diff --git a/src/main/java/com/google/devtools/build/lib/skyframe/SequencedSkyframeExecutor.java b/src/main/java/com/google/devtools/build/lib/skyframe/SequencedSkyframeExecutor.java
index 8fb6870..08f5fa1 100644
--- a/src/main/java/com/google/devtools/build/lib/skyframe/SequencedSkyframeExecutor.java
+++ b/src/main/java/com/google/devtools/build/lib/skyframe/SequencedSkyframeExecutor.java
@@ -29,6 +29,7 @@
 import com.google.devtools.build.lib.actions.ActionKeyContext;
 import com.google.devtools.build.lib.actions.ArtifactRoot;
 import com.google.devtools.build.lib.actions.CommandLineExpansionException;
+import com.google.devtools.build.lib.actions.FileStateType;
 import com.google.devtools.build.lib.actions.FileStateValue;
 import com.google.devtools.build.lib.actions.FileValue;
 import com.google.devtools.build.lib.analysis.AnalysisProtos.ActionGraphContainer;
@@ -38,6 +39,7 @@
 import com.google.devtools.build.lib.analysis.buildinfo.BuildInfoFactory;
 import com.google.devtools.build.lib.analysis.config.BuildOptions;
 import com.google.devtools.build.lib.analysis.configuredtargets.RuleConfiguredTarget;
+import com.google.devtools.build.lib.cmdline.LabelConstants;
 import com.google.devtools.build.lib.cmdline.PackageIdentifier;
 import com.google.devtools.build.lib.concurrent.Uninterruptibles;
 import com.google.devtools.build.lib.events.Event;
@@ -52,6 +54,8 @@
 import com.google.devtools.build.lib.packages.Rule;
 import com.google.devtools.build.lib.packages.RuleClass;
 import com.google.devtools.build.lib.packages.StarlarkSemanticsOptions;
+import com.google.devtools.build.lib.packages.WorkspaceFileValue;
+import com.google.devtools.build.lib.packages.WorkspaceFileValue.WorkspaceFileKey;
 import com.google.devtools.build.lib.pkgcache.PackageCacheOptions;
 import com.google.devtools.build.lib.pkgcache.PathPackageLocator;
 import com.google.devtools.build.lib.profiler.Profiler;
@@ -70,6 +74,7 @@
 import com.google.devtools.build.lib.skyframe.PackageLookupFunction.CrossRepositoryLabelViolationStrategy;
 import com.google.devtools.build.lib.skyframe.actiongraph.ActionGraphDump;
 import com.google.devtools.build.lib.util.AbruptExitException;
+import com.google.devtools.build.lib.util.ExitCode;
 import com.google.devtools.build.lib.util.Pair;
 import com.google.devtools.build.lib.util.ResourceUsage;
 import com.google.devtools.build.lib.util.io.TimestampGranularityMonitor;
@@ -78,6 +83,7 @@
 import com.google.devtools.build.lib.vfs.ModifiedFileSet;
 import com.google.devtools.build.lib.vfs.PathFragment;
 import com.google.devtools.build.lib.vfs.Root;
+import com.google.devtools.build.lib.vfs.RootedPath;
 import com.google.devtools.build.skyframe.BuildDriver;
 import com.google.devtools.build.skyframe.Differencer;
 import com.google.devtools.build.skyframe.EvaluationContext;
@@ -93,6 +99,7 @@
 import com.google.devtools.build.skyframe.SkyKey;
 import com.google.devtools.build.skyframe.SkyValue;
 import com.google.devtools.common.options.OptionsProvider;
+import java.io.IOException;
 import java.io.PrintStream;
 import java.time.Duration;
 import java.util.ArrayList;
@@ -102,6 +109,7 @@
 import java.util.HashSet;
 import java.util.List;
 import java.util.Map;
+import java.util.Objects;
 import java.util.Set;
 import java.util.UUID;
 import java.util.concurrent.Callable;
@@ -141,6 +149,8 @@
   private Duration sourceDiffCheckingDuration = Duration.ofSeconds(-1L);
   private Duration outputTreeDiffCheckingDuration = Duration.ofSeconds(-1L);
 
+  @Nullable private final WorkspaceFileHeaderListener workspaceFileHeaderListener;
+
   private SequencedSkyframeExecutor(
       Consumer<SkyframeExecutor> skyframeExecutorConsumerOnInit,
       EvaluatorSupplier evaluatorSupplier,
@@ -159,7 +169,8 @@
       List<BuildFileName> buildFilesByPriority,
       ActionOnIOExceptionReadingBuildFile actionOnIOExceptionReadingBuildFile,
       BuildOptions defaultBuildOptions,
-      MutableArtifactFactorySupplier mutableArtifactFactorySupplier) {
+      MutableArtifactFactorySupplier mutableArtifactFactorySupplier,
+      @Nullable WorkspaceFileHeaderListener workspaceFileHeaderListener) {
     super(
         skyframeExecutorConsumerOnInit,
         evaluatorSupplier,
@@ -185,6 +196,7 @@
         /*nonexistentFileReceiver=*/ null);
     this.diffAwarenessManager = new DiffAwarenessManager(diffAwarenessFactories);
     this.customDirtinessCheckers = customDirtinessCheckers;
+    this.workspaceFileHeaderListener = workspaceFileHeaderListener;
   }
 
   @Override
@@ -301,7 +313,8 @@
 
   /** Uses diff awareness on all the package paths to invalidate changed files. */
   @VisibleForTesting
-  public void handleDiffsForTesting(ExtendedEventHandler eventHandler) throws InterruptedException {
+  public void handleDiffsForTesting(ExtendedEventHandler eventHandler)
+      throws InterruptedException, AbruptExitException {
     if (super.lastAnalysisDiscarded) {
       // Values were cleared last build, but they couldn't be deleted because they were needed for
       // the execution phase. We can delete them now.
@@ -313,9 +326,14 @@
 
   private void handleDiffs(
       ExtendedEventHandler eventHandler, boolean checkOutputFiles, OptionsProvider options)
-      throws InterruptedException {
+      throws InterruptedException, AbruptExitException {
     TimestampGranularityMonitor tsgm = this.tsgm.get();
     modifiedFiles = 0;
+
+    if (workspaceFileHeaderListener != null) {
+      refreshWorkspaceHeader(eventHandler);
+    }
+
     Map<Root, DiffAwarenessManager.ProcessableModifiedFileSet> modifiedFilesByPathEntry =
         Maps.newHashMap();
     Set<Pair<Root, DiffAwarenessManager.ProcessableModifiedFileSet>>
@@ -803,6 +821,68 @@
     }
   }
 
+  /**
+   * Calculate the new value of the WORKSPACE file header (WorkspaceFileValue with the index = 0),
+   * and call the listener, if the value has changed. Needed for incremental update of user-owned
+   * directories by repository rules.
+   */
+  private void refreshWorkspaceHeader(ExtendedEventHandler eventHandler)
+      throws InterruptedException, AbruptExitException {
+    Preconditions.checkNotNull(workspaceFileHeaderListener);
+
+    Root workspaceRoot = Root.fromPath(directories.getWorkspace());
+    RootedPath workspacePath =
+        RootedPath.toRootedPath(workspaceRoot, LabelConstants.WORKSPACE_FILE_NAME);
+    WorkspaceFileKey workspaceFileKey = WorkspaceFileValue.key(workspacePath);
+
+    WorkspaceFileValue oldValue =
+        (WorkspaceFileValue) memoizingEvaluator.getExistingValue(workspaceFileKey);
+    maybeInvalidateWorkspaceFileStateValue(workspacePath);
+    WorkspaceFileValue newValue =
+        (WorkspaceFileValue) evaluateSingleValue(workspaceFileKey, eventHandler);
+    if (!Objects.equals(newValue, oldValue)) {
+      workspaceFileHeaderListener.workspaceHeaderChanged(newValue);
+    }
+  }
+
+  // We only check the FileStateValue of the WORKSPACE file; we do not support the case
+  // when the WORKSPACE file is a symlink.
+  private void maybeInvalidateWorkspaceFileStateValue(RootedPath workspacePath)
+      throws InterruptedException, AbruptExitException {
+    SkyKey workspaceFileStateKey = FileStateValue.key(workspacePath);
+    SkyValue oldWorkspaceFileState = memoizingEvaluator.getExistingValue(workspaceFileStateKey);
+    if (oldWorkspaceFileState == null) {
+      // no need to invalidate if not cached
+      return;
+    }
+    FileStateValue newWorkspaceFileState;
+    try {
+      newWorkspaceFileState = FileStateValue.create(workspacePath, tsgm.get());
+      if (FileStateType.SYMLINK.equals(newWorkspaceFileState.getType())) {
+        throw new AbruptExitException(
+            "WORKSPACE file can not be a symlink if incrementally"
+                + " updated directories feature is enabled.",
+            ExitCode.PARSING_FAILURE);
+      }
+    } catch (IOException e) {
+      throw new AbruptExitException("Can not read WORKSPACE file.", ExitCode.PARSING_FAILURE, e);
+    }
+    if (!oldWorkspaceFileState.equals(newWorkspaceFileState)) {
+      recordingDiffer.invalidate(ImmutableSet.of(workspaceFileStateKey));
+    }
+  }
+
+  private SkyValue evaluateSingleValue(SkyKey key, ExtendedEventHandler eventHandler)
+      throws InterruptedException {
+    EvaluationContext evaluationContext =
+        EvaluationContext.newBuilder()
+            .setKeepGoing(false)
+            .setNumThreads(DEFAULT_THREAD_COUNT)
+            .setEventHander(eventHandler)
+            .build();
+    return buildDriver.evaluate(ImmutableSet.of(key), evaluationContext).get(key);
+  }
+
   public static Builder builder() {
     return new Builder();
   }
@@ -827,6 +907,7 @@
     private CrossRepositoryLabelViolationStrategy crossRepositoryLabelViolationStrategy;
     private List<BuildFileName> buildFilesByPriority;
     private ActionOnIOExceptionReadingBuildFile actionOnIOExceptionReadingBuildFile;
+    private WorkspaceFileHeaderListener workspaceFileHeaderListener;
 
     // Fields with default values.
     private ImmutableMap<SkyFunctionName, SkyFunction> extraSkyFunctions = ImmutableMap.of();
@@ -872,7 +953,8 @@
               buildFilesByPriority,
               actionOnIOExceptionReadingBuildFile,
               defaultBuildOptions,
-              mutableArtifactFactorySupplier);
+              mutableArtifactFactorySupplier,
+              workspaceFileHeaderListener);
       skyframeExecutor.init();
       return skyframeExecutor;
     }
@@ -975,5 +1057,21 @@
       this.skyframeExecutorConsumerOnInit = skyframeExecutorConsumerOnInit;
       return this;
     }
+
+    public Builder setWorkspaceFileHeaderListener(
+        WorkspaceFileHeaderListener workspaceFileHeaderListener) {
+      this.workspaceFileHeaderListener = workspaceFileHeaderListener;
+      return this;
+    }
+  }
+
+  /**
+   * Listener class to subscribe for WORKSPACE file header changes.
+   *
+   * <p>Changes to WORKSPACE file header are computed before the files difference is computed in
+   * {@link #handleDiffs(ExtendedEventHandler, boolean, OptionsProvider)}
+   */
+  public interface WorkspaceFileHeaderListener {
+    void workspaceHeaderChanged(@Nullable WorkspaceFileValue newValue);
   }
 }
diff --git a/src/test/java/com/google/devtools/build/lib/analysis/util/BuildViewTestCase.java b/src/test/java/com/google/devtools/build/lib/analysis/util/BuildViewTestCase.java
index a8ee477..9df4bda 100644
--- a/src/test/java/com/google/devtools/build/lib/analysis/util/BuildViewTestCase.java
+++ b/src/test/java/com/google/devtools/build/lib/analysis/util/BuildViewTestCase.java
@@ -140,6 +140,7 @@
 import com.google.devtools.build.lib.skyframe.PackageRootsNoSymlinkCreation;
 import com.google.devtools.build.lib.skyframe.PrecomputedValue;
 import com.google.devtools.build.lib.skyframe.SequencedSkyframeExecutor;
+import com.google.devtools.build.lib.skyframe.SequencedSkyframeExecutor.WorkspaceFileHeaderListener;
 import com.google.devtools.build.lib.skyframe.SkyframeExecutor;
 import com.google.devtools.build.lib.skyframe.TargetPatternPhaseValue;
 import com.google.devtools.build.lib.syntax.StarlarkSemantics;
@@ -279,6 +280,7 @@
                 DefaultBuildOptionsForTesting.getDefaultBuildOptionsForTest(ruleClassProvider))
             .setWorkspaceStatusActionFactory(workspaceStatusActionFactory)
             .setExtraSkyFunctions(analysisMock.getSkyFunctions(directories))
+            .setWorkspaceFileHeaderListener(getWorkspaceFileListener())
             .build();
     TestConstants.processSkyframeExecutorForTesting(skyframeExecutor);
     skyframeExecutor.injectExtraPrecomputedValues(extraPrecomputedValues);
@@ -319,6 +321,10 @@
     return getAnalysisMock().createRuleClassProvider();
   }
 
+  protected WorkspaceFileHeaderListener getWorkspaceFileListener() {
+    return null;
+  }
+
   protected PackageFactory getPackageFactory() {
     return pkgFactory;
   }
diff --git a/src/test/java/com/google/devtools/build/lib/pkgcache/IncrementalLoadingTest.java b/src/test/java/com/google/devtools/build/lib/pkgcache/IncrementalLoadingTest.java
index 1e392e2..620a77e00 100644
--- a/src/test/java/com/google/devtools/build/lib/pkgcache/IncrementalLoadingTest.java
+++ b/src/test/java/com/google/devtools/build/lib/pkgcache/IncrementalLoadingTest.java
@@ -48,6 +48,7 @@
 import com.google.devtools.build.lib.skyframe.SkyframeExecutor;
 import com.google.devtools.build.lib.testutil.ManualClock;
 import com.google.devtools.build.lib.testutil.TestConstants;
+import com.google.devtools.build.lib.util.AbruptExitException;
 import com.google.devtools.build.lib.util.io.TimestampGranularityMonitor;
 import com.google.devtools.build.lib.vfs.Dirent;
 import com.google.devtools.build.lib.vfs.FileStatus;
@@ -581,7 +582,7 @@
       return builder.build();
     }
 
-    void sync() throws InterruptedException {
+    void sync() throws InterruptedException, AbruptExitException {
       clock.advanceMillis(1);
 
       modifiedFileSet = getModifiedFileSet();
diff --git a/src/test/java/com/google/devtools/build/lib/skyframe/WorkspaceFileFunctionTest.java b/src/test/java/com/google/devtools/build/lib/skyframe/WorkspaceFileFunctionTest.java
index 540f760..e8754f7 100644
--- a/src/test/java/com/google/devtools/build/lib/skyframe/WorkspaceFileFunctionTest.java
+++ b/src/test/java/com/google/devtools/build/lib/skyframe/WorkspaceFileFunctionTest.java
@@ -25,6 +25,7 @@
 import com.google.devtools.build.lib.analysis.util.BuildViewTestCase;
 import com.google.devtools.build.lib.cmdline.Label;
 import com.google.devtools.build.lib.cmdline.RepositoryName;
+import com.google.devtools.build.lib.events.NullEventHandler;
 import com.google.devtools.build.lib.packages.NoSuchTargetException;
 import com.google.devtools.build.lib.packages.Package;
 import com.google.devtools.build.lib.packages.PackageFactory;
@@ -32,6 +33,7 @@
 import com.google.devtools.build.lib.packages.Rule;
 import com.google.devtools.build.lib.packages.WorkspaceFileValue;
 import com.google.devtools.build.lib.rules.repository.RepositoryDelegatorFunction;
+import com.google.devtools.build.lib.skyframe.SequencedSkyframeExecutor.WorkspaceFileHeaderListener;
 import com.google.devtools.build.lib.skyframe.util.SkyframeExecutorTestUtils;
 import com.google.devtools.build.lib.syntax.StarlarkSemantics;
 import com.google.devtools.build.lib.testutil.MoreAsserts;
@@ -47,6 +49,7 @@
 import com.google.devtools.build.skyframe.SkyKey;
 import com.google.devtools.build.skyframe.SkyValue;
 import java.io.IOException;
+import javax.annotation.Nullable;
 import org.hamcrest.BaseMatcher;
 import org.hamcrest.Description;
 import org.junit.Before;
@@ -68,6 +71,7 @@
   private ExternalPackageFunction externalSkyFunc;
   private WorkspaceASTFunction astSkyFunc;
   private FakeFileValue fakeWorkspaceFileValue;
+  private TestWorkspaceFileListener testWorkspaceFileListener;
 
   static class FakeFileValue extends FileValue {
     private boolean exists;
@@ -129,6 +133,12 @@
   }
 
   @Override
+  protected WorkspaceFileHeaderListener getWorkspaceFileListener() {
+    testWorkspaceFileListener = new TestWorkspaceFileListener();
+    return testWorkspaceFileListener;
+  }
+
+  @Override
   protected Iterable<EnvironmentExtension> getEnvironmentExtensions() {
     return ImmutableList.<EnvironmentExtension>of(new PackageFactory.EmptyEnvironmentExtension());
   }
@@ -389,4 +399,42 @@
         .isEqualTo(Label.parseAbsolute("//foo:bar", ImmutableMap.of()));
     MoreAsserts.assertNoEvents(pkg.getEvents());
   }
+
+  @Test
+  public void testWorkspaceFileValueListener() throws Exception {
+    // Normally, syscalls cache is reset in the sync() method of the SkyframeExecutor, before
+    // diffing.
+    // But here we are calling only actual diffing part, exposed for testing:
+    // handleDiffsForTesting(), so we better turn off the syscalls cache.
+    skyframeExecutor.turnOffSyscallCacheForTesting();
+
+    createWorkspaceFile("workspace(name = 'old')");
+    skyframeExecutor.handleDiffsForTesting(NullEventHandler.INSTANCE);
+    assertThat(testWorkspaceFileListener.getLastWorkspaceName()).isEqualTo("old");
+    assertThat(testWorkspaceFileListener.getCnt()).isEqualTo(1);
+
+    createWorkspaceFile("workspace(name = 'changed')");
+    skyframeExecutor.handleDiffsForTesting(NullEventHandler.INSTANCE);
+    assertThat(testWorkspaceFileListener.getLastWorkspaceName()).isEqualTo("changed");
+    assertThat(testWorkspaceFileListener.getCnt()).isEqualTo(2);
+  }
+
+  private static class TestWorkspaceFileListener implements WorkspaceFileHeaderListener {
+    private String lastWorkspaceName;
+    private int cnt = 0;
+
+    @Override
+    public void workspaceHeaderChanged(@Nullable WorkspaceFileValue newValue) {
+      ++cnt;
+      lastWorkspaceName = newValue != null ? newValue.getPackage().getWorkspaceName() : null;
+    }
+
+    private String getLastWorkspaceName() {
+      return lastWorkspaceName;
+    }
+
+    private int getCnt() {
+      return cnt;
+    }
+  }
 }