diff --git a/files/initrd/opt/arc/include/consts.sh b/files/initrd/opt/arc/include/consts.sh
index ba3e9ba8..f70d474d 100755
--- a/files/initrd/opt/arc/include/consts.sh
+++ b/files/initrd/opt/arc/include/consts.sh
@@ -28,7 +28,6 @@ ARC_RAMDISK_FILE="${PART3_PATH}/initrd-arc"
 MOD_ZIMAGE_FILE="${PART3_PATH}/zImage-dsm"
 MOD_RDGZ_FILE="${PART3_PATH}/initrd-dsm"
 
-SYSTEM_PATH="${PART3_PATH}/system"
 ADDONS_PATH="${PART3_PATH}/addons"
 MODULES_PATH="${PART3_PATH}/modules"
 MODEL_CONFIG_PATH="${PART3_PATH}/configs"
diff --git a/files/initrd/opt/arc/init.sh b/files/initrd/opt/arc/init.sh
index bfcae7f8..e55c4227 100755
--- a/files/initrd/opt/arc/init.sh
+++ b/files/initrd/opt/arc/init.sh
@@ -205,7 +205,6 @@ mkdir -p "${LKMS_PATH}"
 mkdir -p "${MODEL_CONFIG_PATH}"
 mkdir -p "${MODULES_PATH}"
 mkdir -p "${PATCH_PATH}"
-mkdir -p "${SYSTEM_PATH}"
 mkdir -p "${USER_UP_PATH}"
 
 # Load Arc Overlay