# Terraform Settings

- **Terraform Runtime:** Select “auto” or “manual”. When selecting “auto”, VM Essentials will automatically download and use the Terraform version indicated in the VERSION field on the Spec Templates that make up a Terraform Instance type or Blueprint. When selecting “manual”, VM Essentials will use the version of Terraform [installed on your appliance](https://docs.morpheusdata.com/en/latest/integration_guides/Automation/terraform.html?#terraform-installation).
