diff --git a/README.md b/README.md
index 151a7299..d4b48fac 100644
--- a/README.md
+++ b/README.md
@@ -4,6 +4,17 @@ Terraform provider for [Coder](https://github.com/coder/coder).
### Developing
+#### Prerequisites
+
+- [Go](https://golang.org/doc/install)
+- [Terraform](https://learn.hashicorp.com/tutorials/terraform/install-cli)
+
+We recommend using [`nix`](https://nixos.org/download.html) to manage your development environment. If you have `nix` installed, you can run `nix develop` to enter a shell with all the necessary dependencies.
+
+Alternatively, you can install the dependencies manually.
+
+#### Building
+
Follow the instructions outlined in the [Terraform documentation](https://developer.hashicorp.com/terraform/cli/config/config-file#development-overrides-for-provider-developers)
to setup your local Terraform to use your local version rather than the registry version.
diff --git a/flake.lock b/flake.lock
new file mode 100644
index 00000000..d8033e14
--- /dev/null
+++ b/flake.lock
@@ -0,0 +1,61 @@
+{
+ "nodes": {
+ "flake-utils": {
+ "inputs": {
+ "systems": "systems"
+ },
+ "locked": {
+ "lastModified": 1710146030,
+ "narHash": "sha256-SZ5L6eA7HJ/nmkzGG7/ISclqe6oZdOZTNoesiInkXPQ=",
+ "owner": "numtide",
+ "repo": "flake-utils",
+ "rev": "b1d9ab70662946ef0850d488da1c9019f3a9752a",
+ "type": "github"
+ },
+ "original": {
+ "owner": "numtide",
+ "repo": "flake-utils",
+ "type": "github"
+ }
+ },
+ "nixpkgs": {
+ "locked": {
+ "lastModified": 1714272655,
+ "narHash": "sha256-3/ghIWCve93ngkx5eNPdHIKJP/pMzSr5Wc4rNKE1wOc=",
+ "owner": "NixOS",
+ "repo": "nixpkgs",
+ "rev": "12430e43bd9b81a6b4e79e64f87c624ade701eaf",
+ "type": "github"
+ },
+ "original": {
+ "owner": "NixOS",
+ "ref": "nixos-23.11",
+ "repo": "nixpkgs",
+ "type": "github"
+ }
+ },
+ "root": {
+ "inputs": {
+ "flake-utils": "flake-utils",
+ "nixpkgs": "nixpkgs"
+ }
+ },
+ "systems": {
+ "locked": {
+ "lastModified": 1681028828,
+ "narHash": "sha256-Vy1rq5AaRuLzOxct8nz4T6wlgyUR7zLU309k9mBC768=",
+ "owner": "nix-systems",
+ "repo": "default",
+ "rev": "da67096a3b9bf56a91d16901293e51ba5b49a27e",
+ "type": "github"
+ },
+ "original": {
+ "owner": "nix-systems",
+ "repo": "default",
+ "type": "github"
+ }
+ }
+ },
+ "root": "root",
+ "version": 7
+}
diff --git a/flake.nix b/flake.nix
new file mode 100644
index 00000000..87719bf4
--- /dev/null
+++ b/flake.nix
@@ -0,0 +1,29 @@
+{
+ description = "Terraform provider for Coder";
+
+ inputs = {
+ nixpkgs.url = "github:NixOS/nixpkgs/nixos-23.11";
+ flake-utils.url = "github:numtide/flake-utils";
+ };
+
+ outputs = { self, nixpkgs, flake-utils, ... }:
+ flake-utils.lib.eachDefaultSystem (system:
+ let
+ pkgs = import nixpkgs {
+ inherit system;
+ config = {
+ allowUnfree = true;
+ };
+ };
+ in
+ {
+ devShell = pkgs.mkShell {
+ name = "devShell";
+ buildInputs = with pkgs; [
+ terraform
+ go_1_20
+ ];
+ };
+ }
+ );
+}
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