Demystifying terraform.tfvars and terraform.tfstate Files: A Comprehensive Guide

Ayushmaan Srivastav
3 min readApr 12, 2024

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Introduction: Terraform has emerged as a go-to tool for automating infrastructure management and provisioning. In the realm of Terraform, two essential files play a pivotal role: terraform.tfvars and terraform.tfstate. Understanding these files is crucial for effective Terraform usage. In this comprehensive guide, we'll delve into the purpose, structure, and best practices surrounding terraform.tfvars and terraform.tfstate.

1. Introduction to Terraform:

Terraform is an Infrastructure as Code (IaC) tool developed by HashiCorp. It allows users to define infrastructure configurations using a declarative language and then manage those configurations as code. Terraform enables provisioning and managing a wide range of resources across various cloud providers and on-premises environments.

2. Understanding terraform.tfvars:

The terraform.tfvars file is used to store input variables for Terraform configurations. These variables can be used to parameterize the Terraform code and provide dynamic values based on the environment or specific requirements. The terraform.tfvars file is written in HashiCorp Configuration Language (HCL) or JSON format.

Example terraform.tfvars file (HCL format):

region = "us-west-2"
instance_type = "t2.micro"

In the above example, region and instance_type are input variables with predefined values. These variables can be referenced within Terraform configuration files (.tf files) using the ${var.variable_name} syntax.

3. Exploring terraform.tfstate:

The terraform.tfstate file is a crucial component of Terraform's state management mechanism. It stores the current state of managed infrastructure resources and tracks metadata such as resource IDs, attributes, dependencies, and provisioned configurations. The terraform.tfstate file is automatically generated and maintained by Terraform.

Example terraform.tfstate file (partial):

{
"version": 4,
"terraform_version": "1.0.0",
"serial": 1,
"lineage": "d7fa84fc-0e32-4f29-8d11-9cb13f78d31f",
"outputs": {},
"resources": [
{
"module": "",
"mode": "managed",
"type": "aws_instance",
"name": "example_instance",
"provider": "provider.aws",
"instances": [
{
"schema_version": 0,
"attributes": {
"ami": "ami-12345678",
"instance_type": "t2.micro",
"region": "us-west-2",
...
}
}
]
}
]
}

n the terraform.tfstate file, each resource managed by Terraform is represented as a JSON object. It provides detailed information about the resource configuration and its current state. Terraform uses this file to determine the changes required to reach the desired state defined in the configuration files.

4. Best Practices for Managing tfvars and tfstate:

  • Keep terraform.tfvars files organized: Maintain separate terraform.tfvars files for different environments (e.g., development, staging, production) to manage environment-specific configurations effectively.
  • Encrypt sensitive data: Avoid storing sensitive information such as access keys, passwords, or API tokens in plain text within terraform.tfvars files. Instead, use environment variables or third-party secret management tools for secure storage and retrieval.
  • Version control terraform.tfstate: Store terraform.tfstate files in a version control system (e.g., Git) to track changes and facilitate collaboration among team members. Consider using remote backend services like AWS S3 or HashiCorp Terraform Cloud for centralized state management in production environments.
  • Regularly backup tfstate files: Implement automated backups of terraform.tfstate files to prevent data loss in case of accidental deletions or corruption. Backup mechanisms should be integrated into CI/CD pipelines or infrastructure management workflows.
  • Apply least privilege principles: Limit access to terraform.tfstate files and associated infrastructure resources by following the principle of least privilege. Grant permissions only to authorized users or service accounts required for Terraform operations.

5. Conclusion:

In the realm of Terraform infrastructure provisioning, terraform.tfvars and terraform.tfstate files play critical roles in managing input variables and tracking resource states. By understanding the purpose and best practices surrounding these files, Terraform users can ensure robust infrastructure management, version control, and security compliance throughout the lifecycle of their projects. Implementing effective strategies for managing terraform.tfvars and terraform.tfstate contributes to streamlined workflows, enhanced collaboration, and infrastructure reliability in modern cloud environments.

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