diff --git a/cpp/src/io/utilities/config_utils.cpp b/cpp/src/io/utilities/config_utils.cpp
index 067623f8992..377a6eb68b9 100644
--- a/cpp/src/io/utilities/config_utils.cpp
+++ b/cpp/src/io/utilities/config_utils.cpp
@@ -56,11 +56,11 @@ void set_up_kvikio()
 {
   static std::once_flag flag{};
   std::call_once(flag, [] {
+    auto compat_mode = kvikio::detail::getenv_or<bool>("KVIKIO_COMPAT_MODE", true);
+    kvikio::defaults::compat_mode_reset(compat_mode);
+
     auto nthreads = getenv_or<unsigned int>("KVIKIO_NTHREADS", 4U);
     kvikio::defaults::thread_pool_nthreads_reset(nthreads);
-
-    auto compat_mode = getenv_or<bool>("KVIKIO_COMPAT_MODE", true);
-    kvikio::defaults::compat_mode_reset(compat_mode);
   });
 }
 }  // namespace cufile_integration
diff --git a/docs/cudf/source/user_guide/io/io.md b/docs/cudf/source/user_guide/io/io.md
index 750050bc279..c0a1b803a11 100644
--- a/docs/cudf/source/user_guide/io/io.md
+++ b/docs/cudf/source/user_guide/io/io.md
@@ -97,9 +97,14 @@ This variable also controls the GDS compatibility mode.
 
 There are four valid values for the environment variable:
 
-- "GDS": Enable GDS use; GDS compatibility mode is *off*.
-- "ALWAYS": Enable GDS use; GDS compatibility mode is *on*.
-- "KVIKIO": Enable GDS through [KvikIO](https://github.com/rapidsai/kvikio).
+- "GDS": Enable GDS use. If the cuFile library cannot be properly loaded,
+fall back to the GDS compatibility mode.
+- "ALWAYS": Enable GDS use. If the cuFile library cannot be properly loaded,
+throw an exception.
+- "KVIKIO": Enable GDS through [KvikIO](https://github.com/rapidsai/kvikio). Note
+that if the environment variable `KVIKIO_COMPAT_MODE` is `ON`, or if KvikIO detects
+that the system is not properly configured for GDS, the I/O will fall back to the
+GDS compatibility mode.
 - "OFF": Completely disable GDS use.
 
 If no value is set, behavior will be the same as the "KVIKIO" option.