diff --git a/README.md b/README.md
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+++ b/README.md
@@ -1,3 +1,21 @@
 # Tether
 
-Communication server using the Nexlink protocol
\ No newline at end of file
+Communication server using the Nexlink protocol
+
+## Setting up development environment
+
+### Install dependencies
+- npm install
+
+### Set up and start postgres database
+- docker compose pull
+- docker compose up
+
+### Create database migrations
+- npx prisma migrate dev
+
+### Generate database client
+- npx prisma generate
+
+### Start the server
+- npm start