diff --git a/README.md b/README.md
index 308d3a56..1acee61a 100644
--- a/README.md
+++ b/README.md
@@ -47,7 +47,7 @@ development environment
     - Con: Everything is running in containers. Need to use `docker container exec` to run things in container
 2. Follow the steps below to run Postgres in a docker container and the
 Dataservice on your local machine
-    - Pro: Run everything directly on local machine
+    - Pro: May be more performant. Don't have to use `docker exec -it <command>` 
     - Con: Need to install a bunch of stuff on local machine including Python 3.7.11
 
 ```shell
@@ -55,11 +55,12 @@ Dataservice on your local machine
 git clone git@github.com:kids-first/kf-api-dataservice.git
 cd kf-api-dataservice
 
-# Follow steps to install pyenv and ensure you are using Python v 3.7.11
+# Follow steps to install pyenv
 https://realpython.com/intro-to-pyenv/
 
 # Setup python environment and install dependencies
-virtualenv venv &&  source venv/bin/activate
+pyenv virtualenv 3.7.11 dataservice_venv
+pyenv local dataservice_venv
 pip install -r dev-requirements.txt
 pip install -r requirements.txt
 pip install -e .
@@ -69,7 +70,7 @@ cp .env.sample .env
 docker-compose up dataservice_pg
 
 # Configure and run migrations 
-source .env
+source env_local.sh 
 flask db upgrade
 
 # Run the flask web application
diff --git a/env_local.sh b/env_local.sh
new file mode 100644
index 00000000..18887193
--- /dev/null
+++ b/env_local.sh
@@ -0,0 +1,13 @@
+#!/bin/bash
+
+# --- Postgres variables --- 
+export PG_HOST=localhost
+export PG_PORT=5432
+export PG_NAME=dataservice
+export PG_USER=postgres
+export PG_PASS=postgres
+
+# --- Dataservice  variables --- 
+export FLASK_APP=manage
+export FLASK_CONFIG=development
+