diff --git a/cabal-install/cabal-install.cabal b/cabal-install/cabal-install.cabal
index eac396f6d0e..c3b1b48acdc 100644
--- a/cabal-install/cabal-install.cabal
+++ b/cabal-install/cabal-install.cabal
@@ -209,6 +209,7 @@ library
         Distribution.Client.Types
         Distribution.Client.Types.AllowNewer
         Distribution.Client.Types.BuildResults
+        Distribution.Client.Types.CurrentCommand
         Distribution.Client.Types.ConfiguredId
         Distribution.Client.Types.ConfiguredPackage
         Distribution.Client.Types.Credentials
diff --git a/cabal-install/src/Distribution/Client/CmdHaddock.hs b/cabal-install/src/Distribution/Client/CmdHaddock.hs
index f9be5763b3b..4bf57f17909 100644
--- a/cabal-install/src/Distribution/Client/CmdHaddock.hs
+++ b/cabal-install/src/Distribution/Client/CmdHaddock.hs
@@ -34,7 +34,6 @@ import Distribution.Client.ProjectPlanning
   )
 import Distribution.Client.Setup
   ( GlobalFlags
-  , InstallFlags (..)
   )
 import Distribution.Client.TargetProblem
   ( TargetProblem (..)
@@ -150,9 +149,7 @@ haddockAction relFlags targetStrings globalFlags = do
 
   let
     verbosity = cfgVerbosity normal flags
-    installDoc = fromFlagOrDefault True (installDocumentation installFlags)
-    flags' = flags{installFlags = installFlags{installDocumentation = Flag installDoc}}
-    cliConfig = commandLineFlagsToProjectConfig globalFlags flags' mempty -- ClientInstallFlags, not needed here
+    cliConfig = commandLineFlagsToProjectConfig globalFlags flags mempty -- ClientInstallFlags, not needed here
   projCtx <- establishProjectBaseContext verbosity cliConfig HaddockCommand
 
   let relBaseCtx@ProjectBaseContext{projectConfig = relProjectConfig}
diff --git a/cabal-install/src/Distribution/Client/Install.hs b/cabal-install/src/Distribution/Client/Install.hs
index 635cd7e1689..ea475aa64d3 100644
--- a/cabal-install/src/Distribution/Client/Install.hs
+++ b/cabal-install/src/Distribution/Client/Install.hs
@@ -1263,7 +1263,7 @@ regenerateHaddockIndex
     | otherwise = return ()
     where
       haddockIndexFileIsRequested =
-        fromFlag (installDocumentation installFlags)
+        fromFlagOrDefault False (installDocumentation installFlags)
           && isJust (flagToMaybe (installHaddockIndex installFlags))
 
       -- We want to regenerate the index if some new documentation was actually
@@ -1889,7 +1889,7 @@ installUnpackedPackage
 
         buildFlags vers =
           emptyBuildFlags{buildCommonFlags = commonFlags vers}
-        shouldHaddock = fromFlag (installDocumentation installFlags)
+        shouldHaddock = fromFlagOrDefault False (installDocumentation installFlags)
         haddockFlags' vers =
           haddockFlags{haddockCommonFlags = commonFlags vers}
         testsEnabled =
diff --git a/cabal-install/src/Distribution/Client/ProjectOrchestration.hs b/cabal-install/src/Distribution/Client/ProjectOrchestration.hs
index 9b12f570252..0f2f11596e3 100644
--- a/cabal-install/src/Distribution/Client/ProjectOrchestration.hs
+++ b/cabal-install/src/Distribution/Client/ProjectOrchestration.hs
@@ -135,7 +135,8 @@ import Distribution.Client.TargetSelector
   , reportTargetSelectorProblems
   )
 import Distribution.Client.Types
-  ( DocsResult (..)
+  ( CurrentCommand (..)
+  , DocsResult (..)
   , GenericReadyPackage (..)
   , PackageLocation (..)
   , PackageSpecifier (..)
@@ -230,11 +231,6 @@ import           System.Posix.Signals (sigKILL, sigSEGV)
 
 #endif
 
--- | Tracks what command is being executed, because we need to hide this somewhere
--- for cases that need special handling (usually for error reporting).
-data CurrentCommand = InstallCommand | HaddockCommand | BuildCommand | ReplCommand | OtherCommand
-  deriving (Show, Eq)
-
 -- | This holds the context of a project prior to solving: the content of the
 -- @cabal.project@, @cabal/config@ and all the local package @.cabal@ files.
 data ProjectBaseContext = ProjectBaseContext
@@ -286,6 +282,7 @@ establishProjectBaseContextWithRoot verbosity cliConfig projectRoot currentComma
       httpTransport
       distDirLayout
       cliConfig
+      currentCommand
 
   let ProjectConfigBuildOnly
         { projectConfigLogsDir
diff --git a/cabal-install/src/Distribution/Client/ProjectPlanning.hs b/cabal-install/src/Distribution/Client/ProjectPlanning.hs
index 246585ca096..c7e1319b679 100644
--- a/cabal-install/src/Distribution/Client/ProjectPlanning.hs
+++ b/cabal-install/src/Distribution/Client/ProjectPlanning.hs
@@ -354,6 +354,7 @@ rebuildProjectConfig
   -> HttpTransport
   -> DistDirLayout
   -> ProjectConfig
+  -> CurrentCommand
   -> IO
       ( ProjectConfig
       , [PackageSpecifier UnresolvedSourcePackage]
@@ -368,7 +369,8 @@ rebuildProjectConfig
     , distProjectCacheDirectory
     , distProjectFile
     }
-  cliConfig = do
+  cliConfig
+  currentCommand = do
     progsearchpath <- liftIO $ getSystemSearchPath
 
     let fileMonitorProjectConfig = newFileMonitor (distProjectCacheFile "config")
@@ -415,7 +417,7 @@ rebuildProjectConfig
       notice (verboseStderr verbosity) . render . vcat $
         text "Configuration is affected by the following files:" : configfiles
 
-    return (projectConfig <> cliConfig, localPackages)
+    return (commandDefaults currentCommand <> projectConfig <> cliConfig, localPackages)
     where
       ProjectConfigShared{projectConfigHcFlavor, projectConfigHcPath, projectConfigHcPkg, projectConfigIgnoreProject, projectConfigConfigFile} =
         projectConfigShared cliConfig
@@ -423,6 +425,15 @@ rebuildProjectConfig
       PackageConfig{packageConfigProgramPaths, packageConfigProgramPathExtra} =
         projectConfigLocalPackages cliConfig
 
+      -- Some commands may require special defaults
+      commandDefaults HaddockCommand =
+        -- `cabal haddock` emplies --enable-documentation, #7462
+        mempty
+          { projectConfigAllPackages = mempty{packageConfigDocumentation = pure True}
+          , projectConfigLocalPackages = mempty{packageConfigDocumentation = pure True}
+          }
+      commandDefaults _ = mempty
+
       -- Read the cabal.project (or implicit config) and combine it with
       -- arguments from the command line
       --
diff --git a/cabal-install/src/Distribution/Client/Setup.hs b/cabal-install/src/Distribution/Client/Setup.hs
index 81f2d69ff0a..1a5ffa53a03 100644
--- a/cabal-install/src/Distribution/Client/Setup.hs
+++ b/cabal-install/src/Distribution/Client/Setup.hs
@@ -2275,7 +2275,7 @@ instance Binary InstallFlags
 defaultInstallFlags :: InstallFlags
 defaultInstallFlags =
   InstallFlags
-    { installDocumentation = Flag False
+    { installDocumentation = mempty
     , installHaddockIndex = Flag docIndexFile
     , installDest = Flag Cabal.NoCopyDest
     , installDryRun = Flag False
diff --git a/cabal-install/src/Distribution/Client/Types.hs b/cabal-install/src/Distribution/Client/Types.hs
index 841a4dbc9d2..296d56a8622 100644
--- a/cabal-install/src/Distribution/Client/Types.hs
+++ b/cabal-install/src/Distribution/Client/Types.hs
@@ -17,6 +17,7 @@
 -- Various common data types for the entire cabal-install system
 module Distribution.Client.Types
   ( module Distribution.Client.Types.AllowNewer
+  , module Distribution.Client.Types.CurrentCommand
   , module Distribution.Client.Types.ConfiguredId
   , module Distribution.Client.Types.ConfiguredPackage
   , module Distribution.Client.Types.BuildResults
@@ -33,6 +34,7 @@ import Distribution.Client.Types.AllowNewer
 import Distribution.Client.Types.BuildResults
 import Distribution.Client.Types.ConfiguredId
 import Distribution.Client.Types.ConfiguredPackage
+import Distribution.Client.Types.CurrentCommand
 import Distribution.Client.Types.PackageLocation
 import Distribution.Client.Types.PackageSpecifier
 import Distribution.Client.Types.ReadyPackage
diff --git a/cabal-install/src/Distribution/Client/Types/CurrentCommand.hs b/cabal-install/src/Distribution/Client/Types/CurrentCommand.hs
new file mode 100644
index 00000000000..9a464133574
--- /dev/null
+++ b/cabal-install/src/Distribution/Client/Types/CurrentCommand.hs
@@ -0,0 +1,6 @@
+module Distribution.Client.Types.CurrentCommand where
+
+-- | Tracks what command is being executed, because we need to hide this somewhere
+-- for cases that need special handling (usually for error reporting).
+data CurrentCommand = InstallCommand | HaddockCommand | BuildCommand | ReplCommand | OtherCommand
+  deriving (Show, Eq)
diff --git a/cabal-install/tests/IntegrationTests2.hs b/cabal-install/tests/IntegrationTests2.hs
index 69c4134f142..cbc910c717a 100644
--- a/cabal-install/tests/IntegrationTests2.hs
+++ b/cabal-install/tests/IntegrationTests2.hs
@@ -33,7 +33,8 @@ import Distribution.Client.Targets
   , UserConstraintScope (UserAnyQualifier)
   )
 import Distribution.Client.Types
-  ( PackageLocation (..)
+  ( CurrentCommand (..)
+  , PackageLocation (..)
   , PackageSpecifier (..)
   , UnresolvedSourcePackage
   )
@@ -2186,6 +2187,7 @@ configureProject testdir cliConfig = do
       httpTransport
       distDirLayout
       cliConfig
+      OtherCommand
 
   let buildSettings =
         resolveBuildTimeSettings