diff --git a/lxd/storage/drivers/driver_dir_utils.go b/lxd/storage/drivers/driver_dir_utils.go
index 6300990368c2..b521deeb986f 100644
--- a/lxd/storage/drivers/driver_dir_utils.go
+++ b/lxd/storage/drivers/driver_dir_utils.go
@@ -120,14 +120,15 @@ func (d *dir) setQuota(path string, volID int64, sizeBytes int64) error {
 
 	// Clear and create new project if desired project ID is different.
 	if currentProjectID != d.quotaProjectID(volID) {
-		err = quota.DeleteProject(path, currentProjectID)
+		err = quota.SetProject(path, projectID)
 		if err != nil {
-			return err
+			return fmt.Errorf("Failed setting project: %w", err)
 		}
 
-		err = quota.SetProject(path, projectID)
+		// Unset the quota on the current project.
+		err = quota.SetProjectQuota(path, currentProjectID, 0)
 		if err != nil {
-			return fmt.Errorf("Failed setting project: %w", err)
+			return err
 		}
 	}