diff --git a/Source/cmCMakePolicyCommand.cxx b/Source/cmCMakePolicyCommand.cxx
index 3c878bf3b..3ef6d356b 100644
--- a/Source/cmCMakePolicyCommand.cxx
+++ b/Source/cmCMakePolicyCommand.cxx
@@ -93,6 +93,22 @@ bool cmCMakePolicyCommand::HandleSetMode(std::vector<std::string> const& args)
     this->SetError("SET failed to set policy.");
     return false;
     }
+  if(args[1] == "CMP0001" &&
+     (status == cmPolicies::WARN || status == cmPolicies::OLD))
+    {
+    if(!(this->Makefile->GetState()
+         ->GetInitializedCacheValue("CMAKE_BACKWARDS_COMPATIBILITY")))
+      {
+      // Set it to 2.4 because that is the last version where the
+      // variable had meaning.
+      this->Makefile->AddCacheDefinition
+        ("CMAKE_BACKWARDS_COMPATIBILITY", "2.4",
+         "For backwards compatibility, what version of CMake "
+         "commands and "
+         "syntax should this version of CMake try to support.",
+         cmState::STRING);
+      }
+    }
   return true;
 }
 
diff --git a/Source/cmMakefile.cxx b/Source/cmMakefile.cxx
index d6854e7bc..c5ce2e99e 100644
--- a/Source/cmMakefile.cxx
+++ b/Source/cmMakefile.cxx
@@ -4822,25 +4822,6 @@ bool cmMakefile::SetPolicy(cmPolicies::PolicyID id,
     previous_was_weak = psi->Weak;
     }
 
-  // Special hook for presenting compatibility variable as soon as
-  // the user requests it.
-  if(id == cmPolicies::CMP0001 &&
-     (status == cmPolicies::WARN || status == cmPolicies::OLD))
-    {
-    if(!(this->GetState()
-         ->GetInitializedCacheValue("CMAKE_BACKWARDS_COMPATIBILITY")))
-      {
-      // Set it to 2.4 because that is the last version where the
-      // variable had meaning.
-      this->AddCacheDefinition
-        ("CMAKE_BACKWARDS_COMPATIBILITY", "2.4",
-         "For backwards compatibility, what version of CMake "
-         "commands and "
-         "syntax should this version of CMake try to support.",
-         cmState::STRING);
-      }
-    }
-
   return true;
 }
 
diff --git a/Source/cmPolicies.cxx b/Source/cmPolicies.cxx
index 2a5ae1cff..3eb19bb96 100644
--- a/Source/cmPolicies.cxx
+++ b/Source/cmPolicies.cxx
@@ -255,6 +255,22 @@ bool cmPolicies::ApplyPolicyVersion(cmMakefile *mf,
           {
           return false;
           }
+        if(pid == cmPolicies::CMP0001 &&
+           (status == cmPolicies::WARN || status == cmPolicies::OLD))
+          {
+          if(!(mf->GetState()
+               ->GetInitializedCacheValue("CMAKE_BACKWARDS_COMPATIBILITY")))
+            {
+            // Set it to 2.4 because that is the last version where the
+            // variable had meaning.
+            mf->AddCacheDefinition
+              ("CMAKE_BACKWARDS_COMPATIBILITY", "2.4",
+               "For backwards compatibility, what version of CMake "
+               "commands and "
+               "syntax should this version of CMake try to support.",
+               cmState::STRING);
+            }
+          }
         }
       }
     else