diff --git a/AGENT_HANDOFF.md b/AGENT_HANDOFF.md
index 83d848c..2fd49ab 100644
--- a/AGENT_HANDOFF.md
+++ b/AGENT_HANDOFF.md
@@ -2,11 +2,11 @@
 
 ## Current Stage
 
-DISCOVERY
+BUILDING
 
 ## Current Task
 
-TASK-000 — Bootstrap RDB project standards
+TASK-002 — Run initial project discovery
 
 ## Instructions For Agent
 
diff --git a/PROJECT_STATE.md b/PROJECT_STATE.md
index 0630b15..3ef256d 100644
--- a/PROJECT_STATE.md
+++ b/PROJECT_STATE.md
@@ -4,7 +4,7 @@ Current Stage: BUILDING
 Previous Stage: BOOTSTRAP_READY
 Next Stage: REVIEW_READY
 
-Current Task: TASK-001
+Current Task: TASK-002
 Active Branch: main
 
 Last Updated: 2026-06-01
diff --git a/README.md b/README.md
index 6d517e0..bf9ddba 100644
--- a/README.md
+++ b/README.md
@@ -39,6 +39,25 @@ rdb handoff
 5. Give the next task to Claude Code or Cline
 6. Commit after each completed task
 
+## Project structure
+
+`rdb init` creates the following files (skips existing ones):
+
+- context/discovery-log.md
+- context/product-brief.md
+- context/architecture.md
+- context/decisions.md
+- context/risks.md
+- context/assumptions.md
+- context/open-questions.md
+- context/repository-context.md
+- TASKS.md
+- TEST_PLAN.md
+- RUN_LOG.md
+- PROJECT_STATE.md
+- AGENT_HANDOFF.md
+- .rdb/project.json
+
 ## Principle
 
 Markdown files are the source of truth. No database is required.
diff --git a/RUN_LOG.md b/RUN_LOG.md
index 62db5a0..234d8a4 100644
--- a/RUN_LOG.md
+++ b/RUN_LOG.md
@@ -4,3 +4,4 @@ Run Log
 Bootstrap project structure created.
 Fixed TASKS.md parser to match em/en dashes in task headings.
 TASK-000 marked Done — bootstrap standards complete.
+TASK-001 marked Done — rdb init creates all project control files.
diff --git a/TASKS.md b/TASKS.md
index 6db295c..7ff8999 100644
--- a/TASKS.md
+++ b/TASKS.md
@@ -18,6 +18,6 @@ Acceptance Criteria:
 
 ## TASK-001 — Implement rdb init
 
-Status: Todo
+Status: Done
 
 Goal: Create the command that initialises the standard RDB project structure.
diff --git a/src/rdb_discovery/templates.py b/src/rdb_discovery/templates.py
index 3becffd..28dec61 100644
--- a/src/rdb_discovery/templates.py
+++ b/src/rdb_discovery/templates.py
@@ -71,6 +71,57 @@ TBD
 
 | ID | Assumption | Confidence | Validation Needed |
 |---|---|---|---|
+""",
+    "context/repository-context.md": """# Repository Context
+
+## Purpose
+
+TBD
+
+## Key Components
+
+TBD
+
+## Dependencies
+
+TBD
+
+## Contributing
+
+TBD
+""",
+    "PROJECT_STATE.md": """# Project State
+
+Current Stage: DISCOVERY
+Previous Stage: NONE
+Next Stage: BOOTSTRAP_READY
+
+Current Task: None
+Active Branch: main
+
+Last Updated: TBD
+""",
+    "AGENT_HANDOFF.md": """# Agent Handoff
+
+## Current Stage
+
+DISCOVERY
+
+## Instructions For Agent
+
+- Complete one task only
+- Make the smallest useful change
+- Update documentation
+- Run tests
+- Commit changes
+- Stop after task completion
+""",
+    ".rdb/project.json": """{
+    "name": "rdb-discovery",
+    "stage": "DISCOVERY",
+    "tasks": [],
+    "created": "TBD"
+}
 """,
     "context/open-questions.md": """# Open Questions
 
diff --git a/tests/test_templates.py b/tests/test_templates.py
index c203dd1..fd8a1e0 100644
--- a/tests/test_templates.py
+++ b/tests/test_templates.py
@@ -1,6 +1,6 @@
 from pathlib import Path
 
-from rdb_discovery.templates import write_file_if_missing
+from rdb_discovery.templates import CONTEXT_FILES, write_file_if_missing
 
 
 def test_write_file_if_missing(tmp_path: Path) -> None:
@@ -8,3 +8,31 @@ def test_write_file_if_missing(tmp_path: Path) -> None:
     assert (tmp_path / "context" / "test.md").read_text(encoding="utf-8") == "hello"
     assert write_file_if_missing(tmp_path, "context/test.md", "changed") is False
     assert (tmp_path / "context" / "test.md").read_text(encoding="utf-8") == "hello"
+
+
+def test_all_context_files_have_content() -> None:
+    for path, content in CONTEXT_FILES.items():
+        assert content.strip(), f"Empty content for {path}"
+
+
+def test_init_creates_all_files(tmp_path: Path) -> None:
+    for relative_path, content in CONTEXT_FILES.items():
+        write_file_if_missing(tmp_path, relative_path, content)
+
+    for relative_path in CONTEXT_FILES:
+        assert (tmp_path / relative_path).exists(), f"Missing {relative_path}"
+
+
+def test_init_skips_existing_files(tmp_path: Path) -> None:
+    skipped = []
+
+    for relative_path, content in CONTEXT_FILES.items():
+        target = tmp_path / relative_path
+        target.parent.mkdir(parents=True, exist_ok=True)
+        target.write_text("existing", encoding="utf-8")
+        result = write_file_if_missing(tmp_path, relative_path, content)
+        if not result:
+            skipped.append(relative_path)
+
+    assert skipped == list(CONTEXT_FILES)
+    assert (tmp_path / "TASKS.md").read_text(encoding="utf-8") == "existing"