diff --git a/.changes/unreleased/Fixes-20240703-140732.yaml b/.changes/unreleased/Fixes-20240703-140732.yaml
new file mode 100644
index 00000000..fc78f5ae
--- /dev/null
+++ b/.changes/unreleased/Fixes-20240703-140732.yaml
@@ -0,0 +1,8 @@
+kind: Fixes
+body: Fix incremental materialization to correctly set the temporary relation to a
+  view or table
+time: 2024-07-03T14:07:32.613562+02:00
+custom:
+  Author: damian3031
+  Issue: "416"
+  PR: "418"
diff --git a/dbt/include/trino/macros/materializations/incremental.sql b/dbt/include/trino/macros/materializations/incremental.sql
index a8b2dec0..712d458d 100644
--- a/dbt/include/trino/macros/materializations/incremental.sql
+++ b/dbt/include/trino/macros/materializations/incremental.sql
@@ -20,16 +20,6 @@
 
 {% materialization incremental, adapter='trino', supported_languages=['sql'] -%}
 
-  {#-- relations --#}
-  {%- set existing_relation = load_cached_relation(this) -%}
-  {%- set target_relation = this.incorporate(type='table') -%}
-  {#-- The temp relation will be a view (faster) or temp table, depending on upsert/merge strategy --#}
-  {%- set tmp_relation_type = get_incremental_tmp_relation_type(incremental_strategy, unique_key, language) -%}
-  {%- set tmp_relation = make_temp_relation(this).incorporate(type=tmp_relation_type) -%}
-  {%- set intermediate_relation = make_intermediate_relation(target_relation) -%}
-  {%- set backup_relation_type = 'table' if existing_relation is none else existing_relation.type -%}
-  {%- set backup_relation = make_backup_relation(target_relation, backup_relation_type) -%}
-
   {#-- configs --#}
   {%- set unique_key = config.get('unique_key') -%}
   {%- set full_refresh_mode = (should_full_refresh()) -%}
@@ -41,6 +31,20 @@
       {% do log(log_message) %}
       {%- set on_table_exists = 'rename' -%}
   {% endif %}
+  {#-- Get the incremental_strategy and the macro to use for the strategy --#}
+  {% set incremental_strategy = config.get('incremental_strategy') or 'default' %}
+  {% set incremental_predicates = config.get('predicates', none) or config.get('incremental_predicates', none) %}
+  {% set strategy_sql_macro_func = adapter.get_incremental_strategy_macro(context, incremental_strategy) %}
+
+  {#-- relations --#}
+  {%- set existing_relation = load_cached_relation(this) -%}
+  {%- set target_relation = this.incorporate(type='table') -%}
+  {#-- The temp relation will be a view (faster) or temp table, depending on upsert/merge strategy --#}
+  {%- set tmp_relation_type = get_incremental_tmp_relation_type(incremental_strategy, unique_key, language) -%}
+  {%- set tmp_relation = make_temp_relation(this).incorporate(type=tmp_relation_type) -%}
+  {%- set intermediate_relation = make_intermediate_relation(target_relation) -%}
+  {%- set backup_relation_type = 'table' if existing_relation is none else existing_relation.type -%}
+  {%- set backup_relation = make_backup_relation(target_relation, backup_relation_type) -%}
 
   {#-- the temp_ and backup_ relation should not already exist in the database; get_relation
   -- will return None in that case. Otherwise, we get a relation that we can drop
@@ -96,12 +100,8 @@
       {% set dest_columns = adapter.get_columns_in_relation(existing_relation) %}
     {% endif %}
 
-    {#-- Get the incremental_strategy, the macro to use for the strategy, and build the sql --#}
-    {% set incremental_strategy = config.get('incremental_strategy') or 'default' %}
-    {% set incremental_predicates = config.get('predicates', none) or config.get('incremental_predicates', none) %}
-    {% set strategy_sql_macro_func = adapter.get_incremental_strategy_macro(context, incremental_strategy) %}
+    {#-- Build the sql --#}
     {% set strategy_arg_dict = ({'target_relation': target_relation, 'temp_relation': tmp_relation, 'unique_key': unique_key, 'dest_columns': dest_columns, 'incremental_predicates': incremental_predicates }) %}
-
     {%- call statement('main') -%}
       {{ strategy_sql_macro_func(strategy_arg_dict) }}
     {%- endcall -%}
diff --git a/tests/functional/adapter/materialization/test_incremental_views_enabled.py b/tests/functional/adapter/materialization/test_incremental_views_enabled.py
new file mode 100644
index 00000000..65cd4375
--- /dev/null
+++ b/tests/functional/adapter/materialization/test_incremental_views_enabled.py
@@ -0,0 +1,87 @@
+import pytest
+from dbt.tests.util import run_dbt, run_dbt_and_capture
+
+from tests.functional.adapter.materialization.fixtures import model_sql, seed_csv
+
+
+class BaseViewsEnabled:
+    # everything that goes in the "seeds" directory
+    @pytest.fixture(scope="class")
+    def seeds(self):
+        return {
+            "seed.csv": seed_csv,
+        }
+
+    # everything that goes in the "models" directory
+    @pytest.fixture(scope="class")
+    def models(self):
+        return {
+            "materialization.sql": model_sql,
+        }
+
+
+class TestViewsEnabledTrue(BaseViewsEnabled):
+    """
+    Testing without views_enabled config specified, which defaults to views_enabled = True configuration
+    """
+
+    @pytest.fixture(scope="class")
+    def project_config_update(self):
+        return {
+            "name": "views_enabled_true",
+            "models": {"+materialized": "incremental"},
+            "seeds": {
+                "+column_types": {"some_date": "timestamp(6)"},
+            },
+        }
+
+    # The actual sequence of dbt commands and assertions
+    # pytest will take care of all "setup" + "teardown"
+    def test_run_seed_test(self, project):
+        # seed seeds
+        results = run_dbt(["seed"], expect_pass=True)
+        assert len(results) == 1
+
+        results = run_dbt(["run"], expect_pass=True)
+        assert len(results) == 1
+
+        results, logs = run_dbt_and_capture(["--debug", "run"], expect_pass=True)
+        assert len(results) == 1
+        assert (
+            f'''create or replace view
+    "{project.database}"."{project.test_schema}"."materialization__dbt_tmp"'''
+            in logs
+        )
+
+
+class TestViewsEnabledFalse(BaseViewsEnabled):
+    """
+    Testing views_enabled = False configuration for incremental materialization
+    """
+
+    @pytest.fixture(scope="class")
+    def project_config_update(self):
+        return {
+            "name": "views_enabled_false",
+            "models": {"+materialized": "incremental", "+views_enabled": False},
+            "seeds": {
+                "+column_types": {"some_date": "timestamp(6)"},
+            },
+        }
+
+    # The actual sequence of dbt commands and assertions
+    # pytest will take care of all "setup" + "teardown"
+    def test_run_seed_test(self, project):
+        # seed seeds
+        results = run_dbt(["seed"], expect_pass=True)
+        assert len(results) == 1
+
+        results = run_dbt(["run"], expect_pass=True)
+        assert len(results) == 1
+
+        results, logs = run_dbt_and_capture(["--debug", "run"], expect_pass=True)
+        assert len(results) == 1
+        assert (
+            f'create table "{project.database}"."{project.test_schema}"."materialization__dbt_tmp"'
+            in logs
+        )