diff --git a/cognee/context_global_variables.py b/cognee/context_global_variables.py
index 6a0f767ff..c2e9e82a9 100644
--- a/cognee/context_global_variables.py
+++ b/cognee/context_global_variables.py
@@ -69,8 +69,6 @@ async def set_database_global_context_variables(dataset: Union[str, UUID], user_
 
     """
 
-    base_config = get_base_config()
-
     if not backend_access_control_enabled():
         return
 
@@ -79,6 +77,7 @@ async def set_database_global_context_variables(dataset: Union[str, UUID], user_
     # To ensure permissions are enforced properly all datasets will have their own databases
     dataset_database = await get_or_create_dataset_database(dataset, user)
 
+    base_config = get_base_config()
     data_root_directory = os.path.join(
         base_config.data_root_directory, str(user.tenant_id or user.id)
     )
@@ -86,17 +85,10 @@ async def set_database_global_context_variables(dataset: Union[str, UUID], user_
         base_config.system_root_directory, "databases", str(user.id)
     )
 
-    if dataset_database.vector_database_provider == "lancedb":
-        vector_db_url = os.path.join(
-            databases_directory_path, dataset_database.vector_database_name
-        )
-    else:
-        vector_db_url = dataset_database.vector_database_url
-
     # Set vector and graph database configuration based on dataset database information
     vector_config = {
         "vector_db_provider": dataset_database.vector_database_provider,
-        "vector_db_url": vector_db_url,
+        "vector_db_url": dataset_database.vector_database_url,
         "vector_db_key": dataset_database.vector_database_key,
         "vector_db_name": dataset_database.vector_database_name,
     }
diff --git a/cognee/infrastructure/databases/utils/get_or_create_dataset_database.py b/cognee/infrastructure/databases/utils/get_or_create_dataset_database.py
index 311f89ad7..0df3502ba 100644
--- a/cognee/infrastructure/databases/utils/get_or_create_dataset_database.py
+++ b/cognee/infrastructure/databases/utils/get_or_create_dataset_database.py
@@ -1,10 +1,12 @@
+import os
 from uuid import UUID
 from typing import Union
 
 from sqlalchemy import select
 from sqlalchemy.exc import IntegrityError
-from cognee.modules.data.methods import create_dataset
 
+from cognee.base_config import get_base_config
+from cognee.modules.data.methods import create_dataset
 from cognee.infrastructure.databases.relational import get_relational_engine
 from cognee.infrastructure.databases.vector import get_vectordb_config
 from cognee.infrastructure.databases.graph.config import get_graph_config
@@ -36,6 +38,7 @@ async def get_or_create_dataset_database(
 
     vector_config = get_vectordb_config()
     graph_config = get_graph_config()
+
     # Note: for hybrid databases both graph and vector DB name have to be the same
     if graph_config.graph_database_provider == "kuzu":
         graph_db_name = f"{dataset_id}.pkl"
@@ -47,6 +50,19 @@ async def get_or_create_dataset_database(
     else:
         vector_db_name = dataset_id
 
+    base_config = get_base_config()
+    databases_directory_path = os.path.join(
+        base_config.system_root_directory, "databases", str(user.id)
+    )
+
+    # Determine vector database URL
+    if vector_config.vector_db_provider == "lancedb":
+        vector_db_url = os.path.join(databases_directory_path, vector_config.vector_db_name)
+    else:
+        vector_db_url = vector_config.vector_database_url
+
+    # Determine graph database URL
+
     async with db_engine.get_async_session() as session:
         # Create dataset if it doesn't exist
         if isinstance(dataset, str):
@@ -69,7 +85,7 @@ async def get_or_create_dataset_database(
             graph_database_name=graph_db_name,
             vector_database_provider=vector_config.vector_db_provider,
             graph_database_provider=graph_config.graph_database_provider,
-            vector_database_url=vector_config.vector_db_url,
+            vector_database_url=vector_db_url,
             graph_database_url=graph_config.graph_database_url,
             vector_database_key=vector_config.vector_db_key,
             graph_database_key=graph_config.graph_database_key,