diff --git a/flake.nix b/flake.nix
index 8d1e0be7..0406335b 100644
--- a/flake.nix
+++ b/flake.nix
@@ -41,7 +41,6 @@
         pkgs = import nixpkgs {inherit system;};
       };
     ghaf-infra-shell = importExpectingSystem ./shell.nix;
-    terraform-shell = importExpectingSystem ./terraform/shell.nix;
     templateTargets = import ./hosts/templates/targets.nix {inherit nixpkgs disko;};
   in {
     # nix fmt
@@ -51,8 +50,6 @@
     devShells = forEachSystem (system: {
       # nix develop
       default = ghaf-infra-shell system;
-      # nix develop .#terraform
-      terraform = terraform-shell system;
     });
 
     # NixOS configuration entrypoint
diff --git a/shell.nix b/shell.nix
index 2fe1c976..640e510e 100644
--- a/shell.nix
+++ b/shell.nix
@@ -17,6 +17,7 @@
 pkgs.mkShell {
   NIX_CONFIG = "extra-experimental-features = nix-command flakes";
   nativeBuildInputs = with pkgs; [
+    azure-cli
     git
     nix
     nixos-rebuild
@@ -30,6 +31,11 @@ pkgs.mkShell {
     reuse
     sops
     ssh-to-age
-    terraform
+    (terraform.withPlugins (p: [
+      p.azurerm
+      p.external
+      p.null
+      p.sops
+    ]))
   ];
 }
diff --git a/terraform/README.md b/terraform/README.md
index 1983dfa6..094dafde 100644
--- a/terraform/README.md
+++ b/terraform/README.md
@@ -6,7 +6,7 @@ SPDX-License-Identifier: Apache-2.0
 
 # Ghaf-infra: Terraform
 
-This project uses terraform to automate the creation of infrastructure resources. The inteded usage together with NixOS configurations in the main [flake.nix](../flake.nix) is as follows:
+This project uses terraform to automate the creation of infrastructure resources. The intended usage together with NixOS configurations in the main [flake.nix](../flake.nix) is as follows:
 - We use the terraform configuration in this directory for the inital setup of the infrastructure resources (VMs, networks, etc.)
 - We use the NixOS configurations in [flake.nix](../flake.nix) to [install](../README.md#install) NixOS on the VMs
 - We maintain the infrastructure by [deploying](../README.md#deploy) changes to the NixOS configurations via [flake.nix](../flake.nix)
@@ -23,15 +23,18 @@ $ git clone https://github.com/tiiuae/ghaf-infra.git
 $ cd ghaf-infra
 ```
 
-All commands in this document are executed from terraform nix-shell inside the `terraform` directory.
+All commands in this document are executed from nix-shell inside the `terraform` directory.
 
-Bootstrap terraform nix-shell with the required dependencies:
+Bootstrap nix-shell with the required dependencies:
 ```bash
-$ cd terraform
+# Start a nix-shell with required dependencies:
 $ nix-shell
 
 # Authenticate with az login:
 $ az login
+
+# Terraform comands are executed under the terraform directory:
+$ cd terraform/
 ```
 
 ## Initializing Azure Storage 
@@ -41,14 +44,14 @@ This project stores the terraform state in a remote storage in an azure storage
 
 When starting a new infrastructure you need to initialize the terraform state storage:
 ```bash
-$ cd azure-storage/
+$ cd azure-storage
 $ terraform init
 $ terraform apply
 ```
 
 ## Terraform workflow
 
-Following describes the intended workflow, with commands executed from the terraform nix-shell.
+Following describes the intended workflow, with commands executed from the nix-shell.
 
 First, change the terraform code by modifying the relevant files in this directory. Then:
 
diff --git a/terraform/shell.nix b/terraform/shell.nix
deleted file mode 100644
index 8d56a27e..00000000
--- a/terraform/shell.nix
+++ /dev/null
@@ -1,28 +0,0 @@
-# SPDX-FileCopyrightText: 2023 Technology Innovation Institute (TII)
-#
-# SPDX-License-Identifier: Apache-2.0
-{
-  pkgs ?
-  # If pkgs is not defined, instanciate nixpkgs from locked commit
-  let
-    lock = (builtins.fromJSON (builtins.readFile ../flake.lock)).nodes.nixpkgs.locked;
-    nixpkgs = fetchTarball {
-      url = "https://github.com/nixos/nixpkgs/archive/${lock.rev}.tar.gz";
-      sha256 = lock.narHash;
-    };
-  in
-    import nixpkgs {overlays = [];},
-  ...
-}:
-pkgs.mkShell {
-  packages = [
-    pkgs.sops
-    pkgs.azure-cli
-    (pkgs.terraform.withPlugins (p: [
-      p.azurerm
-      p.external
-      p.null
-      p.sops
-    ]))
-  ];
-}