diff --git a/README.md b/README.md
index 7db084f6dc..fdf28011fb 100644
--- a/README.md
+++ b/README.md
@@ -3,5 +3,16 @@ Open Source Inventory Management System
 
 [![Build Status](https://travis-ci.org/inventree/InvenTree.svg?branch=master)](https://travis-ci.org/inventree/InvenTree)
 
+## Installation
+When first installing InvenTree, initial database configuration must be performed. This is handled by the `install.py` script, which performs the following actions:
+
+1. Installs required django packages (requires [pip](https://pypi.python.org/pypi/pip))
+1. Performs initial database setup
+1. Updates database tables for all InvenTree components
+
+This script can also be used to update the installation if changes have been made to the database configuration.
+
+To create an initial user account, run the command `python InvenTree/manage.py createsuperuser`
+
 ## Documentation
 For project code documentation, refer to the online [documentation](http://inventree.readthedocs.io/en/latest/) (auto-generated)