diff --git a/client/configuration_set.go b/client/configuration_set.go
index b0fbcbbe..2c46dce4 100644
--- a/client/configuration_set.go
+++ b/client/configuration_set.go
@@ -18,9 +18,10 @@ type UpdateConfigurationSetPayload struct {
 }
 
 type ConfigurationSet struct {
-	Id          string `json:"id"`
-	Name        string `json:"name"`
-	Description string `json:"description"`
+	Id              string `json:"id"`
+	Name            string `json:"name"`
+	Description     string `json:"description"`
+	AssignmentScope string `json:"assignmentScope"`
 }
 
 func (client *ApiClient) ConfigurationSetCreate(payload *CreateConfigurationSetPayload) (*ConfigurationSet, error) {
diff --git a/env0/resource_environment.go b/env0/resource_environment.go
index 1aa9debd..aac62d2a 100644
--- a/env0/resource_environment.go
+++ b/env0/resource_environment.go
@@ -357,7 +357,7 @@ func resourceEnvironment() *schema.Resource {
 			},
 			"variable_sets": {
 				Type:        schema.TypeList,
-				Description: "a list of variable set to assign to this environment",
+				Description: "a list of variable set to assign to this environment. Note: must not be used with 'env0_variable_set_assignment'",
 				Optional:    true,
 				Elem: &schema.Schema{
 					Type:        schema.TypeString,
@@ -630,7 +630,9 @@ func getEnvironmentVariableSetIdsFromApi(d *schema.ResourceData, apiClient clien
 
 	var environmentVariableSetIds []string
 	for _, variableSet := range environmentVariableSets {
-		environmentVariableSetIds = append(environmentVariableSetIds, variableSet.Id)
+		if variableSet.AssignmentScope == "ENVIRONMENT" {
+			environmentVariableSetIds = append(environmentVariableSetIds, variableSet.Id)
+		}
 	}
 
 	return environmentVariableSetIds, nil
diff --git a/env0/resource_environment_test.go b/env0/resource_environment_test.go
index 21e131ef..5a228b0c 100644
--- a/env0/resource_environment_test.go
+++ b/env0/resource_environment_test.go
@@ -261,19 +261,23 @@ func TestUnitEnvironmentResource(t *testing.T) {
 
 			configurationSets := []client.ConfigurationSet{
 				{
-					Id: "id1",
+					Id:              "id1",
+					AssignmentScope: "ENVIRONMENT",
 				},
 				{
-					Id: "id2",
+					Id:              "id2",
+					AssignmentScope: "ENVIRONMENT",
 				},
 			}
 
 			updatedConfigurationSets := []client.ConfigurationSet{
 				{
-					Id: "id3",
+					Id:              "id3",
+					AssignmentScope: "ENVIRONMENT",
 				},
 				{
-					Id: "id2",
+					Id:              "id2",
+					AssignmentScope: "ENVIRONMENT",
 				},
 			}
 
diff --git a/env0/resource_variable_set_assignment.go b/env0/resource_variable_set_assignment.go
index 9e333f6c..866dc001 100644
--- a/env0/resource_variable_set_assignment.go
+++ b/env0/resource_variable_set_assignment.go
@@ -21,6 +21,8 @@ func resourceVariableSetAssignment() *schema.Resource {
 		ReadContext:   resourceVariableSetAssignmentRead,
 		DeleteContext: resourceVariableSetAssignmentDelete,
 
+		Description: "note: avoid assigning to environments using 'variable_sets' (see environment schema).",
+
 		Schema: map[string]*schema.Schema{
 			"scope": {
 				Type:             schema.TypeString,
@@ -87,6 +89,10 @@ func resourceVariableSetAssignmentUpdate(ctx context.Context, d *schema.Resource
 
 	// In API but not in Schema - delete.
 	for _, apiConfigurationSet := range apiConfigurationSets {
+		if apiConfigurationSet.AssignmentScope != assignmentSchema.Scope {
+			continue
+		}
+
 		found := false
 
 		apiSetId := apiConfigurationSet.Id
@@ -181,6 +187,10 @@ func resourceVariableSetAssignmentRead(ctx context.Context, d *schema.ResourceDa
 	}
 
 	for _, apiConfigurationSet := range apiConfigurationSets {
+		if apiConfigurationSet.AssignmentScope != assignmentSchema.Scope {
+			continue
+		}
+
 		apiSetId := apiConfigurationSet.Id
 		found := false
 
diff --git a/env0/resource_variable_set_assignment_test.go b/env0/resource_variable_set_assignment_test.go
index ccbdd6b6..52263728 100644
--- a/env0/resource_variable_set_assignment_test.go
+++ b/env0/resource_variable_set_assignment_test.go
@@ -20,29 +20,35 @@ func TestUnitVariableSetAssignmentResource(t *testing.T) {
 		setIds := []string{"a1", "a2"}
 		configurationSetIds := []client.ConfigurationSet{
 			{
-				Id: "a1",
+				Id:              "a1",
+				AssignmentScope: scope,
 			},
 			{
-				Id: "a2",
+				Id:              "a2",
+				AssignmentScope: scope,
 			},
 		}
 		// Validates that drifts do not occur due to ordering.
 		flippedConfigurationSetIds := []client.ConfigurationSet{
 			{
-				Id: "a2",
+				Id:              "a2",
+				AssignmentScope: scope,
 			},
 			{
-				Id: "a1",
+				Id:              "a1",
+				AssignmentScope: scope,
 			},
 		}
 
 		updatedSetIds := []string{"a1", "a3"}
 		updatedConfigurationSetIds := []client.ConfigurationSet{
 			{
-				Id: "a3",
+				Id:              "a3",
+				AssignmentScope: scope,
 			},
 			{
-				Id: "a1",
+				Id:              "a1",
+				AssignmentScope: scope,
 			},
 		}
 
@@ -97,10 +103,12 @@ func TestUnitVariableSetAssignmentResource(t *testing.T) {
 		setIds := []string{"a1"}
 		configurationSetIds := []client.ConfigurationSet{
 			{
-				Id: "a1",
+				Id:              "a1",
+				AssignmentScope: scope,
 			},
 			{
-				Id: "a2",
+				Id:              "a2",
+				AssignmentScope: scope,
 			},
 		}