java.io.IOException: User limit of inotify watches reached on EAP 7

Issue

• We are constantly seeing errors for a few JBoss EAP instances like the following:

ERROR [io.undertow] (MSC service thread 1-8:) UT005024: Could not register resource change listener for caching resource manager, automatic invalidation of cached resource will not work: java.lang.RuntimeException: java.io.IOException: User limit of inotify watches reached
    at org.xnio.nio.WatchServiceFileSystemWatcher.watchPath(WatchServiceFileSystemWatcher.java:183)
    at io.undertow.server.handlers.resource.PathResourceManager.registerResourceChangeListener(PathResourceManager.java:191)
    at org.wildfly.extension.undertow.deployment.ServletResourceManager.registerResourceChangeListener(ServletResourceManager.java:82)
    at io.undertow.server.handlers.resource.CachingResourceManager.<init>(CachingResourceManager.java:64)
    at org.wildfly.extension.undertow.deployment.UndertowDeploymentInfoService.createServletConfig(UndertowDeploymentInfoService.java:584)
    at org.wildfly.extension.undertow.deployment.UndertowDeploymentInfoService.start(UndertowDeploymentInfoService.java:283)
    at org.jboss.msc.service.ServiceControllerImpl$StartTask.startService(ServiceControllerImpl.java:1948)
    at org.jboss.msc.service.ServiceControllerImpl$StartTask.run(ServiceControllerImpl.java:1881)
    at java.util.concurrent.ThreadPoolExecutor.runWorker(ThreadPoolExecutor.java:1149)
    at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:624)
    at java.lang.Thread.run(Thread.java:748)
Caused by: java.io.IOException: User limit of inotify watches reached
    at sun.nio.fs.LinuxWatchService$Poller.implRegister(LinuxWatchService.java:264)
    at sun.nio.fs.AbstractPoller.processRequests(AbstractPoller.java:260)
    at sun.nio.fs.LinuxWatchService$Poller.run(LinuxWatchService.java:329)
    ... 1 more

• How to disable the inotify watchers in Jboss 7. We never faced this issue with JBoss EAP 6.
• We are seeing java.lang.RuntimeException:java.io.IOException: User limit of inotify instances reached or too many open files on a few JBoss instances.