GRB 230307A is the second-brightest gamma-ray burst (GRB) ever detected over 50 yr of observations and has a long duration in the prompt emission. Two galaxies are found to be close to the position of GRB 230307A: (1) a distant (z ∼ 3.87) star-forming galaxy, located at an offset of ∼0.″2–0.″3 from the GRB position (with a projected distance of ∼1–2 kpc); (2) a nearby (z = 0.065) spiral galaxy, located at an offset of 30″ (with a projected distance of ∼40 kpc). Though it has been found that the brightest GRBs are readily detected in GeV emission by the Fermi Large Area Telescope, we find no GeV afterglow emission from GRB 230307A. Combining this with the optical and X-ray afterglow data, we find that a circumburst density as low as ∼10−5–10−4 cm−3 is needed to explain the nondetection of GeV emission and the multiwavelength afterglow data, regardless of the redshift of this GRB. Such a low-density disfavors the association of GRB 230307A with the high-redshift star-forming galaxy, since the proximity of the GRB position to this galaxy would imply a higher-density environment. Instead, the low-density medium is consistent with the circumgalactic medium, which agrees with the large offset between GRB 230307A and the low-redshift galaxy. This points to the compact stellar merger origin for GRB 230307A, consistent with the detection of an associated kilonova.