diff --git a/README.mkd b/README.mkd
index 3e4a9d897..495826128 100644
--- a/README.mkd
+++ b/README.mkd
@@ -27,6 +27,14 @@ Features
 - And much, much more.
 
 
+Installation
+------------
+
+
+The recommended way to install mitmproxy is running <code>pip install mitmproxy</code>.  
+For convenience, we provide binary packages on [mitmproxy.org](http://mitmproxy.org/).
+
+
 Requirements
 ------------
 
@@ -40,8 +48,11 @@ Optional packages for extended content decoding:
 * [protobuf](https://code.google.com/p/protobuf/) version 2.5.0 or newer.
 * [cssutils](http://cthedot.de/cssutils/) version 1.0 or newer.
 
-__mitmproxy__ is tested and developed on OSX, Linux and OpenBSD. Windows is not
-officially supported at the moment.
+For convenience, all optional dependencies can be installed with 
+`pip install mitmproxy[contenviews]`
+
+__mitmproxy__ is tested and developed on OSX, Linux and OpenBSD. On Windows,
+only mitmdump is supported, which does not have a graphical user interface.
 
 
 Hacking
@@ -49,12 +60,16 @@ Hacking
 
 The following components are needed if you plan to hack on mitmproxy:
 
-* The test suite uses the [nose](http://readthedocs.org/docs/nose/en/latest/) unit testing
-  framework and requires [pathod](http://pathod.net) and [flask](http://flask.pocoo.org/).
+* The test suite requires the `dev` extra requirements listed in [setup.py](https://github.com/mitmproxy/mitmproxy/blob/master/setup.py) and [pathod](http://pathod.net), version matching mitmproxy.
 * Rendering the documentation requires [countershape](http://github.com/cortesi/countershape).
 
-For convenience, all dependencies save countershape can be installed from pypi
-to a virtualenv with 'pip install -r requirements.txt'.
+For convenience, the following procedure is recommended to set up your environment:
+```
+$ git clone https://github.com/mitmproxy/mitmproxy.git
+$ cd mitmproxy
+$ pip install --src . -r requirements.txt
+```
+This installs the latest GitHub versions of mitmproxy, netlib and pathod into `mitmproxy/`. All other development dependencies save countershape are installed into their usual locations. 
 
 Please ensure that all patches are accompanied by matching changes in the test
 suite. The project maintains 100% test coverage.