Fault-tolerant storage is provided using a distributed data storage system that receives input data from clients and divides that data into data blocks for storage. The data blocks are processed using a coding scheme that generates redundant level one error correction blocks (L1EC Blocks). The L1EC blocks enable the reconstruction of one or more damaged or inaccessible data blocks, so long as sufficient undamaged elements are still accessible. The L1EC blocks and the data blocks are divided into distribution sets and these sets are stored at a plurality of data storage locations. At each data storage location additional level two error correction blocks (L2EC blocks) are generated that provide local data redundancy. The L2EC blocks enable reconstruction of damaged elements at a data storage location without requiring communication with the other data storage locations.