diff --git a/sky/backends/backend_utils.py b/sky/backends/backend_utils.py
index 9beff9dd794..520c07e7098 100644
--- a/sky/backends/backend_utils.py
+++ b/sky/backends/backend_utils.py
@@ -2059,3 +2059,10 @@ def validate_schema(obj, schema, err_msg_prefix=''):
     if err_msg:
         with ux_utils.print_exception_no_traceback():
             raise ValueError(err_msg)
+
+
+def is_public_cloud_disabled():
+    """Checks if none of the public clouds are enabled."""
+    enabled_clouds = global_user_state.get_enabled_clouds()
+    return len(enabled_clouds) == 1 and isinstance(enabled_clouds[0],
+                                                   clouds.Local)
diff --git a/sky/backends/onprem_utils.py b/sky/backends/onprem_utils.py
index 7cb28c624b2..6f1ba67e031 100644
--- a/sky/backends/onprem_utils.py
+++ b/sky/backends/onprem_utils.py
@@ -11,6 +11,7 @@
 import rich.console as rich_console
 import yaml
 
+from sky import check
 from sky import global_user_state
 from sky import sky_logging
 from sky.backends import backend_utils
@@ -492,6 +493,11 @@ def check_local_cloud_args(cloud: Optional[str] = None,
                 '`cloud: local` or no cloud in YAML or CLI args.')
         return True
     else:
+        if backend_utils.is_public_cloud_disabled():
+            check.check(quiet=True)
+            if backend_utils.is_public_cloud_disabled():
+                raise RuntimeError('Cloud access is not set up. '
+                                   'Run: `sky check`')
         if cloud == 'local' or yaml_cloud == 'local':
             if cluster_name is not None:
                 raise click.UsageError(
diff --git a/sky/optimizer.py b/sky/optimizer.py
index 34a910c05bf..33c150bdc04 100644
--- a/sky/optimizer.py
+++ b/sky/optimizer.py
@@ -15,6 +15,7 @@
 from sky import resources as resources_lib
 from sky import sky_logging
 from sky import task as task_lib
+from sky.backends import backend_utils
 from sky.utils import env_options
 from sky.utils import ux_utils
 from sky.utils import log_utils
@@ -826,7 +827,7 @@ def _fill_in_launchable_resources(
 ) -> Tuple[Dict[resources_lib.Resources, List[resources_lib.Resources]],
            _PerCloudCandidates]:
     enabled_clouds = global_user_state.get_enabled_clouds()
-    if len(enabled_clouds) == 0 and try_fix_with_sky_check:
+    if backend_utils.is_public_cloud_disabled() and try_fix_with_sky_check:
         check.check(quiet=True)
         return _fill_in_launchable_resources(task, blocked_launchable_resources,
                                              False)