diff --git a/README.md b/README.md
index 1a50ce22..70a643f6 100644
--- a/README.md
+++ b/README.md
@@ -7,11 +7,16 @@
 
     ./script/setup
 
+The setup script will create a new Python virtual environment for the application to use. All of the scripts will activate this virutal envirnment automatically, but you can also manually activate it like this:
+    source .venv/bin/activate
+
+If you want to automatically load the virtual environment whenever you enter the project directory, take a look at [direnv](https://direnv.net/)
+
 ## Running (development)
 
 To start the app and watch for changes:
 
-    DEBUG=1 ./app.py
+    DEBUG=1 ./script/server
 
 ## Testing