diff --git a/winsup/cygwin/ChangeLog b/winsup/cygwin/ChangeLog
index c19de6228..62623d580 100644
--- a/winsup/cygwin/ChangeLog
+++ b/winsup/cygwin/ChangeLog
@@ -1,3 +1,8 @@
+2009-11-02  Corinna Vinschen  <corinna@vinschen.de>
+
+	* security.cc (alloc_sd): Re-enable generating default permission
+	entries for directories.
+
 2009-11-02  Corinna Vinschen  <corinna@vinschen.de>
 
 	* dlfcn.cc (get_full_path_of_dll): Drop enforcing a .dll suffix.
diff --git a/winsup/cygwin/security.cc b/winsup/cygwin/security.cc
index 5d83060e6..f43b8affa 100644
--- a/winsup/cygwin/security.cc
+++ b/winsup/cygwin/security.cc
@@ -615,12 +615,6 @@ alloc_sd (path_conv &pc, __uid32_t uid, __gid32_t gid, int attribute,
 	  acl_len += ace->Header.AceSize;
 	}
 
-#if 0
-  /* CV 2009-02-04: Setting these inherit attributes for new dirs never was
-     really POSIX-like but rather a concession for native Win32 processes.
-     Disabled for now.  Let's test if that has really a visible negative
-     impact. */
-
   /* Construct appropriate inherit attribute for new directories */
   if (S_ISDIR (attribute) && (attribute & S_JUSTCREATED))
     {
@@ -663,7 +657,6 @@ alloc_sd (path_conv &pc, __uid32_t uid, __gid32_t gid, int attribute,
 				   well_known_world_sid, acl_len, inherit))
 	return NULL;
     }
-#endif
 
   /* Set AclSize to computed value. */
   acl->AclSize = acl_len;