diff --git a/test/setup/main.tf b/test/setup/main.tf
index badbd806..dbcc9b6d 100644
--- a/test/setup/main.tf
+++ b/test/setup/main.tf
@@ -27,7 +27,7 @@ resource "google_folder" "ci-iam-folder" {
 
 module "iam-project" {
   source  = "terraform-google-modules/project-factory/google"
-  version = "~> 16.0"
+  version = "~> 17.0"
 
   name                = "ci-iam"
   random_project_id   = true