diff --git a/src/main/java/com/google/devtools/build/lib/skyframe/DirectoryListingStateFunction.java b/src/main/java/com/google/devtools/build/lib/skyframe/DirectoryListingStateFunction.java
index aa1fe76..307c74b 100644
--- a/src/main/java/com/google/devtools/build/lib/skyframe/DirectoryListingStateFunction.java
+++ b/src/main/java/com/google/devtools/build/lib/skyframe/DirectoryListingStateFunction.java
@@ -45,8 +45,10 @@
         return null;
       }
       return DirectoryListingStateValue.create(dirRootedPath);
-    } catch (FileOutsidePackageRootsException e) {
-      throw new DirectoryListingStateFunctionException(e);
+    } catch (ExternalFilesHelper.NonexistentImmutableExternalFileException e) {
+      // DirectoryListingStateValue.key assumes the path exists. This exception here is therefore
+      // indicative of a programming bug.
+      throw new IllegalStateException(dirRootedPath.toString(), e);
     } catch (IOException e) {
       throw new DirectoryListingStateFunctionException(e);
     }
@@ -66,9 +68,5 @@
     public DirectoryListingStateFunctionException(IOException e) {
       super(e, Transience.TRANSIENT);
     }
-
-    public DirectoryListingStateFunctionException(FileOutsidePackageRootsException e) {
-      super(e, Transience.PERSISTENT);
-    }
   }
 }
diff --git a/src/main/java/com/google/devtools/build/lib/skyframe/ExternalFilesHelper.java b/src/main/java/com/google/devtools/build/lib/skyframe/ExternalFilesHelper.java
index 664cf98..e757c27 100644
--- a/src/main/java/com/google/devtools/build/lib/skyframe/ExternalFilesHelper.java
+++ b/src/main/java/com/google/devtools/build/lib/skyframe/ExternalFilesHelper.java
@@ -26,7 +26,7 @@
 import java.io.IOException;
 import java.util.concurrent.atomic.AtomicReference;
 
-/** Common utilities for dealing with files outside the package roots. */
+/** Common utilities for dealing with paths outside the package roots. */
 public class ExternalFilesHelper {
   private final AtomicReference<PathPackageLocator> pkgLocator;
   private final ExternalFileAction externalFileAction;
@@ -37,23 +37,8 @@
   private boolean anyOutputFilesSeen = false;
   private boolean anyNonOutputExternalFilesSeen = false;
 
-  /**
-   * @param pkgLocator an {@link AtomicReference} to a {@link PathPackageLocator} used to
-   *    determine what files are internal.
-   * @param errorOnExternalFiles If files outside of package paths should be allowed.
-   */
   public ExternalFilesHelper(
-      AtomicReference<PathPackageLocator> pkgLocator, boolean errorOnExternalFiles,
-      BlazeDirectories directories) {
-    this(
-        pkgLocator,
-        errorOnExternalFiles
-            ? ExternalFileAction.ERROR_OUT
-            : ExternalFileAction.DEPEND_ON_EXTERNAL_PKG_FOR_EXTERNAL_REPO_FILES,
-        directories);
-  }
-
-  private ExternalFilesHelper(AtomicReference<PathPackageLocator> pkgLocator,
+      AtomicReference<PathPackageLocator> pkgLocator,
       ExternalFileAction externalFileAction,
       BlazeDirectories directories) {
     this.pkgLocator = pkgLocator;
@@ -61,25 +46,42 @@
     this.directories = directories;
   }
 
-  private enum ExternalFileAction {
-    /** Re-check the files when the WORKSPACE file changes. */
-    DEPEND_ON_EXTERNAL_PKG_FOR_EXTERNAL_REPO_FILES,
-
-    /** Throw an exception if there is an external file. */
-    ERROR_OUT,
-  }
-
-  enum FileType {
-    /** A file inside the package roots or in an external repository. */
-    INTERNAL,
-
-    /** A file outside the package roots about which we may make no other assumptions. */
-    EXTERNAL_MUTABLE,
+  /**
+   * The action to take when an external path is encountered. See {@link FileType} for the
+   * definition of "external".
+   */
+  public enum ExternalFileAction {
+    /**
+     * For paths of type {@link FileType#EXTERNAL_REPO}, introduce a Skyframe dependency on the
+     * 'external' package.
+     *
+     * <p>This is the default for Bazel, since it's required for correctness of the external
+     * repositories feature.
+     */
+    DEPEND_ON_EXTERNAL_PKG_FOR_EXTERNAL_REPO_PATHS,
 
     /**
-     * A file in Bazel's output tree that's a proper output of an action (*not* a source file in an
-     * external repository). Such files are theoretically mutable, but certain Blaze flags may tell
-     * Blaze to assume these files are immutable.
+     * For paths of type {@link FileType#EXTERNAL} or {@link FileType#OUTPUT}, assume the path does
+     * not exist and will never exist.
+     */
+    ASSUME_NON_EXISTENT_AND_IMMUTABLE_FOR_EXTERNAL_PATHS,
+  }
+
+  /** Classification of a path encountered by Bazel. */
+  public enum FileType {
+    /** A path inside the package roots or in an external repository. */
+    INTERNAL,
+
+    /**
+     * A non {@link #EXTERNAL_REPO} path outside the package roots about which we may make no other
+     * assumptions.
+     */
+    EXTERNAL,
+
+    /**
+     * A path in Bazel's output tree that's a proper output of an action (*not* a source file in an
+     * external repository). Such files are theoretically mutable, but certain Bazel flags may tell
+     * Bazel to assume these paths are immutable.
      *
      * <p>Note that {@link ExternalFilesHelper#maybeHandleExternalFile} is only used for {@link
      * FileStateValue} and {@link DirectoryListingStateValue}, and also note that output files do
@@ -93,12 +95,19 @@
     OUTPUT,
 
     /**
-     * A file in the part of Bazel's output tree that contains (/ symlinks to) to external
+     * A path in the part of Bazel's output tree that contains (/ symlinks to) to external
      * repositories.
      */
     EXTERNAL_REPO,
   }
 
+  /**
+   * Thrown by {@link #maybeHandleExternalFile} when an applicable path is processed (see
+   * {@link ExternalFileAction#ASSUME_NON_EXISTENT_AND_IMMUTABLE_FOR_EXTERNAL_PATHS}.
+   */
+  static class NonexistentImmutableExternalFileException extends Exception {
+  }
+
   static class ExternalFilesKnowledge {
     final boolean anyOutputFilesSeen;
     final boolean anyNonOutputExternalFilesSeen;
@@ -134,7 +143,7 @@
     Path outputBase = packageLocator.getOutputBase();
     if (outputBase == null) {
       anyNonOutputExternalFilesSeen = true;
-      return FileType.EXTERNAL_MUTABLE;
+      return FileType.EXTERNAL;
     }
     if (rootedPath.asPath().startsWith(outputBase)) {
       Path externalRepoDir = outputBase.getRelative(Label.EXTERNAL_PACKAGE_NAME);
@@ -147,29 +156,33 @@
       }
     }
     anyNonOutputExternalFilesSeen = true;
-    return FileType.EXTERNAL_MUTABLE;
+    return FileType.EXTERNAL;
   }
 
   /**
-   * If this instance is configured with DEPEND_ON_EXTERNAL_PKG and rootedPath is a file that isn't
-   * under a package root then this adds a dependency on the //external package. If the action is
-   * ERROR_OUT, it will throw an error instead.
+   * If this instance is configured with
+   * {@link ExternalFileAction#DEPEND_ON_EXTERNAL_PKG_FOR_EXTERNAL_REPO_PATHS} and
+   * {@code rootedPath} isn't under a package root then this adds a dependency on the //external
+   * package. If the action is
+   * {@link ExternalFileAction#ASSUME_NON_EXISTENT_AND_IMMUTABLE_FOR_EXTERNAL_PATHS}, it will throw
+   * a {@link NonexistentImmutableExternalFileException} instead.
    */
   @ThreadSafe
   void maybeHandleExternalFile(RootedPath rootedPath, SkyFunction.Environment env)
-      throws IOException, InterruptedException {
+      throws NonexistentImmutableExternalFileException, IOException, InterruptedException {
     FileType fileType = getAndNoteFileType(rootedPath);
     if (fileType == FileType.INTERNAL) {
       return;
     }
-    if (fileType == FileType.OUTPUT || fileType == FileType.EXTERNAL_MUTABLE) {
-      if (externalFileAction == ExternalFileAction.ERROR_OUT) {
-        throw new FileOutsidePackageRootsException(rootedPath);
+    if (fileType == FileType.OUTPUT || fileType == FileType.EXTERNAL) {
+      if (externalFileAction
+          == ExternalFileAction.ASSUME_NON_EXISTENT_AND_IMMUTABLE_FOR_EXTERNAL_PATHS) {
+        throw new NonexistentImmutableExternalFileException();
       }
       return;
     }
     Preconditions.checkState(
-        externalFileAction == ExternalFileAction.DEPEND_ON_EXTERNAL_PKG_FOR_EXTERNAL_REPO_FILES,
+        externalFileAction == ExternalFileAction.DEPEND_ON_EXTERNAL_PKG_FOR_EXTERNAL_REPO_PATHS,
         externalFileAction);
     RepositoryFunction.addExternalFilesDependencies(rootedPath, directories, env);
   }
diff --git a/src/main/java/com/google/devtools/build/lib/skyframe/FileFunction.java b/src/main/java/com/google/devtools/build/lib/skyframe/FileFunction.java
index 617baad..f06be6b 100644
--- a/src/main/java/com/google/devtools/build/lib/skyframe/FileFunction.java
+++ b/src/main/java/com/google/devtools/build/lib/skyframe/FileFunction.java
@@ -63,19 +63,7 @@
     // symlink cycle, we want to detect that quickly as it gives a more informative error message
     // than we'd get doing bogus filesystem operations.
     if (!relativePath.equals(PathFragment.EMPTY_FRAGMENT)) {
-      Pair<RootedPath, FileStateValue> resolvedState = null;
-
-      try {
-        resolvedState = resolveFromAncestors(rootedPath, env);
-      } catch (FileOutsidePackageRootsException e) {
-        // When getting a FileOutsidePackageRootsException caused by an external file symlink
-        // somewhere in this file's path, rethrow an exception with this file's path, so the error
-        // message mentions this file instead of the first ancestor path where the external file
-        // error is observed
-        throw new FileFunctionException(
-            new FileOutsidePackageRootsException(rootedPath), Transience.PERSISTENT);
-      }
-
+      Pair<RootedPath, FileStateValue> resolvedState = resolveFromAncestors(rootedPath, env);
       if (resolvedState == null) {
         return null;
       }
@@ -94,15 +82,7 @@
     if (rootedPath.equals(realRootedPath)) {
       fileStateValue = Preconditions.checkNotNull(realFileStateValue, rootedPath);
     } else {
-      try {
-        fileStateValue =
-            (FileStateValue)
-                env.getValueOrThrow(
-                    FileStateValue.key(rootedPath), FileOutsidePackageRootsException.class);
-      } catch (FileOutsidePackageRootsException e) {
-        throw new FileFunctionException(
-            new FileOutsidePackageRootsException(rootedPath), Transience.PERSISTENT);
-      }
+      fileStateValue = (FileStateValue) env.getValue(FileStateValue.key(rootedPath));
       if (fileStateValue == null) {
         return null;
       }
@@ -136,7 +116,7 @@
   @Nullable
   private static Pair<RootedPath, FileStateValue> resolveFromAncestors(
       RootedPath rootedPath, Environment env)
-      throws FileFunctionException, FileOutsidePackageRootsException, InterruptedException {
+      throws FileFunctionException, InterruptedException {
     PathFragment relativePath = rootedPath.getRelativePath();
     RootedPath realRootedPath = rootedPath;
     FileValue parentFileValue = null;
@@ -144,11 +124,7 @@
       RootedPath parentRootedPath = RootedPath.toRootedPath(rootedPath.getRoot(),
           relativePath.getParentDirectory());
 
-      parentFileValue =
-          (FileValue)
-              env.getValueOrThrow(
-                  FileValue.key(parentRootedPath), FileOutsidePackageRootsException.class);
-
+      parentFileValue = (FileValue) env.getValue(FileValue.key(parentRootedPath));
       if (parentFileValue == null) {
         return null;
       }
@@ -164,8 +140,7 @@
     }
     FileStateValue realFileStateValue =
         (FileStateValue)
-            env.getValueOrThrow(
-                FileStateValue.key(realRootedPath), FileOutsidePackageRootsException.class);
+            env.getValue(FileStateValue.key(realRootedPath));
 
     if (realFileStateValue == null) {
       return null;
@@ -281,17 +256,7 @@
       throw new FileFunctionException(Preconditions.checkNotNull(fse, rootedPath));
     }
 
-    try {
-      return resolveFromAncestors(symlinkTargetRootedPath, env);
-    } catch (FileOutsidePackageRootsException e) {
-      // At this point we know this file node is a symlink leading to an external file. Mark the
-      // exception to be a specific SymlinkOutsidePackageRootsException. The error will be bubbled
-      // up further but no path information will be updated again. This allows preserving the
-      // information about the symlink crossing the internal/external boundary.
-      throw new FileFunctionException(
-          new SymlinkOutsidePackageRootsException(rootedPath, symlinkTargetRootedPath),
-          Transience.PERSISTENT);
-    }
+    return resolveFromAncestors(symlinkTargetRootedPath, env);
   }
 
   private static final Predicate<RootedPath> isPathPredicate(final Path path) {
diff --git a/src/main/java/com/google/devtools/build/lib/skyframe/FileOutsidePackageRootsException.java b/src/main/java/com/google/devtools/build/lib/skyframe/FileOutsidePackageRootsException.java
deleted file mode 100644
index ce9e27c..0000000
--- a/src/main/java/com/google/devtools/build/lib/skyframe/FileOutsidePackageRootsException.java
+++ /dev/null
@@ -1,35 +0,0 @@
-// Copyright 2015 The Bazel Authors. All rights reserved.
-//
-// Licensed under the Apache License, Version 2.0 (the "License");
-// you may not use this file except in compliance with the License.
-// You may obtain a copy of the License at
-//
-//    http://www.apache.org/licenses/LICENSE-2.0
-//
-// Unless required by applicable law or agreed to in writing, software
-// distributed under the License is distributed on an "AS IS" BASIS,
-// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-// See the License for the specific language governing permissions and
-// limitations under the License.
-package com.google.devtools.build.lib.skyframe;
-
-import com.google.devtools.build.lib.vfs.RootedPath;
-
-import java.io.IOException;
-
-/**
- * <p>This is an implementation detail of {@link FileFunction} to signal attempt to evaluate a file
- * outside of known/allowed directory structures.
- *
- * <p>Extends {@link IOException} to ensure it is properly handled by consumers of
- * {@link FileValue}.
- */
-// TODO(bazel-team): Don't piggyback on existing handling of IOExceptions and instead implement
-// the desired semantics.
-class FileOutsidePackageRootsException extends IOException {
-
-  /** @param outsidePath the {@link RootedPath} that triggered this exception. */
-  public FileOutsidePackageRootsException(RootedPath outsidePath) {
-    super("Encountered reference to external mutable " + outsidePath);
-  }
-}
diff --git a/src/main/java/com/google/devtools/build/lib/skyframe/FileStateFunction.java b/src/main/java/com/google/devtools/build/lib/skyframe/FileStateFunction.java
index f2dfff8..dece88c 100644
--- a/src/main/java/com/google/devtools/build/lib/skyframe/FileStateFunction.java
+++ b/src/main/java/com/google/devtools/build/lib/skyframe/FileStateFunction.java
@@ -50,8 +50,8 @@
         return null;
       }
       return FileStateValue.create(rootedPath, tsgm.get());
-    } catch (FileOutsidePackageRootsException e) {
-      throw new FileStateFunctionException(e);
+    } catch (ExternalFilesHelper.NonexistentImmutableExternalFileException e) {
+      return FileStateValue.NONEXISTENT_FILE_STATE_NODE;
     } catch (IOException e) {
       throw new FileStateFunctionException(e);
     } catch (InconsistentFilesystemException e) {
@@ -76,9 +76,5 @@
     public FileStateFunctionException(InconsistentFilesystemException e) {
       super(e, Transience.TRANSIENT);
     }
-
-    public FileStateFunctionException(FileOutsidePackageRootsException e) {
-      super(e, Transience.PERSISTENT);
-    }
   }
 }
diff --git a/src/main/java/com/google/devtools/build/lib/skyframe/PackageFunction.java b/src/main/java/com/google/devtools/build/lib/skyframe/PackageFunction.java
index 9db19e5..4573a51 100644
--- a/src/main/java/com/google/devtools/build/lib/skyframe/PackageFunction.java
+++ b/src/main/java/com/google/devtools/build/lib/skyframe/PackageFunction.java
@@ -221,8 +221,7 @@
       Iterable<SkyKey> depKeys,
       Environment env,
       boolean packageWasInError)
-      throws InternalInconsistentFilesystemException, FileOutsidePackageRootsException,
-          SymlinkOutsidePackageRootsException, InterruptedException {
+      throws InternalInconsistentFilesystemException, InterruptedException {
     Preconditions.checkState(
         Iterables.all(depKeys, SkyFunctions.isSkyFunction(SkyFunctions.FILE)), depKeys);
     boolean packageShouldBeInError = packageWasInError;
@@ -231,8 +230,6 @@
             FileSymlinkException.class, InconsistentFilesystemException.class).entrySet()) {
       try {
         entry.getValue().get();
-      } catch (FileOutsidePackageRootsException | SymlinkOutsidePackageRootsException e) {
-        throw e;
       } catch (IOException e) {
         maybeThrowFilesystemInconsistency(packageIdentifier, e, packageWasInError);
       } catch (FileSymlinkException e) {
@@ -254,8 +251,7 @@
       Iterable<SkyKey> depKeys,
       Environment env,
       boolean packageWasInError)
-      throws InternalInconsistentFilesystemException, FileOutsidePackageRootsException,
-          SymlinkOutsidePackageRootsException, InterruptedException {
+      throws InternalInconsistentFilesystemException, InterruptedException {
     Preconditions.checkState(
         Iterables.all(depKeys, SkyFunctions.isSkyFunction(SkyFunctions.GLOB)), depKeys);
     boolean packageShouldBeInError = packageWasInError;
@@ -265,8 +261,6 @@
             FileSymlinkException.class, InconsistentFilesystemException.class).entrySet()) {
       try {
         entry.getValue().get();
-      } catch (FileOutsidePackageRootsException | SymlinkOutsidePackageRootsException e) {
-        throw e;
       } catch (IOException | BuildFileNotFoundException e) {
         maybeThrowFilesystemInconsistency(packageIdentifier, e, packageWasInError);
       } catch (FileSymlinkException e) {
@@ -294,8 +288,7 @@
       Map<Label, Path> subincludes,
       PackageIdentifier packageIdentifier,
       boolean containsErrors)
-      throws InternalInconsistentFilesystemException, FileOutsidePackageRootsException,
-          SymlinkOutsidePackageRootsException, InterruptedException {
+      throws InternalInconsistentFilesystemException, InterruptedException {
     boolean packageShouldBeInError = containsErrors;
 
     // TODO(bazel-team): This means that many packages will have to be preprocessed twice. Ouch!
@@ -550,11 +543,6 @@
       throw new PackageFunctionException(
           e.toNoSuchPackageException(),
           e.isTransient() ? Transience.TRANSIENT : Transience.PERSISTENT);
-    } catch (FileOutsidePackageRootsException | SymlinkOutsidePackageRootsException e) {
-      packageFunctionCache.invalidate(packageId);
-      throw new PackageFunctionException(
-          new NoSuchPackageException(packageId, "Encountered file outside package roots", e),
-          Transience.PERSISTENT);
     }
     if (env.valuesMissing()) {
       return null;
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 3eee0c1..7a45eed 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
@@ -44,6 +44,7 @@
 import com.google.devtools.build.lib.skyframe.DirtinessCheckerUtils.ExternalDirtinessChecker;
 import com.google.devtools.build.lib.skyframe.DirtinessCheckerUtils.MissingDiffDirtinessChecker;
 import com.google.devtools.build.lib.skyframe.DirtinessCheckerUtils.UnionDirtinessChecker;
+import com.google.devtools.build.lib.skyframe.ExternalFilesHelper.ExternalFileAction;
 import com.google.devtools.build.lib.skyframe.ExternalFilesHelper.ExternalFilesKnowledge;
 import com.google.devtools.build.lib.skyframe.ExternalFilesHelper.FileType;
 import com.google.devtools.build.lib.skyframe.PackageLookupFunction.CrossRepositoryLabelViolationStrategy;
@@ -123,7 +124,7 @@
         preprocessorFactorySupplier,
         extraSkyFunctions,
         extraPrecomputedValues,
-        false,
+        ExternalFileAction.DEPEND_ON_EXTERNAL_PKG_FOR_EXTERNAL_REPO_PATHS,
         blacklistedPackagePrefixesFile,
         productName,
         crossRepositoryLabelViolationStrategy);
@@ -421,8 +422,8 @@
         externalFilesHelper.cloneWithFreshExternalFilesKnowledge();
     // See the comment for FileType.OUTPUT for why we need to consider output files here.
     EnumSet<FileType> fileTypesToCheck = checkOutputFiles
-        ? EnumSet.of(FileType.EXTERNAL_MUTABLE, FileType.EXTERNAL_REPO, FileType.OUTPUT)
-        : EnumSet.of(FileType.EXTERNAL_MUTABLE, FileType.EXTERNAL_REPO);
+        ? EnumSet.of(FileType.EXTERNAL, FileType.EXTERNAL_REPO, FileType.OUTPUT)
+        : EnumSet.of(FileType.EXTERNAL, FileType.EXTERNAL_REPO);
     Differencer.Diff diff =
         fsvc.getDirtyKeys(
             memoizingEvaluator.getValues(),
diff --git a/src/main/java/com/google/devtools/build/lib/skyframe/SkyframeExecutor.java b/src/main/java/com/google/devtools/build/lib/skyframe/SkyframeExecutor.java
index ce4c748..146c468 100644
--- a/src/main/java/com/google/devtools/build/lib/skyframe/SkyframeExecutor.java
+++ b/src/main/java/com/google/devtools/build/lib/skyframe/SkyframeExecutor.java
@@ -105,6 +105,7 @@
 import com.google.devtools.build.lib.profiler.AutoProfiler;
 import com.google.devtools.build.lib.skyframe.AspectValue.AspectValueKey;
 import com.google.devtools.build.lib.skyframe.DirtinessCheckerUtils.FileDirtinessChecker;
+import com.google.devtools.build.lib.skyframe.ExternalFilesHelper.ExternalFileAction;
 import com.google.devtools.build.lib.skyframe.PackageFunction.CacheEntryWithGlobDeps;
 import com.google.devtools.build.lib.skyframe.PackageLookupFunction.CrossRepositoryLabelViolationStrategy;
 import com.google.devtools.build.lib.skyframe.SkyframeActionExecutor.ActionCompletedReceiver;
@@ -254,7 +255,7 @@
   protected int outputDirtyFiles;
   protected int modifiedFilesDuringPreviousBuild;
   private final Predicate<PathFragment> allowedMissingInputs;
-  private final boolean errorOnExternalFiles;
+  private final ExternalFileAction externalFileAction;
 
   private final ImmutableMap<SkyFunctionName, SkyFunction> extraSkyFunctions;
   private final ImmutableList<PrecomputedValue.Injected> extraPrecomputedValues;
@@ -287,7 +288,7 @@
       Preprocessor.Factory.Supplier preprocessorFactorySupplier,
       ImmutableMap<SkyFunctionName, SkyFunction> extraSkyFunctions,
       ImmutableList<PrecomputedValue.Injected> extraPrecomputedValues,
-      boolean errorOnExternalFiles,
+      ExternalFileAction externalFileAction,
       PathFragment blacklistedPackagePrefixesFile,
       String productName,
       CrossRepositoryLabelViolationStrategy crossRepositoryLabelViolationStrategy) {
@@ -309,7 +310,7 @@
     this.preprocessorFactorySupplier = preprocessorFactorySupplier;
     this.extraSkyFunctions = extraSkyFunctions;
     this.extraPrecomputedValues = extraPrecomputedValues;
-    this.errorOnExternalFiles = errorOnExternalFiles;
+    this.externalFileAction = externalFileAction;
     this.blacklistedPackagePrefixesFile = blacklistedPackagePrefixesFile;
     this.binTools = binTools;
 
@@ -321,7 +322,7 @@
         (ConfiguredRuleClassProvider) ruleClassProvider);
     this.artifactFactory.set(skyframeBuildView.getArtifactFactory());
     this.externalFilesHelper = new ExternalFilesHelper(
-        pkgLocator, this.errorOnExternalFiles, directories);
+        pkgLocator, this.externalFileAction, directories);
     this.productName = productName;
     this.crossRepositoryLabelViolationStrategy = crossRepositoryLabelViolationStrategy;
   }
diff --git a/src/main/java/com/google/devtools/build/lib/skyframe/SymlinkOutsidePackageRootsException.java b/src/main/java/com/google/devtools/build/lib/skyframe/SymlinkOutsidePackageRootsException.java
deleted file mode 100644
index 3f20ce0..0000000
--- a/src/main/java/com/google/devtools/build/lib/skyframe/SymlinkOutsidePackageRootsException.java
+++ /dev/null
@@ -1,35 +0,0 @@
-// Copyright 2016 The Bazel Authors. All rights reserved.
-//
-// Licensed under the Apache License, Version 2.0 (the "License");
-// you may not use this file except in compliance with the License.
-// You may obtain a copy of the License at
-//
-//    http://www.apache.org/licenses/LICENSE-2.0
-//
-// Unless required by applicable law or agreed to in writing, software
-// distributed under the License is distributed on an "AS IS" BASIS,
-// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-// See the License for the specific language governing permissions and
-// limitations under the License.
-package com.google.devtools.build.lib.skyframe;
-
-import com.google.devtools.build.lib.vfs.RootedPath;
-
-import java.io.IOException;
-
-/**
- * <p>This is an implementation detail of {@link FileFunction} to to evaluate a symlink linking to
- * file outside of known/allowed directory structures.
- *
- * <p>Extends {@link IOException} to ensure it is properly handled by consumers of
- * {@link FileValue}.
- */
-class SymlinkOutsidePackageRootsException extends IOException {
-  /**
-   * @param symlinkPath the {@link RootedPath} that links to an outside path.
-   * @param outsidePath the {@link RootedPath} that triggered this exception.
-   */
-  public SymlinkOutsidePackageRootsException(RootedPath symlinkPath, RootedPath outsidePath) {
-    super("Encountered symlink " + symlinkPath + " linking to external mutable " + outsidePath);
-  }
-}