diff --git a/concourse/pipelines/create-cloudfoundry.yml b/concourse/pipelines/create-cloudfoundry.yml
index 485407ac0f..bcd95e93cc 100644
--- a/concourse/pipelines/create-cloudfoundry.yml
+++ b/concourse/pipelines/create-cloudfoundry.yml
@@ -4246,6 +4246,7 @@ jobs:
                 cf auth "${CF_ADMIN}" "${CF_PASS}"
 
                 ./paas-cf/concourse/scripts/set_security_groups_from_manifest.rb cf-manifest/cf-manifest.yml
+                ./paas-cf/concourse/scripts/apply_security_group_bindings_from_vpc_peering_json.rb "./paas-cf/terraform/((deploy_env)).vpc_peering.json"
 
                 # TODO Remove below after 09/03/2023. This is not needed after it has been run once in each environment.
                 cf delete-security-group secret_manager_endpoint -f || true
diff --git a/concourse/scripts/apply_security_group_bindings_from_vpc_peering_json.rb b/concourse/scripts/apply_security_group_bindings_from_vpc_peering_json.rb
new file mode 100755
index 0000000000..c337cf8461
--- /dev/null
+++ b/concourse/scripts/apply_security_group_bindings_from_vpc_peering_json.rb
@@ -0,0 +1,72 @@
+#!/usr/bin/env ruby
+
+require "json"
+
+if ARGV.empty? || !File.file?(ARGV[0])
+  abort "Usage: #{$PROGRAM_NAME} /path/to/env_vpc_peering_file.json [--dry-run]"
+end
+
+if ARGV[1] == "--dry-run"
+  dry_run = true
+end
+
+config_data = File.read(ARGV[0])
+
+begin
+  config = JSON.parse(config_data)
+rescue JSON::ParserError => e
+  abort "Error parsing JSON file: #{e.message}"
+end
+
+config.each_with_index do |peer, peer_index|
+  peer_name = peer["peer_name"]
+  bindings = peer["bindings"]
+  if peer_name.nil? || peer_name.empty?
+    puts "Error in JSON data at peer index #{peer_index}: Missing 'peer_name'."
+    exit(1)
+  end
+  if bindings.nil? || bindings.empty?
+    puts "Skipping at peer index #{peer_index}: Missing 'bindings'."
+    next
+  end
+  sec_group_name = "vpc_peer_#{peer_name}"
+  bindings&.each do |binding|
+    org_name = binding["org_name"]
+    all_spaces = binding["all_spaces"]
+    spaces = binding["spaces"]
+    if org_name.nil? || org_name.empty?
+      puts "Error in JSON data at peer index #{peer_index}: Missing 'org_name' in bindings."
+      next
+      exit(1)
+    end
+    if all_spaces == true
+      command = "cf bind-security-group #{sec_group_name} #{org_name}"
+      if dry_run
+        puts "dry-run: #{command}"
+      else
+        success = system(command)
+        unless success
+          puts "Error executing command: #{command}"
+          exit(1)
+        end
+      end
+    else
+      if spaces.nil? || spaces.empty?
+        puts "Error in JSON data at peer index #{peer_index}: Missing 'spaces' key when 'all_spaces' is false."
+        next
+      end
+      spaces&.each do |space|
+        command = "cf bind-security-group #{sec_group_name} #{org_name} --space #{space}"
+        if dry_run
+          puts "dry-run: #{command}"
+        else
+          success = system(command)
+          unless success
+            puts "Error executing command: #{command}"
+            exit(1)
+          end
+        end
+      end
+    end
+  end
+end
diff --git a/terraform/env.vpc_peering.json.example b/terraform/env.vpc_peering.json.example
new file mode 100644
index 0000000000..58bde96832
--- /dev/null
+++ b/terraform/env.vpc_peering.json.example
@@ -0,0 +1,42 @@
+[
+    {
+        "peer_name": "testing-01",
+        "account_id": "595665891067",
+        "vpc_id": "vpc-09fd619806a886763",
+        "subnet_cidr": "172.44.0.0/22",
+        "backing_service_routing": false,
+        "bindings": [
+            {
+                "org_name": "admin",
+                "spaces": [
+                    "billing"
+                ]
+            }
+	    ]
+    },
+    {
+        "peer_name": "testing-02",
+        "account_id": "595665891067",
+        "vpc_id": "vpc-051e9bb3453774fae",
+        "subnet_cidr": "172.48.0.0/22",
+        "backing_service_routing": false,
+        "bindings": [
+            {
+                "org_name": "admin",
+                "all_spaces": false,
+                "spaces": [
+                    "billing",
+                    "healthchecks"
+                ]
+            },
+            {
+                "org_name": "govuk-paas",
+                "all_spaces": false,
+                "spaces": [
+                    "docs",
+                    "tools"
+                ]
+            }
+	    ]
+    }
+]
diff --git a/terraform/vpc-peering/variables.tf b/terraform/vpc-peering/variables.tf
index e71dce843c..f6d412a09d 100644
--- a/terraform/vpc-peering/variables.tf
+++ b/terraform/vpc-peering/variables.tf
@@ -1,14 +1,19 @@
 variable "vpc_peers" {
   type = list(object({
-    peer_name   = string
-    account_id  = string
-    vpc_id      = string
+    peer_name = string
+    account_id = string
+    vpc_id = string
     subnet_cidr = string
     backing_service_routing = optional(bool)
+    bindings = optional(list(object({
+      org_name = string
+      all_spaces = optional(bool)
+      spaces = optional(list(string))
+    })))
   }))
   default = []
   validation {
-    condition     = alltrue([for peer in var.vpc_peers : length(regexall("^(([0-9]|[1-9][0-9]|1[0-9]{2}|2[0-4][0-9]|25[0-5])\\.){3}([0-9]|[1-9][0-9]|1[0-9]{2}|2[0-4][0-9]|25[0-5])(\\/(3[0-2]|[1-2][0-9]|[0-9]))$", peer.subnet_cidr)) > 0])
+    condition = alltrue([for peer in var.vpc_peers : length(regexall("^(([0-9]|[1-9][0-9]|1[0-9]{2}|2[0-4][0-9]|25[0-5])\\.){3}([0-9]|[1-9][0-9]|1[0-9]{2}|2[0-4][0-9]|25[0-5])(\\/(3[0-2]|[1-2][0-9]|[0-9]))$", peer.subnet_cidr)) > 0])
     error_message = "A valid CIDR range is required."
   }
 }