In Terraform, the backend configuration, which includes details about where and how state is stored, is specified within the terraform block of your configuration. This block is the correct place to define the backend type and its configuration parameters, such as the location of the state file for a local backend or the bucket details for a remote backend like S3.References = This practice is outlined in Terraform's core documentation, which provides examples and guidelines on how to configure various aspects of Terraform's behavior, including state backends .