Maybe I'm missing something important here - it wouldn't be the first time - but why would Bajor be in federation space at all? It wasn't a member of the Federation when DS9 started. Sisko was there to help facilitate Bajor's entry into the Federation, right?
Did say how "far away" Bajor was from Federation space. Did not say they were in Federation space.
It looked to be they were close to Federation space during the 2370's and much distance from Federation space in the past.