diff --git a/homeassistant/components/rachio/__init__.py b/homeassistant/components/rachio/__init__.py
index eafb8ee25ba..ea8b8fe59cb 100644
--- a/homeassistant/components/rachio/__init__.py
+++ b/homeassistant/components/rachio/__init__.py
@@ -58,9 +58,14 @@ async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
 
     # Get the URL of this server
     rachio.webhook_auth = secrets.token_hex()
-    webhook_id, webhook_url = await async_get_or_create_registered_webhook_id_and_url(
-        hass, entry
-    )
+    try:
+        (
+            webhook_id,
+            webhook_url,
+        ) = await async_get_or_create_registered_webhook_id_and_url(hass, entry)
+    except cloud.CloudNotConnected as exc:
+        # User has an active cloud subscription, but the connection to the cloud is down
+        raise ConfigEntryNotReady from exc
     rachio.webhook_url = webhook_url
 
     person = RachioPerson(rachio, entry)