diff --git a/internal/provider/model_provider.go b/internal/provider/model_provider.go
index aff03619..5c0893e4 100644
--- a/internal/provider/model_provider.go
+++ b/internal/provider/model_provider.go
@@ -183,33 +183,33 @@ func (p ArgoCDProviderConfig) setCoreOpts(opts *apiclient.ClientOptions) (bool,
 func (p ArgoCDProviderConfig) setLocalConfigOpts(opts *apiclient.ClientOptions) (bool, diag.Diagnostics) {
 	var diags diag.Diagnostics
 
-	useLocalConfig := opts.PortForward || opts.PortForwardNamespace != ""
+	useLocalConfig := p.UseLocalConfig.ValueBool()
 	switch useLocalConfig {
 	case true:
+		if opts.ServerAddr != "" {
+			diags.AddWarning("setting `server_addr` alongside `use_local_config = true` is unnecessary and not recommended as this will overwrite the address retrieved from the local ArgoCD context.", "")
+		}
+
+		if !p.Username.IsNull() {
+			diags.AddWarning("`username` is ignored when `use_local_config = true`.", "")
+		}
+
 		opts.Context = getDefaultString(p.Context, "ARGOCD_CONTEXT")
 
 		cp := getDefaultString(p.ConfigPath, "ARGOCD_CONFIG_PATH")
 
 		if cp != "" {
 			opts.ConfigPath = p.ConfigPath.ValueString()
-			return useLocalConfig, nil
+			break
 		}
 
 		cp, err := localconfig.DefaultLocalConfigPath()
 		if err == nil {
 			opts.ConfigPath = cp
-			return useLocalConfig, nil
+			break
 		}
 
 		diags.Append(diagnostics.Error("failed to find default ArgoCD config path", err)...)
-
-		if opts.ServerAddr != "" {
-			diags.AddWarning("setting `server_addr` alongside `use_local_config = true` is unnecessary and not recommended as this will overwrite the address retrieved from the local ArgoCD context.", "")
-		}
-
-		if !p.Username.IsNull() {
-			diags.AddWarning("`username` is ignored when `use_local_config = true`.", "")
-		}
 	case false:
 		// Log warnings if explicit configuration has been provided for local config when `use_local_config` is not enabled.
 		if !p.ConfigPath.IsNull() {