README.md in polyn-cli-0.1.2

- old
+ new

@@ -7,14 +7,23 @@
 
 1. Install [Ruby](https://github.com/asdf-vm/asdf-ruby)
 2. Install Terraform. For M1 Macs, [download the AMD64 version](https://www.terraform.io/downloads)
    rather than using Homebrew to install Terraform.
 3. Ensure Docker & Docker Compose is installed
-4. [Install the Polyn CLI]()
-5. Call `polyn up`. By default this will run in `development` mode, which will start the NATS
+4. [Install the Polyn CLI](https://github.com/SpiffInc/polyn-cli)
+5. Call `polyn tf_init` if this is the first time using terraform in the codebase.
+6. Call `polyn up`. By default this will run in `development` mode, which will start the NATS
    server, configure it via Terraform, and update the Polyn Event Registry.
 
+### Running NATS locally
+
+`polyn up` will use run a Docker container for you if one is not already running. Alternatively, you can run `nats-server` yourself locally if you prefer.
+
+## Naming Conventions
+
+See the Protocol Documentation for [Naming Conventions](https://github.com/SpiffInc/polyn-protocol/blob/main/NAMING_CONVENTIONS.md)
+
 ## Streams
 
 Each stream should have its own configuration file under `./tf` . Run `polyn gen:stream <stream_name>` to generate a new configuration file for a stream
 
 ## Consumers
@@ -30,10 +39,16 @@
 So if you have an event called `widgets.created.v1` you would create a schema file called `widgets.created.v1.json` in the `./events` directory.
 Every schema should be a valid [JSON Schema](https://json-schema.org/) document.
 The Polyn CLI tool will combine your event schema with the [Cloud Events Schema](https://cloudevents.io/) when it adds it to the Polyn Event Registry.
 This means you only need to include the JSON Schema for the `data` portion of the Cloud Event and not the entire Cloud Event schema.
 
+### Subdirectories
+
+If you'd like to organize your events by team ownership or some other convention, you can use subdirectories to do so. The full event type should still be part of the file name. You should also ensure there are not duplicate event types in different directories as only one schema can be defined per event type.
+
+You can generate a schema in a subdirectory like this: `polyn gen:schema some/nested/dir/widgets.created.v1`
+
 ## Schema Versioning
 
 ### New Event
 
 A new event schema file should be a lower-case, dot-separated, name with a `v1` suffix
@@ -47,5 +62,23 @@
 
 Making a change to an event schema that is not backwards-compatible will require you to create a brand new
 json file. The new file should have the same name as your old file, but with the version number increased. Your
 Producers will need to continue producing both events until you are sure there are no more consumers using the
 old event.
+
+## Terraform State
+
+Terraform generates and maintains a [`terraform.tfstate`](https://www.terraform.io/language/state) file that is used to map terraform configuration to real production server instances. Polyn needs to interact with this file differently based on whether we are developing locally or in a production environment.
+
+### Local Development
+
+For local development Polyn expects the `terraform.tfstate` file to exist in the local file system. However, it should not be checked in to version control. We don't want experiments and updates made on a local developer machines to end up as the "source of truth" for our production infrastucture.
+
+### Production
+
+In production Terraform recommends keeping `terraform.tfstate` in a [remote storage location](https://www.terraform.io/language/state). The remote state file should be the "source of truth" for your infrastucture and shouldn't be getting accessed during development. Depending on the size of your organization and security policies, not all developers will have access to the remote storage source and you don't want that to prohibit them from adding events, streams, or consumers.
+
+Polyn expects you to keep a `./remote_state_config/backend.tf` file that configures a Terraform [backend](https://www.terraform.io/language/settings/backends/configuration). This will only be used when `POLYN_ENV=production`.
+
+## Deployment
+
+The default `Dockerfile` generated by [Install the Polyn CLI](https://github.com/SpiffInc/polyn-cli) can help you create an image that will configure terraform and your infrastucture with the latest changes when you execute `docker run`. You'll need to pass in `env` variables for `NATS_SERVERS` and `NATS_CREDENTIALS`. Also any `env` variables needed to connect to your remote state storage.
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