diff --git a/terraform/graph_config_node_variable_test.go b/terraform/graph_config_node_variable_test.go
index 9f0251b42..17a1d06a8 100644
--- a/terraform/graph_config_node_variable_test.go
+++ b/terraform/graph_config_node_variable_test.go
@@ -10,12 +10,10 @@ func TestGraphNodeConfigVariable_impl(t *testing.T) {
 	var _ dag.Vertex = new(GraphNodeConfigVariable)
 	var _ dag.NamedVertex = new(GraphNodeConfigVariable)
 	var _ graphNodeConfig = new(GraphNodeConfigVariable)
-	var _ GraphNodeProxy = new(GraphNodeConfigVariable)
 }
 
 func TestGraphNodeConfigVariableFlat_impl(t *testing.T) {
 	var _ dag.Vertex = new(GraphNodeConfigVariableFlat)
 	var _ dag.NamedVertex = new(GraphNodeConfigVariableFlat)
 	var _ graphNodeConfig = new(GraphNodeConfigVariableFlat)
-	var _ GraphNodeProxy = new(GraphNodeConfigVariableFlat)
 }
diff --git a/terraform/transform_proxy.go b/terraform/transform_proxy.go
deleted file mode 100644
index db7b34ed8..000000000
--- a/terraform/transform_proxy.go
+++ /dev/null
@@ -1,62 +0,0 @@
-package terraform
-
-import (
-	"github.com/hashicorp/terraform/dag"
-)
-
-// GraphNodeProxy must be implemented by nodes that are proxies.
-//
-// A node that is a proxy says that anything that depends on this
-// node (the proxy), should also copy all the things that the proxy
-// itself depends on. Example:
-//
-//    A => proxy => C
-//
-// Should transform into (two edges):
-//
-//    A => proxy => C
-//    A => C
-//
-// The purpose for this is because some transforms only look at direct
-// edge connections and the proxy generally isn't meaningful in those
-// situations, so we should complete all the edges.
-type GraphNodeProxy interface {
-	Proxy() bool
-}
-
-// ProxyTransformer is a transformer that goes through the graph, finds
-// vertices that are marked as proxies, and connects through their
-// dependents. See above for what a proxy is.
-type ProxyTransformer struct{}
-
-func (t *ProxyTransformer) Transform(g *Graph) error {
-	for _, v := range g.Vertices() {
-		pn, ok := v.(GraphNodeProxy)
-		if !ok {
-			continue
-		}
-
-		// If we don't want to be proxies, don't do it
-		if !pn.Proxy() {
-			continue
-		}
-
-		// Connect all the things that depend on this to things that
-		// we depend on as the proxy. See docs for GraphNodeProxy for
-		// a visual explanation.
-		for _, s := range g.UpEdges(v).List() {
-			for _, t := range g.DownEdges(v).List() {
-				g.Connect(GraphProxyEdge{
-					Edge: dag.BasicEdge(s, t),
-				})
-			}
-		}
-	}
-
-	return nil
-}
-
-// GraphProxyEdge is the edge that is used for proxied edges.
-type GraphProxyEdge struct {
-	dag.Edge
-}
diff --git a/terraform/transform_proxy_test.go b/terraform/transform_proxy_test.go
deleted file mode 100644
index dc1b2cfbb..000000000
--- a/terraform/transform_proxy_test.go
+++ /dev/null
@@ -1,52 +0,0 @@
-package terraform
-
-import (
-	"strings"
-	"testing"
-
-	"github.com/hashicorp/terraform/dag"
-)
-
-func TestProxyTransformer(t *testing.T) {
-	var g Graph
-	proxy := &testNodeProxy{NameValue: "proxy"}
-	g.Add("A")
-	g.Add("C")
-	g.Add(proxy)
-	g.Connect(dag.BasicEdge("A", proxy))
-	g.Connect(dag.BasicEdge(proxy, "C"))
-
-	{
-		tf := &ProxyTransformer{}
-		if err := tf.Transform(&g); err != nil {
-			t.Fatalf("err: %s", err)
-		}
-	}
-
-	actual := strings.TrimSpace(g.String())
-	expected := strings.TrimSpace(testProxyTransformStr)
-	if actual != expected {
-		t.Fatalf("bad: %s", actual)
-	}
-}
-
-type testNodeProxy struct {
-	NameValue string
-}
-
-func (n *testNodeProxy) Name() string {
-	return n.NameValue
-}
-
-func (n *testNodeProxy) Proxy() bool {
-	return true
-}
-
-const testProxyTransformStr = `
-A
-  C
-  proxy
-C
-proxy
-  C
-`