diff --git a/README.md b/README.md
index 2a05002..ded2137 100644
--- a/README.md
+++ b/README.md
@@ -3,12 +3,19 @@
 This is a websockets project written in Terraform and Python.
 Your websocket client can connect, subscribe to a topic and receive messages sent to that topic.
 
+## Prerequisites
+* Terraform is installed
+* You have logged onto AWS using the `aws sso login`
+
 ## Installation
 
 1. Clone the repository
-2. Navigate to the `/terraform` directory
-3. Run `terraform init`
-4. Run `terraform apply`
+2. Navigate to the root of this repository
+3. Run `./package_redis.sh` to package the Redis module for our lambda functions 
+4. Navigate to the `/terraform` directory
+5. Run `terraform init`
+6. Run `terraform workspace select <env>` where env is one of `testing`, `staging`, or `production`. 
+7. Run `terraform apply --var-file=<env>.tfvars`
 
 ## Usage
 
@@ -24,3 +31,4 @@ TODO
 - [x] Storage: change dynamoDB to cache e.g. elastic cache
 - [x] PING/PONG request/response to prevent client connection timeout
 - [x] Redis connection pooling
+- [ ] Create Github action workflow to do current manual task of packaging redis and deploying architecture through terraform
diff --git a/package_redis.sh b/package_redis.sh
new file mode 100755
index 0000000..f100481
--- /dev/null
+++ b/package_redis.sh
@@ -0,0 +1,5 @@
+mkdir -p lambda_code/python
+pip3 install redis async_timeout -t lambda_code/python
+cd lambda_code
+zip -r redis_layer.zip python
+cd ..
diff --git a/terraform/lambda_routes/lambda.tf b/terraform/lambda_routes/lambda.tf
index 1fc993a..46fb5fb 100644
--- a/terraform/lambda_routes/lambda.tf
+++ b/terraform/lambda_routes/lambda.tf
@@ -24,7 +24,7 @@ resource "aws_lambda_function" "lambda" {
   environment {
     variables = {
       API_GW_ID            = var.api_gw_id
-      API_GW_STAGE_NAME    = var.api_gw_stage_name
+      API_GW_STAGE_NAME    = "${var.api_gw_stage_name}-${terraform.workspace}"
       ELASTICACHE_ENDPOINT = var.elasticache_endpoint
       LOG_LEVEL            = var.config_log_level
     }
diff --git a/terraform/terraform.tf b/terraform/terraform.tf
new file mode 100644
index 0000000..67ab1b3
--- /dev/null
+++ b/terraform/terraform.tf
@@ -0,0 +1,15 @@
+terraform {
+  required_providers {
+    aws = {
+      source  = "hashicorp/aws"
+      version = "~> 5.0" # up to 5.99
+    }
+  }
+
+  backend "s3" {
+    encrypt = true
+    bucket  = "tkc-web-sockets-tf-state-files"
+    region  = "eu-west-1"
+    key     = "websockets/terraform.tfstate"
+  }
+}