diff --git a/README.md b/README.md
index 1af2bf29..b28c244c 100644
--- a/README.md
+++ b/README.md
@@ -6,14 +6,15 @@ The custom distro to extend the OpenTelemetry Python agent for compatibility wit
 
 ### Git Repos and Directory Structure
 
-The code in this repository makes use of code located in the [otel-oboe](https://github.com/librato/otel-oboe) GIT repository. Thus, first make sure that you clone the following repositories into the same root directory. For example, if your development directory is `~/gitrepos/`, please clone the `otel-oboe` and the `opentelemetry-python-instrumentation-custom-distro` repositories under `~/gitrepos`, so that your directory structure looks as shown below:
+The code in this repository makes use of code located in an experimental branch of the [oboe](https://github.com/librato/oboe) GIT repository. Thus, first make sure that you clone the following repositories into the same root directory. For example, if your development directory is `~/gitrepos/`, please clone the `oboe` and the `opentelemetry-python-instrumentation-custom-distro` repositories under `~/gitrepos`, so that your directory structure looks as shown below:
 ```
 ~/gitrepos/
 |
-|----otel-oboe/
+|----oboe/
 |
 |----opentelemetry-python-instrumentation-custom-distro/
 ```
+Then in `oboe`, checkout the [add-otel-oboe-features branch](https://github.com/librato/oboe/tree/add-otel-oboe-features).
 
 ### Development (Build) Container
 
@@ -32,7 +33,7 @@ Then you can start a build container by running `./run_docker_dev.sh` from withi
     ./run_docker_dev.sh
    ```
   from within the `dev_tools` directory.
-* Inside the docker container, you can now build the agent with the provided Makefile.
+* Inside the docker container, you can now build the agent with the provided Makefile in the container's `dev_tools` directory.
 
 ### Install Agent from Source in Development Mode
 * Execute `make wrapper` inside the build container. This copies the C-extension artifacts and builds the SWIG bindings.
diff --git a/dev_tools/Makefile b/dev_tools/Makefile
index 6719ce21..9985a462 100644
--- a/dev_tools/Makefile
+++ b/dev_tools/Makefile
@@ -19,7 +19,7 @@ SHELL=bash
 #----------------------------------------------------------------------------------------------------------------------#
 # variable definitions and recipes for downloading of required header and library files
 #----------------------------------------------------------------------------------------------------------------------#
-OTELOBOEREPO := /code/otel_oboe/liboboe
+OTELOBOEREPO := /code/oboe/liboboe
 
 # Copy the pre-compiled liboboe shared library from source specified in OTELOBOEREPO
 copy-liboboe:
@@ -58,7 +58,7 @@ copy-bson-headers:
 			if [ $$? -ne 0 ]; then echo " **** fail to copy $$i ****" ; exit 1; fi; \
 		done
 
-# copy artifacts from local otel-oboe
+# copy artifacts from local oboe
 copy-all: copy-headers copy-liboboe
 
 #----------------------------------------------------------------------------------------------------------------------#
diff --git a/dev_tools/run_docker_dev.sh b/dev_tools/run_docker_dev.sh
index 0cce919a..75f098d4 100755
--- a/dev_tools/run_docker_dev.sh
+++ b/dev_tools/run_docker_dev.sh
@@ -11,6 +11,6 @@ docker run -it \
     --cap-add SYS_PTRACE \
     --workdir /code/opentelemetry_distro_solarwinds \
     -v "$PWD"/..:/code/opentelemetry_distro_solarwinds \
-    -v "$PWD"/../../otel-oboe/:/code/otel_oboe \
+    -v "$PWD"/../../oboe/:/code/oboe \
     -v `echo ~`:/home/developer \
     dev-container bash
diff --git a/opentelemetry_distro_solarwinds/exporter.py b/opentelemetry_distro_solarwinds/exporter.py
index d0a2ae30..9b2d5521 100644
--- a/opentelemetry_distro_solarwinds/exporter.py
+++ b/opentelemetry_distro_solarwinds/exporter.py
@@ -117,6 +117,7 @@ def _initialize_solarwinds_reporter(self):
             grpc_proxy='',
             stdout_clear_nonblocking=0,
             is_grpc_clean_hack_enabled=False,
+            w3c_trace_format=1,
         )
 
     @staticmethod
diff --git a/opentelemetry_distro_solarwinds/ot_ao_transformer.py b/opentelemetry_distro_solarwinds/ot_ao_transformer.py
index 8ee0629e..21f01cdf 100644
--- a/opentelemetry_distro_solarwinds/ot_ao_transformer.py
+++ b/opentelemetry_distro_solarwinds/ot_ao_transformer.py
@@ -2,15 +2,16 @@
 """
 
 import logging
+import os
 
 logger = logging.getLogger(__file__)
 
 
 def transform_id(span_context):
-    """Generates an AppOptics X-Trace ID from the provided OpenTelemetry span context."""
-    xtr = "2B{0:032X}00000000{1:016X}0{2}".format(span_context.trace_id,
-                                                  span_context.span_id,
-                                                  span_context.trace_flags)
-    logger.debug("Generated X-Trace %s from span context %s", xtr,
+    """Generates a liboboe W3C compatible trace_context from provided OTel span context."""
+    xtr = "00-{0:032X}-{1:016X}-{2:02X}".format(span_context.trace_id,
+                                            span_context.span_id,
+                                            span_context.trace_flags)
+    logger.debug("Generated trace_context %s from span context %s", xtr,
                  span_context)
     return xtr