I had app-portage/layman-1.1.1 and it had the following:
$ ls -l /usr/portage/local/layman/
total 84
-rw-r--r-- 1 root root 296 Apr 23 15:24
cache_37a5257b888e1920f44e365a6c378030.xml
-rw-r--r-- 1 root root 53240 Jun 2 09:43
cache_65bd38402ac8431067b54904bd2ed2d1.xml
drwxr-xr-x 15 root root 4096 Mar 27 16:35 desktop-effects
drwxr-xr-x 13 root root 4096 Apr 2 09:32 gentopia
drwxr-xr-x 5 root root 4096 Apr 30 15:34 kvm
-rw-r--r-- 1 root root 178 Apr 30 15:34 make.conf
-rw-r--r-- 1 root root 1686 Apr 30 15:34 overlays.xml
drwxr-xr-x 6 root root 4096 Nov 23 2007 sajinet
So I had gentopia, desktop-effects, sajunet and kvm overlays.
Now I upgraded which changed the default path. It no longer thinks I have any
overlays installed... ok.. fine..
$ sudo layman -a gentopia
* Running command "/usr/bin/git clone
"git://git.overlays.gentoo.org/proj/gentopia.git/"
"/usr/local/portage/layman/gentopia""...
...
* Failed to add overlay "gentopia".
* Error was: Did not find a PORTDIR_OVERLAY entry in file
/usr/local/portage/layman/make.conf! Did you specify the correct file?
$ ls -l /usr/local/portage/layman/make.conf
-rw-r--r-- 1 root root 0 Jun 2 15:35 /usr/local/portage/layman/make.conf
It created the file when I emerged the new layman but created it empty without
PORTDIR_OVERLAY=""