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diff -uNrp anaconda-21.48.22.121.orig/pyanaconda/packaging/rpmostreepayload.py anaconda-21.48.22.121/pyanaconda/packaging/rpmostreepayload.py
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--- anaconda-21.48.22.121.orig/pyanaconda/packaging/rpmostreepayload.py	2017-06-21 12:44:34.000000000 +0000
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+++ anaconda-21.48.22.121/pyanaconda/packaging/rpmostreepayload.py	2017-08-23 02:28:23.121006339 +0000
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@@ -142,24 +142,25 @@ class RPMOSTreePayload(ArchivePayload):
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             ["admin", "--sysroot=" + iutil.getTargetPhysicalRoot(),
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              "init-fs", iutil.getTargetPhysicalRoot()])
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-        repo_arg = "--repo=" + iutil.getTargetPhysicalRoot() + '/ostree/repo'
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+        self._sysroot_path = Gio.File.new_for_path(iutil.getTargetPhysicalRoot())
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+        sysroot = OSTree.Sysroot.new(self._sysroot_path)
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+        sysroot.load(cancellable)
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+        repo = sysroot.get_repo(None)[1]
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+        # We don't support resuming from interrupted installs
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+        repo.set_disable_fsync(True)
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+
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+        self._remoteOptions = {}
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-        # Store this for use in postInstall too, where we need to
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-        # undo/redo this step.
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-        self._base_remote_args = ["remote", "add"]
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+        # Handle variations in pykickstart
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         if ((hasattr(ostreesetup, 'noGpg') and ostreesetup.noGpg) or
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             (hasattr(ostreesetup, 'nogpg') and ostreesetup.nogpg)):
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-            self._base_remote_args.append("--set=gpg-verify=false")
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-        self._base_remote_args.extend([ostreesetup.remote,
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-                                     ostreesetup.url])
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-        self._safeExecWithRedirect("ostree", [repo_arg] + self._base_remote_args)
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+            self._remoteOptions['gpg-verify'] = GLib.Variant('b', False)
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-        self._sysroot_path = sysroot_path = Gio.File.new_for_path(iutil.getTargetPhysicalRoot())
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-        sysroot = OSTree.Sysroot.new(sysroot_path)
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-        sysroot.load(cancellable)
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+        repo.remote_change(None, OSTree.RepoRemoteChange.ADD_IF_NOT_EXISTS,
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+                           ostreesetup.remote, ostreesetup.url,
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+                           GLib.Variant('a{sv}', self._remoteOptions),
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+                           cancellable)
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-        repo = sysroot.get_repo(None)[1]
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-        repo.set_disable_fsync(True)
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         progressQ.send_message(_("Starting pull of %(branchName)s from %(source)s") % \
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                                {"branchName": ostreesetup.ref, "source": ostreesetup.remote})
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@@ -192,6 +193,14 @@ class RPMOSTreePayload(ArchivePayload):
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         log.info("ostree pull: " + (progress.get_status() or ""))
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         progressQ.send_message(_("Preparing deployment of %s") % (ostreesetup.ref, ))
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+        # Now that we have the data pulled, delete the remote for now.
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+        # This will allow a remote configuration defined in the tree
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+        # (if any) to override what's in the kickstart.  Otherwise,
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+        # we'll re-add it in post.  Ideally, ostree would support a
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+        # pull without adding a remote, but that would get quite
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+        # complex.
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+        repo.remote_delete(self.data.ostreesetup.remote, None)
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+
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         self._safeExecWithRedirect("ostree",
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             ["admin", "--sysroot=" + iutil.getTargetPhysicalRoot(),
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              "os-init", ostreesetup.osname])
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@@ -348,20 +357,30 @@ class RPMOSTreePayload(ArchivePayload):
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         from gi.repository import OSTree
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         cancellable = None
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-        # Reload this data - we couldn't keep it open across
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-        # the remounts happening.
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         sysroot = OSTree.Sysroot.new(self._sysroot_path)
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         sysroot.load(cancellable)
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         repo = sysroot.get_repo(None)[1]
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-        # This is an ugly hack - we didn't have /etc/ostree/remotes.d,
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-        # so the remote went into /ostree/repo/config.  But we want it
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-        # in /etc, so delete that remote, then re-add it to
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-        # /etc/ostree/remotes.d, executing ostree inside the sysroot
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-        # so that it understands it's a "system repository" and should
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-        # modify /etc.
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-        repo.remote_delete(self.data.ostreesetup.remote, None)
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-        self._safeExecWithRedirect("ostree", self._base_remote_args, root=iutil.getSysroot())
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+        # CentOS specific patch (for now) - pull the remote config from usr/etc if it exists.
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+        # The OSTree handling here was buggy in that it wasn't looking in the sysroot
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+        # for existing remotes.
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+        default_remote_path = iutil.getSysroot() + '/usr/etc/ostree/remotes.d/' + self.data.ostreesetup.osname + '.conf'
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+        if os.path.isfile(default_remote_path):
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+            destpath = iutil.getSysroot() + '/etc/ostree/remotes.d/' + os.path.basename(default_remote_path)
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+            self._safeExecWithRedirect('cp', ['-r', '-p', default_remote_path, destpath])
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+        else:
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+            # Following up on the "remote delete" above, we removed the
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+            # remote from /ostree/repo/config.  But we want it in /etc, so
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+            # re-add it to /etc/ostree/remotes.d, using the sysroot path.
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+            #
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+            # However, we ignore the case where the remote already exists,
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+            # which occurs when the content itself provides the remote
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+            # config file.
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+            repo.remote_change(Gio.File.new_for_path(iutil.getSysroot()),
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+                               OSTree.RepoRemoteChange.ADD_IF_NOT_EXISTS,
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+                               self.data.ostreesetup.remote, self.data.ostreesetup.url,
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+                               GLib.Variant('a{sv}', self._remoteOptions),
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+                               cancellable)
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         boot = iutil.getSysroot() + '/boot'
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