diff --git a/nox/virtualenv.py b/nox/virtualenv.py
index 47a21074..604ee4ee 100644
--- a/nox/virtualenv.py
+++ b/nox/virtualenv.py
@@ -225,6 +225,7 @@ def create(self) -> bool:
             logger.debug(
                 "Re-using existing conda env at {}.".format(self.location_name)
             )
+
             self._reused = True
 
             return False
@@ -418,10 +419,10 @@ def create(self) -> bool:
                         self.location_name
                     )
                 )
-                return False
 
-            self._reused = False
+                self._reused = True
 
+                return False
 
         if self.venv_or_virtualenv == "virtualenv":
             cmd = [sys.executable, "-m", "virtualenv", self.location]
diff --git a/tests/test_virtualenv.py b/tests/test_virtualenv.py
index cb76a877..2804d743 100644
--- a/tests/test_virtualenv.py
+++ b/tests/test_virtualenv.py
@@ -179,6 +179,7 @@ def test_condaenv_create(make_conda):
     venv.reuse_existing = True
     venv.create()
     assert dir_.join("test.txt").check()
+    assert venv._reused
 
 
 @pytest.mark.skipif(not HAS_CONDA, reason="Missing conda command.")
@@ -328,7 +329,10 @@ def test_create(monkeypatch, make_one):
     assert dir_.join("test.txt").check()
     venv.reuse_existing = True
     monkeypatch.setattr(nox.virtualenv.nox.command, "run", mock.MagicMock())
+
     venv.create()
+
+    assert venv._reused
     assert dir_.join("test.txt").check()