diff --git a/README.rst b/README.rst
index c8faa2fc2..fd73d6acf 100644
--- a/README.rst
+++ b/README.rst
@@ -31,6 +31,17 @@ Translate-toolkit
 GitPython (>= 0.3)
     http://gitorious.org/projects/git-python/
 
+Installation
+------------
+
+Install all required components (see above), adjust settings.py and then run
+./manage.py syncdb to create database structure. Now you should be able to
+create translation projects using admin interface.
+
+As setup of translation project includes fetching Git repositories, you might
+want to preseed these, repos are stored in path defined by GIT_ROOT in
+settings.py in <project>/<subproject> directories.
+
 Project name
 ------------