diff --git a/README.rst b/README.rst
index dcd583fb80b..035af5b96cd 100644
--- a/README.rst
+++ b/README.rst
@@ -78,8 +78,48 @@ Create a GitHub repo and push it there::
 
 Now take a look at your repo. Don't forget to carefully look at the generated README. Awesome, right?
 
-It's time to write the code!!!
+Getting up and running
+----------------------
+
+The steps below will get you up and running with a local development environment. We assume you have the following installed:
+
+* pip
+* virtualenv
+* PostgreSQL
+
+First make sure to create and activate a virtualenv, then open a terminal at the project root and install the requirements for local development::
+
+    $ pip install -r requirements/local.txt
+
+You can now run the usual Django ``runserver`` command (replace ``yourapp`` with the name of the directory containing the Django project)::
+
+    $ python yourapp/manage.py runserver
+
+The base app will run but you'll need to carry out a few steps to make the sign-up and login forms work. These are currently detailed in `issue #39`_.
+
+.. _issue #39: https://github.com/pydanny/cookiecutter-django/issues/39
+
+**Live reloading and Sass CSS compilation**
 
+If you'd like to take advantage of live reloading and Sass / Compass CSS compilation you can do so with the included Grunt task.
+
+Make sure that nodejs_ is installed. Then in the project root run::
+
+    $ npm install
+
+.. _nodejs: http://nodejs.org/download/ 
+
+Now you just need::
+
+    $ grunt serve
+
+The base app will now run as it would with the usual ``manage.py runserver`` but with live reloading and Sass compilation enabled.
+
+To get live reloading to work you'll probably need to install an `appropriate browser extension`_ 
+
+.. _appropriate browser extension: http://feedback.livereload.com/knowledgebase/articles/86242-how-do-i-install-and-use-the-browser-extensions-
+
+It's time to write the code!!!
 
 "Your Stuff"
 -------------