diff --git a/mmv1/products/artifactregistry/Repository.yaml b/mmv1/products/artifactregistry/Repository.yaml
index 607387e85bf7..aaac06a984c4 100644
--- a/mmv1/products/artifactregistry/Repository.yaml
+++ b/mmv1/products/artifactregistry/Repository.yaml
@@ -112,6 +112,7 @@ examples:
       username: 'remote-username'
       secret_data: 'remote-password'
 custom_code: !ruby/object:Provider::Terraform::CustomCode
+  constants: templates/terraform/constants/artifact_registry_repository.go.erb
   encoder: templates/terraform/encoders/location_from_region.go.erb
 properties:
   - !ruby/object:Api::Type::String
@@ -231,6 +232,7 @@ properties:
     properties:
       - !ruby/object:Api::Type::Array
         name: 'upstreamPolicies'
+        diff_suppress_func: 'upstreamPoliciesDiffSuppress'
         description: |-
           Policies that configure the upstream artifacts distributed by the Virtual
           Repository. Upstream policies cannot be set on a standard repository.
diff --git a/mmv1/templates/terraform/constants/artifact_registry_repository.go.erb b/mmv1/templates/terraform/constants/artifact_registry_repository.go.erb
new file mode 100644
index 000000000000..52e5b587d59c
--- /dev/null
+++ b/mmv1/templates/terraform/constants/artifact_registry_repository.go.erb
@@ -0,0 +1,47 @@
+<%# The license inside this block applies to this file
+  # Copyright 2023 Google Inc.
+  # Licensed under the Apache License, Version 2.0 (the "License");
+  # you may not use this file except in compliance with the License.
+  # You may obtain a copy of the License at
+  #
+  #     http://www.apache.org/licenses/LICENSE-2.0
+  #
+  # Unless required by applicable law or agreed to in writing, software
+  # distributed under the License is distributed on an "AS IS" BASIS,
+  # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+  # See the License for the specific language governing permissions and
+  # limitations under the License.
+-%>
+func upstreamPoliciesDiffSuppress(k, old, new string, d *schema.ResourceData) bool {
+  o, n := d.GetChange("virtual_repository_config.0.upstream_policies")
+  oldPolicies, ok := o.([]any)
+  if !ok {
+    return false
+  }
+  newPolicies, ok := n.([]any)
+  if !ok {
+    return false
+  }
+
+  var oldHashes, newHashes []interface{}
+  for _, policy := range oldPolicies {
+    data, ok := policy.(map[string]any)
+    if !ok {
+      return false
+    }
+    hashStr := fmt.Sprintf("[id:%v priority:%v repository:%v]", data["id"], data["priority"], data["repository"])
+    oldHashes = append(oldHashes, hashStr)
+  }
+  for _, policy := range newPolicies {
+    data, ok := policy.(map[string]any)
+    if !ok {
+      return false
+    }
+    hashStr := fmt.Sprintf("[id:%v priority:%v repository:%v]", data["id"], data["priority"], data["repository"])
+    newHashes = append(newHashes, hashStr)
+  }
+
+  oldSet := schema.NewSet(schema.HashString, oldHashes)
+  newSet := schema.NewSet(schema.HashString, newHashes)
+  return oldSet.Equal(newSet)
+}
diff --git a/mmv1/templates/terraform/examples/artifact_registry_repository_virtual.tf.erb b/mmv1/templates/terraform/examples/artifact_registry_repository_virtual.tf.erb
index b197d33709bc..4d20c408b80b 100644
--- a/mmv1/templates/terraform/examples/artifact_registry_repository_virtual.tf.erb
+++ b/mmv1/templates/terraform/examples/artifact_registry_repository_virtual.tf.erb
@@ -1,7 +1,14 @@
-resource "google_artifact_registry_repository" "<%= ctx[:primary_resource_id] %>-upstream" {
+resource "google_artifact_registry_repository" "<%= ctx[:primary_resource_id] %>-upstream-1" {
   location      = "us-central1"
-  repository_id = "<%= ctx[:vars]['upstream_repository_id'] %>"
-  description   = "<%= ctx[:vars]['upstream_description'] %>"
+  repository_id = "<%= ctx[:vars]['upstream_repository_id'] %>-1"
+  description   = "<%= ctx[:vars]['upstream_description'] %> 1"
+  format        = "DOCKER"
+}
+
+resource "google_artifact_registry_repository" "<%= ctx[:primary_resource_id] %>-upstream-2" {
+  location      = "us-central1"
+  repository_id = "<%= ctx[:vars]['upstream_repository_id'] %>-2"
+  description   = "<%= ctx[:vars]['upstream_description'] %> 2"
   format        = "DOCKER"
 }
 
@@ -14,9 +21,14 @@ resource "google_artifact_registry_repository" "<%= ctx[:primary_resource_id] %>
   mode          = "VIRTUAL_REPOSITORY"
   virtual_repository_config {
     upstream_policies {
-      id          = "<%= ctx[:vars]['upstream_policy_id'] %>"
-      repository  = google_artifact_registry_repository.<%= ctx[:primary_resource_id] %>-upstream.id
-      priority    = 1
+      id          = "<%= ctx[:vars]['upstream_policy_id'] %>-1"
+      repository  = google_artifact_registry_repository.<%= ctx[:primary_resource_id] %>-upstream-1.id
+      priority    = 20
+    }
+    upstream_policies {
+      id          = "<%= ctx[:vars]['upstream_policy_id'] %>-2"
+      repository  = google_artifact_registry_repository.<%= ctx[:primary_resource_id] %>-upstream-2.id
+      priority    = 10
     }
   }
 }