diff --git a/README.md b/README.md
index f0eaa32512..672783743e 100644
--- a/README.md
+++ b/README.md
@@ -3,10 +3,34 @@ matrix-react-sdk
 
 This is a react-based SDK for inserting a Matrix chat client into a web page
 
-1. Install or update `node.js so that your `npm` is at least at version `2.3.0`
-2. Clone the repo `git clone https://github.com/matrix-org/matrix-react-sdk.git` 
-3. Navigate to example folder and install dependencies `cd example; npm install`
-4. Go back to root folder and build CSS `cd ..; npm install; npm run start:css`
-5. Copy builds `cd example; cp../bundle.css ./; npm start`
+Getting started with the example
+================================
+
+1. Install or update `node.js` so that your `npm` is at least at version `2.0.0`
+2. Clone the repo: `git clone https://github.com/matrix-org/matrix-react-sdk.git` 
+3. Switch to your new checkout: `cd matrix-react-sdk`
+4. Build the CSS: `npm install && npm run build:css`
+5. Switch to the example: `cd example`
+6. Build the javascript & copy the CSS:
+   `npm install && npm run build && ln -s ../bundle.css ./`
+
+Serve the app from within the `example` directory by running `python -m
+SimpleHTTPServer 8000` and access it at
+[http://127.0.0.1:8000](http://127.0.0.1:8000/)
+
+Using the example app for development
+=====================================
+
+To develop using the example app, you can avoid havign to repeat the above
+steps each time you change something:
+
+1. Perform all the steps above
+2. In the matrix-react-sdk directory: `npm run start:css`
+3. Open a new terminal window in the matrix-react-sdk directory:
+   `cd example; npm start`
+
+Now, development version of your Javascript and CSS will be rebuilt whenever
+you change any of the files (although you may need to restart the CSS builder
+if you add a new file). Note that the debug CSS and Javascript are much, much
+larger than the production versions.
 
-Serve the app from within the `example` directory by running `python -m SimpleHTTPServer 8000` and access it at [http://0.0.0.0:8000](http://0.0.0.0:8000/)
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