diff --git a/README.md b/README.md
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--- a/README.md
+++ b/README.md
@@ -1,2 +1,18 @@
-filedrop
+FileDrop
 ========
+
+It uses PeerJS server at http://file-drop-peer-server.herokuapp.com.
+
+## Setup
+1. Run `npm install` to install dependencies.
+2. Install [foreman](https://github.com/ddollar/foreman) using `gem install foreman`, unless you already have it installed.
+3. Create `.env` file and set the following environment variables there:
+
+    ```
+    HOST=localhost
+    PORT=8000
+    WEB_PORT=8000
+    SECRET=some-random-string
+    ```
+
+4. Run `foreman start` to start the server on `localhost:8000`.