diff -Nru ubuntu-image-1.5+18.04ubuntu1/debian/changelog ubuntu-image-1.6+18.04ubuntu1/debian/changelog
--- ubuntu-image-1.5+18.04ubuntu1/debian/changelog	2018-10-02 15:07:58.000000000 +0000
+++ ubuntu-image-1.6+18.04ubuntu1/debian/changelog	2018-12-14 16:08:09.000000000 +0000
@@ -1,3 +1,13 @@
+ubuntu-image (1.6+18.04ubuntu1) bionic; urgency=medium
+
+  * Do not copy-over /etc/cloud to the rootfs if it's empty.  This can cause
+    base snaps that define the writable-path as 'persistent' and 'transition'
+    to not be able to provide default configuration.  (LP:1808554)
+  * Fix --with-proposed handling to properly pass PROPOSED to live-build.
+  * SRU tracking number LP: #1808564
+
+ -- Łukasz 'sil2100' Zemczak <lukasz.zemczak@ubuntu.com>  Fri, 14 Dec 2018 17:08:09 +0100
+
 ubuntu-image (1.5+18.04ubuntu1) bionic; urgency=medium
 
   [ Alfonso Sanchez-Beato (email Canonical) ]
diff -Nru ubuntu-image-1.5+18.04ubuntu1/snapcraft.yaml ubuntu-image-1.6+18.04ubuntu1/snapcraft.yaml
--- ubuntu-image-1.5+18.04ubuntu1/snapcraft.yaml	2018-10-02 15:07:58.000000000 +0000
+++ ubuntu-image-1.6+18.04ubuntu1/snapcraft.yaml	2018-12-14 16:08:09.000000000 +0000
@@ -2,7 +2,7 @@
 summary: Create Ubuntu images
 description: |
   Use this tool to create Ubuntu images.
-version: 1.5+snap1
+version: 1.6+snap1
 grade: stable
 confinement: classic
 
diff -Nru ubuntu-image-1.5+18.04ubuntu1/ubuntu_image/assertion_builder.py ubuntu-image-1.6+18.04ubuntu1/ubuntu_image/assertion_builder.py
--- ubuntu-image-1.5+18.04ubuntu1/ubuntu_image/assertion_builder.py	2018-10-02 15:07:58.000000000 +0000
+++ ubuntu-image-1.6+18.04ubuntu1/ubuntu_image/assertion_builder.py	2018-12-14 16:08:09.000000000 +0000
@@ -39,6 +39,13 @@
             if subdir != 'boot':
                 shutil.move(os.path.join(src, subdir),
                             os.path.join(dst, subdir))
+        etc_cloud = os.path.join(dst, 'etc', 'cloud')
+        if os.path.isdir(etc_cloud) and not os.listdir(etc_cloud):
+            # The snap --prepare-image command creates /etc/cloud even if
+            # it's empty.  We don't want to copy it over into the final rootfs
+            # in that case as it can cause issues when base snaps want to ship
+            # default configuration there.
+            os.rmdir(etc_cloud)
         if self.cloud_init is not None:
             # LP: #1633232 - Only write out meta-data when the --cloud-init
             # parameter is given.
diff -Nru ubuntu-image-1.5+18.04ubuntu1/ubuntu_image/classic_builder.py ubuntu-image-1.6+18.04ubuntu1/ubuntu_image/classic_builder.py
--- ubuntu-image-1.5+18.04ubuntu1/ubuntu_image/classic_builder.py	2018-10-02 15:07:58.000000000 +0000
+++ ubuntu-image-1.6+18.04ubuntu1/ubuntu_image/classic_builder.py	2018-12-14 16:08:09.000000000 +0000
@@ -60,8 +60,8 @@
                     env['SUBPROJECT'] = self.args.subproject
                 if self.args.subarch is not None:
                     env['SUBARCH'] = self.args.subarch
-                if self.args.with_proposed is not None:
-                    env['PROPOSED'] = self.args.with_proposed
+                if self.args.with_proposed:
+                    env['PROPOSED'] = '1'
                 if self.args.extra_ppas is not None:
                     env['EXTRA_PPAS'] = ' '.join(self.args.extra_ppas)
                 # Only generate a single rootfs tree for classic images.
diff -Nru ubuntu-image-1.5+18.04ubuntu1/ubuntu_image/tests/test_builder.py ubuntu-image-1.6+18.04ubuntu1/ubuntu_image/tests/test_builder.py
--- ubuntu-image-1.5+18.04ubuntu1/ubuntu_image/tests/test_builder.py	2018-10-02 15:07:58.000000000 +0000
+++ ubuntu-image-1.6+18.04ubuntu1/ubuntu_image/tests/test_builder.py	2018-12-14 16:08:09.000000000 +0000
@@ -245,6 +245,74 @@
             boot = os.path.join(state.rootfs, 'boot')
             self.assertFalse(os.path.exists(boot))
 
+    def test_populate_rootfs_contents_remove_empty_etc_cloud(self):
+        with ExitStack() as resources:
+            args = SimpleNamespace(
+                channel='edge',
+                cloud_init=None,
+                extra_snaps=None,
+                model_assertion=self.model_assertion,
+                output=None,
+                output_dir=None,
+                workdir=None,
+                hooks_directory=[],
+                )
+            state = resources.enter_context(XXXModelAssertionBuilder(args))
+            # Fake some state expected by the method under test.
+            state.unpackdir = resources.enter_context(TemporaryDirectory())
+            image_dir = os.path.join(state.unpackdir, 'image')
+            os.makedirs(os.path.join(image_dir, 'etc', 'cloud'))
+            with open(os.path.join(image_dir, 'etc',
+                                   'sentinel.dat'), 'wb') as fp:
+                fp.write(b'x' * 25)
+            state.rootfs = resources.enter_context(TemporaryDirectory())
+            system_data = os.path.join(state.rootfs, 'system-data')
+            os.makedirs(system_data)
+            # Jump right to the state method we're trying to test.
+            state._next.pop()
+            state._next.append(state.populate_rootfs_contents)
+            next(state)
+            # Make sure the empty /etc/cloud has not been copied, but all other
+            # etc contents did.
+            etc_cloud = os.path.join(
+                state.rootfs, 'system-data', 'etc', 'cloud')
+            self.assertFalse(os.path.exists(etc_cloud))
+            etc_sentinel = os.path.join(
+                state.rootfs, 'system-data', 'etc', 'sentinel.dat')
+            self.assertTrue(os.path.exists(etc_sentinel))
+
+    def test_populate_rootfs_contents_keep_nonempty_etc_cloud(self):
+        with ExitStack() as resources:
+            args = SimpleNamespace(
+                channel='edge',
+                cloud_init=None,
+                extra_snaps=None,
+                model_assertion=self.model_assertion,
+                output=None,
+                output_dir=None,
+                workdir=None,
+                hooks_directory=[],
+                )
+            state = resources.enter_context(XXXModelAssertionBuilder(args))
+            # Fake some state expected by the method under test.
+            state.unpackdir = resources.enter_context(TemporaryDirectory())
+            image_dir = os.path.join(state.unpackdir, 'image')
+            src_cloud = os.path.join(image_dir, 'etc', 'cloud')
+            os.makedirs(src_cloud)
+            with open(os.path.join(src_cloud, 'sentinel.dat'), 'wb') as fp:
+                fp.write(b'x' * 25)
+            state.rootfs = resources.enter_context(TemporaryDirectory())
+            system_data = os.path.join(state.rootfs, 'system-data')
+            os.makedirs(system_data)
+            # Jump right to the state method we're trying to test.
+            state._next.pop()
+            state._next.append(state.populate_rootfs_contents)
+            next(state)
+            # Make sure the non-empty /etc/cloud directory got carried over.
+            etc_sentinel = os.path.join(
+                state.rootfs, 'system-data', 'etc', 'cloud', 'sentinel.dat')
+            self.assertTrue(os.path.exists(etc_sentinel))
+
     def test_bootloader_options_uboot(self):
         # This test provides coverage for populate_bootfs_contents() when the
         # uboot bootloader is used.  The live gadget snap (only tested when we
diff -Nru ubuntu-image-1.5+18.04ubuntu1/ubuntu_image/tests/test_classic_builder.py ubuntu-image-1.6+18.04ubuntu1/ubuntu_image/tests/test_classic_builder.py
--- ubuntu-image-1.5+18.04ubuntu1/ubuntu_image/tests/test_classic_builder.py	2018-10-02 15:07:58.000000000 +0000
+++ ubuntu-image-1.6+18.04ubuntu1/ubuntu_image/tests/test_classic_builder.py	2018-12-14 16:08:09.000000000 +0000
@@ -921,7 +921,7 @@
                 }
             for arg, env in argstoenv.items():
                 kwargs = dict(kwargs_skel)
-                kwargs[arg] = 'test'
+                kwargs[arg] = 'test' if arg != 'with_proposed' else True
                 args = SimpleNamespace(**kwargs)
                 # Jump right to the method under test.
                 state = resources.enter_context(XXXClassicBuilder(args))
@@ -933,7 +933,9 @@
                 self.assertEqual(len(mock.call_args_list), 1)
                 posargs, kwargs = mock.call_args_list[0]
                 self.assertIn(env, posargs[1])
-                self.assertEqual(posargs[1][env], 'test')
+                self.assertEqual(
+                    posargs[1][env],
+                    'test' if arg != 'with_proposed' else '1')
             # The extra_ppas argument is actually a list, so it needs a
             # separate test-case.
             outputtoinput = {
diff -Nru ubuntu-image-1.5+18.04ubuntu1/ubuntu_image/version.txt ubuntu-image-1.6+18.04ubuntu1/ubuntu_image/version.txt
--- ubuntu-image-1.5+18.04ubuntu1/ubuntu_image/version.txt	2018-10-02 15:07:58.000000000 +0000
+++ ubuntu-image-1.6+18.04ubuntu1/ubuntu_image/version.txt	2018-12-14 16:08:09.000000000 +0000
@@ -1 +1 @@
-1.5+18.04ubuntu1
+1.6+18.04ubuntu1
diff -Nru ubuntu-image-1.5+18.04ubuntu1/ubuntu_image.egg-info/dependency_links.txt ubuntu-image-1.6+18.04ubuntu1/ubuntu_image.egg-info/dependency_links.txt
--- ubuntu-image-1.5+18.04ubuntu1/ubuntu_image.egg-info/dependency_links.txt	1970-01-01 00:00:00.000000000 +0000
+++ ubuntu-image-1.6+18.04ubuntu1/ubuntu_image.egg-info/dependency_links.txt	2018-12-14 16:00:15.000000000 +0000
@@ -0,0 +1 @@
+
diff -Nru ubuntu-image-1.5+18.04ubuntu1/ubuntu_image.egg-info/entry_points.txt ubuntu-image-1.6+18.04ubuntu1/ubuntu_image.egg-info/entry_points.txt
--- ubuntu-image-1.5+18.04ubuntu1/ubuntu_image.egg-info/entry_points.txt	1970-01-01 00:00:00.000000000 +0000
+++ ubuntu-image-1.6+18.04ubuntu1/ubuntu_image.egg-info/entry_points.txt	2018-12-14 16:00:15.000000000 +0000
@@ -0,0 +1,3 @@
+[flake8.extension]
+B4 = ubuntu_image.testing.flake8:ImportOrder
+
diff -Nru ubuntu-image-1.5+18.04ubuntu1/ubuntu_image.egg-info/PKG-INFO ubuntu-image-1.6+18.04ubuntu1/ubuntu_image.egg-info/PKG-INFO
--- ubuntu-image-1.5+18.04ubuntu1/ubuntu_image.egg-info/PKG-INFO	1970-01-01 00:00:00.000000000 +0000
+++ ubuntu-image-1.6+18.04ubuntu1/ubuntu_image.egg-info/PKG-INFO	2018-12-14 16:00:15.000000000 +0000
@@ -0,0 +1,21 @@
+Metadata-Version: 1.1
+Name: ubuntu-image
+Version: 1.5+19.04ubuntu3
+Summary: Construct snappy images out of a model assertion
+Home-page: https://github.com/CanonicalLtd/ubuntu-image
+Author: UNKNOWN
+Author-email: snapcraft@lists.ubuntu.com
+License: GPLv3
+Description: UNKNOWN
+Platform: UNKNOWN
+Classifier: Development Status :: 3 - Alpha
+Classifier: Environment :: Console
+Classifier: Intended Audience :: Developers
+Classifier: Intended Audience :: System Administrators
+Classifier: License :: OSI Approved :: GNU General Public License v3 (GPLv3)
+Classifier: Natural Language :: English
+Classifier: Programming Language :: Python
+Classifier: Programming Language :: Python :: 3
+Classifier: Programming Language :: Python :: 3.5
+Classifier: Topic :: Software Development :: Build Tools
+Classifier: Topic :: System :: Software Distribution
diff -Nru ubuntu-image-1.5+18.04ubuntu1/ubuntu_image.egg-info/requires.txt ubuntu-image-1.6+18.04ubuntu1/ubuntu_image.egg-info/requires.txt
--- ubuntu-image-1.5+18.04ubuntu1/ubuntu_image.egg-info/requires.txt	1970-01-01 00:00:00.000000000 +0000
+++ ubuntu-image-1.6+18.04ubuntu1/ubuntu_image.egg-info/requires.txt	2018-12-14 16:00:15.000000000 +0000
@@ -0,0 +1,3 @@
+attrs
+pyyaml
+voluptuous
diff -Nru ubuntu-image-1.5+18.04ubuntu1/ubuntu_image.egg-info/SOURCES.txt ubuntu-image-1.6+18.04ubuntu1/ubuntu_image.egg-info/SOURCES.txt
--- ubuntu-image-1.5+18.04ubuntu1/ubuntu_image.egg-info/SOURCES.txt	1970-01-01 00:00:00.000000000 +0000
+++ ubuntu-image-1.6+18.04ubuntu1/ubuntu_image.egg-info/SOURCES.txt	2018-12-14 16:00:15.000000000 +0000
@@ -0,0 +1,49 @@
+.requirements.txt
+MANIFEST.in
+README.rst
+devel-coverage.ini
+release.py
+setup.py
+tox.ini
+ubuntu-image
+ubuntu-image.rst
+xenial-coverage.ini
+demo/boot/README.rst
+demo/multivol/README.rst
+demo/multivol/gadget/hello.txt
+demo/multivol/gadget/notes.txt
+demo/multivol/gadget/world.txt
+docs/notes.rst
+ubuntu_image/__init__.py
+ubuntu_image/__main__.py
+ubuntu_image/assertion_builder.py
+ubuntu_image/classic_builder.py
+ubuntu_image/common_builder.py
+ubuntu_image/helpers.py
+ubuntu_image/hooks.py
+ubuntu_image/i18n.py
+ubuntu_image/image.py
+ubuntu_image/parser.py
+ubuntu_image/state.py
+ubuntu_image/version.txt
+ubuntu_image.egg-info/PKG-INFO
+ubuntu_image.egg-info/SOURCES.txt
+ubuntu_image.egg-info/dependency_links.txt
+ubuntu_image.egg-info/entry_points.txt
+ubuntu_image.egg-info/requires.txt
+ubuntu_image.egg-info/top_level.txt
+ubuntu_image/testing/__init__.py
+ubuntu_image/testing/flake8.py
+ubuntu_image/testing/helpers.py
+ubuntu_image/testing/nose.py
+ubuntu_image/tests/__init__.py
+ubuntu_image/tests/test_builder.py
+ubuntu_image/tests/test_classic_builder.py
+ubuntu_image/tests/test_helpers.py
+ubuntu_image/tests/test_hooks.py
+ubuntu_image/tests/test_image.py
+ubuntu_image/tests/test_main.py
+ubuntu_image/tests/test_parser.py
+ubuntu_image/tests/test_state.py
+ubuntu_image/tests/test_stub.py
+ubuntu_image/tests/data/__init__.py
\ No newline at end of file
diff -Nru ubuntu-image-1.5+18.04ubuntu1/ubuntu_image.egg-info/top_level.txt ubuntu-image-1.6+18.04ubuntu1/ubuntu_image.egg-info/top_level.txt
--- ubuntu-image-1.5+18.04ubuntu1/ubuntu_image.egg-info/top_level.txt	1970-01-01 00:00:00.000000000 +0000
+++ ubuntu-image-1.6+18.04ubuntu1/ubuntu_image.egg-info/top_level.txt	2018-12-14 16:00:15.000000000 +0000
@@ -0,0 +1 @@
+ubuntu_image