diff --git a/elements/source-repositories/README.md b/elements/source-repositories/README.md
index 309746e60..f72168f03 100644
--- a/elements/source-repositories/README.md
+++ b/elements/source-repositories/README.md
@@ -45,6 +45,31 @@ it will be renamed to \<destination\>
 The package type indicates the element should install from packages onto the
 root filesystem of the image build during the install.d phase.
 
+Git and Tarballs are treated as source installs.  If the element provides an
+<element-name>-source-install directory under it's install.d hook directory,
+symlinks to the scripts in that directory will be created under install.d for
+the image build.  Alternatively for the package install type, if the element
+provides an <element-name>-package-install directory, symlinks will be created
+for those scripts instead.
+
+For example, the nova element would provide:
+
+    nova/install.d/nova-package-install/74-nova
+    nova/install.d/nova-source-install/74-nova
+
+source-repositories will create the following symlink for the package install
+type:
+
+    install.d/74-nova -> nova-package-install/74-nova
+
+Or, for the source install type:
+
+    install.d/74-nova -> nova-source-install/74-nova
+
+All other scripts that exist under install.d for an element will be executed as
+normal. This allows common install code to live in a script outside of
+<element-name>-package-install or <element-name>-source-install.
+
 If multiple elements register a source location with the same <destination>
 then source-repositories will exit with an error. Care should therefore be taken
 to only use elements together that download source to different locations.
diff --git a/elements/source-repositories/extra-data.d/98-source-repositories b/elements/source-repositories/extra-data.d/98-source-repositories
index 644a52e1f..3b14ef57c 100755
--- a/elements/source-repositories/extra-data.d/98-source-repositories
+++ b/elements/source-repositories/extra-data.d/98-source-repositories
@@ -108,12 +108,25 @@ function get_repos_for_element(){
                 return 1
                 ;;
             esac
+
             # Capture the in-instance repository path for later review / other
             # elements (like a pypi dependency cache).
             echo "$REPOPATH" | sudo dd of=$TMP_MOUNT_PATH/etc/dib-source-repositories oflag=append conv=notrunc
+
             # Save the $REPOTYPE used so that it can be used later by install.d
-            mkdir -p $TMP_HOOKS_PATH/environment.d
-            echo "export DIB_REPOTYPE_${REPONAME//-/_}=$REPOTYPE" >> $TMP_HOOKS_PATH/environment.d/01-source-repositories-environment
+            if [ "$REPOTYPE" = "package" ]; then
+                REPOINSTALLTYPE="package"
+            else
+                REPOINSTALLTYPE="source"
+            fi
+
+            # Create symlink for correct install type
+            pushd $TMP_HOOKS_PATH/install.d
+            if [ -e $REPONAME-$REPOINSTALLTYPE-install ]; then
+                ln -sf $REPONAME-$REPOINSTALLTYPE-install/* .
+            fi
+            popd
+
         else
             echo "Couldn't parse '$line' as a source repository"
             return 1