diff --git a/Makefile.inc1 b/Makefile.inc1
--- a/Makefile.inc1
+++ b/Makefile.inc1
@@ -964,12 +964,16 @@
 # that are created by mtree to be owned by root/wheel.
 DESTDIR_MTREEFLAGS+=	-W
 .endif
-DISTR_MTREE=	${MTREE_CMD}
+.if defined(DB_FROM_SRC)
+DISTR_MTREEFLAGS=	-N ${.CURDIR}/etc
+.endif
+DISTR_MTREECMD=	${MTREE_CMD}
 .if ${BUILD_WITH_STRICT_TMPPATH} != 0
-DISTR_MTREE=	${WORLDTMP}/legacy/usr/sbin/mtree
+DISTR_MTREECMD=	${WORLDTMP}/legacy/usr/sbin/mtree
 .endif
-WORLDTMP_MTREE=	${DISTR_MTREE} ${WORLDTMP_MTREEFLAGS}
-DESTDIR_MTREE=	${DISTR_MTREE} ${DESTDIR_MTREEFLAGS}
+DISTR_MTREE=	${DISTR_MTREECMD} ${DISTR_MTREEFLAGS}
+WORLDTMP_MTREE=	${DISTR_MTREECMD} ${WORLDTMP_MTREEFLAGS}
+DESTDIR_MTREE=	${DISTR_MTREECMD} ${DESTDIR_MTREEFLAGS}
 
 # kernel stage
 KMAKEENV=	${WMAKEENV:NSYSROOT=*}