diff --git a/docs/README.md b/docs/README.md
index 41f0287f81..5d51b82029 100644
--- a/docs/README.md
+++ b/docs/README.md
@@ -4,32 +4,82 @@
 
 This repository hosts the [official documentation](https://inventree.readthedocs.io/) for [InvenTree](https://github.com/inventree/inventree), an open source inventory management system.
 
-To serve this documentation locally (e.g. for development), you will need to have Python 3 installed on your system.
+## Prerequisites
 
-## Setup
+InvenTree uses [MkDocs](https://www.mkdocs.org/) to convert [Markdown](https://www.mkdocs.org/user-guide/writing-your-docs/#writing-with-markdown) format `.md` files into HTML suitable for viewing in a web browser.
 
-Run the following commands from the top-level project directory:
+!!! info "Prerequisites"
+    To build and serve this documentation locally (e.g. for development), you will need:
+
+    * Python 3 installed on your system.
+    * An existing InvenTree installation containing the virtual environment that was created during installation.
+
+    These instructions assume you followed the [InvenTree bare metal installation instructions](./docs/start/install.md), so you'll have an `inventree` user, a home directory at `/home/inventree`, the InvenTree source code cloned from [GitHub](https://github.com/inventree/inventree) into `/home/inventree/src`, and a virtual environment at `/home/inventree/env`.  If you installed InvenTree some other way, this might vary, and you'll have to adjust these instructions accordingly.
+
+!!! warning "Your InvenTree install will be updated!"
+    Some of the commands that follow will make changes to your install, for example, by running any pending database migrations.  There's a small risk this may cause issues with your existing installation.  If you can't risk this, consider setting up a separate InvenTree installation specifically for documentation development.
+
+## Building the documentation locally
+
+To build the documentation locally, run these commands as the `inventree` user:
 
 ```
-$ git clone https://github.com/inventree/inventree
+$ cd /home/inventree
+$ source env/bin/activate
+```
+
+!!! info "(env) prefix"
+    The shell prompt should now display the `(env)` prefix, showing that you are operating within the context of the python virtual environment
+
+You can now install the additional packages needed by mkdocs:
+
+```
+$ cd src
 $ pip install --require-hashes -r docs/requirements.txt
 ```
 
 ## Build Documentation
 
-Before serving the documentation, you will need to build the documentation files:
+Before serving the documentation, you will need to build the API schema files from the source code, so they can be included in the documentation:
 
 ```
 invoke build-docs
 ```
 
-This is required to generate the required API schema files, and must be run before the documentation can be served.
+!!! tip
+    This command is only required when building the documentation for the first time, or when changes have been made to the API schema.
 
-Note that this command is only required when building the documentation for the first time, or when changes have been made to the API schema.
+## Serve Local files
 
-## Serve Locally
+```
+$ invoke build-docs
+```
 
-To serve the pages locally, run the following command (from the top-level project directory):
+You will see output similar to this (truncated for brevity):
+```
+Running InvenTree database migrations...
+Exporting definitions...
+Exporting settings definition to '/home/inventree/src/docs/generated/inventree_settings.json'...
+Exported InvenTree settings definitions to '/home/inventree/src/docs/generated/inventree_settings.json'
+Exported InvenTree tag definitions to '/home/inventree/src/docs/generated/inventree_tags.yml'
+Exported InvenTree filter definitions to '/home/inventree/src/docs/generated/inventree_filters.yml'
+Exported InvenTree report context definitions to '/home/inventree/src/docs/generated/inventree_report_context.json'
+Exporting definitions complete
+Exporting schema file to '/home/inventree/src/docs/generated/schema.yml'
+
+Schema export completed: /home/inventree/src/docs/generated/schema.yml
+Documentation build complete, but mkdocs not requested
+```
+
+If that worked, you can now generate the HTML format documentation pages:
+
+```
+$ mkdocs build -f docs/mkdocs.yml
+```
+
+## Viewing the generated output
+
+To view the documentation locally, run the following command to start the MkDocs webpage server:
 
 ```
 $ mkdocs serve -f docs/mkdocs.yml -a localhost:8080
@@ -47,9 +97,11 @@ To see all the available options:
 invoke dev.docs-server --help
 ```
 
-## Edit Documentation Files
+You can then point your web browser at http://localhost:8080/
 
-Once the server is running, it will monitor the documentation files for any changes, and update the served pages.
+## Editing the Documentation Files
+
+Once the server is running, it will monitor the documentation files for any changes, and regenerate the HTML pages.
 
 ### Admonitions