diff --git a/debian/changelog b/debian/changelog
index 4a0609e2..d958834d 100644
--- a/debian/changelog
+++ b/debian/changelog
@@ -1,3 +1,9 @@
+livecd-rootfs (2.505) bionic; urgency=medium
+
+  * Move casper from filesystem.squashfs to installer.squashfs. 
+
+ -- Michael Hudson-Doyle <michael.hudson@ubuntu.com>  Fri, 23 Feb 2018 16:54:51 +1300
+
 livecd-rootfs (2.504) bionic; urgency=medium
 
   * Override JobRunningTimeoutSec to 0s on the .device unit that
diff --git a/live-build/auto/config b/live-build/auto/config
index 8ce877b5..a94fd990 100755
--- a/live-build/auto/config
+++ b/live-build/auto/config
@@ -116,6 +116,12 @@ if [ -z "${IMAGEFORMAT:-}" ]; then
 	esac
 fi
 
+skip_lb_stage() {
+	STAGE="$1"
+	mkdir -p .build
+	touch ".build/$STAGE"
+}
+
 case $IMAGEFORMAT in
 	ext2|ext3|ext4)
 		OPTS="${OPTS:+$OPTS }--initramfs none --chroot-filesystem $IMAGEFORMAT"
@@ -141,7 +147,9 @@ case $IMAGEFORMAT in
 		INITRAMFS_TYPE=none
 		case $PROJECT:${SUBPROJECT:-} in
 			ubuntu-server:live)
-				add_package live lupin-casper
+				# Stop lb installing casper into filesystem.squashfs
+				#  by skipping lb_chroot_live-packages.
+				skip_lb_stage chroot_live-packages
 				INITRAMFS_TYPE=auto
 				;;
 			*)
diff --git a/live-build/functions b/live-build/functions
index 04397fdb..239169ad 100644
--- a/live-build/functions
+++ b/live-build/functions
@@ -329,3 +329,34 @@ undivert_grub() {
 	chroot "$CHROOT_ROOT" dpkg-divert --remove --local \
 		--rename /usr/bin/systemd-detect-virt
 }
+
+recreate_initramfs() {
+	# Regenerate the initramfs by running update-initramfs in the
+	# chroot at $1 and copying the generated initramfs
+	# around. Beware that this was written for a single use case
+	# (live-server) and may not work in all cases without
+	# tweaking...
+	# config/common must be sourced before calling this function.
+	CHROOT="$1"
+	# Start by cargo culting bits of lb_chroot_hacks:
+	if [ -n "$LB_INITRAMFS_COMPRESSION" ]; then
+		echo "COMPRESS=$LB_INITRAMFS_COMPRESSION" > "$CHROOT"/etc/initramfs-tools/conf.d/livecd-rootfs.conf
+	fi
+	chroot "$CHROOT" sh -c "${UPDATE_INITRAMFS_OPTIONS:-} update-initramfs -k all -t -u"
+	rm -rf "$CHROOT"/etc/initramfs-tools/conf.d/livecd-rootfs.conf
+	# Then bits of lb_binary_linux-image:
+	case "${LB_INITRAMFS}" in
+		casper)
+			DESTDIR="binary/casper"
+			;;
+
+		live-boot)
+			DESTDIR="binary/live"
+			;;
+
+		*)
+			DESTDIR="binary/boot"
+			;;
+	esac
+	mv "$CHROOT"/boot/initrd.img-* $DESTDIR
+}
diff --git a/live-build/ubuntu-server/hooks/032-installer-squashfs.binary b/live-build/ubuntu-server/hooks/032-installer-squashfs.binary
index fe970005..a0b77a20 100755
--- a/live-build/ubuntu-server/hooks/032-installer-squashfs.binary
+++ b/live-build/ubuntu-server/hooks/032-installer-squashfs.binary
@@ -22,6 +22,7 @@ if [ -n "$SUBARCH" ]; then
 fi
 
 . config/functions
+. config/common
 
 SQUASH_ROOT=binary/boot/squashfs.dir
 OVERLAY_ROOT=binary/overlay
@@ -50,8 +51,10 @@ EOF
 # Install any requirements for the installer, for things we don't want
 # to see on the installed system
 chroot $SQUASH_ROOT apt-get update
-chroot $SQUASH_ROOT apt-get -y install user-setup
-chroot $SQUASH_ROOT apt-get -y install curtin
+chroot $SQUASH_ROOT apt-get -y install user-setup curtin lupin-casper
+
+# Installing casper means we need a new initramfs
+UPDATE_INITRAMFS_OPTIONS=CASPER_GENERATE_UUID=1 recreate_initramfs $SQUASH_ROOT
 
 # Don't let cloud-init run in the live session.
 touch $SQUASH_ROOT/etc/cloud/cloud-init.disabled