diff --git a/.bazelci/presubmit.yml b/.bazelci/presubmit.yml
index 927228e14..8ecdd998b 100644
--- a/.bazelci/presubmit.yml
+++ b/.bazelci/presubmit.yml
@@ -197,4 +197,64 @@ tasks:
     build_targets:
       - "//java/com/basicapp:basic_app"
       - "//java/com/basicapp:basic_app_bundle"
-
+  ubuntu2004_databinding:
+    name: "Databinding Basic app ubuntu"
+    platform: ubuntu2004
+    working_directory: examples/databinding
+    build_flags:
+      <<: *rules_flags
+      ? "--@rules_android//rules/flags:databinding_use_androidx"
+    build_targets:
+      - "//java/com/databindingapp:databindingapp"
+  ubuntu2004_databinding_bzlmod:
+    name: "Databinding Basic app ubuntu bzlmod"
+    platform: ubuntu2004
+    working_directory: examples/databinding
+    build_flags:
+      <<: *rules_flags
+      ? "--enable_bzlmod"
+      ? "--enable_workspace=false"
+      ? "--@rules_android//rules/flags:databinding_use_androidx"
+    build_targets:
+      - "//java/com/databindingapp:databindingapp"
+  macos_arm64_databinding:
+    name: "Databinding Basic app mac arm64"
+    platform: macos_arm64
+    working_directory: examples/databinding
+    build_flags:
+      <<: *rules_flags
+      ? "--@rules_android//rules/flags:databinding_use_androidx"
+    build_targets:
+      - "//java/com/databindingapp:databindingapp"
+  macos_arm64_databinding_bzlmod:
+    name: "Databinding Basic app mac arm64 bzlmod"
+    platform: macos_arm64
+    working_directory: examples/databinding
+    build_flags:
+      <<: *rules_flags
+      ? "--enable_bzlmod"
+      ? "--enable_workspace=false"
+      ? "--@rules_android//rules/flags:databinding_use_androidx"
+    build_targets:
+      - "//java/com/databindingapp:databindingapp"
+  # n.b. The below do not build.
+  # windows_databinding_bzlmod:
+  #   name: "Databinding Basic app Windows Bzlmod"
+  #   platform: windows
+  #   working_directory: examples/databinding
+  #   build_flags:
+  #     <<: *rules_flags
+  #     ? "--enable_bzlmod"
+  #     ? "--enable_workspace=false"
+  #     ? "--@rules_android//rules/flags:databinding_use_androidx"
+  #   build_targets:
+  #     - "//java/com/databindingapp:databindingapp"
+  # windows_databinding:
+  #   name: "Databinding Basic app Windows"
+  #   platform: windows
+  #   working_directory: examples/databinding
+  #   build_flags:
+  #     <<: *rules_flags
+  #     ? "--@rules_android//rules/flags:databinding_use_androidx"
+  #   build_targets:
+  #     - "//java/com/databindingapp:databindingapp"
diff --git a/.bazelrc b/.bazelrc
index faa25c257..1c72780d6 100644
--- a/.bazelrc
+++ b/.bazelrc
@@ -1,7 +1,7 @@
 common --java_language_version=17
-common --java_runtime_version=17
+common --java_runtime_version=remotejdk_17
 common --tool_java_language_version=17
-common --tool_java_runtime_version=17
+common --tool_java_runtime_version=remotejdk_17
 
 # Workaround for a rules_java + bazel < 8.3.0 issue. It should only be relevant
 # for bazel@HEAD and rolling releases.
diff --git a/examples/databinding/.bazelrc b/examples/databinding/.bazelrc
new file mode 100644
index 000000000..d381541ae
--- /dev/null
+++ b/examples/databinding/.bazelrc
@@ -0,0 +1,9 @@
+common:core_library_desugaring --desugar_java8_libs
+
+common --java_runtime_version=remotejdk_17
+common --tool_java_runtime_version=remotejdk_17
+
+# Flags to enable mobile-install v3
+mobile-install --mode=skylark --mobile_install_aspect=@rules_android//mobile_install:mi.bzl --mobile_install_supported_rules=android_binary
+# Required to invoke the Studio deployer jar
+mobile-install --tool_java_runtime_version=17
diff --git a/examples/databinding/.gitignore b/examples/databinding/.gitignore
new file mode 100644
index 000000000..63f1fef0e
--- /dev/null
+++ b/examples/databinding/.gitignore
@@ -0,0 +1 @@
+*.lock
diff --git a/examples/databinding/BUILD b/examples/databinding/BUILD
new file mode 100644
index 000000000..a09fce916
--- /dev/null
+++ b/examples/databinding/BUILD
@@ -0,0 +1 @@
+# Empty build file to satisfy gazelle for rules_go.
\ No newline at end of file
diff --git a/examples/databinding/MODULE.bazel b/examples/databinding/MODULE.bazel
new file mode 100644
index 000000000..9ca90efee
--- /dev/null
+++ b/examples/databinding/MODULE.bazel
@@ -0,0 +1,52 @@
+module(
+    name = "databinding",
+)
+
+bazel_dep(name = "rules_java", version = "7.12.2")
+bazel_dep(name = "bazel_skylib", version = "1.3.0")
+bazel_dep(name = "rules_jvm_external", version = "6.6")
+
+bazel_dep(
+    name = "rules_android",
+    version = "0.6.3",
+)
+
+local_path_override(
+    module_name = "rules_android",
+    path = "../../",
+)
+
+remote_android_extensions = use_extension(
+    "@rules_android//bzlmod_extensions:android_extensions.bzl",
+    "remote_android_tools_extensions")
+use_repo(remote_android_extensions, "android_gmaven_r8", "android_tools")
+
+android_sdk_repository_extension = use_extension("@rules_android//rules/android_sdk_repository:rule.bzl", "android_sdk_repository_extension")
+use_repo(android_sdk_repository_extension, "androidsdk")
+
+register_toolchains("@androidsdk//:sdk-toolchain", "@androidsdk//:all")
+
+
+maven = use_extension("@rules_jvm_external//:extensions.bzl", "maven")
+maven.install(
+    name = "maven",
+    aar_import_bzl_label = "@rules_android//rules:rules.bzl",
+    artifacts = [
+        "androidx.annotation:annotation-jvm:1.9.1",
+        "androidx.databinding:databinding-adapters:8.7.0",
+        "androidx.databinding:databinding-runtime:8.7.0",
+    ],
+    repositories = [
+        "https://maven.google.com",
+        "https://repo1.maven.org/maven2",
+        "https://repo.gradle.org/gradle/libs-releases",
+    ],
+    # To generate, run:
+    # REPIN=1 bazelisk run --enable_bzlmod @maven//:pin
+    # lock_file = "//:maven_install.json",
+    use_starlark_android_rules = True,
+)
+use_repo(
+    maven,
+    "maven",
+)
diff --git a/examples/databinding/README.md b/examples/databinding/README.md
new file mode 100644
index 000000000..183e122ed
--- /dev/null
+++ b/examples/databinding/README.md
@@ -0,0 +1,8 @@
+To build, ensure that the `ANDROID_HOME` environment variable is set to the path
+to an Android SDK, and run:
+
+```
+bazel build java/com/basicapp:basic_app
+```
+
+See the `.bazelrc` file for flags needed to build the app.
\ No newline at end of file
diff --git a/examples/databinding/WORKSPACE b/examples/databinding/WORKSPACE
new file mode 100644
index 000000000..85827cb9e
--- /dev/null
+++ b/examples/databinding/WORKSPACE
@@ -0,0 +1,60 @@
+local_repository(
+    name = "rules_android",
+    path = "../..", # rules_android's WORKSPACE relative to this inner workspace
+)
+
+# --SNIP--: Everything below this line goes into the example WORKSPACE snippet in the release notes.
+
+# Android rules dependencies
+load("@rules_android//:prereqs.bzl", "rules_android_prereqs")
+rules_android_prereqs()
+
+##### rules_java setup for rules_android #####
+load("@rules_java//java:rules_java_deps.bzl", "rules_java_dependencies")
+rules_java_dependencies()
+# note that the following line is what is minimally required from protobuf for the java rules
+# consider using the protobuf_deps() public API from @com_google_protobuf//:protobuf_deps.bzl
+load("@com_google_protobuf//bazel/private:proto_bazel_features.bzl", "proto_bazel_features")  # buildifier: disable=bzl-visibility
+proto_bazel_features(name = "proto_bazel_features")
+# register toolchains
+load("@rules_java//java:repositories.bzl", "rules_java_toolchains")
+rules_java_toolchains()
+
+##### rules_jvm_external setup for rules_android #####
+load("@rules_jvm_external//:repositories.bzl", "rules_jvm_external_deps")
+rules_jvm_external_deps()
+load("@rules_jvm_external//:setup.bzl", "rules_jvm_external_setup")
+rules_jvm_external_setup()
+
+load("@rules_jvm_external//:defs.bzl", "maven_install")
+
+maven_install(
+    name = "maven",
+    artifacts = [
+        "androidx.annotation:annotation-jvm:1.9.1",
+        "androidx.databinding:databinding-adapters:8.7.0",
+        "androidx.databinding:databinding-runtime:8.7.0",
+        "com.google.protobuf:protobuf-java:4.27.2",
+        "com.google.protobuf:protobuf-java-util:4.27.2",
+    ],
+    repositories = [
+        "https://maven.google.com",
+        "https://repo1.maven.org/maven2",
+        "https://repo.gradle.org/gradle/libs-releases",
+    ],
+)
+
+##### rules_android setup #####
+load("@rules_android//:defs.bzl", "rules_android_workspace")
+rules_android_workspace()
+
+# Android SDK setup
+load("@rules_android//rules:rules.bzl", "android_sdk_repository")
+android_sdk_repository(
+    name = "androidsdk",
+)
+
+register_toolchains(
+    "@rules_android//toolchains/android:android_default_toolchain",
+    "@rules_android//toolchains/android_sdk:android_sdk_tools",
+)
diff --git a/examples/databinding/WORKSPACE.bzlmod b/examples/databinding/WORKSPACE.bzlmod
new file mode 100644
index 000000000..172da6f27
--- /dev/null
+++ b/examples/databinding/WORKSPACE.bzlmod
@@ -0,0 +1 @@
+workspace(name = "basicapp")
diff --git a/examples/databinding/java/com/databindingapp/AndroidManifest.xml b/examples/databinding/java/com/databindingapp/AndroidManifest.xml
new file mode 100644
index 000000000..19e9358df
--- /dev/null
+++ b/examples/databinding/java/com/databindingapp/AndroidManifest.xml
@@ -0,0 +1,22 @@
+<?xml version="1.0" encoding="utf-8"?>
+<manifest xmlns:android="http://schemas.android.com/apk/res/android"
+    package="com.databindingapp" >
+
+    <uses-sdk
+        android:minSdkVersion="21"
+        android:targetSdkVersion="30" />
+
+    <application
+        android:allowBackup="true"
+        android:icon="@drawable/ic_launcher"
+        android:label="@string/app_name" >
+        <activity
+            android:name="com.databindingapp.DataBindingMainActivity"
+            android:exported="true">
+            <intent-filter>
+                <action android:name="android.intent.action.MAIN" />
+                <category android:name="android.intent.category.LAUNCHER" />
+            </intent-filter>
+        </activity>
+    </application>
+</manifest>
diff --git a/examples/databinding/java/com/databindingapp/BUILD b/examples/databinding/java/com/databindingapp/BUILD
new file mode 100644
index 000000000..9de03a021
--- /dev/null
+++ b/examples/databinding/java/com/databindingapp/BUILD
@@ -0,0 +1,24 @@
+load("@rules_android//android:rules.bzl", "android_binary", "android_library")
+
+android_binary(
+    name = "databindingapp",
+    manifest = "AndroidManifest.xml",
+    enable_data_binding = True,
+    deps = [
+        ":databinding_lib",
+        "@maven//:androidx_databinding_databinding_runtime",
+    ],
+)
+
+android_library(
+    name = "databinding_lib",
+    srcs = ["DataBindingMainActivity.java"],
+    manifest = "AndroidManifest.xml",
+    resource_files = glob(["res/**"]),
+    enable_data_binding = True,
+    deps = [
+        "@maven//:androidx_annotation_annotation_jvm",
+        "@maven//:androidx_databinding_databinding_adapters",
+        "@maven//:androidx_databinding_databinding_runtime",
+    ],
+)
diff --git a/examples/databinding/java/com/databindingapp/DataBindingMainActivity.java b/examples/databinding/java/com/databindingapp/DataBindingMainActivity.java
new file mode 100644
index 000000000..48fe1de0b
--- /dev/null
+++ b/examples/databinding/java/com/databindingapp/DataBindingMainActivity.java
@@ -0,0 +1,51 @@
+// Copyright 2022 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.databindingapp;
+
+import android.app.Activity;
+import android.os.Bundle;
+import android.view.Menu;
+import android.view.View;
+import android.widget.Button;
+import android.widget.TextView;
+import com.databindingapp.databinding.ActivityDataBindingBinding;
+
+import java.util.Random;
+
+/**
+ * The main activity of the Basic Sample App.
+ */
+public class DataBindingMainActivity extends Activity {
+
+  @Override
+  protected void onCreate(Bundle savedInstanceState) {
+    super.onCreate(savedInstanceState);
+
+    ActivityDataBindingBinding binding = ActivityDataBindingBinding.inflate(getLayoutInflater());
+
+    Random random = new Random();
+    binding.setShowFizz(random.nextDouble() < 0.5);
+    binding.setShowBuzz(random.nextDouble() < 0.5);
+
+    setContentView(binding.getRoot());
+  }
+
+  @Override
+  public boolean onCreateOptionsMenu(Menu menu) {
+    // Inflate the menu; this adds items to the action bar if it is present.
+    getMenuInflater().inflate(R.menu.menu, menu);
+    return true;
+  }
+}
diff --git a/examples/databinding/java/com/databindingapp/res/drawable-hdpi/ic_launcher.png b/examples/databinding/java/com/databindingapp/res/drawable-hdpi/ic_launcher.png
new file mode 100644
index 000000000..6ab2adde2
Binary files /dev/null and b/examples/databinding/java/com/databindingapp/res/drawable-hdpi/ic_launcher.png differ
diff --git a/examples/databinding/java/com/databindingapp/res/drawable-mdpi/ic_launcher.png b/examples/databinding/java/com/databindingapp/res/drawable-mdpi/ic_launcher.png
new file mode 100644
index 000000000..c0a73c33d
Binary files /dev/null and b/examples/databinding/java/com/databindingapp/res/drawable-mdpi/ic_launcher.png differ
diff --git a/examples/databinding/java/com/databindingapp/res/drawable-xhdpi/ic_launcher.png b/examples/databinding/java/com/databindingapp/res/drawable-xhdpi/ic_launcher.png
new file mode 100644
index 000000000..014b0f106
Binary files /dev/null and b/examples/databinding/java/com/databindingapp/res/drawable-xhdpi/ic_launcher.png differ
diff --git a/examples/databinding/java/com/databindingapp/res/drawable-xxhdpi/ic_launcher.png b/examples/databinding/java/com/databindingapp/res/drawable-xxhdpi/ic_launcher.png
new file mode 100644
index 000000000..20703a15c
Binary files /dev/null and b/examples/databinding/java/com/databindingapp/res/drawable-xxhdpi/ic_launcher.png differ
diff --git a/examples/databinding/java/com/databindingapp/res/layout/activity_data_binding.xml b/examples/databinding/java/com/databindingapp/res/layout/activity_data_binding.xml
new file mode 100644
index 000000000..d4bc445e2
--- /dev/null
+++ b/examples/databinding/java/com/databindingapp/res/layout/activity_data_binding.xml
@@ -0,0 +1,39 @@
+<?xml version="1.0" encoding="utf-8"?>
+<layout xmlns:android="http://schemas.android.com/apk/res/android"
+    xmlns:app="http://schemas.android.com/apk/res-auto"
+    xmlns:tools="http://schemas.android.com/tools">
+
+    <data>
+        <import type="android.view.View" />
+        <variable name="showBuzz" type="Boolean" />
+        <variable name="showFizz" type="Boolean" />
+    </data>
+
+    <LinearLayout
+                  android:layout_width="match_parent"
+                  android:layout_height="match_parent"
+                  android:orientation="vertical" >
+
+        <TextView
+            android:id="@+id/helloText"
+            android:text="@string/hello_world"
+            android:layout_width="wrap_content"
+            android:layout_height="wrap_content" />
+
+        <Button
+            android:id="@+id/fizzButton"
+            android:layout_height="wrap_content"
+            android:layout_width="wrap_content"
+            android:text="fizz"
+            android:visibility="@{showFizz ? View.VISIBLE : View.GONE}"
+        />
+        <Button
+            android:id="@+id/buzzButton"
+            android:layout_height="wrap_content"
+            android:layout_width="wrap_content"
+            android:text="buzz"
+            android:visibility="@{showBuzz ? View.VISIBLE : View.GONE}"
+        />
+
+    </LinearLayout>
+</layout>
diff --git a/examples/databinding/java/com/databindingapp/res/menu/menu.xml b/examples/databinding/java/com/databindingapp/res/menu/menu.xml
new file mode 100644
index 000000000..a56bed69f
--- /dev/null
+++ b/examples/databinding/java/com/databindingapp/res/menu/menu.xml
@@ -0,0 +1,8 @@
+<menu xmlns:android="http://schemas.android.com/apk/res/android"
+    xmlns:app="http://schemas.android.com/apk/res-auto"
+    xmlns:tools="http://schemas.android.com/tools"
+    tools:context="com.basicapp.BasicActivity" >
+    <item android:id="@+id/action_settings"
+        android:title="@string/action_settings"
+        android:orderInCategory="100" />
+</menu>
diff --git a/examples/databinding/java/com/databindingapp/res/values/dimens.xml b/examples/databinding/java/com/databindingapp/res/values/dimens.xml
new file mode 100644
index 000000000..47c822467
--- /dev/null
+++ b/examples/databinding/java/com/databindingapp/res/values/dimens.xml
@@ -0,0 +1,5 @@
+<resources>
+    <!-- Default screen margins, per the Android Design guidelines. -->
+    <dimen name="activity_horizontal_margin">16dp</dimen>
+    <dimen name="activity_vertical_margin">16dp</dimen>
+</resources>
diff --git a/examples/databinding/java/com/databindingapp/res/values/strings.xml b/examples/databinding/java/com/databindingapp/res/values/strings.xml
new file mode 100644
index 000000000..38e8d58d8
--- /dev/null
+++ b/examples/databinding/java/com/databindingapp/res/values/strings.xml
@@ -0,0 +1,8 @@
+<?xml version="1.0" encoding="utf-8"?>
+<resources>
+
+    <string name="app_name" translatable="false">Data Binding App</string>
+    <string name="hello_world" translatable="false">Hello world!</string>
+    <string name="action_settings" translatable="false">Settings</string>
+
+</resources>
diff --git a/rules/BUILD b/rules/BUILD
index b0d524b10..918fc1e07 100644
--- a/rules/BUILD
+++ b/rules/BUILD
@@ -3,7 +3,8 @@ load("@bazel_skylib//rules:common_settings.bzl", "int_setting")
 load("@rules_java//java:defs.bzl", "java_library")
 
 exports_files([
-    "data_binding_annotation_template.txt",
+    "data_binding_annotation_template_androidx.txt",
+    "data_binding_annotation_template_support_lib.txt",
     "res_v3_dummy_AndroidManifest.xml",
     "res_v3_dummy_R.txt",
     "robolectric_properties_template.txt",
diff --git a/rules/aar_import/impl.bzl b/rules/aar_import/impl.bzl
index e3da4dadd..e32dfa362 100644
--- a/rules/aar_import/impl.bzl
+++ b/rules/aar_import/impl.bzl
@@ -96,17 +96,19 @@ def _extract_resources(
         ctx,
         out_resources_dir,
         out_assets_dir,
+        out_databinding_setter_store_dir,
         aar,
         aar_resources_extractor_tool):
     args = ctx.actions.args()
     args.add("--input_aar", aar)
     args.add("--output_res_dir", out_resources_dir.path)
     args.add("--output_assets_dir", out_assets_dir.path)
+    args.add("--output_databinding_setter_store_dir", out_databinding_setter_store_dir.path)
     ctx.actions.run(
         executable = aar_resources_extractor_tool,
         arguments = [args],
         inputs = [aar],
-        outputs = [out_resources_dir, out_assets_dir],
+        outputs = [out_resources_dir, out_assets_dir, out_databinding_setter_store_dir],
         mnemonic = "AarResourcesExtractor",
         progress_message = "Extracting resources and assets from %s" % aar.basename,
         toolchain = None,
@@ -143,10 +145,12 @@ def _process_resources(
     # Extract resources and assets, if they exist.
     resources = _create_aar_tree_artifact(ctx, "resources")
     assets = _create_aar_tree_artifact(ctx, "assets")
+    data_binding_setter_store = _create_aar_tree_artifact(ctx, "data_binding_setter_store")
     _extract_resources(
         ctx,
         resources,
         assets,
+        data_binding_setter_store,
         aar,
         aar_resources_extractor_tool,
     )
@@ -157,6 +161,7 @@ def _process_resources(
         assets = [assets],
         assets_dir = assets.path,
         resource_files = [resources],
+        data_binding_setter_store = data_binding_setter_store,
         stamp_manifest = False,
         deps = ctx.attr.deps,
         exports = ctx.attr.exports,
diff --git a/rules/android_binary/attrs.bzl b/rules/android_binary/attrs.bzl
index aac6bf063..81f521769 100644
--- a/rules/android_binary/attrs.bzl
+++ b/rules/android_binary/attrs.bzl
@@ -250,6 +250,9 @@ ATTRS = _attrs.replace(
                 Allow for the optimizer to process resources. This is not supported in proguard.
                 """,
             ),
+            _databinding_use_androidx = attr.label(
+                default = "//rules/flags:databinding_use_androidx",
+            ),
         ),
         _attrs.compilation_attributes(apply_android_transition = True),
         _attrs.DATA_CONTEXT,
diff --git a/rules/android_binary/impl.bzl b/rules/android_binary/impl.bzl
index d567a900e..1db7cdca5 100644
--- a/rules/android_binary/impl.bzl
+++ b/rules/android_binary/impl.bzl
@@ -189,6 +189,13 @@ def _process_proto(_unused_ctx, **_unused_ctxs):
 def _process_data_binding(ctx, java_package, packaged_resources_ctx, **_unused_ctxs):
     if ctx.attr.enable_data_binding and not acls.in_databinding_allowed(str(ctx.label)):
         fail("This target is not allowed to use databinding and enable_data_binding is True.")
+
+    if ctx.attr._databinding_use_androidx[BuildSettingInfo].value:
+        template = get_android_toolchain(ctx).data_binding_annotation_template_androidx
+    else:
+        template = get_android_toolchain(ctx).data_binding_annotation_template_support_lib
+    data_binding_annotation_template = utils.only(template.files.to_list())
+
     return ProviderInfo(
         name = "db_ctx",
         value = data_binding.process(
@@ -202,8 +209,7 @@ def _process_data_binding(ctx, java_package, packaged_resources_ctx, **_unused_c
             data_binding_exec = get_android_toolchain(ctx).data_binding_exec.files_to_run,
             data_binding_annotation_processor =
                 get_android_toolchain(ctx).data_binding_annotation_processor[JavaPluginInfo],
-            data_binding_annotation_template =
-                utils.only(get_android_toolchain(ctx).data_binding_annotation_template.files.to_list()),
+            data_binding_annotation_template = data_binding_annotation_template,
         ),
     )
 
diff --git a/rules/android_library/attrs.bzl b/rules/android_library/attrs.bzl
index 00e02137f..97363cdd2 100644
--- a/rules/android_library/attrs.bzl
+++ b/rules/android_library/attrs.bzl
@@ -243,6 +243,9 @@ ATTRS = _attrs.add(
         _aidl_lib = attr.label(
             default = Label("//rules:aidl_lib"),
         ),
+        _databinding_use_androidx = attr.label(
+            default = "//rules/flags:databinding_use_androidx",
+        ),
     ),
     _attrs.compilation_attributes(),
     _attrs.DATA_CONTEXT,
diff --git a/rules/android_library/impl.bzl b/rules/android_library/impl.bzl
index 3d4497a43..dbe330be8 100644
--- a/rules/android_library/impl.bzl
+++ b/rules/android_library/impl.bzl
@@ -33,6 +33,7 @@ load("//rules:visibility.bzl", "PROJECT_VISIBILITY")
 load("//rules/flags:flags.bzl", _flags = "flags")
 load("@rules_cc//cc/common:cc_common.bzl", "cc_common")
 load("@rules_cc//cc/common:cc_info.bzl", "CcInfo")
+load("@bazel_skylib//rules:common_settings.bzl", "BuildSettingInfo")
 load("@rules_java//java/common:java_info.bzl", "JavaInfo")
 load("@rules_java//java/common:java_plugin_info.bzl", "JavaPluginInfo")
 load("@rules_java//java/common:proguard_spec_info.bzl", "ProguardSpecInfo")
@@ -237,6 +238,13 @@ def _process_idl(ctx, **unused_sub_ctxs):
 def _process_data_binding(ctx, java_package, resources_ctx, **unused_sub_ctxs):
     if ctx.attr.enable_data_binding and not acls.in_databinding_allowed(str(ctx.label)):
         fail("This target is not allowed to use databinding and enable_data_binding is True.")
+
+    if ctx.attr._databinding_use_androidx[BuildSettingInfo].value:
+        template = get_android_toolchain(ctx).data_binding_annotation_template_androidx
+    else:
+        template = get_android_toolchain(ctx).data_binding_annotation_template_support_lib
+    data_binding_annotation_template = utils.only(template.files.to_list())
+
     return ProviderInfo(
         name = "db_ctx",
         value = _data_binding.process(
@@ -250,8 +258,7 @@ def _process_data_binding(ctx, java_package, resources_ctx, **unused_sub_ctxs):
             data_binding_exec = get_android_toolchain(ctx).data_binding_exec.files_to_run,
             data_binding_annotation_processor =
                 get_android_toolchain(ctx).data_binding_annotation_processor,
-            data_binding_annotation_template =
-                utils.only(get_android_toolchain(ctx).data_binding_annotation_template.files.to_list()),
+            data_binding_annotation_template = data_binding_annotation_template,
         ),
     )
 
diff --git a/rules/busybox.bzl b/rules/busybox.bzl
index 164df4fdc..b69cde653 100644
--- a/rules/busybox.bzl
+++ b/rules/busybox.bzl
@@ -13,6 +13,7 @@
 # limitations under the License.
 """Bazel ResourcesBusyBox Commands."""
 
+load("@bazel_skylib//rules:common_settings.bzl", "BuildSettingInfo")
 load("//rules:visibility.bzl", "PROJECT_VISIBILITY")
 load(":java.bzl", _java = "java")
 
@@ -984,6 +985,7 @@ def _process_databinding(
     args.add_all(res_dirs, before_each = "--resource_root")
     args.add("--dataBindingInfoOut", out_databinding_info)
     args.add("--appId", java_package)
+    args.add("--useDataBindingAndroidX", ctx.attr._databinding_use_androidx[BuildSettingInfo].value)
 
     _set_warning_level(ctx, args)
 
diff --git a/rules/data_binding.bzl b/rules/data_binding.bzl
index 9039cba35..187097c41 100644
--- a/rules/data_binding.bzl
+++ b/rules/data_binding.bzl
@@ -13,6 +13,7 @@
 # limitations under the License.
 """Bazel Android Data Binding."""
 
+load("@bazel_skylib//rules:common_settings.bzl", "BuildSettingInfo")
 load("//providers:providers.bzl", "DataBindingV2Info")
 load("//rules:visibility.bzl", "PROJECT_VISIBILITY")
 load(":utils.bzl", "ANDROID_TOOLCHAIN_TYPE", _utils = "utils")
@@ -54,7 +55,7 @@ def _copy_annotation_file(ctx, output_dir, annotation_template):
     annotation_out = ctx.actions.declare_file(
         output_dir + "/android/databinding/layouts/DataBindingInfo.java",
     )
-    _utils.copy_file(ctx, annotation_template, annotation_out)
+    ctx.actions.symlink(output = annotation_out, target_file = annotation_template)
     return annotation_out
 
 def _gen_sources(ctx, output_dir, java_package, deps, layout_info, data_binding_exec):
@@ -67,7 +68,7 @@ def _gen_sources(ctx, output_dir, java_package, deps, layout_info, data_binding_
     args.add("-classInfoOut", class_info)
     args.add("-sourceOut", srcjar)
     args.add("-zipSourceOutput", "true")
-    args.add("-useAndroidX", "false")
+    args.add("-useAndroidX", ctx.attr._databinding_use_androidx[BuildSettingInfo].value)
 
     if deps:
         if type(deps[0].class_infos) == "depset":
@@ -117,9 +118,15 @@ def _setup_dependent_lib_artifacts(ctx, output_dir, deps):
             path = artifact.short_path
             if path.startswith("../"):
                 path = path[3:]
-            dep_lib_artifact = ctx.actions.declare_file(
-                output_dir + "dependent-lib-artifacts/" + path,
-            )
+            dep_lib_artifact_path = output_dir + "dependent-lib-artifacts/" + path
+            if artifact.is_directory:
+                dep_lib_artifact = ctx.actions.declare_directory(
+                    output_dir + "dependent-lib-artifacts/" + path,
+                )
+            else:
+                dep_lib_artifact = ctx.actions.declare_file(
+                    output_dir + "dependent-lib-artifacts/" + path,
+                )
 
             # Copy file to a location required by the DataBinding annotation
             # processor.
@@ -254,11 +261,11 @@ def _process(
     if defines_resources:
         # Outputs of the Data Binding annotation processor.
         br_out = ctx.actions.declare_file(
-            output_dir + "bin-files/%s-br.bin" % java_package,
+            output_dir + "bin-files/%s--br.bin" % java_package,
         )
         db_info[_JAVA_ANNOTATION_PROCESSOR_ADDITIONAL_OUTPUTS].append(br_out)
         setter_store_out = ctx.actions.declare_file(
-            output_dir + "bin-files/%s-setter_store.json" % java_package,
+            output_dir + "bin-files/%s--setter_store.json" % java_package,
         )
         db_info[_JAVA_ANNOTATION_PROCESSOR_ADDITIONAL_OUTPUTS].append(
             setter_store_out,
@@ -321,6 +328,19 @@ def _process(
 
     return DataBindingContextInfo(**db_info)
 
+def _process_aar(
+    ctx,
+    data_binding_setter_store):
+    """Builds a data binding provider for an AAR's extracted setter store
+    """
+    return DataBindingV2Info(
+        setter_stores = depset(direct = [data_binding_setter_store]),
+        class_infos = depset(),
+        transitive_br_files = depset(),
+        java_packages = [],
+    )
+
 data_binding = struct(
     process = _process,
+    process_aar = _process_aar,
 )
diff --git a/rules/data_binding_annotation_template_androidx.txt b/rules/data_binding_annotation_template_androidx.txt
new file mode 100644
index 000000000..6625f5254
--- /dev/null
+++ b/rules/data_binding_annotation_template_androidx.txt
@@ -0,0 +1,13 @@
+package android.databinding.layouts;
+
+import androidx.databinding.BindingBuildInfo;
+
+/**
+ * Template for the file that feeds data binding's annotation processor. The
+ * processor reads the values set here to generate .java files that link XML
+ * data binding declarations (from layoutInfoDir) to app code.
+ */
+@BindingBuildInfo
+public class DataBindingInfo {
+  /* This only exists for annotation processing. */
+}
diff --git a/rules/data_binding_annotation_template.txt b/rules/data_binding_annotation_template_support_lib.txt
similarity index 100%
rename from rules/data_binding_annotation_template.txt
rename to rules/data_binding_annotation_template_support_lib.txt
diff --git a/rules/flags/additional_flags.bzl b/rules/flags/additional_flags.bzl
index 687ff9f00..c7481021d 100644
--- a/rules/flags/additional_flags.bzl
+++ b/rules/flags/additional_flags.bzl
@@ -13,7 +13,7 @@
 # limitations under the License.
 """Additional flag definitions."""
 
-load("@bazel_skylib//rules:common_settings.bzl", "string_flag")
+load("@bazel_skylib//rules:common_settings.bzl", "bool_flag", "string_flag")
 
 def additional_flags():
 
@@ -28,4 +28,10 @@ def additional_flags():
             "dependency",
         ],
         visibility = ["//visibility:public"],
-    )
\ No newline at end of file
+    )
+
+    bool_flag(
+        name = "databinding_use_androidx",
+        build_setting_default = False,
+        visibility = ["//visibility:public"],
+    )
diff --git a/rules/resources.bzl b/rules/resources.bzl
index f266a9841..ca8266a6c 100644
--- a/rules/resources.bzl
+++ b/rules/resources.bzl
@@ -16,6 +16,7 @@
 load("//providers:providers.bzl", "AndroidLibraryResourceClassJarProvider", "ResourcesNodeInfo", "StarlarkAndroidResourcesInfo")
 load("//rules:acls.bzl", "acls")
 load("//rules:add_constraints.bzl", "add_constraints")
+load("//rules:data_binding.bzl", _data_binding = "data_binding")
 load("//rules:min_sdk_version.bzl", _min_sdk_version = "min_sdk_version")
 load("//rules:visibility.bzl", "PROJECT_VISIBILITY")
 load("@rules_java//java/common:java_info.bzl", "JavaInfo")
@@ -378,8 +379,7 @@ OUT_DIR=$(mktemp -d)
 CUR_PWD=$(pwd)
 
 if zipinfo -t "$1"; then
-    # Use awk instead of 'head -n -2' for macOS compatibility (BSD head doesn't support negative counts)
-    ORDERED_LIST=`(unzip -l "$1" | sed -e '1,3d' | awk '{lines[NR]=$0} END{for(i=1;i<=NR-2;i++) print lines[i]}' | tr -s " " | cut -d " " -f5)`
+    ORDERED_LIST=`(zipinfo -1 "$1" | sort)`
 
     unzip -q "$1" -d "$IN_DIR"
 
@@ -389,7 +389,7 @@ if zipinfo -t "$1"; then
         cd "$IN_DIR"
         if [ -f "$FILE" ]; then
             # Use sed with backup extension for macOS compatibility, then remove backup
-            sed -i.bak 's/Databinding\\-processed\\-resources/databinding\\-processed\\-resources/g' "$FILE" && rm -f "$FILE.bak"
+            LC_ALL=C sed -i.bak 's/Databinding\\-processed\\-resources/databinding\\-processed\\-resources/g' "$FILE" && rm -f "$FILE.bak"
             NEW_NAME=`echo "$FILE" | sed 's/Databinding\\-processed\\-resources/databinding\\-processed\\-resources/g' | sed 's#'"$IN_DIR"'/##g'`
             mkdir -p `dirname "$OUT_DIR/$NEW_NAME"` && touch "$OUT_DIR/$NEW_NAME"
             cp -p "$FILE" "$OUT_DIR/$NEW_NAME"
@@ -1200,6 +1200,7 @@ def _process_starlark(
         resource_files = None,
         neverlink = False,
         enable_data_binding = False,
+        data_binding_setter_store = None,
         fix_resource_transitivity = False,
         aapt = None,
         android_jar = None,
@@ -1380,6 +1381,12 @@ def _process_starlark(
     data_binding_layout_info = None
     processed_resources = resource_files
     processed_manifest = None
+
+    if data_binding_setter_store != None:
+        resources_ctx[_PROVIDERS].append(
+            _data_binding.process_aar(ctx, data_binding_setter_store)
+        )
+
     if not defines_resources:
         if aapt:
             # Generate an empty manifest with the right package
diff --git a/rules/utils.bzl b/rules/utils.bzl
index d0f5b555d..2e4d3c080 100644
--- a/rules/utils.bzl
+++ b/rules/utils.bzl
@@ -212,7 +212,7 @@ def _copy_file(ctx, src, dest):
     if src.is_directory or dest.is_directory:
         fail("Cannot use copy_file with directories")
     ctx.actions.run_shell(
-        command = "cp --reflink=auto $1 $2",
+        command = "cp $1 $2",
         arguments = [src.path, dest.path],
         inputs = [src],
         outputs = [dest],
@@ -224,7 +224,7 @@ def _copy_dir(ctx, src, dest):
     if not src.is_directory:
         fail("copy_dir src must be a directory")
     ctx.actions.run_shell(
-        command = "cp -r --reflink=auto $1 $2",
+        command = "cp -r $1 $2",
         arguments = [src.path, dest.path],
         inputs = [src],
         outputs = [dest],
diff --git a/src/tools/java/com/google/devtools/build/android/AndroidResourceProcessor.java b/src/tools/java/com/google/devtools/build/android/AndroidResourceProcessor.java
index b0f0d4b45..830bfa372 100644
--- a/src/tools/java/com/google/devtools/build/android/AndroidResourceProcessor.java
+++ b/src/tools/java/com/google/devtools/build/android/AndroidResourceProcessor.java
@@ -305,7 +305,7 @@ static Path processDataBindings(
 
     ProcessXmlOptionsWrapper options = new ProcessXmlOptionsWrapper();
     options.setAppId(packagePath);
-    options.setResInput(inputResourcesDir.toFile());
+    options.setResInput(inputResourcesDir.toFile().getAbsoluteFile());
     options.setResOutput(processedResourceDir.toFile());
     options.setLayoutInfoOutput(dataBindingInfoOut.toFile());
     options.setUseAndroidX(useDataBindingAndroidX);
diff --git a/src/tools/java/com/google/devtools/build/android/BUILD b/src/tools/java/com/google/devtools/build/android/BUILD
index fd3282074..8d01f17ca 100644
--- a/src/tools/java/com/google/devtools/build/android/BUILD
+++ b/src/tools/java/com/google/devtools/build/android/BUILD
@@ -41,6 +41,21 @@ run_singlejar(
     out = "databinding_exec.jar",
     include_prefixes = [
         "android/databinding/",
+        "androidx/databinding/",
+        "api-versions.xml",
+        "com/android/tools/build/jetifier",
+        "com/google/auto",
+        "com/google/common/base/",
+        "com/google/common/collect/",
+        "com/google/common/primitives/",
+        "com/google/gson/",
+        "com/squareup/javapoet/",
+        "com/sun/istack/",
+        "com/sun/xml/",
+        "default.generated.config",
+        "javax/activation/",
+        "javax/xml/",
+        "kotlin/",
         "org/antlr/",
         "org/apache/commons/",
         "org/mozilla",
diff --git a/toolchains/android/toolchain.bzl b/toolchains/android/toolchain.bzl
index 98fb7773e..e2b9dc71b 100644
--- a/toolchains/android/toolchain.bzl
+++ b/toolchains/android/toolchain.bzl
@@ -118,8 +118,12 @@ _ATTRS = dict(
         cfg = "exec",
         default = "//tools/android:compiler_annotation_processor",
     ),
-    data_binding_annotation_template = attr.label(
-        default = "//rules:data_binding_annotation_template.txt",
+    data_binding_annotation_template_androidx = attr.label(
+        default = "//rules:data_binding_annotation_template_androidx.txt",
+        allow_files = True,
+    ),
+    data_binding_annotation_template_support_lib = attr.label(
+        default = "//rules:data_binding_annotation_template_support_lib.txt",
         allow_files = True,
     ),
     data_binding_exec = attr.label(
diff --git a/tools/android/BUILD b/tools/android/BUILD
index b1b76ecf1..8f053eb76 100644
--- a/tools/android/BUILD
+++ b/tools/android/BUILD
@@ -61,7 +61,9 @@ java_plugin(
     processor_class = "android.databinding.annotationprocessor.ProcessDataBinding",
     visibility = ["//visibility:public"],
     deps = [
+        "//src/tools/java/com/google/devtools/build/android:android_common_30_1_3",
         "//src/tools/java/com/google/devtools/build/android:databinding_exec_jar",
+        "@rules_android_maven//:com_beust_jcommander",
     ],
 )
 
@@ -304,7 +306,9 @@ java_binary(
     main_class = "android.databinding.AndroidDataBinding",
     visibility = ["//visibility:public"],
     runtime_deps = [
+        "//src/tools/java/com/google/devtools/build/android:android_common_30_1_3",
         "//src/tools/java/com/google/devtools/build/android:databinding_exec_jar",
+        "@rules_android_maven//:com_beust_jcommander",
     ],
 )