diff --git a/apis/v1beta1/types.go b/apis/v1beta1/types.go
index 9830c3f73b..0d8883ae55 100644
--- a/apis/v1beta1/types.go
+++ b/apis/v1beta1/types.go
@@ -25,6 +25,11 @@ type ProviderConfigSpec struct {
 	// This can be useful for testing and for AWS API implementations that do not have STS available.
 	// +optional
 	SkipCredsValidation bool `json:"skip_credentials_validation,omitempty"`
+	// Whether to skip validation of provided region name.
+	// Useful for AWS-like implementations that use their own region names or to bypass the validation for
+	// regions that aren't publicly available yet.
+	// +optional
+	SkipRegionValidation bool `json:"skip_region_validation,omitempty"`
 	// Whether to enable the request to use path-style addressing, i.e., https://s3.amazonaws.com/BUCKET/KEY.
 	// +optional
 	S3UsePathStyle bool `json:"s3_use_path_style,omitempty"`
diff --git a/internal/clients/aws.go b/internal/clients/aws.go
index 3eda3044f8..16a18080c2 100644
--- a/internal/clients/aws.go
+++ b/internal/clients/aws.go
@@ -38,6 +38,7 @@ const (
 	keySkipCredsValidation       = "skip_credentials_validation"
 	keyS3UsePathStyle            = "s3_use_path_style"
 	keySkipMetadataApiCheck      = "skip_metadata_api_check"
+	keySkipRegionValidation      = "skip_region_validation"
 	keySkipReqAccountId          = "skip_requesting_account_id"
 	keyEndpoints                 = "endpoints"
 )
@@ -182,6 +183,7 @@ func DefaultTerraformSetupBuilder(ctx context.Context, c client.Client, mg resou
 		keySessionToken:         creds.SessionToken,
 		keySkipCredsValidation:  pc.Spec.SkipCredsValidation,
 		keyS3UsePathStyle:       pc.Spec.S3UsePathStyle,
+		keySkipRegionValidation: pc.Spec.SkipRegionValidation,
 		keySkipMetadataApiCheck: pc.Spec.SkipMetadataApiCheck,
 		keySkipReqAccountId:     pc.Spec.SkipReqAccountId,
 	}
diff --git a/package/crds/aws.upbound.io_providerconfigs.yaml b/package/crds/aws.upbound.io_providerconfigs.yaml
index fea717be63..bc04d0e8ce 100644
--- a/package/crds/aws.upbound.io_providerconfigs.yaml
+++ b/package/crds/aws.upbound.io_providerconfigs.yaml
@@ -297,6 +297,12 @@ spec:
                 description: Whether to skip the AWS Metadata API check Useful for
                   AWS API implementations that do not have a metadata API endpoint.
                 type: boolean
+              skip_region_validation:
+                description: Whether to skip validation of provided region name. Useful
+                  for AWS-like implementations that use their own region names or
+                  to bypass the validation for regions that aren't publicly available
+                  yet.
+                type: boolean
               skip_requesting_account_id:
                 description: Whether to skip requesting the account ID. Useful for
                   AWS API implementations that do not have the IAM, STS API, or metadata