diff --git a/packages/runtime/src/enhancements/node/delegate.ts b/packages/runtime/src/enhancements/node/delegate.ts
index 5a9ff162c..8a7d613a1 100644
--- a/packages/runtime/src/enhancements/node/delegate.ts
+++ b/packages/runtime/src/enhancements/node/delegate.ts
@@ -365,12 +365,14 @@ export class DelegateProxyHandler extends DefaultPrismaProxyHandler {
         if (this.options.processIncludeRelationPayload) {
             // use the callback in options to process the include payload, so enhancements
             // like 'policy' can do extra work (e.g., inject policy rules)
+
+            // TODO: this causes both delegate base's policy rules and concrete model's rules to be injected,
+            // which is not wrong but redundant
+
             await this.options.processIncludeRelationPayload(this.prisma, model, result, this.options, this.context);
 
-            // the callback may directly reference fields from polymorphic bases, we need to fix it
-            // into a proper hierarchy by moving base field references to the base layer relations
-            const properHierarchy = await this.buildSelectIncludeHierarchy(model, result, false);
-            result = { ...result, ...properHierarchy };
+            const properSelectIncludeHierarchy = await this.buildSelectIncludeHierarchy(model, result, false);
+            result = { ...result, ...properSelectIncludeHierarchy };
         }
 
         return result;
diff --git a/packages/schema/src/utils/ast-utils.ts b/packages/schema/src/utils/ast-utils.ts
index bf935ce20..e7f24b72a 100644
--- a/packages/schema/src/utils/ast-utils.ts
+++ b/packages/schema/src/utils/ast-utils.ts
@@ -116,7 +116,17 @@ function cloneAst<T extends InheritableNode>(
 ): Mutable<T> {
     const clone = copyAstNode(node, buildReference) as Mutable<T>;
     clone.$container = newContainer;
-    clone.$inheritedFrom = node.$inheritedFrom ?? getContainerOfType(node, isDataModel);
+
+    if (isDataModel(newContainer) && isDataModelField(node)) {
+        // walk up the hierarchy to find the upper-most delegate ancestor that defines the field
+        const delegateBases = getRecursiveBases(newContainer).filter(isDelegateModel);
+        clone.$inheritedFrom = delegateBases.findLast((base) => base.fields.some((f) => f.name === node.name));
+    }
+
+    if (!clone.$inheritedFrom) {
+        clone.$inheritedFrom = node.$inheritedFrom ?? getContainerOfType(node, isDataModel);
+    }
+
     return clone;
 }
 
diff --git a/tests/integration/tests/enhancements/with-delegate/policy-interaction.test.ts b/tests/integration/tests/enhancements/with-delegate/policy-interaction.test.ts
index ff791beb1..d149a6392 100644
--- a/tests/integration/tests/enhancements/with-delegate/policy-interaction.test.ts
+++ b/tests/integration/tests/enhancements/with-delegate/policy-interaction.test.ts
@@ -484,6 +484,53 @@ describe('Polymorphic Policy Test', () => {
         await expect(prisma.post.findUnique({ where: { id: post.id } })).toResolveFalsy();
     });
 
+    it('respects sub model policies when queried from a base: case 3', async () => {
+        const { enhance } = await loadSchema(
+            `
+            model User {
+                id Int @id @default(autoincrement())
+                assets Asset[]
+                @@allow('all', true)
+            }
+
+            model Asset {
+                id Int @id @default(autoincrement())
+                user User @relation(fields: [userId], references: [id])
+                userId Int
+                value Int @default(0)
+                type String
+                @@delegate(type)
+                @@allow('all', value > 0)
+            }
+
+            model Post extends Asset {
+                title String
+                deleted Boolean @default(false)
+                @@deny('read', deleted)
+            }
+        `
+        );
+
+        const db = enhance();
+        const user = await db.user.create({ data: { id: 1 } });
+
+        // can't create
+        await expect(
+            db.post.create({ data: { id: 1, title: 'Post1', userId: user.id, value: 0 } })
+        ).toBeRejectedByPolicy();
+
+        // can't read back
+        await expect(
+            db.post.create({ data: { id: 1, title: 'Post1', userId: user.id, value: 1, deleted: true } })
+        ).toBeRejectedByPolicy();
+
+        await expect(
+            db.post.create({ data: { id: 2, title: 'Post1', userId: user.id, value: 1, deleted: false } })
+        ).toResolveTruthy();
+
+        await expect(db.asset.findMany()).resolves.toHaveLength(2);
+    });
+
     it('respects field-level policies', async () => {
         const { enhance } = await loadSchema(`  
             model User {
diff --git a/tests/regression/tests/issue-1770.test.ts b/tests/regression/tests/issue-1770.test.ts
new file mode 100644
index 000000000..03af5cd19
--- /dev/null
+++ b/tests/regression/tests/issue-1770.test.ts
@@ -0,0 +1,49 @@
+import { loadSchema } from '@zenstackhq/testtools';
+
+describe('issue 1770', () => {
+    it('regression', async () => {
+        const { enhance } = await loadSchema(
+            `
+        model User {
+            id String @id @default(cuid())
+            orgs OrgUser[]
+        }
+
+        model OrgUser {
+            id String @id @default(cuid())
+            user User @relation(fields: [userId], references: [id])
+            userId String
+            org Organization @relation(fields: [orgId], references: [id])
+            orgId String
+        }
+
+        model Organization {
+            id          String       @id @default(uuid())
+            users       OrgUser[]
+            resources   Resource[]  @relation("organization")
+        }
+
+        abstract model BaseAuth {
+            id             String        @id @default(uuid())
+            organizationId String?
+            organization   Organization? @relation(fields: [organizationId], references: [id], name: "organization")
+
+            @@allow('all', organization.users?[user == auth()])
+        }
+
+        model Resource extends BaseAuth {
+            name     String?
+            type     String?
+
+            @@delegate(type)
+        }
+
+        model Personnel extends Resource {
+        }
+        `
+        );
+
+        const db = enhance();
+        await expect(db.resource.findMany()).toResolveTruthy();
+    });
+});