diff --git a/README.md b/README.md
index e69de29bb..547086dc1 100644
--- a/README.md
+++ b/README.md
@@ -0,0 +1,20 @@
+# OWASP Nest
+
+## Initial setup
+
+1. Clone the repository code from <https://github.com/owasp/nest>
+1. Copy `backend/.env/template` to `backend/.env/local`
+1. Open `backend/.env/local` and change `DJANGO_CONFIGURATION` value to `Local`
+1. Run `make run`, wait until [Nest local](http://localhost:8000/api/v1) is responding
+1. Run `make load-data` to populate the database from `data/` fixtures
+1. Go to <https://www.algolia.com/> and create a free account.
+Create an Algolia app and update `DJANGO_ALGOLIA_API_KEY` and `DJANGO_ALGOLIA_APPLICATION_ID` in your `.env/local` file
+1. Now you should be able to run `make index`
+1. Check the data is available via API endpoints: [projects](http://localhost:8000/api/v1/owasp/search/project) and [issues](http://localhost:8000/api/v1/owasp/search/issue)
+
+Optional steps (if you're going to manage or fetch data):
+
+1. Run `make setup` to create a super user
+1. Create a GitHub [personal access token](https://docs.github.com/en/authentication/keeping-your-account-and-data-secure/managing-your-personal-access-tokens)
+1. Open `backend/.env/local` and update `GITHUB_TOKEN` value
+1. Now you should be able to run `make sync` command that updates your local DB data
diff --git a/backend/Dockerfile.local b/backend/Dockerfile.local
index cf3562dc5..a326e67a5 100644
--- a/backend/Dockerfile.local
+++ b/backend/Dockerfile.local
@@ -9,8 +9,7 @@ RUN groupadd owasp && \
     python -m pip install --no-cache-dir poetry
 
 ENV PYTHONUNBUFFERED=1 \
-    POETRY_NO_INTERACTION=1 \
-    POETRY_VIRTUALENVS_CREATE=false
+    POETRY_NO_INTERACTION=1
 
 EXPOSE 8000