diff --git a/app/guid-node/binderhub/-components/build-console/component.ts b/app/guid-node/binderhub/-components/build-console/component.ts
index 79c477651..bef27ebf0 100644
--- a/app/guid-node/binderhub/-components/build-console/component.ts
+++ b/app/guid-node/binderhub/-components/build-console/component.ts
@@ -32,6 +32,16 @@ export default class BuildConsole extends Component {
 
     notAuthorized: boolean = false;
 
+    copyDefaultStorage?: boolean;
+
+    pathsYamlIsCustom?: boolean;
+
+    userHasWritePermission?: boolean;
+
+    toggleCopyDefaultStorage?: (event: Event) => void;
+
+    openPathsYamlResetConfirm?: () => void;
+
     @requiredAction renewToken!: (binderhubUrl: string) => void;
 
     @requiredAction requestBuild!: (
diff --git a/app/guid-node/binderhub/-components/build-console/styles.scss b/app/guid-node/binderhub/-components/build-console/styles.scss
index 791961aa4..9bff22da1 100644
--- a/app/guid-node/binderhub/-components/build-console/styles.scss
+++ b/app/guid-node/binderhub/-components/build-console/styles.scss
@@ -53,3 +53,23 @@
 .build_launch_button {
     margin-left: auto;
 }
+
+.paths_toggle {
+    margin: 1.5em 0;
+}
+
+.paths_toggle__label {
+    display: flex;
+    align-items: center;
+    gap: 0.5em;
+    margin-bottom: 0;
+}
+
+.paths_toggle__label--disabled {
+    color: #999;
+    cursor: not-allowed;
+}
+
+.paths_toggle__hint {
+    margin: 0.5em 0;
+}
diff --git a/app/guid-node/binderhub/-components/build-console/template.hbs b/app/guid-node/binderhub/-components/build-console/template.hbs
index 18f2b1e1c..01b3a3f1c 100644
--- a/app/guid-node/binderhub/-components/build-console/template.hbs
+++ b/app/guid-node/binderhub/-components/build-console/template.hbs
@@ -1,7 +1,33 @@
 <h3>
     {{t 'binderhub.deployment.header'}}
 </h3>
-{{t 'binderhub.deployment.description'}}
+<div local-class='paths_toggle'>
+    <label local-class='paths_toggle__label {{if (or (not this.userHasWritePermission) this.pathsYamlIsCustom) 'paths_toggle__label--disabled'}}'>
+        <Input
+            @type='checkbox'
+            @checked={{this.copyDefaultStorage}}
+            @change={{this.toggleCopyDefaultStorage}}
+            disabled={{or (not this.userHasWritePermission) this.pathsYamlIsCustom}}
+            data-test-copy-default-storage
+        />
+        {{t 'binderhub.deployment.copy_default_storage_checkbox'}}
+    </label>
+    {{#if this.pathsYamlIsCustom}}
+        <p local-class='paths_toggle__hint'>
+            {{t 'binderhub.deployment.copy_default_storage_disabled_hint'}}
+        </p>
+        {{#if this.userHasWritePermission}}
+            <button
+                type='button'
+                class='btn btn-default'
+                data-test-reset-paths-yaml
+                {{action this.openPathsYamlResetConfirm}}
+            >
+                {{t 'binderhub.deployment.reset_paths_yaml'}}
+            </button>
+        {{/if}}
+    {{/if}}
+</div>
 <div local-class='build_launcher'>
     <BsButton
         data-test-binderhub-launch
diff --git a/app/guid-node/binderhub/-components/project-editor/component.ts b/app/guid-node/binderhub/-components/project-editor/component.ts
index ea4443203..699f678ca 100644
--- a/app/guid-node/binderhub/-components/project-editor/component.ts
+++ b/app/guid-node/binderhub/-components/project-editor/component.ts
@@ -18,6 +18,9 @@ import CurrentUser from 'ember-osf-web/services/current-user';
 import { WaterButlerFile } from 'ember-osf-web/utils/waterbutler/base';
 import md5 from 'js-md5';
 
+const PATHS_YAML_FILENAME = 'paths.yaml';
+const MINIMAL_PATHS_YAML_CONTENT = 'override: true\npaths: []';
+
 export const REPO2DOCKER_IMAGE_ID = '#repo2docker';
 
 enum DockerfileProperty {
@@ -33,6 +36,12 @@ enum DockerfileProperty {
     NoChanges,
 }
 
+enum PathsYamlState {
+    DEFAULT = 'default', // paths.yaml does not exist, copy default storage
+    NO_COPY = 'no_copy', // minimal paths.yaml exists, do not copy
+    CUSTOM = 'custom', // custom paths.yaml exists, UI disabled
+}
+
 function imageFromCustomBaseImageModel(model: CustomBaseImageModel) {
     return {
         url: model.imageReference,
@@ -190,6 +199,20 @@ export default class ProjectEditor extends Component {
 
     configFolder: WaterButlerFile = this.configFolder;
 
+    pathsYamlState: PathsYamlState = PathsYamlState.DEFAULT;
+
+    @computed('pathsYamlState')
+    get copyDefaultStorage(): boolean {
+        return this.pathsYamlState === PathsYamlState.DEFAULT;
+    }
+
+    @computed('pathsYamlState')
+    get pathsYamlIsCustom(): boolean {
+        return this.pathsYamlState === PathsYamlState.CUSTOM;
+    }
+
+    showPathsYamlResetConfirm: boolean = false;
+
     initialCustomBaseImages: CustomBaseImageModel[] = [];
 
     dyCustomBaseImageModels: CustomBaseImageModel[] = [];
@@ -208,6 +231,8 @@ export default class ProjectEditor extends Component {
 
     postBuildModel: WaterButlerFile | null = this.postBuildModel;
 
+    pathsYamlModel: WaterButlerFile | null = this.pathsYamlModel;
+
     showDirtyFragileFileConfirmDialog = false;
 
     imageSelecting = false;
@@ -230,6 +255,8 @@ export default class ProjectEditor extends Component {
 
     postBuild: string | undefined = undefined;
 
+    pathsYaml: string | undefined = undefined;
+
     editingPostBuild: string | undefined = undefined;
 
     editingPackage: string | undefined = undefined;
@@ -394,6 +421,12 @@ export default class ProjectEditor extends Component {
         return this.verifyHashHeader(content);
     }
 
+    @computed('pathsYaml')
+    get pathsYamlManuallyChanged() {
+        const content = this.get('pathsYaml');
+        return this.verifyHashHeader(content);
+    }
+
     get requirementsManuallyChanged() {
         // Currently, requirements.txt is never created.
         // To maintain compatibility with projects created in previous versions
@@ -1156,6 +1189,59 @@ export default class ProjectEditor extends Component {
         return name;
     }
 
+    @computed('pathsYaml')
+    get pathsYamlContent(): { override: boolean; paths: string[] } | null {
+        if (this.pathsYamlManuallyChanged) {
+            return null;
+        }
+        const content = this.get('pathsYaml');
+        if (content === undefined || content.length === 0) {
+            return null;
+        }
+        const lines = content.split('\n');
+        let override = false;
+        const paths: string[] = [];
+        let inPathsSection = false;
+
+        for (const line of lines) {
+            if (line.trim().startsWith('#')) {
+                continue;
+            }
+            // Check for "override: true"
+            const overrideMatch = line.match(/^\s*override\s*:\s*(true|false)\s*$/);
+            if (overrideMatch) {
+                override = overrideMatch[1] === 'true';
+                continue;
+            }
+            // Check for "paths:" section
+            const pathsSectionMatch = line.match(/^\s*paths\s*:\s*$/);
+            if (pathsSectionMatch) {
+                inPathsSection = true;
+                continue;
+            }
+            // Check for inline empty array "paths: []"
+            const inlinePathsMatch = line.match(/^\s*paths\s*:\s*\[\s*\]\s*$/);
+            if (inlinePathsMatch) {
+                // paths is empty array
+                continue;
+            }
+            // Parse items in paths array
+            if (inPathsSection) {
+                const itemMatch = line.match(/^\s*-\s+(.+)\s*$/);
+                if (itemMatch) {
+                    paths.push(itemMatch[1]);
+                    continue;
+                }
+                // If we hit a non-indented line, we've exited the paths section
+                if (line.match(/^\S/)) {
+                    inPathsSection = false;
+                }
+            }
+        }
+
+        return { override, paths };
+    }
+
     @computed('requirements')
     get requirementsLines() {
         if (this.requirementsManuallyChanged) {
@@ -1368,6 +1454,7 @@ export default class ProjectEditor extends Component {
         const confFiles = this.configurationFiles;
         const tasks = confFiles.map(file => this.loadCurrentFile(file, files));
         await Promise.all(tasks);
+        await this.loadPathsYaml(files);
     }
 
     async saveCurrentFile(
@@ -1624,6 +1711,50 @@ export default class ProjectEditor extends Component {
         );
     }
 
+    @action
+    toggleCopyDefaultStorage(this: ProjectEditor, event: Event) {
+        const node = this.get('node');
+        if (!node || !node.userHasWritePermission || this.pathsYamlIsCustom) {
+            return;
+        }
+        const target = event.target as HTMLInputElement;
+        const previous = this.pathsYamlState;
+        const newState = target.checked ? PathsYamlState.DEFAULT : PathsYamlState.NO_COPY;
+        this.set('pathsYamlState', newState);
+        later(async () => {
+            try {
+                await this.persistPathsYamlPreference();
+                this.pageCleanser();
+            } catch (exception) {
+                this.set('pathsYamlState', previous);
+                this.onError(exception, this.intl.t('binderhub.error.modify_files_error'));
+            }
+        }, 0);
+    }
+
+    @action
+    openPathsYamlResetConfirm(this: ProjectEditor) {
+        this.set('showPathsYamlResetConfirm', true);
+    }
+
+    @action
+    cancelPathsYamlReset(this: ProjectEditor) {
+        this.set('showPathsYamlResetConfirm', false);
+    }
+
+    @action
+    resetPathsYaml(this: ProjectEditor) {
+        this.set('showPathsYamlResetConfirm', false);
+        later(async () => {
+            try {
+                await this.performPathsYamlReset();
+                this.pageCleanser();
+            } catch (exception) {
+                this.onError(exception, this.intl.t('binderhub.error.modify_files_error'));
+            }
+        }, 0);
+    }
+
     @action
     editDockerfileContent(this: ProjectEditor, event: { target: HTMLInputElement }) {
         this.set('editingDockerfileContent', event.target.value);
@@ -1728,4 +1859,71 @@ export default class ProjectEditor extends Component {
     modifyCustomBaseImageModelForLocale(model: CustomBaseImageModel) {
         return this.modifyImageForLocale(imageFromCustomBaseImageModel(model));
     }
+
+    private getHashedMinimalPathsYaml(): string {
+        const content = MINIMAL_PATHS_YAML_CONTENT;
+        const checksum = md5(content.trim());
+        return `# rdm-binderhub:hash:${checksum}\n${content}`;
+    }
+
+    private async loadPathsYaml(files: WaterButlerFile[] | null) {
+        const pathsFile = await this.getFile(PATHS_YAML_FILENAME, files);
+        if (!pathsFile) {
+            this.set('pathsYamlModel', null);
+            this.set('pathsYaml', '');
+            this.set('pathsYamlState', PathsYamlState.DEFAULT);
+            return;
+        }
+        const content = (await pathsFile.getContents()).toString();
+        this.set('pathsYamlModel', pathsFile);
+        this.set('pathsYaml', content);
+
+        // Use computed property to check if manually changed (avoid duplicate hash verification)
+        if (this.pathsYamlManuallyChanged) {
+            this.set('pathsYamlState', PathsYamlState.CUSTOM);
+            return;
+        }
+
+        // Hash is valid - verify content structure is minimal paths.yaml
+        const parsed = this.pathsYamlContent;
+        if (!parsed) {
+            throw new EmberError('Invalid paths.yaml: hash is valid but failed to parse content');
+        }
+        if (!parsed.override || parsed.paths.length !== 0) {
+            throw new EmberError(
+                'Invalid paths.yaml: hash is valid but content does not match minimal template',
+            );
+        }
+        this.set('pathsYamlState', PathsYamlState.NO_COPY);
+    }
+
+    private async persistPathsYamlPreference() {
+        if (!this.configFolder) {
+            throw new EmberError('Illegal config');
+        }
+        const files = await this.getRootFiles(true);
+        const pathsFile = await this.getFile(PATHS_YAML_FILENAME, files);
+        if (this.pathsYamlState === PathsYamlState.DEFAULT) {
+            if (pathsFile) {
+                await pathsFile.delete();
+            }
+        } else {
+            const content = this.getHashedMinimalPathsYaml();
+            if (!pathsFile) {
+                await this.configFolder.createFile(PATHS_YAML_FILENAME, content);
+            } else {
+                await pathsFile.updateContents(content);
+            }
+        }
+        await this.loadPathsYaml(await this.getRootFiles(true));
+    }
+
+    private async performPathsYamlReset() {
+        const files = await this.getRootFiles(true);
+        const pathsFile = await this.getFile(PATHS_YAML_FILENAME, files);
+        if (pathsFile) {
+            await pathsFile.delete();
+        }
+        await this.loadPathsYaml(await this.getRootFiles(true));
+    }
 }
diff --git a/app/guid-node/binderhub/-components/project-editor/template.hbs b/app/guid-node/binderhub/-components/project-editor/template.hbs
index fdb91b54c..e6fcd65fc 100644
--- a/app/guid-node/binderhub/-components/project-editor/template.hbs
+++ b/app/guid-node/binderhub/-components/project-editor/template.hbs
@@ -266,10 +266,42 @@
             @beforeLaunch={{this.performDockerfileSave}}
             @buildLog={{this.buildLog}}
             @buildPhase={{this.buildPhase}}
+            @copyDefaultStorage={{this.copyDefaultStorage}}
+            @pathsYamlIsCustom={{this.pathsYamlIsCustom}}
+            @userHasWritePermission={{this.node.userHasWritePermission}}
+            @toggleCopyDefaultStorage={{action this.toggleCopyDefaultStorage}}
+            @openPathsYamlResetConfirm={{action this.openPathsYamlResetConfirm}}
           />
     {{/if}}
 </div>
 
+<BsModal
+    data-test-reset-paths-yaml-confirm-modal
+    @open={{this.showPathsYamlResetConfirm}}
+    @onHidden={{action this.cancelPathsYamlReset}}
+    as |modal|
+>
+    <modal.header>
+        <h4>
+            {{t 'binderhub.deployment.reset_paths_yaml_confirm_title'}}
+        </h4>
+    </modal.header>
+    <modal.body>
+        {{t 'binderhub.deployment.reset_paths_yaml_confirm_body'}}
+    </modal.body>
+    <modal.footer>
+        <BsButton @onClick={{action this.cancelPathsYamlReset}}>
+            {{t 'general.cancel'}}
+        </BsButton>
+        <BsButton
+            @onClick={{action this.resetPathsYaml}}
+            @type='danger'
+        >
+            {{t 'binderhub.deployment.reset_paths_yaml_confirm_ok'}}
+        </BsButton>
+    </modal.footer>
+</BsModal>
+
 <BsModal
     data-test-reset-dirty-fragile-files-confirm-modal
     @open={{this.showDirtyFragileFileConfirmDialog}}
diff --git a/translations/en-us.yml b/translations/en-us.yml
index 470d3db7c..95d297874 100644
--- a/translations/en-us.yml
+++ b/translations/en-us.yml
@@ -1813,7 +1813,6 @@ binderhub:
         no_servers: 'No Servers'
     deployment:
         header: 'Creating an Environment'
-        description: 'The contents of the default storage in this project will be copied.'
         launch: 'Launch'
         environment: 'Base Image'
         custom_image_name: 'Custom Image based on Dockerfile'
@@ -1832,6 +1831,12 @@ binderhub:
         no_environment: 'This environment is not configured by the editor.'
         dockerfile_editor_title: 'Dockerfile'
         save_file: 'Save'
+        copy_default_storage_checkbox: 'Copy the contents of the default storage.'
+        copy_default_storage_disabled_hint: 'paths.yaml has custom settings. Reset it to manage the copy setting here.'
+        reset_paths_yaml: 'Reset paths.yaml'
+        reset_paths_yaml_confirm_title: 'Reset paths.yaml'
+        reset_paths_yaml_confirm_body: 'The existing paths.yaml will be deleted. Continue?'
+        reset_paths_yaml_confirm_ok: 'Reset'
         post_build_placeholder: |-
             #!/bin/bash
             set -x
diff --git a/translations/ja.yml b/translations/ja.yml
index a951e4551..5c7595afb 100644
--- a/translations/ja.yml
+++ b/translations/ja.yml
@@ -1813,7 +1813,6 @@ binderhub:
         no_servers: '解析環境はありません'
     deployment:
         header: '環境作成'
-        description: 'このプロジェクトのデフォルトストレージの内容がコピーされます。'
         launch: '起動'
         environment: '基本イメージ'
         custom_image_name: 'Dockerfileを用いたカスタムイメージ'
@@ -1832,6 +1831,12 @@ binderhub:
         no_environment: 'エディタにより設定された環境ではありません。'
         dockerfile_editor_title: 'Dockerfile'
         save_file: '保存'
+        copy_default_storage_checkbox: 'デフォルトストレージの内容をコピーする'
+        copy_default_storage_disabled_hint: 'paths.yaml にカスタム設定があるため、ここでは切り替えできません。リセットすると既定のコピー設定に戻ります。'
+        reset_paths_yaml: 'paths.yaml をリセット'
+        reset_paths_yaml_confirm_title: 'paths.yaml をリセット'
+        reset_paths_yaml_confirm_body: '現在の paths.yaml を削除します。この操作は元に戻せません。よろしいですか？'
+        reset_paths_yaml_confirm_ok: 'リセット'
         post_build_placeholder: |-
             #!/bin/bash
             set -x