diff --git a/Makefile b/Makefile
index 965a305a16..dd9666e2bd 100644
--- a/Makefile
+++ b/Makefile
@@ -41,6 +41,9 @@ WIN32_RUN_RACO = $(WIN32_RUN_RACKET) -N raco -l- raco
 
 DEFAULT_SRC_CATALOG = https://pkgs.racket-lang.org
 
+# Options passed along to any `raco setup` run:
+PLT_SETUP_OPTIONS = 
+
 # Belongs in the "Configuration options" section, but here
 # to accomodate nmake:
 SRC_CATALOG = $(DEFAULT_SRC_CATALOG)
@@ -66,6 +69,10 @@ INSTALL_PKGS_ARGS = $(JOB_OPTIONS) --no-setup --pkgs \
                     $(REQUIRED_PKGS) $(PKGS)
 ALL_PLT_SETUP_OPTIONS = $(JOB_OPTIONS) $(PLT_SETUP_OPTIONS)
 
+# Allow `--error-out`, etc., for final setup setp, so `make both` can
+# continue from errors at that level
+IN_PLACE_SETUP_OPTIONS =
+
 plain-in-place:
 	$(MAKE) plain-minimal-in-place
 	$(MAKE) in-place-setup
@@ -85,7 +92,7 @@ plain-minimal-in-place-after-base:
 	$(RUN_RACO) setup --only-foreign-libs $(ALL_PLT_SETUP_OPTIONS)
 
 in-place-setup:
-	$(RUN_RACO) setup $(ALL_PLT_SETUP_OPTIONS)
+	$(RUN_RACO) setup $(ALL_PLT_SETUP_OPTIONS) $(IN_PLACE_SETUP_OPTIONS)
 
 win32-in-place:
 	$(MAKE) win32-base
@@ -103,7 +110,7 @@ win32-minimal-in-place-after-base:
 
 win32-in-place-after-base:
 	$(MAKE) win32-minimal-in-place-after-base PKGS="$(PKGS)" SRC_CATALOG="$(SRC_CATALOG)" WIN32_PLAIN_RACKET="$(WIN32_PLAIN_RACKET)"
-	$(WIN32_RUN_RACO) setup $(ALL_PLT_SETUP_OPTIONS)
+	$(WIN32_RUN_RACO) setup $(ALL_PLT_SETUP_OPTIONS) $(IN_PLACE_SETUP_OPTIONS)
 
 # Rebuild without consulting catalogs or package sources:
 
@@ -121,7 +128,7 @@ plain-as-is:
 
 win32-as-is:
 	$(MAKE) win32-base
-	$(WIN32_RUN_RACO) setup $(ALL_PLT_SETUP_OPTIONS)
+	$(WIN32_RUN_RACO) setup $(ALL_PLT_SETUP_OPTIONS) $(IN_PLACE_SETUP_OPTIONS)
 
 # ------------------------------------------------------------
 # Unix-style build (Unix and Mac OS, only)
@@ -458,8 +465,8 @@ racket/src/build/cross/cs/c/Makefile: racket/src/cs/c/configure racket/src/cs/c/
 # ... but update packages and builds docs only once
 
 both:
-	$(MAKE) in-place
-	$(MAKE) also-cs
+	$(MAKE) in-place IN_PLACE_SETUP_OPTIONS="--error-out build/step"
+	$(MAKE) also-cs IN_PLACE_SETUP_OPTIONS="--error-in build/step"
 
 also-cs:
 	$(MAKE) cs CS_SETUP_TARGET=in-place-setup PLT_SETUP_OPTIONS="-D $(PLT_SETUP_OPTIONS)"
diff --git a/pkgs/racket-doc/scribblings/raco/setup.scrbl b/pkgs/racket-doc/scribblings/raco/setup.scrbl
index a166de7176..e5e15de953 100644
--- a/pkgs/racket-doc/scribblings/raco/setup.scrbl
+++ b/pkgs/racket-doc/scribblings/raco/setup.scrbl
@@ -273,6 +273,19 @@ flags:
  @item{@DFlag{fail-fast} --- attempt to break as soon as any error is
   discovered.}
 
+ @item{@DFlag{error-out} @nonterm{file} --- handle survivable errors
+  by writing @nonterm{file} and exiting as successful, which
+  facilitates chaining multiple @exec{raco setup} invocations in
+  combination with @DFlag{error-in}. If there are no errors and
+  @nonterm{file} already exists, it is deleted.}
+
+ @item{@DFlag{error-in} @nonterm{file} --- treat the existence of
+  @nonterm{file} as a ``errors were reported by a previous process''
+  error. Typically, @nonterm{file} is created by previous @exec{raco
+  setup} run using @DFlag{error-out}. A file for @DFlag{error-in} is
+  detected before creating a file via @DFlag{error-out}, so the same
+  file can be used to chain a sequence of @exec{raco setup} steps.}
+
  @item{@DFlag{pause} or @Flag{p} --- pause for user input if any
   errors are reported (so that a user has time to inspect output that
   might otherwise disappear when the @exec{raco setup} process ends).}
@@ -337,7 +350,8 @@ update a compiled file's timestamp if the file is not recompiled.
          #:changed "6.1.1" @elem{Added the @DFlag{force-user-docs} flag.}
          #:changed "6.1.1.6" @elem{Added the @DFlag{only-foreign-libs} flag.}
          #:changed "6.6.0.3" @elem{Added support for @envvar{PLT_COMPILED_FILE_CHECK}.}
-         #:changed "7.0.0.19" @elem{Added @DFlag{places} and  @DFlag{processes}.}]
+         #:changed "7.0.0.19" @elem{Added @DFlag{places} and  @DFlag{processes}.}
+         #:changed "7.2.0.7" @elem{Added @DFlag{error-in} and  @DFlag{error-out}.}]
 
 @; ------------------------------------------------------------------------
 
diff --git a/racket/collects/setup/option.rkt b/racket/collects/setup/option.rkt
index 0d93dba90a..f329f9e2de 100644
--- a/racket/collects/setup/option.rkt
+++ b/racket/collects/setup/option.rkt
@@ -88,6 +88,8 @@
 (define-flag-param force-unpacks #f)
 (define-flag-param doc-pdf-dest #f)
 (define-flag-param fail-fast #f)
+(define-flag-param next-error-out-file #f)
+(define-flag-param previous-error-in-file #f)
 
 (define specific-collections (make-parameter null))
 (define specific-packages (make-parameter null))
diff --git a/racket/collects/setup/setup-cmdline.rkt b/racket/collects/setup/setup-cmdline.rkt
index f66ad6b559..de149b6f42 100644
--- a/racket/collects/setup/setup-cmdline.rkt
+++ b/racket/collects/setup/setup-cmdline.rkt
@@ -147,6 +147,10 @@
       (add-flags `((compile-mode ,mode)))]
      [("--fail-fast") "Trigger a break on the first error"
       (add-flags '((fail-fast #t)))]
+     [("--error-out") file "On continuable error, create <file> and exit as success"
+      (add-flags `((next-error-out-file ,file)))]
+     [("--error-in") file "Check <file> for report of previous errors"
+      (add-flags `((previous-error-in-file ,file)))]
      [("-p" "--pause") "Pause at the end if there are any errors"
       (add-flags '((pause-on-errors #t)))]
      #:help-labels
diff --git a/racket/collects/setup/setup-core.rkt b/racket/collects/setup/setup-core.rkt
index 3725706449..b06026138c 100644
--- a/racket/collects/setup/setup-core.rkt
+++ b/racket/collects/setup/setup-core.rkt
@@ -206,9 +206,29 @@
       (when (pause-on-errors)
         (eprintf "INSTALLATION FAILED.\nPress Enter to continue...\n")
         (read-line))
-      (exit 1))
+      (set! exit-code 1))
+    (manage-prevous-and-next)
     (exit exit-code))
 
+  (define (manage-prevous-and-next)
+    (define prev (previous-error-in-file))
+    (when (and prev (file-exists? prev))
+      (setup-printf #f "--- previous errors ---")
+      (setup-printf #f "errors were~a reported by a previous process"
+                    (if (zero? exit-code) "" " also"))
+      (set! exit-code 1))
+    (define next (next-error-out-file))
+    (when next
+      (cond
+        [(zero? exit-code)
+         (delete-directory/files next #:must-exist? #f)]
+        [else
+         (call-with-output-file*
+          next
+          #:exists 'truncate/replace
+          (lambda (o) (fprintf o "Errors reported\n")))
+         (set! exit-code 0)])))
+      
   ;; ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
   ;;               Archive Unpacking               ;;
   ;; ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;