diff --git a/.github/workflows/deploy-env.yaml b/.github/workflows/deploy-env.yaml
index 8f6b146..28c0481 100644
--- a/.github/workflows/deploy-env.yaml
+++ b/.github/workflows/deploy-env.yaml
@@ -1,6 +1,6 @@
 on:
   push:
-    branches: [ "feat/azure_setup" ]
+    branches: [ "feat/terraform" ]
 
 
 jobs:
@@ -22,9 +22,29 @@ jobs:
           creds: ${{ secrets.AZURE_CREDENTIALS }}
           enable-AzPSSession: true
 
-      - name: Azure CLI script
+      - name: Create TF State dependencies
         uses: azure/cli@v2
         with:
           azcliversion: latest
           inlineScript: |
-            az account show
\ No newline at end of file
+            az group create --name s186${{ var.ENVIRONMENT_PREFIX }}cl-tfstate --location westeurope
+            
+            az storage account create --name s186${{ var.ENVIRONMENT_PREFIX }}cltfstate --resource-group s186${{ var.ENVIRONMENT_PREFIX }}cl-tfstate --location westeurope --sku Standard_LRS
+            
+            az storage container create --name tfstate --account-name s186${{ var.ENVIRONMENT_PREFIX }}cltfstate
+
+      - name: 'Terraform Init'
+        id: terraform_init
+        working-directory: ./src/infrastructure/terraform
+        run: terraform init -backend-config="resource_group_name=s186${{ var.ENVIRONMENT_PREFIX }}cl-tfstate" -backend-config="storage_account_name=s186${{ var.ENVIRONMENT_PREFIX }}cltfstate" -backend-config="container_name=tfstate" -backend-config="key=terraform.tfstate"
+
+      - name: 'Terraform Plan'
+        id: terraform_plan
+        working-directory: ./src/infrastructure/terraform
+        run: terraform plan -out plan.plan
+
+      - name: 'Terraform Apply'
+        id: terraform_apply
+        working-directory: ./src/infrastructure/terraform
+        run: terraform apply plan.plan
+
diff --git a/src/infrastructure/terraform/locals.tf b/src/infrastructure/terraform/locals.tf
index 7001fbe..b2b9ba3 100644
--- a/src/infrastructure/terraform/locals.tf
+++ b/src/infrastructure/terraform/locals.tf
@@ -5,5 +5,6 @@ locals {
     "Service"          = "Newly onboarded"
     "Service offering" = "Design operations"
   }
-  service_prefix = "s186"
+  service_prefix = "s186${var.environment_prefix}-cl"
+  location       = "westeurope"
 }
\ No newline at end of file
diff --git a/src/infrastructure/terraform/main.tf b/src/infrastructure/terraform/main.tf
index e69de29..07978a6 100644
--- a/src/infrastructure/terraform/main.tf
+++ b/src/infrastructure/terraform/main.tf
@@ -0,0 +1,5 @@
+resource "azurerm_resource_group" "core-rg" {
+  name     = "${local.service_prefix}-core-rg"
+  location = local.location
+  tags     = local.common_tags
+}
\ No newline at end of file
diff --git a/src/infrastructure/terraform/variables.tf b/src/infrastructure/terraform/variables.tf
index 2654d28..f095666 100644
--- a/src/infrastructure/terraform/variables.tf
+++ b/src/infrastructure/terraform/variables.tf
@@ -4,3 +4,8 @@ variable "cip_environment" {
   default     = "Dev"
 }
 
+variable "environment_prefix" {
+  description = "Environment prefix (e.g. d01)"
+  type        = string
+}
+