diff --git a/options.c b/options.c
index 6ba13b7..9ecbd87 100644
--- a/options.c
+++ b/options.c
@@ -1320,40 +1320,18 @@ int parse_arguments(int *argc_p, const char ***argv_p)
 	if (pc)
 		poptFreeContext(pc);
 	pc = poptGetContext(RSYNC_NAME, argc, argv, long_options, 0);
-	if (!am_server)
-		poptReadDefaultConfig(pc, 0);
 
+	/* Check for --server and --daemon
+	 * before processing popt aliases */
 	while ((opt = poptGetNextOpt(pc)) != -1) {
-		/* most options are handled automatically by popt;
-		 * only special cases are returned and listed here. */
-
 		switch (opt) {
-		case OPT_VERSION:
-			print_rsync_version(FINFO);
-			exit_cleanup(0);
-
 		case OPT_SERVER:
-			if (!am_server) {
-				/* Disable popt aliases on the server side and
-				 * then start parsing the options again. */
-				poptFreeContext(pc);
-				pc = poptGetContext(RSYNC_NAME, argc, argv,
-						    long_options, 0);
-				am_server = 1;
-			}
+			am_server = 1;
 #ifdef ICONV_OPTION
 			iconv_opt = NULL;
 #endif
 			break;
 
-		case OPT_SENDER:
-			if (!am_server) {
-				usage(FERROR);
-				exit_cleanup(RERR_SYNTAX);
-			}
-			am_sender = 1;
-			break;
-
 		case OPT_DAEMON:
 			if (am_daemon) {
 				strlcpy(err_buf,
@@ -1423,6 +1401,31 @@ int parse_arguments(int *argc_p, const char ***argv_p)
 			daemon_opt = 0;
 			am_daemon = 1;
 			return 1;
+		}
+	}
+
+	/* Process popt aliases */
+	if (!am_server)
+		poptFreeContext(pc);
+		pc = poptGetContext(RSYNC_NAME, argc, argv, long_options, 0);
+		poptReadDefaultConfig(pc, 0);
+
+	while ((opt = poptGetNextOpt(pc)) != -1) {
+		/* most options are handled automatically by popt;
+		 * only special cases are returned and listed here. */
+
+		switch (opt) {
+		case OPT_VERSION:
+			print_rsync_version(FINFO);
+			exit_cleanup(0);
+
+		case OPT_SENDER:
+			if (!am_server) {
+				usage(FERROR);
+				exit_cleanup(RERR_SYNTAX);
+			}
+			am_sender = 1;
+			break;
 
 		case OPT_MODIFY_WINDOW:
 			/* The value has already been set by popt, but