diff --git a/CHANGELOG.md b/CHANGELOG.md
index 438c74fa7..d534404f5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,9 @@ This CHANGELOG details important changes made in each version of the
 
 ## v0.18.2 (Unreleased)
 
+- Improved the package `README` file to reflect usage of the `@pulumi/terraform`
+  package rather than the Terraform bridge.
+
 ## v0.18.1 (Released May 16th, 2019)
 
 - Initial release of `@pulumi/terraform` with support for Node.js.
diff --git a/Makefile b/Makefile
index f5cb88ccc..88a6a9770 100644
--- a/Makefile
+++ b/Makefile
@@ -20,8 +20,9 @@ build::
 	cd ${PACKDIR}/nodejs/ && \
 		yarn install && \
 		yarn run tsc
-	cp README.md LICENSE ${PACKDIR}/nodejs/package.json ${PACKDIR}/nodejs/yarn.lock \
+	cp LICENSE ${PACKDIR}/nodejs/package.json ${PACKDIR}/nodejs/yarn.lock \
 		${PACKDIR}/nodejs/bin
+	cp README.package.md ${PACKDIR}/nodejs/bin/README.md
 	sed -i.bak 's/$${VERSION}/$(VERSION)/g' ${PACKDIR}/nodejs/bin/package.json
 
 lint::
diff --git a/README.package.md b/README.package.md
new file mode 100644
index 000000000..07b9afb2f
--- /dev/null
+++ b/README.package.md
@@ -0,0 +1,99 @@
+# Pulumi Terraform Provider
+
+The Terraform resource provider for Pulumi lets you consume the outputs
+contained in Terraform state files from your Pulumi programs. The package
+provides a `RemoteStateReference` resource which acts like a native Pulumi
+[`StackReference`][stackreference].
+
+To use this package, please [install the Pulumi CLI first][pulumicli].
+
+## Installing
+
+Currently, the Terraform Provider is available only for Node.js, and is
+distributed as an `npm` package.
+
+### Node.js (JavaScript/TypeScript)
+
+To use from JavaScript or TypeScript in Node.js, install using either `npm`:
+
+    $ npm install @pulumi/terraform
+
+or `yarn`:
+
+    $ yarn add @pulumi/terraform
+
+## Concepts
+
+The `@pulumi/terraform` package provides a resource named `RemoteStateReference`
+which is used to read outputs from a Terraform state file stored in one of the
+supported Terraform remote state backends.
+
+## Examples
+
+### S3
+
+The following program will read a Terraform state file stored in S3:
+
+```typescript
+import * as tf from "@pulumi/terraform";
+
+const remoteState = new tf.state.RemoteStateReference("s3state", {
+    backendType: "s3",
+    bucket: "pulumi-terraform-state-test",
+    key: "test/terraform.tfstate",
+    region: "us-west-2"
+});
+
+// Use the getOutput function on the resource to access root outputs
+const vpcId= remoteState.getOutput("vpc_id");
+```
+
+### Local file
+
+The following program will read a Terraform state file stored locally in the
+filesystem:
+
+```typescript
+import * as tf from "@pulumi/terraform";
+
+const remotestate = new tf.state.RemoteStateReference("localstate", {
+   backendType: "local",
+   path: path.join(__dirname, "terraform.tfstate"),
+});
+
+// Use the getOutput function on the resource to access root outputs
+const vpcId= remoteState.getOutput("vpc_id");
+```
+
+### Terraform Enterprise
+
+For state stored in Terraform Enterprise, the authentication token must be set
+via the Pulumi configuration system - for example, using:
+
+    pulumi config set --secret terraformEnterpriseToken <value>
+
+The following program will read a Terraform state file stored in Terraform
+Enterprise, using the value of `terraformEnterpriseToken` from above:
+
+```typescript
+import * as pulumi from "@pulumi/pulumi";
+import * as tf from "@pulumi/terraform";
+
+const config = new pulumi.Config();
+
+const ref = new tf.state.RemoteStateReference("remote", {
+    backendType: "remote",
+    organization: "pulumi",
+    token: config.requireSecret("terraformEnterpriseToken"),
+    workspaces: {
+        name: "test-state-file"
+    }
+});
+
+// Use the getOutput function on the resource to access root outputs
+const vpcId= remoteState.getOutput("vpc_id");
+```
+
+[stackreference]: https://pulumi.io/reference/organizing-stacks-projects.html#inter-stack-dependencies
+[pulumicli]: https://pulumi.io/
+