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+#External AWS cloud provider with AWS EBS CSI driver
+
+##Overview
+From Kubernetes 1.21 onwards, the support for its in-tree AWS cloud provider and the EBS CSI driver is removed, hence there is a need to use [out-of-tree cloud provider (Cloud Controller Manager - CCM) ](https://github.com/kubernetes/cloud-provider-aws) and a CSI driver in CAPA.
+For details, see [Status of project and documentation of Cloud provider AWS](https://github.com/kubernetes/cloud-provider-aws/issues/42)
+
+##Using external cloud provider and EBS CSI driver in AWS workloads
+Once Management cluster is ready, install external CCM and EBS CSI driver onto the CAPA workload cluster either manually or using ClusterResourceSets (CRS).
+To install them with CRS, create a CRS resource on the management cluster with labels, for example `csi: external` and `ccm: external` labels;  and `AWSCluster` should be created with matching labels `csi: external` and `ccm: external` for CSI and CCM, respectively.
+Below are the example CRS manifests:
+* [AWS CCM manifest](https://github.com/kubernetes-sigs/cluster-api-provider-aws/blob/main/test/e2e/data/infrastructure-aws/external-cloud-provider/aws-ccm-external.yaml)
+* [AWS EBS CSI driver manifest](https://github.com/kubernetes-sigs/cluster-api-provider-aws/blob/main/test/e2e/data/infrastructure-aws/external-cloud-provider/aws-ebs-csi-external.yaml)
+
+### Verifying dynamically provisioned volumes with CSI driver
+Once you have the cluster with external CCM and CSI controller running successfully, you can test the CSI driver functioning with following steps after switching to workload cluster:
+1. Create a service (say,`nginx`)
+```yaml
+apiVersion: v1
+kind: Service
+metadata:
+  name: nginx-svc
+  namespace: default
+spec:
+  clusterIP: None
+  ports:
+    - name: nginx-web
+      port: 80
+  selector:
+    app: nginx
+```
+2. Create a storageclass and statefulset for the service created above with the persistent volume assigned to the storageclass:
+```yaml
+kind: StorageClass
+apiVersion: storage.k8s.io/v1
+metadata:
+  name: aws-ebs-volumes
+provisioner: ebs.csi.aws.com
+volumeBindingMode: WaitForFirstConsumer
+parameters:
+  csi.storage.k8s.io/fstype: xfs
+  type: io1
+  iopsPerGB: "100"
+allowedTopologies:
+  - matchLabelExpressions:
+      - key: topology.ebs.csi.aws.com/zone
+        values:
+          - us-east-1a
+---
+apiVersion: apps/v1
+kind: StatefulSet
+metadata:
+  name: nginx-statefulset
+spec:
+  serviceName: "nginx-svc"
+  replicas: 2
+  selector:
+    matchLabels:
+      app: nginx
+  template:
+    metadata:
+      labels:
+        app: nginx
+    spec:
+      containers:
+        - name: nginx
+          image: k8s.gcr.io/nginx-slim:0.8
+          ports:
+            - name: nginx-web
+              containerPort: 80
+          volumeMounts:
+            - name: nginx-volumes
+              mountPath: /usr/share/nginx/html
+      volumes:
+        - name: nginx-volumes
+          persistentVolumeClaim:
+            claimName: nginx-volumes
+  volumeClaimTemplates:
+    - metadata:
+        name: nginx-volumes
+      spec:
+        storageClassName: "aws-ebs-volumes"
+        accessModes: [ "ReadWriteOnce" ]
+        resources:
+          requests:
+            storage: 4Gi
+ ```
+3. Once you apply the above manifest, the EBS volumes will be created and attached to the worker nodes.
+
+>**IMPORTANT WARNING:** The CRDs from the AWS EBS CSI driver and AWS out-of-tree cloud provider gives issue while installing the respective controllers on the AWS Cluster, it doesn't allow statefulsets to create the volume on existing EC2 instance.
+> We need the CSI controller deployment and CCM pinned to the control plane which has right permissions to create, attach 
+> and mount the volumes to EC2 instances. To achieve this, you should add the node affinity rules to the CSI driver controller deployment and CCM DaemonSet manifests.
+> ```yaml
+> tolerations:
+> - key: node-role.kubernetes.io/master
+>   effect: NoSchedule
+> - effect: NoSchedule
+>   key: node-role.kubernetes.io/control-plane 
+> affinity:
+>   nodeAffinity:
+>   requiredDuringSchedulingIgnoredDuringExecution:
+>     nodeSelectorTerms:
+>       - matchExpressions:
+>           - key: node-role.kubernetes.io/control-plane
+>             operator: Exists
+>       - matchExpressions:
+>           - key: node-role.kubernetes.io/master
+>             operator: Exists
+>```
+