diff --git project.module project.module
index b0e2bde..b5a4e9e 100644
--- project.module
+++ project.module
@@ -798,7 +798,10 @@ function project_project_access($op, $node, $account) {
       }
       break;
     case 'create':
-      if ($account->uid && (user_access('create sandbox projects') || user_access('create full projects'))) {
+      $project_perms = (user_access('create sandbox projects') || user_access('create full projects'));
+      // Only check for vc perms if versioncontrol_project is enabled.
+      $vc_perms = module_exists('versioncontrol_project') ? user_access('use version control systems') : TRUE;
+      if ($account->uid && $project_perms && $vc_perms) {
         // Since this CVS access checking is non-standard, we need to
         // special-case uid 1 to always allow everything.
         if ($account->uid != 1 && module_exists('cvs') && variable_get('cvs_restrict_project_creation', 1)) {