diff --git a/src/internal/kopia/conn.go b/src/internal/kopia/conn.go
index b788157f7..cffc33a0e 100644
--- a/src/internal/kopia/conn.go
+++ b/src/internal/kopia/conn.go
@@ -7,6 +7,7 @@ import (
 	"github.com/kopia/kopia/repo"
 	"github.com/kopia/kopia/repo/blob"
 	"github.com/kopia/kopia/repo/compression"
+	"github.com/kopia/kopia/snapshot"
 	"github.com/kopia/kopia/snapshot/policy"
 	"github.com/pkg/errors"
 
@@ -16,6 +17,7 @@ import (
 
 const (
 	defaultKopiaConfigFilePath = "/tmp/repository.config"
+	defaultCompressor          = "s2-default"
 )
 
 var (
@@ -69,18 +71,13 @@ func (w *conn) Initialize(ctx context.Context) error {
 		return errors.Wrap(err, errInit.Error())
 	}
 
-	// todo - issue #75: nil here should be a storage.ConnectOptions()
-	if err := repo.Connect(
+	return w.commonConnect(
 		ctx,
 		defaultKopiaConfigFilePath,
 		bst,
 		cfg.CorsoPassword,
-		nil,
-	); err != nil {
-		return errors.Wrap(err, errConnect.Error())
-	}
-
-	return w.open(ctx, cfg.CorsoPassword)
+		defaultCompressor,
+	)
 }
 
 func (w *conn) Connect(ctx context.Context) error {
@@ -95,18 +92,37 @@ func (w *conn) Connect(ctx context.Context) error {
 		return err
 	}
 
-	// todo - issue #75: nil here should be storage.ConnectOptions()
-	if err := repo.Connect(
+	return w.commonConnect(
 		ctx,
 		defaultKopiaConfigFilePath,
 		bst,
 		cfg.CorsoPassword,
+		defaultCompressor,
+	)
+}
+
+func (w *conn) commonConnect(
+	ctx context.Context,
+	configPath string,
+	bst blob.Storage,
+	password, compressor string,
+) error {
+	// todo - issue #75: nil here should be storage.ConnectOptions()
+	if err := repo.Connect(
+		ctx,
+		configPath,
+		bst,
+		password,
 		nil,
 	); err != nil {
 		return errors.Wrap(err, errConnect.Error())
 	}
 
-	return w.open(ctx, cfg.CorsoPassword)
+	if err := w.open(ctx, configPath, password); err != nil {
+		return err
+	}
+
+	return w.Compression(ctx, compressor)
 }
 
 func blobStoreByProvider(ctx context.Context, s storage.Storage) (blob.Storage, error) {
@@ -144,14 +160,14 @@ func (w *conn) close(ctx context.Context) error {
 	return errors.Wrap(err, "closing repository connection")
 }
 
-func (w *conn) open(ctx context.Context, password string) error {
+func (w *conn) open(ctx context.Context, configPath, password string) error {
 	w.mu.Lock()
 	defer w.mu.Unlock()
 
 	w.refCount++
 
 	// TODO(ashmrtnz): issue #75: nil here should be storage.ConnectionOptions().
-	rep, err := repo.Open(ctx, defaultKopiaConfigFilePath, password, nil)
+	rep, err := repo.Open(ctx, configPath, password, nil)
 	if err != nil {
 		return errors.Wrap(err, "opening repository connection")
 	}
@@ -183,13 +199,13 @@ func (w *conn) Compression(ctx context.Context, compressor string) error {
 
 	si := policy.GlobalPolicySourceInfo
 
-	p, err := policy.GetDefinedPolicy(ctx, w.Repository, si)
+	p, err := w.getPolicyOrEmpty(ctx, si)
 	if err != nil {
-		if !errors.Is(err, policy.ErrPolicyNotFound) {
-			return errors.Wrap(err, "getting global compression policy")
-		}
+		return err
+	}
 
-		p = &policy.Policy{}
+	if compressor == string(p.CompressionPolicy.CompressorName) {
+		return nil
 	}
 
 	p.CompressionPolicy = policy.CompressionPolicy{
@@ -199,7 +215,7 @@ func (w *conn) Compression(ctx context.Context, compressor string) error {
 	err = repo.WriteSession(
 		ctx,
 		w.Repository,
-		repo.WriteSessionOptions{Purpose: "UpdateGlobalCompression"},
+		repo.WriteSessionOptions{Purpose: "UpdateGlobalCompressionPolicy"},
 		func(innerCtx context.Context, rw repo.RepositoryWriter) error {
 			return policy.SetPolicy(ctx, rw, si, p)
 		},
@@ -208,6 +224,19 @@ func (w *conn) Compression(ctx context.Context, compressor string) error {
 	return errors.Wrap(err, "updating global compression policy")
 }
 
+func (w *conn) getPolicyOrEmpty(ctx context.Context, si snapshot.SourceInfo) (*policy.Policy, error) {
+	p, err := policy.GetDefinedPolicy(ctx, w.Repository, si)
+	if err != nil {
+		if errors.Is(err, policy.ErrPolicyNotFound) {
+			return &policy.Policy{}, nil
+		}
+
+		return nil, errors.Wrap(err, "getting global backup policy")
+	}
+
+	return p, nil
+}
+
 func checkCompressor(compressor compression.Name) error {
 	for c := range compression.ByName {
 		if c == compressor {
diff --git a/src/internal/kopia/conn_test.go b/src/internal/kopia/conn_test.go
index 1a83ff6d4..c2f8e5cb2 100644
--- a/src/internal/kopia/conn_test.go
+++ b/src/internal/kopia/conn_test.go
@@ -124,10 +124,33 @@ func (suite *WrapperIntegrationSuite) TestBadCompressorType() {
 	assert.Error(t, k.Compression(ctx, "not-a-compressor"))
 }
 
+func (suite *WrapperIntegrationSuite) TestGetPolicyOrDefault_GetsDefault() {
+	ctx := context.Background()
+	t := suite.T()
+
+	k, err := openKopiaRepo(t, ctx)
+	require.NoError(t, err)
+
+	defer func() {
+		assert.NoError(t, k.Close(ctx))
+	}()
+
+	si := snapshot.SourceInfo{
+		Host:     corsoHost,
+		UserName: corsoUser,
+		Path:     "test-path-root",
+	}
+
+	p, err := k.getPolicyOrEmpty(ctx, si)
+	require.NoError(t, err)
+
+	assert.Equal(t, policy.Policy{}, *p)
+}
+
 func (suite *WrapperIntegrationSuite) TestSetCompressor() {
 	ctx := context.Background()
 	t := suite.T()
-	compressor := "s2-default"
+	compressor := "pgzip"
 
 	k, err := openKopiaRepo(t, ctx)
 	require.NoError(t, err)
@@ -139,7 +162,7 @@ func (suite *WrapperIntegrationSuite) TestSetCompressor() {
 	assert.NoError(t, k.Compression(ctx, compressor))
 
 	// Check the policy was actually created and has the right compressor.
-	p, err := policy.GetDefinedPolicy(ctx, k.Repository, policy.GlobalPolicySourceInfo)
+	p, err := k.getPolicyOrEmpty(ctx, policy.GlobalPolicySourceInfo)
 	require.NoError(t, err)
 
 	assert.Equal(t, compressor, string(p.CompressionPolicy.CompressorName))
@@ -161,3 +184,34 @@ func (suite *WrapperIntegrationSuite) TestSetCompressor() {
 		string(policyTree.EffectivePolicy().CompressionPolicy.CompressorName),
 	)
 }
+
+func (suite *WrapperIntegrationSuite) TestCompressorSetOnInitAndConnect() {
+	ctx := context.Background()
+	t := suite.T()
+	tmpComp := "pgzip"
+
+	k, err := openKopiaRepo(t, ctx)
+	require.NoError(t, err)
+
+	// Check the policy was actually created and has the right compressor.
+	p, err := k.getPolicyOrEmpty(ctx, policy.GlobalPolicySourceInfo)
+	require.NoError(t, err)
+
+	require.Equal(t, defaultCompressor, string(p.CompressionPolicy.CompressorName))
+
+	// Change the compressor to something else.
+	require.NoError(t, k.Compression(ctx, tmpComp))
+	require.NoError(t, k.Close(ctx))
+
+	// Re-open with Connect to see if the compressor changed back.
+	require.NoError(t, k.Connect(ctx))
+
+	defer func() {
+		assert.NoError(t, k.Close(ctx))
+	}()
+
+	p, err = k.getPolicyOrEmpty(ctx, policy.GlobalPolicySourceInfo)
+	require.NoError(t, err)
+
+	assert.Equal(t, defaultCompressor, string(p.CompressionPolicy.CompressorName))
+}