diff --git a/awx/api/serializers.py b/awx/api/serializers.py
index 74f78eff85..b13650939c 100644
--- a/awx/api/serializers.py
+++ b/awx/api/serializers.py
@@ -1333,7 +1333,7 @@ class ProjectOptionsSerializer(BaseSerializer):
             scm_type = attrs.get('scm_type', u'') or u''
         if self.instance and not scm_type:
             valid_local_paths.append(self.instance.local_path)
-        if scm_type and "local_path" in attrs and self.instance.local_path != attrs['local_path']:
+        if self.instance and scm_type and "local_path" in attrs and self.instance.local_path != attrs['local_path']:
             errors['local_path'] = _(f'Cannot change local_path for {scm_type}-based projects')
         if scm_type:
             attrs.pop('local_path', None)