diff --git a/lib/private/files/storage/wrapper/encryption.php b/lib/private/files/storage/wrapper/encryption.php
index e3458cb6bb..41a7f9e924 100644
--- a/lib/private/files/storage/wrapper/encryption.php
+++ b/lib/private/files/storage/wrapper/encryption.php
@@ -373,7 +373,10 @@ class Encryption extends Wrapper {
 	 * @return bool wrapped storage's isLocal() value
 	 */
 	public function isLocal() {
-		return false;
+		if ($this->encryptionManager->isEnabled()) {
+			return false;
+		}
+		return $this->storage->isLocal();
 	}
 
 	/**
diff --git a/tests/lib/files/storage/wrapper/encryption.php b/tests/lib/files/storage/wrapper/encryption.php
index 93bf8c13e9..6fc9b17fad 100644
--- a/tests/lib/files/storage/wrapper/encryption.php
+++ b/tests/lib/files/storage/wrapper/encryption.php
@@ -200,4 +200,7 @@ class Encryption extends \Test\Files\Storage\Storage {
 		);
 	}
 
+	public function testIsLocal() {
+		$this->assertFalse($this->instance->isLocal());
+	}
 }