diff --git a/integration_test.go b/integration_test.go
index 06660fdcc..c6984bd08 100644
--- a/integration_test.go
+++ b/integration_test.go
@@ -38,6 +38,7 @@ import (
 	"fmt"
 	"os"
 	"path/filepath"
+	"sort"
 	"strings"
 	"testing"
 
@@ -1337,6 +1338,97 @@ func TestProjectResource(t *testing.T) {
 	})
 }
 
+func TestProjectInSpaceResource(t *testing.T) {
+	testFramework := test.OctopusContainerTest{}
+	testFramework.ArrangeTest(t, func(t *testing.T, container *test.OctopusContainer, spaceClient *client.Client) error {
+		// Act
+		newSpaceId, err := testFramework.Act(t, container, "./terraform", "19b-projectspace", []string{})
+
+		if err != nil {
+			return err
+		}
+
+		err = testFramework.TerraformInitAndApply(t, container, filepath.Join("./terraform", "19b-projectspace"), newSpaceId, []string{})
+
+		if err != nil {
+			return err
+		}
+
+		// Assert
+		client, err := octoclient.CreateClient(container.URI, newSpaceId, test.ApiKey)
+
+		spaces, err := spaces.GetAll(client)
+
+		if err != nil {
+			return err
+		}
+		idx := sort.Search(len(spaces), func(i int) bool { return spaces[i].Name == "Project Space Test" })
+		space := spaces[idx]
+
+		query := projects.ProjectsQuery{
+			PartialName: "Test project in space",
+			Skip:        0,
+			Take:        1,
+		}
+
+		resources, err := projects.Get(client, space.ID, query)
+		if err != nil {
+			return err
+		}
+
+		if len(resources.Items) == 0 {
+			t.Fatalf("Space must have a project called \"Test project in space\"")
+		}
+		resource := resources.Items[0]
+
+		if resource.Description != "Test project in space" {
+			t.Fatal("The project must be have a description of \"Test project in space\" (was \"" + resource.Description + "\")")
+		}
+
+		if resource.AutoCreateRelease {
+			t.Fatal("The project must not have auto release create enabled")
+		}
+
+		if resource.DefaultGuidedFailureMode != "EnvironmentDefault" {
+			t.Fatal("The project must be have a DefaultGuidedFailureMode of \"EnvironmentDefault\" (was \"" + resource.DefaultGuidedFailureMode + "\")")
+		}
+
+		if resource.DefaultToSkipIfAlreadyInstalled {
+			t.Fatal("The project must not have DefaultToSkipIfAlreadyInstalled enabled")
+		}
+
+		if resource.IsDisabled {
+			t.Fatal("The project must not have IsDisabled enabled")
+		}
+
+		if resource.IsVersionControlled {
+			t.Fatal("The project must not have IsVersionControlled enabled")
+		}
+
+		if resource.TenantedDeploymentMode != "Untenanted" {
+			t.Fatal("The project must be have a TenantedDeploymentMode of \"Untenanted\" (was \"" + resource.TenantedDeploymentMode + "\")")
+		}
+
+		if len(resource.IncludedLibraryVariableSets) != 0 {
+			t.Fatal("The project must not have any library variable sets")
+		}
+
+		if resource.ConnectivityPolicy.AllowDeploymentsToNoTargets {
+			t.Fatal("The project must not have ConnectivityPolicy.AllowDeploymentsToNoTargets enabled")
+		}
+
+		if resource.ConnectivityPolicy.ExcludeUnhealthyTargets {
+			t.Fatal("The project must not have ConnectivityPolicy.AllowDeploymentsToNoTargets enabled")
+		}
+
+		if resource.ConnectivityPolicy.SkipMachineBehavior != "SkipUnavailableMachines" {
+			t.Log("BUG: The project must be have a ConnectivityPolicy.SkipMachineBehavior of \"SkipUnavailableMachines\" (was \"" + resource.ConnectivityPolicy.SkipMachineBehavior + "\") - Known issue where the value returned by /api/Spaces-#/ProjectGroups/ProjectGroups-#/projects is different to /api/Spaces-/Projects")
+		}
+
+		return nil
+	})
+}
+
 // TestProjectChannelResource verifies that a project channel can be reimported with the correct settings
 func TestProjectChannelResource(t *testing.T) {
 	testFramework := test.OctopusContainerTest{}
diff --git a/terraform/19b-projectspace/config.tf b/terraform/19b-projectspace/config.tf
new file mode 100644
index 000000000..8a9eaf8a9
--- /dev/null
+++ b/terraform/19b-projectspace/config.tf
@@ -0,0 +1,7 @@
+terraform {
+  required_providers {
+    octopusdeploy = { source = "OctopusDeployLabs/octopusdeploy", version = "0.11.3" }
+    // Use the option below when debugging
+    // octopusdeploy = { source = "octopus.com/com/octopusdeploy" }
+  }
+}
diff --git a/terraform/19b-projectspace/project.tf b/terraform/19b-projectspace/project.tf
new file mode 100644
index 000000000..69746f309
--- /dev/null
+++ b/terraform/19b-projectspace/project.tf
@@ -0,0 +1,33 @@
+data "octopusdeploy_lifecycles" "lifecycle_default_lifecycle" {
+  ids          = null
+  partial_name = "Default Lifecycle"
+  skip         = 0
+  take         = 1
+}
+
+
+resource "octopusdeploy_project" "deploy_frontend_project" {
+  auto_create_release                  = false
+  default_guided_failure_mode          = "EnvironmentDefault"
+  default_to_skip_if_already_installed = false
+  description                          = "Test project"
+  discrete_channel_release             = false
+  is_disabled                          = false
+  is_discrete_channel_release          = false
+  is_version_controlled                = false
+  lifecycle_id                         = data.octopusdeploy_lifecycles.lifecycle_default_lifecycle.lifecycles[0].id
+  name                                 = "Test"
+  project_group_id                     = octopusdeploy_project_group.project_group_test.id
+  tenanted_deployment_participation    = "Untenanted"
+  space_id                             = var.octopus_space_id
+  included_library_variable_sets       = []
+  versioning_strategy {
+    template = "#{Octopus.Version.LastMajor}.#{Octopus.Version.LastMinor}.#{Octopus.Version.LastPatch}.#{Octopus.Version.NextRevision}"
+  }
+
+  connectivity_policy {
+    allow_deployments_to_no_targets = false
+    exclude_unhealthy_targets       = false
+    skip_machine_behavior           = "SkipUnavailableMachines"
+  }
+}
\ No newline at end of file
diff --git a/terraform/19b-projectspace/project_group_test.tf b/terraform/19b-projectspace/project_group_test.tf
new file mode 100644
index 000000000..dc8e4a69e
--- /dev/null
+++ b/terraform/19b-projectspace/project_group_test.tf
@@ -0,0 +1,5 @@
+resource "octopusdeploy_project_group" "project_group_test" {
+  name        = "Test"
+  description = "Test Description"
+  space_id    = octopusdeploy_space.octopus_project_space_test.id
+}
diff --git a/terraform/19b-projectspace/provider.tf b/terraform/19b-projectspace/provider.tf
new file mode 100644
index 000000000..a04197720
--- /dev/null
+++ b/terraform/19b-projectspace/provider.tf
@@ -0,0 +1,5 @@
+provider "octopusdeploy" {
+  address  = "${var.octopus_server}"
+  api_key  = "${var.octopus_apikey}"
+  space_id = "${var.octopus_space_id}"
+}
diff --git a/terraform/19b-projectspace/provider_vars.tf b/terraform/19b-projectspace/provider_vars.tf
new file mode 100644
index 000000000..c7d93fe40
--- /dev/null
+++ b/terraform/19b-projectspace/provider_vars.tf
@@ -0,0 +1,18 @@
+variable "octopus_server" {
+  type        = string
+  nullable    = false
+  sensitive   = false
+  description = "The URL of the Octopus server e.g. https://myinstance.octopus.app."
+}
+variable "octopus_apikey" {
+  type        = string
+  nullable    = false
+  sensitive   = true
+  description = "The API key used to access the Octopus server. See https://octopus.com/docs/octopus-rest-api/how-to-create-an-api-key for details on creating an API key."
+}
+variable "octopus_space_id" {
+  type        = string
+  nullable    = false
+  sensitive   = false
+  description = "The space ID to populate"
+}
diff --git a/terraform/19b-projectspace/space.tf b/terraform/19b-projectspace/space.tf
new file mode 100644
index 000000000..34bc39e1e
--- /dev/null
+++ b/terraform/19b-projectspace/space.tf
@@ -0,0 +1,4 @@
+resource "octopusdeploy_space" "project_space" {
+  name        = "Project space"
+  description = "Test Description"
+}