diff --git a/packages/cli/src/ceramic-daemon.ts b/packages/cli/src/ceramic-daemon.ts
index a2789a0f93..46d68939db 100644
--- a/packages/cli/src/ceramic-daemon.ts
+++ b/packages/cli/src/ceramic-daemon.ts
@@ -90,7 +90,8 @@ export function makeCeramicConfig(opts: DaemonConfig): CeramicConfig {
     syncOverride: SYNC_OPTIONS_MAP[opts.node.syncOverride],
     streamCacheLimit: opts.node.streamCacheLimit,
     indexing: opts.indexing,
-    disablePeerDataSync: opts.ipfs.disablePeerDataSync,
+    disablePeerDataSync:
+      opts.ipfs.disablePeerDataSync || process.env.CERAMIC_DISABLE_PEER_DATA_SYNC == 'true',
     metrics: opts.metrics,
   }
   if (opts.stateStore?.mode == StateStoreMode.FS) {
diff --git a/packages/core/src/dispatcher.ts b/packages/core/src/dispatcher.ts
index c2cef4518d..6c0f9711b3 100644
--- a/packages/core/src/dispatcher.ts
+++ b/packages/core/src/dispatcher.ts
@@ -140,7 +140,7 @@ export class Dispatcher {
     const rustCeramic = EnvironmentUtils.useRustCeramic()
     this.enableSync = rustCeramic ? false : enableSync
 
-    if (!rustCeramic) {
+    if (this.enableSync) {
       const pubsub = new Pubsub(
         _ipfs,
         topic,
@@ -178,10 +178,9 @@ export class Dispatcher {
   }
 
   async init() {
-    if (EnvironmentUtils.useRustCeramic()) {
-      return
+    if (this.enableSync) {
+      this.messageBus.subscribe(this.handleMessage.bind(this))
     }
-    this.messageBus.subscribe(this.handleMessage.bind(this))
   }
 
   get shutdownSignal(): ShutdownSignal {
@@ -498,7 +497,7 @@ export class Dispatcher {
    * @param tip - Commit CID
    */
   publishTip(streamId: StreamID, tip: CID, model?: StreamID): Subscription {
-    if (process.env.CERAMIC_DISABLE_PUBSUB_UPDATES == 'true' || EnvironmentUtils.useRustCeramic()) {
+    if (!this.enableSync) {
       return empty().subscribe()
     }
 
@@ -621,7 +620,7 @@ export class Dispatcher {
    * Gracefully closes the Dispatcher.
    */
   async close(): Promise<void> {
-    if (!EnvironmentUtils.useRustCeramic()) {
+    if (this.enableSync) {
       this.messageBus.unsubscribe()
     }
     await this.tasks.onIdle()
diff --git a/packages/core/src/initialization/stream-loading.ts b/packages/core/src/initialization/stream-loading.ts
index b45f5bf4d3..2bde8a1049 100644
--- a/packages/core/src/initialization/stream-loading.ts
+++ b/packages/core/src/initialization/stream-loading.ts
@@ -8,6 +8,15 @@ import { LogSyncer } from '../stream-loading/log-syncer.js'
 import { StateManipulator } from '../stream-loading/state-manipulator.js'
 import { AnchorValidator } from '../anchor/anchor-service.js'
 import { HandlersMap } from '../handlers-map.js'
+import { StreamID } from '@ceramicnetwork/streamid'
+import { Observable, empty } from 'rxjs'
+import type { CID } from 'multiformats/cid'
+
+const noopPubsubQuerier = {
+  queryNetwork(streamId: StreamID): Observable<CID> {
+    return empty()
+  },
+}
 
 export function makeStreamLoaderAndUpdater(
   logger: DiagnosticsLogger,
@@ -17,7 +26,12 @@ export function makeStreamLoaderAndUpdater(
   streamHandlers: HandlersMap
 ): [StreamLoader, StreamUpdater] {
   const anchorTimestampExtractor = new AnchorTimestampExtractor(logger, dispatcher, anchorValidator)
-  const tipFetcher = new TipFetcher(dispatcher.messageBus)
+  if (!dispatcher.messageBus) {
+    logger.warn("No pubsub querier detected, won't be able to load tips from the network")
+  }
+  const tipFetcher = new TipFetcher(
+    dispatcher.messageBus ? dispatcher.messageBus : noopPubsubQuerier
+  )
   const logSyncer = new LogSyncer(dispatcher)
   const stateManipulator = new StateManipulator(logger, streamHandlers, logSyncer, api)
   const streamLoader = new StreamLoader(
diff --git a/packages/stream-tests/src/__tests__/ceramic_sync_disabled.test.ts b/packages/stream-tests/src/__tests__/ceramic_sync_disabled.test.ts
index 221adae1e1..e99511ed19 100644
--- a/packages/stream-tests/src/__tests__/ceramic_sync_disabled.test.ts
+++ b/packages/stream-tests/src/__tests__/ceramic_sync_disabled.test.ts
@@ -35,8 +35,6 @@ const makeCeramicCore = async (
   return core
 }
 
-// should pass on v4 when updated from TileDocument
-
 describeIfV3('Cross node syncing disabled', () => {
   jest.setTimeout(20000)
 
@@ -110,32 +108,22 @@ describeIfV3('Cross node syncing disabled', () => {
   it('Stream created and updated on node with peer data sync disabled still loads via other well connected nodes', async () => {
     const content0 = { step: 0 }
     const content1 = { step: 1 }
-    const content2 = { step: 2 }
     const doc1 = await TileDocument.create(disconnectedCeramic, content0, null, {
       anchor: false,
     })
     await doc1.update(content1, null, { anchor: false })
 
     const doc2 = await TileDocument.load(connectedCeramic, doc1.id)
-    expect(doc1.content).toEqual(doc2.content)
-
-    // Update should also propagate from node with sync disabled to the other node without issue
-    await doc1.update(content2, null, { anchor: false })
-
-    await TestUtils.waitForState(
-      doc2,
-      5000,
-      (state) => state.log.length == 3,
-      (state) => {
-        throw new Error(`Sync failed. State: ${StreamUtils.serializeState(state)}`)
-      }
-    )
-
-    expect(doc1.content).toEqual(content2)
-    expect(doc1.state.log.length).toEqual(3)
-
-    expect(doc2.content).toEqual(content2)
-    expect(doc2.state.log.length).toEqual(3)
+    // The disconnected node won't be listening to pubsub so the connected node will only get the
+    // genesis commit, not the tip from the update.
+    expect(doc2.content).toEqual(content0)
+
+    // Loading at the specific CommitID of the update will work though because the underlying
+    // commit blocks are still available via bitswap.
+    const docAtCommit = await TileDocument.load(connectedCeramic, doc1.commitId)
+    expect(docAtCommit.content).toEqual(content1)
+    expect(doc1.content).toEqual(docAtCommit.content)
+    expect(docAtCommit.state.log.length).toEqual(2)
   })
 
   it('Updates made on connected node not visible to node with peer data sync disabled', async () => {