diff --git a/WHATS_NEW b/WHATS_NEW
index cbc6dff0a..52094628b 100644
--- a/WHATS_NEW
+++ b/WHATS_NEW
@@ -1,5 +1,6 @@
 Version 2.00.22 - 
 ==================================
+  Fix /dev/vgname perms.
   Restructure xlate.h.
   Add clvmd man page.
 
diff --git a/lib/activate/fs.c b/lib/activate/fs.c
index d3ff0dca2..bcf78a186 100644
--- a/lib/activate/fs.c
+++ b/lib/activate/fs.c
@@ -46,7 +46,7 @@ static int _mk_dir(const char *dev_dir, const char *vg_name)
 		return 1;
 
 	log_very_verbose("Creating directory %s", vg_path);
-	if (mkdir(vg_path, 0555)) {
+	if (mkdir(vg_path, 0777)) {
 		log_sys_error("mkdir", vg_path);
 		return 0;
 	}