diff --git a/tests/smoke/scenarios/api_capability_statement_lookup.py b/tests/smoke/scenarios/api_capability_statement_lookup.py
index 6709bae53..85e136ab9 100644
--- a/tests/smoke/scenarios/api_capability_statement_lookup.py
+++ b/tests/smoke/scenarios/api_capability_statement_lookup.py
@@ -1,10 +1,17 @@
+import os
+
 import pytest
 
 from tests.utilities.api_clients import ConsumerTestClient, ProducerTestClient
 
 
-@pytest.mark.skip(
-    reason="Capability statements aren't working when called via NRLF and not Producer/Consumer API"
+def is_public_url():
+    return os.environ.get("TEST_CONNECT_MODE") == "public"
+
+
+@pytest.mark.skipif(
+    not is_public_url(),
+    reason="Capability statements only work via APIGEE in persistent environments",
 )
 def test_read_api_capability_statements(
     consumer_client: ConsumerTestClient, producer_client: ProducerTestClient