The TAIGA observatory addresses ground-based gamma-ray astronomy at energies from a few TeV to several PeV, as well as cosmic ray physics from 100 TeV to several EeV. TAIGA will be located in the Tunka valley, similar to 50 km West from Lake Baikal. The different detectors of the TAIGA will be grouped in 6 arrays to measure Cherenkov and radio emission as well as electron and muon components of atmospheric showers. The combination of the wide angle Cherenkov detectors of the TAIGA-HiSCORE array and the 4-m Imaging Atmospheric Cherenkov Telescopes of the TAIGA-IACT array with their FoV of 10x10 degrees and underground muon detectors offers a very cost effective way to construct a 5 km(2) array for gamma-ray astronomy.