diff --git a/src/driver-state.h b/src/driver-state.h
index 69e2678dfc..1e2f6ed247 100644
--- a/src/driver-state.h
+++ b/src/driver-state.h
@@ -32,6 +32,7 @@ typedef enum {
 
 typedef virDrvStateInitResult
 (*virDrvStateInitialize)(bool privileged,
+                         const char *root,
                          virStateInhibitCallback callback,
                          void *opaque);
 
diff --git a/src/interface/interface_backend_netcf.c b/src/interface/interface_backend_netcf.c
index 65cb7eae62..06eb1ace08 100644
--- a/src/interface/interface_backend_netcf.c
+++ b/src/interface/interface_backend_netcf.c
@@ -89,9 +89,16 @@ virNetcfDriverStateDispose(void *obj)
 
 static int
 netcfStateInitialize(bool privileged,
+                     const char *root,
                      virStateInhibitCallback callback G_GNUC_UNUSED,
                      void *opaque G_GNUC_UNUSED)
 {
+    if (root != NULL) {
+        virReportError(VIR_ERR_INVALID_ARG, "%s",
+                       _("Driver does not support embedded mode"));
+        return -1;
+    }
+
     if (virNetcfDriverStateInitialize() < 0)
         return VIR_DRV_STATE_INIT_ERROR;
 
diff --git a/src/interface/interface_backend_udev.c b/src/interface/interface_backend_udev.c
index 7cc098eb33..e87b884c17 100644
--- a/src/interface/interface_backend_udev.c
+++ b/src/interface/interface_backend_udev.c
@@ -1145,11 +1145,18 @@ udevStateCleanup(void);
 
 static int
 udevStateInitialize(bool privileged,
+                    const char *root,
                     virStateInhibitCallback callback G_GNUC_UNUSED,
                     void *opaque G_GNUC_UNUSED)
 {
     int ret = VIR_DRV_STATE_INIT_ERROR;
 
+    if (root != NULL) {
+        virReportError(VIR_ERR_INVALID_ARG, "%s",
+                       _("Driver does not support embedded mode"));
+        return -1;
+    }
+
     if (VIR_ALLOC(driver) < 0)
         goto cleanup;
 
diff --git a/src/libvirt.c b/src/libvirt.c
index 86bb6551ed..f61a24db28 100644
--- a/src/libvirt.c
+++ b/src/libvirt.c
@@ -605,16 +605,36 @@ virRegisterStateDriver(virStateDriverPtr driver)
  * virStateInitialize:
  * @privileged: set to true if running with root privilege, false otherwise
  * @mandatory: set to true if all drivers must report success, not skipped
+ * @root: directory to use for embedded mode
  * @callback: callback to invoke to inhibit shutdown of the daemon
  * @opaque: data to pass to @callback
  *
  * Initialize all virtualization drivers.
  *
+ * Passing a non-NULL @root instructs the driver to run in embedded mode.
+ * Instead of using the compile time $prefix as the basis for directory
+ * paths, @root should be used instead. In addition any '/libvirt'
+ * component of the paths should be stripped.
+ *
+ * eg consider a build with prefix=/usr/local. A driver might use the
+ * locations
+ *
+ *    /usr/local/etc/libvirt/$DRIVER/
+ *    /usr/local/var/lib/libvirt/$DRIVER/
+ *    /usr/local/run/libvirt/$DRIVER/
+ *
+ * When run with @root, the locations should instead be
+ *
+ *    @root/etc/$DRIVER/
+ *    @root/var/lib/$DRIVER/
+ *    @root/run/$DRIVER/
+ *
  * Returns 0 if all succeed, -1 upon any failure.
  */
 int
 virStateInitialize(bool privileged,
                    bool mandatory,
+                   const char *root,
                    virStateInhibitCallback callback,
                    void *opaque)
 {
@@ -629,6 +649,7 @@ virStateInitialize(bool privileged,
             VIR_DEBUG("Running global init for %s state driver",
                       virStateDriverTab[i]->name);
             ret = virStateDriverTab[i]->stateInitialize(privileged,
+                                                        root,
                                                         callback,
                                                         opaque);
             VIR_DEBUG("State init result %d (mandatory=%d)", ret, mandatory);
diff --git a/src/libvirt_internal.h b/src/libvirt_internal.h
index 4a74dbc2af..00ef7aaf25 100644
--- a/src/libvirt_internal.h
+++ b/src/libvirt_internal.h
@@ -31,8 +31,10 @@ typedef void (*virStateInhibitCallback)(bool inhibit,
 
 int virStateInitialize(bool privileged,
                        bool mandatory,
+                       const char *root,
                        virStateInhibitCallback inhibit,
-                       void *opaque);
+                       void *opaque)
+    ATTRIBUTE_NONNULL(2);
 int virStateCleanup(void);
 int virStateReload(void);
 int virStateStop(void);
diff --git a/src/libxl/libxl_driver.c b/src/libxl/libxl_driver.c
index eb166244ba..e0a8ec5c24 100644
--- a/src/libxl/libxl_driver.c
+++ b/src/libxl/libxl_driver.c
@@ -648,6 +648,7 @@ libxlAddDom0(libxlDriverPrivatePtr driver)
 
 static int
 libxlStateInitialize(bool privileged,
+                     const char *root,
                      virStateInhibitCallback callback,
                      void *opaque)
 {
@@ -656,6 +657,12 @@ libxlStateInitialize(bool privileged,
     char ebuf[1024];
     bool autostart = true;
 
+    if (root != NULL) {
+        virReportError(VIR_ERR_INVALID_ARG, "%s",
+                       _("Driver does not support embedded mode"));
+        return -1;
+    }
+
     if (!libxlDriverShouldLoad(privileged))
         return VIR_DRV_STATE_INIT_SKIPPED;
 
diff --git a/src/lxc/lxc_driver.c b/src/lxc/lxc_driver.c
index 10df6e632b..e73583daed 100644
--- a/src/lxc/lxc_driver.c
+++ b/src/lxc/lxc_driver.c
@@ -85,6 +85,7 @@ VIR_LOG_INIT("lxc.lxc_driver");
 
 
 static int lxcStateInitialize(bool privileged,
+                              const char *root,
                               virStateInhibitCallback callback,
                               void *opaque);
 static int lxcStateCleanup(void);
@@ -1526,12 +1527,19 @@ lxcSecurityInit(virLXCDriverConfigPtr cfg)
 
 
 static int lxcStateInitialize(bool privileged,
+                              const char *root,
                               virStateInhibitCallback callback G_GNUC_UNUSED,
                               void *opaque G_GNUC_UNUSED)
 {
     virLXCDriverConfigPtr cfg = NULL;
     bool autostart = true;
 
+    if (root != NULL) {
+        virReportError(VIR_ERR_INVALID_ARG, "%s",
+                       _("Driver does not support embedded mode"));
+        return -1;
+    }
+
     /* Check that the user is root, silently disable if not */
     if (!privileged) {
         VIR_INFO("Not running privileged, disabling driver");
diff --git a/src/network/bridge_driver.c b/src/network/bridge_driver.c
index c9c45df758..b66135f2d9 100644
--- a/src/network/bridge_driver.c
+++ b/src/network/bridge_driver.c
@@ -702,6 +702,7 @@ firewalld_dbus_filter_bridge(DBusConnection *connection G_GNUC_UNUSED,
  */
 static int
 networkStateInitialize(bool privileged,
+                       const char *root,
                        virStateInhibitCallback callback G_GNUC_UNUSED,
                        void *opaque G_GNUC_UNUSED)
 {
@@ -713,6 +714,12 @@ networkStateInitialize(bool privileged,
     DBusConnection *sysbus = NULL;
 #endif
 
+    if (root != NULL) {
+        virReportError(VIR_ERR_INVALID_ARG, "%s",
+                       _("Driver does not support embedded mode"));
+        return -1;
+    }
+
     if (VIR_ALLOC(network_driver) < 0)
         goto error;
 
diff --git a/src/node_device/node_device_hal.c b/src/node_device/node_device_hal.c
index 4cef7c2c12..c3ca310bb7 100644
--- a/src/node_device/node_device_hal.c
+++ b/src/node_device/node_device_hal.c
@@ -580,6 +580,7 @@ device_prop_modified(LibHalContext *ctx G_GNUC_UNUSED,
 
 static int
 nodeStateInitialize(bool privileged G_GNUC_UNUSED,
+                    const char *root,
                     virStateInhibitCallback callback G_GNUC_UNUSED,
                     void *opaque G_GNUC_UNUSED)
 {
@@ -591,6 +592,12 @@ nodeStateInitialize(bool privileged G_GNUC_UNUSED,
     DBusConnection *sysbus;
     DBusError err;
 
+    if (root != NULL) {
+        virReportError(VIR_ERR_INVALID_ARG, "%s",
+                       _("Driver does not support embedded mode"));
+        return -1;
+    }
+
     /* Ensure caps_tbl is sorted by capability name */
     qsort(caps_tbl, G_N_ELEMENTS(caps_tbl), sizeof(caps_tbl[0]),
           cmpstringp);
diff --git a/src/node_device/node_device_udev.c b/src/node_device/node_device_udev.c
index 4b33dc25d8..396763fa29 100644
--- a/src/node_device/node_device_udev.c
+++ b/src/node_device/node_device_udev.c
@@ -1781,6 +1781,7 @@ udevPCITranslateInit(bool privileged G_GNUC_UNUSED)
 
 static int
 nodeStateInitialize(bool privileged,
+                    const char *root,
                     virStateInhibitCallback callback G_GNUC_UNUSED,
                     void *opaque G_GNUC_UNUSED)
 {
@@ -1788,6 +1789,12 @@ nodeStateInitialize(bool privileged,
     struct udev *udev = NULL;
     virThread enumThread;
 
+    if (root != NULL) {
+        virReportError(VIR_ERR_INVALID_ARG, "%s",
+                       _("Driver does not support embedded mode"));
+        return -1;
+    }
+
     if (VIR_ALLOC(driver) < 0)
         return VIR_DRV_STATE_INIT_ERROR;
 
diff --git a/src/nwfilter/nwfilter_driver.c b/src/nwfilter/nwfilter_driver.c
index cc3ce98cc5..1c407727db 100644
--- a/src/nwfilter/nwfilter_driver.c
+++ b/src/nwfilter/nwfilter_driver.c
@@ -177,11 +177,18 @@ virNWFilterTriggerRebuildImpl(void *opaque)
  */
 static int
 nwfilterStateInitialize(bool privileged,
+                        const char *root,
                         virStateInhibitCallback callback G_GNUC_UNUSED,
                         void *opaque G_GNUC_UNUSED)
 {
     DBusConnection *sysbus = NULL;
 
+    if (root != NULL) {
+        virReportError(VIR_ERR_INVALID_ARG, "%s",
+                       _("Driver does not support embedded mode"));
+        return -1;
+    }
+
     if (virDBusHasSystemBus() &&
         !(sysbus = virDBusGetSystemBus()))
         return VIR_DRV_STATE_INIT_ERROR;
diff --git a/src/qemu/qemu_driver.c b/src/qemu/qemu_driver.c
index 0b23c747ce..de857f1903 100644
--- a/src/qemu/qemu_driver.c
+++ b/src/qemu/qemu_driver.c
@@ -631,6 +631,7 @@ qemuDomainFindMaxID(virDomainObjPtr vm,
  */
 static int
 qemuStateInitialize(bool privileged,
+                    const char *root,
                     virStateInhibitCallback callback,
                     void *opaque)
 {
@@ -644,6 +645,12 @@ qemuStateInitialize(bool privileged,
     const char *defsecmodel = NULL;
     g_autofree virSecurityManagerPtr *sec_managers = NULL;
 
+    if (root != NULL) {
+        virReportError(VIR_ERR_INVALID_ARG, "%s",
+                       _("Driver does not support embedded mode"));
+        return -1;
+    }
+
     if (VIR_ALLOC(qemu_driver) < 0)
         return VIR_DRV_STATE_INIT_ERROR;
 
diff --git a/src/remote/remote_daemon.c b/src/remote/remote_daemon.c
index 1c224f8050..33697988b6 100644
--- a/src/remote/remote_daemon.c
+++ b/src/remote/remote_daemon.c
@@ -835,6 +835,7 @@ static void daemonRunStateInit(void *opaque)
      * seriously delay OS bootup process */
     if (virStateInitialize(virNetDaemonIsPrivileged(dmn),
                            mandatory,
+                           NULL,
                            daemonInhibitCallback,
                            dmn) < 0) {
         VIR_ERROR(_("Driver state initialization failed"));
diff --git a/src/remote/remote_driver.c b/src/remote/remote_driver.c
index f6e725dcbf..7971cde769 100644
--- a/src/remote/remote_driver.c
+++ b/src/remote/remote_driver.c
@@ -232,6 +232,7 @@ static int remoteSplitURIScheme(virURIPtr uri,
 
 static int
 remoteStateInitialize(bool privileged G_GNUC_UNUSED,
+                      const char *root G_GNUC_UNUSED,
                       virStateInhibitCallback callback G_GNUC_UNUSED,
                       void *opaque G_GNUC_UNUSED)
 {
diff --git a/src/secret/secret_driver.c b/src/secret/secret_driver.c
index c3c57a41c7..a31005c731 100644
--- a/src/secret/secret_driver.c
+++ b/src/secret/secret_driver.c
@@ -452,9 +452,16 @@ secretStateCleanup(void)
 
 static int
 secretStateInitialize(bool privileged,
+                      const char *root,
                       virStateInhibitCallback callback G_GNUC_UNUSED,
                       void *opaque G_GNUC_UNUSED)
 {
+    if (root != NULL) {
+        virReportError(VIR_ERR_INVALID_ARG, "%s",
+                       _("Driver does not support embedded mode"));
+        return -1;
+    }
+
     if (VIR_ALLOC(driver) < 0)
         return VIR_DRV_STATE_INIT_ERROR;
 
diff --git a/src/storage/storage_driver.c b/src/storage/storage_driver.c
index 0bb116cf08..2dd093a9da 100644
--- a/src/storage/storage_driver.c
+++ b/src/storage/storage_driver.c
@@ -250,6 +250,7 @@ storageDriverAutostart(void)
  */
 static int
 storageStateInitialize(bool privileged,
+                       const char *root,
                        virStateInhibitCallback callback G_GNUC_UNUSED,
                        void *opaque G_GNUC_UNUSED)
 {
@@ -257,6 +258,12 @@ storageStateInitialize(bool privileged,
     g_autofree char *rundir = NULL;
     bool autostart = true;
 
+    if (root != NULL) {
+        virReportError(VIR_ERR_INVALID_ARG, "%s",
+                       _("Driver does not support embedded mode"));
+        return -1;
+    }
+
     if (VIR_ALLOC(driver) < 0)
         return VIR_DRV_STATE_INIT_ERROR;
 
diff --git a/src/vz/vz_driver.c b/src/vz/vz_driver.c
index bd427fb07e..e8a7522732 100644
--- a/src/vz/vz_driver.c
+++ b/src/vz/vz_driver.c
@@ -4094,12 +4094,19 @@ vzStateCleanup(void)
 
 static int
 vzStateInitialize(bool privileged,
+                  const char *root,
                   virStateInhibitCallback callback G_GNUC_UNUSED,
                   void *opaque G_GNUC_UNUSED)
 {
     if (!privileged)
         return VIR_DRV_STATE_INIT_SKIPPED;
 
+    if (root != NULL) {
+        virReportError(VIR_ERR_INVALID_ARG, "%s",
+                       _("Driver does not support embedded mode"));
+        return -1;
+    }
+
     vz_driver_privileged = privileged;
 
     if (virFileMakePathWithMode(VZ_STATEDIR, S_IRWXU) < 0) {