diff --git a/README.md b/README.md
index 151a729..d4b48fa 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 0000000..d8033e1
--- /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 0000000..87719bf
--- /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
+          ];
+        };
+      }
+    );
+}