{ lib, ... }: {

  name = "activation-etc-overlay-immutable";

  meta.maintainers = with lib.maintainers; [ nikstur ];

  nodes.machine = { pkgs, ... }: {
    system.etc.overlay.enable = true;
    system.etc.overlay.mutable = false;

    # Prerequisites
    systemd.sysusers.enable = true;
    users.mutableUsers = false;
    boot.initrd.systemd.enable = true;
    boot.kernelPackages = pkgs.linuxPackages_latest;
    time.timeZone = "Utc";

    environment.etc = {
      "mountpoint/.keep".text = "keep";
      "filemount".text = "keep";
    };

    specialisation.new-generation.configuration = {
      environment.etc."newgen".text = "newgen";
    };
  };

  testScript = ''
    with subtest("/etc is mounted as an overlay"):
      machine.succeed("findmnt --kernel --type overlay /etc")

    with subtest("direct symlinks point to the target without indirection"):
      assert machine.succeed("readlink -n /etc/localtime") == "/etc/zoneinfo/Utc"

    with subtest("Correct mode on the source password files"):
      assert machine.succeed("stat -c '%a' /var/lib/nixos/etc/passwd") == "644\n"
      assert machine.succeed("stat -c '%a' /var/lib/nixos/etc/group") == "644\n"
      assert machine.succeed("stat -c '%a' /var/lib/nixos/etc/shadow") == "0\n"
      assert machine.succeed("stat -c '%a' /var/lib/nixos/etc/gshadow") == "0\n"

    with subtest("Password files are symlinks to /var/lib/nixos/etc"):
      assert machine.succeed("readlink -f /etc/passwd") == "/var/lib/nixos/etc/passwd\n"
      assert machine.succeed("readlink -f /etc/group") == "/var/lib/nixos/etc/group\n"
      assert machine.succeed("readlink -f /etc/shadow") == "/var/lib/nixos/etc/shadow\n"
      assert machine.succeed("readlink -f /etc/gshadow") == "/var/lib/nixos/etc/gshadow\n"

    with subtest("switching to the same generation"):
      machine.succeed("/run/current-system/bin/switch-to-configuration test")

    with subtest("switching to a new generation"):
      machine.fail("stat /etc/newgen")

      machine.succeed("mount -t tmpfs tmpfs /etc/mountpoint")
      machine.succeed("touch /etc/mountpoint/extra-file")
      machine.succeed("mount --bind /dev/null /etc/filemount")

      machine.succeed("/run/current-system/specialisation/new-generation/bin/switch-to-configuration switch")

      assert machine.succeed("cat /etc/newgen") == "newgen"

      print(machine.succeed("findmnt /etc/mountpoint"))
      print(machine.succeed("ls /etc/mountpoint"))
      print(machine.succeed("stat /etc/mountpoint/extra-file"))
      print(machine.succeed("findmnt /etc/filemount"))
  '';
}
