diff --git a/examples/terraform/inventory/classes/common.yml b/examples/terraform/inventory/classes/common.yml
new file mode 100644
index 000000000..493352449
--- /dev/null
+++ b/examples/terraform/inventory/classes/common.yml
@@ -0,0 +1,29 @@
+# base class that should be imported on all cluster classes
+#
+
+parameters:
+
+  provider:
+    google:
+      project: ${name}
+      credentials: '~/.config/credentials.json'
+      version: 1.6.0
+      region: ${main_region}
+      zone:  ${main_zone}
+
+  terraform:
+    backend:
+      gcs:
+        bucket: my_centralized_tf_bucket
+        project: centralized_gcloud_project
+        prefix: /${name}/
+
+  kapitan:
+    vars:
+      target: ${name}
+    compile:
+      - output_path: manifests
+        output_type: json
+        input_paths:
+          - templates/main.jsonnet
+        input_type: jsonnet
diff --git a/examples/terraform/inventory/targets/project1.yml b/examples/terraform/inventory/targets/project1.yml
new file mode 100644
index 000000000..089bff635
--- /dev/null
+++ b/examples/terraform/inventory/targets/project1.yml
@@ -0,0 +1,40 @@
+########################################
+# Classes to include in this target
+########################################
+classes:
+  - common
+
+########################################
+# override variables defined in any of
+# the classes above
+########################################
+parameters:
+  name: project1
+  main_region: europe-west2
+  main_zone: europe-west2-a
+
+  dns_default_ttl: 300
+
+  resources:
+    dns:
+
+      google.com:
+        - name: www
+          type: A
+          ttl: ${dns_default_ttl}
+          rrdatas:
+            - 1.1.1.1
+            - 2.2.2.2
+
+        - name: images
+          type: A
+          ttl: 60
+          rrdatas:
+            - 3.3.3.3
+
+      google.co.uk:
+        - name: www
+          type: A
+          ttl: ${dns_default_ttl}
+          rrdatas:
+            - 4.4.4.4
diff --git a/examples/terraform/inventory/targets/project2.yml b/examples/terraform/inventory/targets/project2.yml
new file mode 100644
index 000000000..7a01299e0
--- /dev/null
+++ b/examples/terraform/inventory/targets/project2.yml
@@ -0,0 +1,38 @@
+########################################
+# Classes to include in this target
+########################################
+classes:
+  - common
+
+########################################
+# override variables defined in any of
+# the classes above
+########################################
+parameters:
+  name: project2
+  main_region: europe-west2
+  main_zone: europe-west2-a
+
+  resources:
+
+    container:
+
+      cluster1:
+        min_master_version: 1.9.2-gke.1
+        node_version: 1.9.2-gke.1
+        pools:
+          pool1a:
+            disk_size_gb: 100
+            image_type: COS
+            machine_type: n1-standard-2
+            node_count: 3
+
+      cluster2:
+        min_master_version: 1.9.2-gke.1
+        node_version: 1.9.2-gke.1
+        pools:
+          pool2a:
+            disk_size_gb: 100
+            image_type: COS
+            machine_type: n1-standard-2
+            node_count: 3
diff --git a/examples/terraform/inventory/targets/project3.yml b/examples/terraform/inventory/targets/project3.yml
new file mode 100644
index 000000000..28b23990a
--- /dev/null
+++ b/examples/terraform/inventory/targets/project3.yml
@@ -0,0 +1,35 @@
+########################################
+# Classes to include in this target
+########################################
+classes:
+  - common
+
+########################################
+# override variables defined in any of
+# the classes above
+########################################
+parameters:
+  name: project3
+  main_region: europe-west2
+  main_zone: europe-west2-a
+
+  resources:
+
+    container:
+
+      cluster2:
+        min_master_version: 1.9.2-gke.1
+        node_version: 1.9.2-gke.1
+        pools:
+
+          pool2a:
+            disk_size_gb: 100
+            image_type: COS
+            machine_type: n1-standard-2
+            node_count: 5
+
+          pool2b:
+            disk_size_gb: 100
+            image_type: COS
+            machine_type: n1-standard-4
+            node_count: 3
diff --git a/examples/terraform/templates/README.md.j2 b/examples/terraform/templates/README.md.j2
new file mode 100644
index 000000000..f7794078c
--- /dev/null
+++ b/examples/terraform/templates/README.md.j2
@@ -0,0 +1,29 @@
+# {{parameters.name}}
+|   |   |
+| - | - |
+| **main_region** | {{parameters.main_region}} |
+| **main_zone**   | {{parameters.main_zone}} |
+| **url**         | https://console.cloud.google.com/home/dashboard?project={{parameters.name}} |
+
+Resources managed by terraform in this project:
+
+{% for item in parameters.resources %}
+  * {{ item }}
+{% endfor %}
+
+
+{% if parameters.resources.container is defined %}
+## CONTAINER
+{% for item in parameters.resources.container %}
+  * {{item}}
+    * endpoint: ${google_container_cluster.{{item}}.endpoint}
+    * setup command: `gcloud container clusters get-credentials {{item}} --zone europe-west2-a --project {{parameters.name}}`
+{% endfor %}
+{% endif %}
+
+{% if parameters.resources.dns is defined %}
+## DNS
+{% for zone in parameters.resources.dns %}
+  * {{zone}}
+{% endfor %}
+{% endif %}
diff --git a/examples/terraform/templates/container.jsonnet b/examples/terraform/templates/container.jsonnet
new file mode 100644
index 000000000..e9cf571ba
--- /dev/null
+++ b/examples/terraform/templates/container.jsonnet
@@ -0,0 +1,65 @@
+local kap = import "lib/kapitan.libjsonnet";
+local inv = kap.inventory();
+
+{
+
+  resource: {
+    google_container_cluster: {
+      [cluster]: {
+        initial_node_count: 1,
+        min_master_version: inv.parameters.resources.container[cluster].min_master_version,
+        name: cluster,
+        node_version: inv.parameters.resources.container[cluster].node_version,
+      }
+      for cluster in std.objectFields(inv.parameters.resources.container)
+    },
+
+
+    google_container_node_pool: {
+      [pool]: {
+        cluster: cluster,
+        name: pool,
+        node_config: {
+          disk_size_gb: inv.parameters.resources.container[cluster].pools[pool].disk_size_gb,
+          image_type: inv.parameters.resources.container[cluster].pools[pool].image_type,
+          machine_type: inv.parameters.resources.container[cluster].pools[pool].machine_type,
+          oauth_scopes: [
+            "https://www.googleapis.com/auth/compute",
+            "https://www.googleapis.com/auth/devstorage.read_only",
+            "https://www.googleapis.com/auth/logging.write",
+            "https://www.googleapis.com/auth/monitoring",
+          ],
+        },
+        node_count: inv.parameters.resources.container[cluster].pools[pool].node_count,
+      }
+      for cluster in std.objectFields(inv.parameters.resources.container)
+      for pool in std.objectFields(inv.parameters.resources.container[cluster].pools)
+    },
+
+    # Code below is weird but is only needed because when you create a new cluster, it ALWAYS creates
+    # a default-pool. Code below deletes the default-pool.
+    # exec will only run once on cluster creation
+    # More info on https://github.com/terraform-providers/terraform-provider-google/issues/773
+    null_resource: {
+      [cluster + "_delete_default-node-pool"]: {
+        triggers: {
+          cluster_name: "${google_container_cluster." + cluster + ".name}",
+        },
+
+        provisioner: [
+          {
+            "local-exec": {
+              command: "gcloud container node-pools --project=" + inv.parameters.name +
+                       " --zone=" + inv.parameters.main_zone +
+                       " --quiet delete default-pool --cluster " + cluster,
+            },
+          },
+        ],
+        depends_on: ["google_container_cluster." + cluster]
+      }
+      for cluster in std.objectFields(inv.parameters.resources.container)
+    },
+
+  },
+
+}
diff --git a/examples/terraform/templates/dns.jsonnet b/examples/terraform/templates/dns.jsonnet
new file mode 100644
index 000000000..cdf5b00ef
--- /dev/null
+++ b/examples/terraform/templates/dns.jsonnet
@@ -0,0 +1,32 @@
+local kap = import "lib/kapitan.libjsonnet";
+local inv = kap.inventory();
+
+{
+
+  remove_dots(str)::
+    assert std.type(str) == "string";
+    std.join("", std.split(str, ".")),
+
+
+  resource: {
+
+    google_dns_managed_zone: {
+      [$.remove_dots(zone)]: {
+        name: $.remove_dots(zone),
+        dns_name: zone + ".",  # add mandatory dot at the end of zone
+        description: "DNS zone for " + zone,
+      }
+      for zone in std.objectFields(inv.parameters.resources.dns)
+    },
+
+    google_dns_record_set: {
+      [$.remove_dots(zone + "_" + set.name + "_" + set.type)]: set {
+        managed_zone: $.remove_dots(zone),
+      }
+      for zone in std.objectFields(inv.parameters.resources.dns)
+      for set in inv.parameters.resources.dns[zone]
+    },
+
+  },
+
+}
diff --git a/examples/terraform/templates/main.jsonnet b/examples/terraform/templates/main.jsonnet
new file mode 100644
index 000000000..b8721664a
--- /dev/null
+++ b/examples/terraform/templates/main.jsonnet
@@ -0,0 +1,22 @@
+local kap = import "lib/kapitan.libjsonnet";
+local inv = kap.inventory();
+
+local compute = import "compute.jsonnet";
+local container = import "container.jsonnet";
+local dns = import "dns.jsonnet";
+local iam = import "iam.jsonnet";
+local output = import "output.jsonnet";
+local provider = import "provider.jsonnet";
+local sql = import "sql.jsonnet";
+local storage = import "storage.jsonnet";
+
+{
+  "output.tf": output,
+  "provider.tf": provider,
+  [if "compute" in inv.parameters.resources then "compute.tf"]: compute,
+  [if "container" in inv.parameters.resources then "container.tf"]: container,
+  [if "dns" in inv.parameters.resources then "dns.tf"]: dns,
+  [if "iam" in inv.parameters.resources then "iam.tf"]: iam,
+  [if "sql" in inv.parameters.resources then "sql.tf"]: sql,
+  [if "storage" in inv.parameters.resources then "storage.tf"]: storage,
+}
diff --git a/examples/terraform/templates/output.jsonnet b/examples/terraform/templates/output.jsonnet
new file mode 100644
index 000000000..684859aa5
--- /dev/null
+++ b/examples/terraform/templates/output.jsonnet
@@ -0,0 +1,37 @@
+local kap = import "lib/kapitan.libjsonnet";
+local inv = kap.inventory();
+
+{
+  data: {
+    template_file: {
+      readme: {
+        template: kap.jinja2_template("templates/README.md.j2", inv),
+      },
+    },
+  },
+
+  resource: {
+    null_resource: {
+      readme_generator: {
+        triggers: {
+          template_rendered: "${data.template_file.readme.rendered}",
+        },
+
+        provisioner: [
+          {
+            "local-exec": {
+              command: "echo '${data.template_file.readme.rendered}' > ../README.md",
+            },
+          },
+        ],
+      },
+    },
+  },
+
+  output: {
+    "README.md": {
+      value: "\n${data.template_file.readme.rendered}",
+    },
+  },
+
+}
diff --git a/examples/terraform/templates/provider.jsonnet b/examples/terraform/templates/provider.jsonnet
new file mode 100644
index 000000000..d55c817c3
--- /dev/null
+++ b/examples/terraform/templates/provider.jsonnet
@@ -0,0 +1,20 @@
+local kap = import "lib/kapitan.libjsonnet";
+local inv = kap.inventory();
+
+
+{
+  provider: {
+    google: {
+      credentials: '${file("' + inv.parameters.provider.google.credentials + '")}',
+      project: inv.parameters.provider.google.project,
+      region: inv.parameters.provider.google.region,
+      version: inv.parameters.provider.google.version,
+      zone: inv.parameters.provider.google.zone,
+    },
+  },
+
+
+  terraform: {
+    backend: inv.parameters.terraform.backend,
+  },
+}