diff --git a/bin/compose-core b/bin/compose-core
index b68a8d5..5d37fdf 100755
--- a/bin/compose-core
+++ b/bin/compose-core
@@ -3155,11 +3155,11 @@ export -f _save
 
 
 get_default_project_name() {
-    local normalized_path compose_yml_location name
     if [ -n "$DEFAULT_PROJECT_NAME" ]; then
         echo "$DEFAULT_PROJECT_NAME"
         return 0
     fi
+    local normalized_path compose_yml_location name
     compose_yml_location="$(get_compose_yml_location)" || return 1
     if [ -n "$compose_yml_location" ]; then
         if normalized_path=$(readlink -f "$compose_yml_location"); then