diff --git a/cmd/terramate/e2etests/run_test.go b/cmd/terramate/e2etests/run_test.go
index fc0b0e5e8..59c5a3b8c 100644
--- a/cmd/terramate/e2etests/run_test.go
+++ b/cmd/terramate/e2etests/run_test.go
@@ -18,6 +18,7 @@ import (
 	"fmt"
 	"testing"
 
+	"github.com/madlambda/spells/assert"
 	"github.com/mineiros-io/terramate"
 
 	"github.com/mineiros-io/terramate/cmd/terramate/cli"
@@ -463,7 +464,8 @@ func TestRunOrderNotChangedStackIgnored(t *testing.T) {
 
 	stack := s.CreateStack("stack")
 	stackMainTf := stack.CreateFile(mainTfFileName, "# some code")
-	stackConfig := hcl.NewConfig(terramate.DefaultVersionConstraint())
+	stackConfig, err := hcl.NewConfig(stack.Path(), terramate.DefaultVersionConstraint())
+	assert.NoError(t, err)
 	stackConfig.Stack = &hcl.Stack{
 		After: []string{project.RelPath(s.RootDir(), stack2.Path())},
 	}
@@ -526,7 +528,9 @@ func TestRunOrderAllChangedStacksExecuted(t *testing.T) {
 
 	stack := s.CreateStack("stack")
 	stackMainTf := stack.CreateFile(mainTfFileName, "# some code")
-	stackConfig := hcl.NewConfig(terramate.DefaultVersionConstraint())
+	stackConfig, err := hcl.NewConfig(stack.Path(), terramate.DefaultVersionConstraint())
+	assert.NoError(t, err)
+
 	stackConfig.Stack = &hcl.Stack{
 		After: []string{project.RelPath(s.RootDir(), stack2.Path())},
 	}
diff --git a/hcl/hcl.go b/hcl/hcl.go
index d229ebb30..a0c816d59 100644
--- a/hcl/hcl.go
+++ b/hcl/hcl.go
@@ -18,6 +18,7 @@ import (
 	"errors"
 	"fmt"
 	"os"
+	"path/filepath"
 	"sort"
 
 	"github.com/hashicorp/hcl/v2/hclparse"
@@ -34,6 +35,8 @@ type Module struct {
 }
 
 type Config struct {
+	// absdir is the absolute path to the configuration directory.
+	absdir    string
 	Terramate *Terramate
 	Stack     *Stack
 }
@@ -85,11 +88,58 @@ const (
 	ErrStackInvalidRunOrder     errutil.Error = "invalid stack execution order definition"
 )
 
-func NewConfig(reqversion string) Config {
+// NewConfig creates a new HCL config with dir as config directory path.
+// If reqversion is provided then it also creates a terramate block with
+// RequiredVersion set to this value.
+func NewConfig(dir string, reqversion string) (Config, error) {
+	st, err := os.Stat(dir)
+	if err != nil {
+		return Config{}, fmt.Errorf("initializing config: %w", err)
+	}
+
+	if !st.IsDir() {
+		return Config{}, fmt.Errorf("config constructor requires a directory path")
+	}
+
+	var tmblock *Terramate
+	if reqversion != "" {
+		tmblock = NewTerramate(reqversion)
+	}
+
 	return Config{
-		Terramate: &Terramate{
-			RequiredVersion: reqversion,
-		},
+		absdir:    dir,
+		Terramate: tmblock,
+	}, nil
+}
+
+// AbsDir returns the absolute path of the configuration directory.
+func (c Config) AbsDir() string { return c.absdir }
+
+// Save the configuration file using filename inside config directory.
+func (c Config) Save(filename string) (err error) {
+	cfgpath := filepath.Join(c.absdir, filename)
+	f, err := os.Create(cfgpath)
+	if err != nil {
+		return fmt.Errorf("saving configuration file %q: %w", cfgpath, err)
+	}
+
+	defer func() {
+		err2 := f.Close()
+
+		if err != nil {
+			return
+		}
+
+		err = err2
+	}()
+
+	return PrintConfig(f, c)
+}
+
+// NewTerramate creates a new TerramateBlock with reqversion.
+func NewTerramate(reqversion string) *Terramate {
+	return &Terramate{
+		RequiredVersion: reqversion,
 	}
 }
 
@@ -214,7 +264,11 @@ func Parse(fname string, data []byte) (Config, error) {
 		)
 	}
 
-	var tmconfig Config
+	tmconfig, err := NewConfig(filepath.Dir(fname), "")
+	if err != nil {
+		return Config{}, fmt.Errorf("parsing HCL file %q: %w", fname, err)
+	}
+
 	var tmblock, stackblock *hclsyntax.Block
 	var foundtm, foundstack bool
 
@@ -365,7 +419,7 @@ func Parse(fname string, data []byte) (Config, error) {
 	logger.Debug().
 		Msg("Parse stack.")
 	tmconfig.Stack = &Stack{}
-	err := parseStack(tmconfig.Stack, stackblock)
+	err = parseStack(tmconfig.Stack, stackblock)
 	if err != nil {
 		return Config{}, err
 	}
diff --git a/init.go b/init.go
index 9722bc6c9..0b3750dbf 100644
--- a/init.go
+++ b/init.go
@@ -79,14 +79,19 @@ func Init(root, dir string, force bool) error {
 			dir, parentStack.Dir)
 	}
 
-	logger.Trace().
-		Msg("Get stack file.")
+	logger.Trace().Msg("Get stack file.")
+
 	stackfile := filepath.Join(dir, config.Filename)
 	isInitialized := false
 
-	logger.Trace().
+	logger = log.With().
+		Str("action", "Init()").
+		Str("stack", dir).
 		Str("configFile", stackfile).
-		Msg("Get stack file info.")
+		Logger()
+
+	logger.Trace().Msg("Get stack file info.")
+
 	st, err := os.Stat(stackfile)
 	if err != nil {
 		if !os.IsNotExist(err) {
@@ -101,22 +106,18 @@ func Init(root, dir string, force bool) error {
 	}
 
 	if isInitialized && !force {
-		logger.Trace().
-			Str("configFile", stackfile).
-			Msg("Stack is initialized annd not forced.")
+		logger.Trace().Msg("Stack is initialized and not forced.")
+
+		logger.Trace().Msg("Parse version.")
 
-		logger.Trace().
-			Str("configFile", stackfile).
-			Msg("Parse version.")
 		vconstraint, err := parseVersion(stackfile)
 		if err != nil {
 			return fmt.Errorf("stack already initialized: error fetching "+
 				"version: %w", err)
 		}
 
-		logger.Trace().
-			Str("configFile", stackfile).
-			Msg("Create new constraint from version.")
+		logger.Trace().Msg("Create new constraint from version.")
+
 		constraint, err := hclversion.NewConstraint(vconstraint)
 		if err != nil {
 			return fmt.Errorf("unable to check stack constraint: %w", err)
@@ -128,28 +129,20 @@ func Init(root, dir string, force bool) error {
 		}
 	}
 
-	logger.Debug().
-		Str("configFile", stackfile).
-		Msg("Create stack file.")
-	f, err := os.Create(stackfile)
+	logger.Debug().Msg("Create new configuration.")
+
+	cfg, err := hcl.NewConfig(dir, DefaultVersionConstraint())
 	if err != nil {
-		return err
+		return fmt.Errorf("failed to create new stack config: %w", err)
 	}
 
-	defer f.Close()
-
-	logger.Debug().
-		Str("configFile", stackfile).
-		Msg("Create new configuration.")
-	cfg := hcl.NewConfig(DefaultVersionConstraint())
 	cfg.Stack = &hcl.Stack{
 		Name: filepath.Base(dir),
 	}
 
-	logger.Debug().
-		Str("configFile", stackfile).
-		Msg("Print configuration.")
-	err = hcl.PrintConfig(f, cfg)
+	logger.Debug().Msg("Save configuration.")
+
+	err = cfg.Save(config.Filename)
 	if err != nil {
 		return fmt.Errorf("failed to write %q: %w", stackfile, err)
 	}
diff --git a/stack/loader.go b/stack/loader.go
index 1f586a9ab..80564c522 100644
--- a/stack/loader.go
+++ b/stack/loader.go
@@ -72,6 +72,7 @@ func (l Loader) TryLoad(dir string) (stack S, found bool, err error) {
 
 	logger.Trace().
 		Msg("Get relative stack path to root directory.")
+
 	stackpath := project.RelPath(l.root, dir)
 	if s, ok := l.stacks[stackpath]; ok {
 		return s, true, nil
@@ -80,13 +81,14 @@ func (l Loader) TryLoad(dir string) (stack S, found bool, err error) {
 	if ok := config.Exists(dir); !ok {
 		return S{}, false, err
 	}
+
 	fname := filepath.Join(dir, config.Filename)
 
 	logger.Debug().
 		Str("configFile", fname).
 		Msg("Parse config file.")
-	cfg, err := hcl.ParseFile(fname)
 
+	cfg, err := hcl.ParseFile(fname)
 	if err != nil {
 		return S{}, false, err
 	}
@@ -104,10 +106,11 @@ func (l Loader) TryLoad(dir string) (stack S, found bool, err error) {
 		return S{}, false, fmt.Errorf("stack %q is not a leaf stack", dir)
 	}
 
-	logger.Debug().
-		Msg("Set stack path and stack config.")
-	l.set(stackpath, cfg.Stack)
-	return l.stacks[stackpath], true, nil
+	logger.Debug().Msg("Create a new stack")
+
+	stack = New(l.root, cfg)
+	l.stacks[stack.Dir] = stack
+	return stack, true, nil
 }
 
 // TryLoadChanged is like TryLoad but sets the stack as changed if loaded
@@ -128,29 +131,6 @@ func (l Loader) TryLoadChanged(root, dir string) (stack S, found bool, err error
 	return s, ok, err
 }
 
-func (l Loader) set(path string, block *hcl.Stack) {
-	var name string
-	log.Debug().
-		Str("action", "set()").
-		Str("stack", path).
-		Msg("Set stack name.")
-	if block.Name != "" {
-		name = block.Name
-	} else {
-		name = filepath.Base(path)
-	}
-
-	log.Trace().
-		Str("action", "set()").
-		Str("stack", path).
-		Msg("Set stack information.")
-	l.stacks[path] = S{
-		name:  name,
-		Dir:   path,
-		block: block,
-	}
-}
-
 // Set stacks in the loader's cache. The dir directory must be relative to
 // project's root.
 func (l Loader) Set(dir string, s S) {
diff --git a/stack/stack.go b/stack/stack.go
index 527f7bb29..5900c31c4 100644
--- a/stack/stack.go
+++ b/stack/stack.go
@@ -18,6 +18,7 @@ import (
 	"path/filepath"
 
 	"github.com/mineiros-io/terramate/hcl"
+	"github.com/mineiros-io/terramate/project"
 	"github.com/zclconf/go-cty/cty"
 )
 
@@ -27,9 +28,20 @@ type (
 		// Dir is the stack dir path relative to the project root
 		Dir string
 
-		name    string
+		// name of the stack.
+		name string
+
+		// description of the stack.
+		description string
+
+		// after is a list of stack paths that must run before this stack.
+		after []string
+
+		// before is a list of stack paths that must run after this stack.
+		before []string
+
+		// changed tells if this is a changed stack.
 		changed bool
-		block   *hcl.Stack
 	}
 
 	// Metadata has all metadata loaded per stack
@@ -40,26 +52,47 @@ type (
 	}
 )
 
-func (s S) Name() string {
-	if s.block.Name != "" {
-		return s.block.Name
+// New creates a new stack from configuration cfg.
+func New(root string, cfg hcl.Config) S {
+	name := cfg.Stack.Name
+	if name == "" {
+		name = filepath.Base(cfg.AbsDir())
+	}
+
+	return S{
+		name:        name,
+		Dir:         project.RelPath(root, cfg.AbsDir()),
+		description: cfg.Stack.Description,
+		after:       cfg.Stack.After,
+		before:      cfg.Stack.Before,
 	}
-	return filepath.Base(s.Dir)
 }
 
-func (s S) Description() string {
-	return s.block.Description
+// Name of the stack.
+func (s S) Name() string {
+	if s.name != "" {
+		return s.name
+	}
+	return s.Dir
 }
 
-func (s S) After() []string  { return s.block.After }
-func (s S) Before() []string { return s.block.Before }
+// Description of stack.
+func (s S) Description() string { return s.description }
+
+// After specifies the list of stacks that must run before this stack.
+func (s S) After() []string { return s.after }
 
-func (s S) IsChanged() bool    { return s.changed }
+// Before specifies the list of stacks that must run after this stack.
+func (s S) Before() []string { return s.before }
+
+// IsChanged tells if the stack is marked as changed.
+func (s S) IsChanged() bool { return s.changed }
+
+// SetChanged sets the changed flag of the stack.
 func (s *S) SetChanged(b bool) { s.changed = b }
 
-func (s S) String() string {
-	return s.Name()
-}
+// String representation of the stack.
+func (s S) String() string { return s.Name() }
 
 // Meta returns the stack metadata.
 func (s S) Meta() Metadata {
diff --git a/test/sandbox/sandbox.go b/test/sandbox/sandbox.go
index 75cdd44b1..0ab513136 100644
--- a/test/sandbox/sandbox.go
+++ b/test/sandbox/sandbox.go
@@ -133,38 +133,34 @@ func (s S) BuildTree(layout []string) {
 	gentmfile := func(relpath, data string) {
 		attrs := strings.Split(data, ";")
 
-		tm := hcl.Config{
-			Terramate: &hcl.Terramate{},
-			Stack:     &hcl.Stack{},
-		}
+		cfgdir := filepath.Join(s.RootDir(), relpath)
+		test.MkdirAll(t, cfgdir)
+		cfg, err := hcl.NewConfig(cfgdir, "")
+		assert.NoError(t, err)
+
+		cfg.Stack = &hcl.Stack{}
+		cfg.Terramate = &hcl.Terramate{}
+
 		for _, attr := range attrs {
 			parts := strings.Split(attr, "=")
 			name := parts[0]
 			value := parts[1]
 			switch name {
 			case "version":
-				tm.Terramate.RequiredVersion = value
+				cfg.Terramate.RequiredVersion = value
 			case "after":
-				tm.Stack.After = specList(t, name, value)
+				cfg.Stack.After = specList(t, name, value)
 			case "before":
-				tm.Stack.Before = specList(t, name, value)
+				cfg.Stack.Before = specList(t, name, value)
 			case "description":
-				tm.Stack.Description = value
+				cfg.Stack.Description = value
 			default:
 				t.Fatalf("attribute " + parts[0] + " not supported.")
 			}
 		}
 
-		path := filepath.Join(s.RootDir(), filepath.Join(relpath, config.Filename))
-		test.MkdirAll(t, filepath.Dir(path))
-
-		f, err := os.Create(path)
-		assert.NoError(t, err, "BuildTree() failed to create file")
-
-		defer f.Close()
-
-		err = hcl.PrintConfig(f, tm)
-		assert.NoError(t, err, "BuildTree() failed to generate tm file")
+		assert.NoError(t, cfg.Save(config.Filename),
+			"BuildTree() failed to generate config file.")
 	}
 
 	for _, spec := range layout {