Vault Authentication

The first step of integrating Terraform with Vault is to authenticate Terraform to Vault. Terraform can authenticate to Vault using static credentials or dynamic credentials.

The Vault provider supports authentication engines such as Userpass, TLS Certificate etc. Using such static credentials in your workspaces to authenticate to Vault presents a security risk even if you rotate your credentials regularly.

Configuring the authentication for the integration requires the following steps:

1. Configure Vault: Set up a trust configuration between Vault and HCP Terraform. Then, you must create Vault roles and policies for your HCP Terraform workspaces.
2. Configure HCP Terraform: Add environment variables to the HCP Terraform workspaces where you want to use Dynamic Credentials.

You can set these as workspace variables, or if you’d like to share one Vault role across multiple workspaces, you can use a variable set. We recommend using Variable Sets for better management of environment variables across multiple workspaces.

When you configure dynamic provider credentials with multiple provider configurations of the same type, use either a default variable or a tagged alias variable name for each provider configuration. Refer to Specifying multiple configurations for more details.

For e.g consider the Terraform Organization: Vault Root Namespace mapping diagram referenced in the previous section. For the lob1-app1-compute-dev Terraform workspace to access the AWS secrets engine in the lob1 Vault namespace, here are the variables that must be set.

There are additional optional environment variables that can be configured which give more fine-grained control over the specific Vault configurations for your use case.