diff --git a/src/west/app/project.py b/src/west/app/project.py
index 336c9343..dc0bd877 100644
--- a/src/west/app/project.py
+++ b/src/west/app/project.py
@@ -306,6 +306,13 @@ def local(self, args) -> Path:
         #
         # https://docs.python.org/3/library/pathlib.html#pathlib.PurePath.parent
         manifest_dir = Path(args.directory or os.getcwd()).resolve()
+
+        try:
+            already = util.west_topdir(manifest_dir, fall_back=False)
+            self.die_already(already)
+        except util.WestNotFound:
+            pass
+
         manifest_filename = args.manifest_file or 'west.yml'
         manifest_file = manifest_dir / manifest_filename
         topdir = manifest_dir.parent
@@ -317,7 +324,7 @@ def local(self, args) -> Path:
 
         self.banner('Initializing from existing manifest repository', rel_manifest)
         self.small_banner(f'Creating {west_dir} and local configuration file')
-        self.create(west_dir)
+        self.create(west_dir, exist_ok=False)
         os.chdir(topdir)
         self.config = Configuration(topdir=topdir)
         self.config.set('manifest.path', os.fspath(rel_manifest))
@@ -410,6 +417,16 @@ def bootstrap(self, args) -> Path:
 
         manifest_abspath = topdir / manifest_path
 
+        # We already looked for old .west/ pollution earlier but only at the highest
+        # topdir/.west level because we didn't know the manifest_path yet. Now that we know
+        # "manifest_path", look again for any existing, clashing .west/ located at a lower
+        # level somewhere between the new topdir and the new manifest_path. This check will be
+        # especially useful once the new --topdir feature is available, see
+        # https://github.com/zephyrproject-rtos/west/issues/774
+        already = util.west_topdir(manifest_abspath, fall_back=False)
+        if not topdir.samefile(already):
+            self.die_already(already)
+
         # Some filesystems like NTFS can't rename files in use.
         # See west issue #558. Will ReFS address this?
         ren_delay = args.rename_delay
diff --git a/tests/test_project.py b/tests/test_project.py
index 122dc844..6bd9ca51 100644
--- a/tests/test_project.py
+++ b/tests/test_project.py
@@ -958,8 +958,6 @@ def test_update_some_with_imports(repos_tmpdir):
         },
     )
 
-    cmd(['init', '-l', manifest_repo])
-
     # Updating unknown projects should fail as always.
 
     with pytest.raises(SystemExit):
@@ -1037,7 +1035,6 @@ def test_update_submodules_list(repos_tmpdir):
                        '''
         },
     )
-    cmd(['init', '-l', manifest_repo])
 
     # Make tagged_repo to be zephyr project submodule.
     subprocess.check_call(SUBMODULE_ADD + [str(tagged_repo), 'tagged_repo'], cwd=zephyr)
@@ -1161,7 +1158,6 @@ def test_update_all_submodules(repos_tmpdir):
                        '''
         },
     )
-    cmd(['init', '-l', manifest_repo])
 
     # Make tagged_repo to be zephyr project submodule.
     subprocess.check_call(SUBMODULE_ADD + [str(tagged_repo), 'tagged_repo'], cwd=zephyr)
@@ -1273,7 +1269,6 @@ def test_update_no_submodules(repos_tmpdir):
                        '''
         },
     )
-    cmd(['init', '-l', manifest_repo])
 
     # Make tagged_repo to be zephyr project submodule.
     subprocess.check_call(SUBMODULE_ADD + [str(tagged_repo), 'tagged_repo'], cwd=zephyr)
@@ -1379,7 +1374,6 @@ def test_update_submodules_strategy(repos_tmpdir):
                        '''
         },
     )
-    cmd(['init', '-l', manifest_repo])
 
     # Make tagged_repo to be zephyr project submodule.
     subprocess.check_call(SUBMODULE_ADD + [str(tagged_repo), 'tagged_repo'], cwd=zephyr)
@@ -1770,6 +1764,7 @@ def test_init_again(west_init_tmpdir):
 
     expected_msg = f'FATAL ERROR: already initialized in {west_init_tmpdir}'
 
+    # A bare `init` defaults to cloning -m http://zephyrproject/zephyr
     exc, stderr = cmd_raises('init', SystemExit, cwd=west_init_tmpdir)
     assert exc.value.code == 1
     assert expected_msg in stderr
@@ -1778,14 +1773,25 @@ def test_init_again(west_init_tmpdir):
     assert exc.value.code == 1
     assert expected_msg in stderr
 
+    # Test --local and a manifest directory argument
+    _tmpdir_parts = Path(west_init_tmpdir).parts
+    for i in range(1, len(_tmpdir_parts) + 1):
+        _cd = Path(*_tmpdir_parts[0:i])
+        assert _cd.exists()
+        _rel_top = Path(*_tmpdir_parts[i:])
+        assert (_cd / _rel_top / '.west').exists()
+        exc, stderr = cmd_raises(['init', _rel_top / 'zephyr', '--local'], SystemExit, cwd=_cd)
+        assert exc.value.code == 1
+        assert expected_msg in stderr
+
     manifest = west_init_tmpdir / '..' / 'repos' / 'zephyr'
     exc, stderr = cmd_raises(
         f'-vvv init -m {manifest} workspace', RuntimeError, cwd=west_init_tmpdir.dirname
     )
     assert expected_msg in stderr
 
-    expected_msg = "die with -vvv or more shows a stack trace. exit_code argument is ignored"
-    assert expected_msg in str(exc.value)
+    expected_vvv_msg = "die with -vvv or more shows a stack trace. exit_code argument is ignored"
+    assert expected_vvv_msg in str(exc.value)
 
 
 def test_init_local_manifest_project(repos_tmpdir):
@@ -2643,7 +2649,6 @@ def test_import_project_release_fork(repos_tmpdir):
         },
     )
 
-    cmd(['init', '-l', manifest_repo])
     with pytest.raises(ManifestImportFailed):
         Manifest.from_topdir(topdir=ws)
 
@@ -2729,7 +2734,6 @@ def test_import_project_release_dir(tmpdir):
         },
     )
 
-    cmd(['init', '-l', manifest_repo])
     with pytest.raises(ManifestImportFailed):
         Manifest.from_topdir(topdir=ws)
 
@@ -2772,7 +2776,6 @@ def test_import_project_rolling(repos_tmpdir):
         },
     )
 
-    cmd(['init', '-l', manifest_repo])
     with pytest.raises(ManifestImportFailed):
         Manifest.from_topdir(topdir=ws)