diff --git a/src/lib/config-loader.js b/src/lib/config-loader.js
index 22e79b1f..0be6d49e 100644
--- a/src/lib/config-loader.js
+++ b/src/lib/config-loader.js
@@ -164,7 +164,11 @@ module.exports = () => {
   config.ow.package = `${config.app.name}-${config.app.version}`
   // S3 static files deployment config
   config.s3.folder = config.ow.namespace // this becomes the root only /
-  config.s3.tvmUrl = userConfig.app.tvmurl || defaultTvmUrl
+  // Legacy applications set the defaultTvmUrl in .env, so we need to ignore it to not
+  // consider it as custom. The default will be set downstream by aio-lib-core-tvm.
+  if (userConfig.app.tvmurl !== defaultTvmUrl) {
+    config.s3.tvmUrl = userConfig.app.tvmurl
+  }
   // set hostname for backend actions && UI
   config.app.defaultHostname = defaultAppHostname
   config.app.hostname = userConfig.app.hostname || defaultAppHostname
diff --git a/test/commands/lib/config-loader.test.js b/test/commands/lib/config-loader.test.js
index ea1738d7..88bddd9b 100644
--- a/test/commands/lib/config-loader.test.js
+++ b/test/commands/lib/config-loader.test.js
@@ -15,6 +15,7 @@ const loadConfig = require('../../../src/lib/config-loader')
 const mockAIOConfig = require('@adobe/aio-lib-core-config')
 const yaml = require('js-yaml')
 const chalk = require('chalk')
+const defaults = require('../../../src/lib/defaults')
 
 jest.mock('@adobe/aio-lib-core-logging')
 const aioLogger = require('@adobe/aio-lib-core-logging')('@adobe/aio-cli-plugin-app:config-loader', { provider: 'debug' })
@@ -101,4 +102,34 @@ describe('load config', () => {
     expect(config.ow.defaultApihost).toEqual('https://adobeioruntime.net')
     expect(config.app.defaultHostname).toEqual('adobeio-static.net')
   })
+
+  test('Tvm url config', () => {
+    // custom
+    mockAIOConfig.get.mockReturnValue({
+      ...global.fakeConfig.creds,
+      app: {
+        tvmurl: 'custom'
+      }
+    })
+    config = loadConfig()
+    expect(config.s3.tvmUrl).toEqual('custom')
+    // empty
+    mockAIOConfig.get.mockReturnValue({
+      ...global.fakeConfig.creds,
+      app: {
+        tvmurl: undefined
+      }
+    })
+    config = loadConfig()
+    expect(config.s3.tvmUrl).toEqual(undefined)
+    // default (should not set it)
+    mockAIOConfig.get.mockReturnValue({
+      ...global.fakeConfig.creds,
+      app: {
+        tvmurl: defaults.defaultTvmUrl
+      }
+    })
+    config = loadConfig()
+    expect(config.s3.tvmUrl).toEqual(undefined)
+  })
 })