cast<int>(fscrypt_action);
+    }
+
+    return MkdirOptions{args[1], mode, *uid, *gid, fscrypt_action, ref_option};
+}
+
 Result<std::pair<int, std::vector<std::string>>> ParseRestorecon(
         const std::vector<std::string>& args) {
     struct flag_type {
diff --git a/init/util.h b/init/util.h
index 4cccefe..3d81d72 100644
--- a/init/util.h
+++ b/init/util.h
@@ -25,6 +25,7 @@
 
 #include <android-base/chrono_utils.h>
 
+#include "fscrypt_init_extensions.h"
 #include "result.h"
 
 using android::base::boot_clock;
@@ -60,6 +61,17 @@
 bool IsLegalPropertyName(const std::string& name);
 Result<void> IsLegalPropertyValue(const std::string& name, const std::string& value);
 
+struct MkdirOptions {
+    std::string target;
+    mode_t mode;
+    uid_t uid;
+    gid_t gid;
+    FscryptAction fscrypt_action;
+    std::string ref_option;
+};
+
+Result<MkdirOptions> ParseMkdir(const std::vector<std::string>& args);
+
 Result<std::pair<int, std::vector<std::string>>> ParseRestorecon(
         const std::vector<std::string>& args);
 
diff --git a/rootdir/init.rc b/rootdir/init.rc
index 9b77ce2..8a57723 100644
--- a/rootdir/init.rc
+++ b/rootdir/init.rc
@@ -486,26 +486,26 @@
 
     # Start bootcharting as soon as possible after the data partition is
     # mounted to collect more data.
-    mkdir /data/bootchart 0755 shell shell
+    mkdir /data/bootchart 0755 shell shell encryption=Require
     bootchart start
 
     # Make sure that apexd is started in the default namespace
     enter_default_mount_ns
 
     # /data/apex is now available. Start apexd to scan and activate APEXes.
-    mkdir /data/apex 0750 root system
+    mkdir /data/apex 0750 root system encryption=None
     mkdir /data/apex/active 0750 root system
     mkdir /data/apex/backup 0700 root system
     mkdir /data/apex/hashtree 0700 root system
     mkdir /data/apex/sessions 0700 root system
-    mkdir /data/app-staging 0750 system system
+    mkdir /data/app-staging 0750 system system encryption=None
     start apexd
 
     # Avoid predictable entropy pool. Carry over entropy from previous boot.
     copy /data/system/entropy.dat /dev/urandom
 
     # create basic filesystem structure
-    mkdir /data/misc 01771 system misc
+    mkdir /data/misc 01771 system misc encryption=Require
     mkdir /data/misc/recovery 0770 system log
     copy /data/misc/recovery/ro.build.fingerprint /data/misc/recovery/ro.build.fingerprint.1
     chmod 0440 /data/misc/recovery/ro.build.fingerprint.1
@@ -548,7 +548,7 @@
     mkdir /data/misc/user 0771 root root
     # give system access to wpa_supplicant.conf for backup and restore
     chmod 0660 /data/misc/wifi/wpa_supplicant.conf
-    mkdir /data/local 0751 root root
+    mkdir /data/local 0751 root root encryption=Require
     mkdir /data/misc/media 0700 media media
     mkdir /data/misc/audioserver 0700 audioserver audioserver
     mkdir /data/misc/cameraserver 0700 cameraserver cameraserver
@@ -567,89 +567,91 @@
     mkdir /data/misc/gcov 0770 root root
     mkdir /data/misc/installd 0700 root root
 
-    mkdir /data/preloads 0775 system system
+    mkdir /data/preloads 0775 system system encryption=None
 
-    mkdir /data/vendor 0771 root root
-    mkdir /data/vendor_ce 0771 root root
-    mkdir /data/vendor_de 0771 root root
+    mkdir /data/vendor 0771 root root encryption=Require
+    mkdir /data/vendor_ce 0771 root root encryption=None
+    mkdir /data/vendor_de 0771 root root encryption=None
     mkdir /data/vendor/hardware 0771 root root
 
     # For security reasons, /data/local/tmp should always be empty.
     # Do not place files or directories in /data/local/tmp
     mkdir /data/local/tmp 0771 shell shell
     mkdir /data/local/traces 0777 shell shell
-    mkdir /data/data 0771 system system
-    mkdir /data/app-private 0771 system system
-    mkdir /data/app-ephemeral 0771 system system
-    mkdir /data/app-asec 0700 root root
-    mkdir /data/app-lib 0771 system system
-    mkdir /data/app 0771 system system
-    mkdir /data/property 0700 root root
-    mkdir /data/tombstones 0771 system system
+    mkdir /data/data 0771 system system encryption=None
+    mkdir /data/app-private 0771 system system encryption=Require
+    mkdir /data/app-ephemeral 0771 system system encryption=Require
+    mkdir /data/app-asec 0700 root root encryption=Require
+    mkdir /data/app-lib 0771 system system encryption=Require
+    mkdir /data/app 0771 system system encryption=Require
+    mkdir /data/property 0700 root root encryption=Require
+    mkdir /data/tombstones 0771 system system encryption=Require
     mkdir /data/vendor/tombstones 0771 root root
     mkdir /data/vendor/tombstones/wifi 0771 wifi wifi
 
     # create dalvik-cache, so as to enforce our permissions
-    mkdir /data/dalvik-cache 0771 root root
+    mkdir /data/dalvik-cache 0771 root root encryption=Require
     # create the A/B OTA directory, so as to enforce our permissions
-    mkdir /data/ota 0771 root root
+    mkdir /data/ota 0771 root root encryption=Require
 
     # create the OTA package directory. It will be accessed by GmsCore (cache
     # group), update_engine and update_verifier.
-    mkdir /data/ota_package 0770 system cache
+    mkdir /data/ota_package 0770 system cache encryption=Require
 
     # create resource-cache and double-check the perms
-    mkdir /data/resource-cache 0771 system system
+    mkdir /data/resource-cache 0771 system system encryption=Require
     chown system system /data/resource-cache
     chmod 0771 /data/resource-cache
 
     # create the lost+found directories, so as to enforce our permissions
-    mkdir /data/lost+found 0770 root root
+    mkdir /data/lost+found 0770 root root encryption=None
 
     # create directory for DRM plug-ins - give drm the read/write access to
     # the following directory.
-    mkdir /data/drm 0770 drm drm
+    mkdir /data/drm 0770 drm drm encryption=Require
 
     # create directory for MediaDrm plug-ins - give drm the read/write access to
     # the following directory.
-    mkdir /data/mediadrm 0770 mediadrm mediadrm
+    mkdir /data/mediadrm 0770 mediadrm mediadrm encryption=Require
 
-    mkdir /data/anr 0775 system system
+    mkdir /data/anr 0775 system system encryption=Require
 
     # NFC: create data/nfc for nv storage
-    mkdir /data/nfc 0770 nfc nfc
+    mkdir /data/nfc 0770 nfc nfc encryption=Require
     mkdir /data/nfc/param 0770 nfc nfc
 
     # Create all remaining /data root dirs so that they are made through init
     # and get proper encryption policy installed
-    mkdir /data/backup 0700 system system
-    mkdir /data/ss 0700 system system
+    mkdir /data/backup 0700 system system encryption=Require
+    mkdir /data/ss 0700 system system encryption=Require
 
-    mkdir /data/system 0775 system system
+    mkdir /data/system 0775 system system encryption=Require
     mkdir /data/system/dropbox 0700 system system
     mkdir /data/system/heapdump 0700 system system
     mkdir /data/system/users 0775 system system
 
-    mkdir /data/system_de 0770 system system
-    mkdir /data/system_ce 0770 system system
+    mkdir /data/system_de 0770 system system encryption=None
+    mkdir /data/system_ce 0770 system system encryption=None
 
-    mkdir /data/misc_de 01771 system misc
-    mkdir /data/misc_ce 01771 system misc
+    mkdir /data/misc_de 01771 system misc encryption=None
+    mkdir /data/misc_ce 01771 system misc encryption=None
 
-    mkdir /data/user 0711 system system
-    mkdir /data/user_de 0711 system system
+    mkdir /data/user 0711 system system encryption=None
+    mkdir /data/user_de 0711 system system encryption=None
     symlink /data/data /data/user/0
 
-    mkdir /data/media 0770 media_rw media_rw
-    mkdir /data/media/obb 0770 media_rw media_rw
+    # Special-case /data/media/obb per b/64566063
+    mkdir /data/media 0770 media_rw media_rw encryption=None
+    mkdir /data/media/obb 0770 media_rw media_rw encryption=Attempt
 
-    mkdir /data/cache 0770 system cache
+    mkdir /data/cache 0770 system cache encryption=Require
     mkdir /data/cache/recovery 0770 system cache
     mkdir /data/cache/backup_stage 0700 system system
     mkdir /data/cache/backup 0700 system system
 
-    mkdir /data/rollback 0700 system system
-    mkdir /data/rollback-observer 0700 system system
+    # Delete these if need be, per b/139193659
+    mkdir /data/rollback 0700 system system encryption=DeleteIfNecessary
+    mkdir /data/rollback-observer 0700 system system encryption=DeleteIfNecessary
 
     # Wait for apexd to finish activating APEXes before starting more processes.
     wait_for_prop apexd.status ready
@@ -867,7 +869,7 @@
     bootchart stop
     # Setup per_boot directory so other .rc could start to use it on boot_completed
     exec - system system -- /bin/rm -rf /data/per_boot
-    mkdir /data/per_boot 0700 system system
+    mkdir /data/per_boot 0700 system system encryption=Require key=per_boot_ref
 
 # system server cannot write to /proc/sys files,
 # and chown/chmod does not work for /proc/sys/ entries.
diff --git a/rootdir/init.usb.rc b/rootdir/init.usb.rc
index b6cba90..3fbc142 100644
--- a/rootdir/init.usb.rc
+++ b/rootdir/init.usb.rc
@@ -9,7 +9,7 @@
     chown system system /sys/class/android_usb/android0/f_rndis/ethaddr
     chmod 0660 /sys/class/android_usb/android0/f_rndis/ethaddr
     mkdir /data/misc/adb 02750 system shell
-    mkdir /data/adb 0700 root root
+    mkdir /data/adb 0700 root root encryption=Require
 
 # adbd is controlled via property triggers in init.<platform>.usb.rc
 service adbd /system/bin/adbd --root_seclabel=u:r:su:s0