diff --git a/terraform/README.md b/terraform/README.md
index 4e17c506f..f259bafdc 100644
--- a/terraform/README.md
+++ b/terraform/README.md
@@ -16,7 +16,7 @@ to bootstrap a local staging environment:
 
 ```bash
 $ git clone git@github.com:hashicorp/nomad.git
-$ cd terraform
+$ cd nomad/terraform
 $ vagrant up && vagrant ssh
 ```