diff --git a/docs/deprecations.md b/docs/deprecations.md
index 39cebc6fd7e..c9683114b3c 100644
--- a/docs/deprecations.md
+++ b/docs/deprecations.md
@@ -6,6 +6,12 @@ layout: Doc
 
 # Serverless Framework Deprecations
 
+<a name="DISABLE_LOCAL_INSTALLATION_FALLBACK_SETTING"><div>&nbsp;</div></a>
+
+## Support for `enableLocalInstallationFallback` setting is to be removed
+
+Starting with v3.0.0, framework will unconditionally run service local installation of `serverless` if its found.
+
 <a name="LOCAL_INSTALLATION_FALLBACK"><div>&nbsp;</div></a>
 
 ## Fallback to service local `serverless` installation
diff --git a/lib/Serverless.js b/lib/Serverless.js
index ae58d896ff0..c27ba0b8ce5 100644
--- a/lib/Serverless.js
+++ b/lib/Serverless.js
@@ -117,24 +117,28 @@ class Serverless {
       });
   }
   eventuallyFallbackToLocal() {
+    if (
+      this.pluginManager.serverlessConfigFile &&
+      this.pluginManager.serverlessConfigFile.enableLocalInstallationFallback != null
+    ) {
+      this._logDeprecation(
+        'DISABLE_LOCAL_INSTALLATION_FALLBACK_SETTING',
+        'Starting with next major version, "enableLocalInstallationFallback" setting will no longer be supported.' +
+          'CLI will unconditionally fallback to service local installation when its found.\n' +
+          'Remove this setting to clear this deprecation warning'
+      );
+    }
     return resolve(process.cwd(), 'serverless').then(
       ({ realPath }) => {
         if (realPath === __filename) {
           this.isLocallyInstalled = true;
           return null;
         }
-        if (!this.pluginManager.serverlessConfigFile) return null;
-        if (this.pluginManager.serverlessConfigFile.enableLocalInstallationFallback == null) {
-          this._logDeprecation(
-            'LOCAL_INSTALLATION_FALLBACK',
-            'Local installation of Serverless detected. Starting with next major version, CLI ' +
-              'will run it instead of globally installed version.\n' +
-              'Set "enableLocalInstallationFallback" to "true" to switch to new behavior now, ' +
-              'set to "false" to keep current behavior and hide this message'
-          );
-          return null;
-        }
-        if (!this.pluginManager.serverlessConfigFile.enableLocalInstallationFallback) {
+        if (
+          this.pluginManager.serverlessConfigFile &&
+          this.pluginManager.serverlessConfigFile.enableLocalInstallationFallback != null &&
+          !this.pluginManager.serverlessConfigFile.enableLocalInstallationFallback
+        ) {
           return null;
         }
         this.cli.log('Running "serverless" installed locally (in service node_modules)');
diff --git a/lib/Serverless.test.js b/lib/Serverless.test.js
index a1271f5ce83..445048d230f 100644
--- a/lib/Serverless.test.js
+++ b/lib/Serverless.test.js
@@ -307,28 +307,37 @@ describe('Serverless [new tests]', () => {
     after(() => fse.remove(path.resolve(fixtures.map.aws, 'node_modules')));
 
     describe('When running global version', () => {
-      it('Should report deprecation notice when "enableLocalInstallationFallback" not set', () =>
+      it('Should fallback to local version when it is found and "enableLocalInstallationFallback" is not set', () =>
         runServerless({ cwd: fixtures.map.aws, cliArgs: ['-v'] }).then(({ serverless }) => {
-          expect(Array.from(serverless.triggeredDeprecations)).to.deep.equal([
-            'LOCAL_INSTALLATION_FALLBACK',
-          ]);
-          expect(serverless.invokedInstance).to.not.exist;
+          expect(Array.from(serverless.triggeredDeprecations)).to.deep.equal([]);
+          expect(serverless.invokedInstance.isLocalStub).to.be.true;
         }));
-      it('Should run without notice when "enableLocalInstallationFallback" set to false', () =>
+
+      let serverlessWithDisabledLocalInstallationFallback;
+      it('Should report deprecation notice when "enableLocalInstallationFallback" is set', () =>
         fixtures.extend('aws', { enableLocalInstallationFallback: false }).then(fixturePath =>
           runServerless({ cwd: fixturePath, cliArgs: ['-v'] }).then(({ serverless }) => {
-            expect(Array.from(serverless.triggeredDeprecations)).to.deep.equal([]);
-            expect(serverless.invokedInstance).to.not.exist;
+            serverlessWithDisabledLocalInstallationFallback = serverless;
+            expect(Array.from(serverless.triggeredDeprecations)).to.deep.equal([
+              'DISABLE_LOCAL_INSTALLATION_FALLBACK_SETTING',
+            ]);
           })
         ));
+
+      it('Should not fallback to local when "enableLocalInstallationFallback" set to false', () =>
+        expect(serverlessWithDisabledLocalInstallationFallback.invokedInstance).to.not.exist);
+
       it('Should fallback to local version when "enableLocalInstallationFallback" set to true', () =>
         fixtures.extend('aws', { enableLocalInstallationFallback: true }).then(fixturePath =>
           runServerless({ cwd: fixturePath, cliArgs: ['-v'] }).then(({ serverless }) => {
-            expect(Array.from(serverless.triggeredDeprecations)).to.deep.equal([]);
+            expect(Array.from(serverless.triggeredDeprecations)).to.deep.equal([
+              'DISABLE_LOCAL_INSTALLATION_FALLBACK_SETTING',
+            ]);
             expect(serverless.invokedInstance.isLocalStub).to.be.true;
           })
         ));
     });
+
     describe('When running local version', () => {
       it('Should run without notice', () =>
         runServerless({