True. This is one use case of Terraform Workspace.

You can create terraform modules, and use modules for each environment and treat each as separate project/repo. With this, you can have separate state file for each env.

Terraform — Best Practices:

https://medium.com/devops-mojo/terraform-best-practices-top-best-practices-for-terraform-configuration-style-formatting-structure-66b8d938f00c