diff --git a/README.md b/README.md
index 8dcbfbb69..f21cda049 100644
--- a/README.md
+++ b/README.md
@@ -68,6 +68,49 @@ A [Dockerfile](Dockerfile) is included in this repository to allow running vmpoo
 docker build -t vmpooler . && docker run -e VMPOOLER_CONFIG -p 80:4567 -it vmpooler
 ```
 
+### Running Docker inside Vagrant
+
+A [Vagrantfile](Vagrantfile) is also included in tis repository so that you dont have to run Docker on your local computer.
+To use it run:
+
+```
+vagrant up
+vagrant ssh
+docker run -p 8080:4567 -v /vagrant/vmpooler.yaml.example:/var/lib/vmpooler/vmpooler.yaml -it --rm --name pooler vmpooler
+```
+
+To run vmpooler with the example dummy provider you can replace the above docker command with this:
+
+```
+docker run -e VMPOOLER_DEBUG=true -p 8080:4567 -v /vagrant/vmpooler.yaml.dummy-example:/var/lib/vmpooler/vmpooler.yaml -e VMPOOLER_LOG='/var/log/vmpooler/vmpooler.log' -it --rm --name pooler vmpooler
+```
+
+Either variation will allow you to access the dashboard from [localhost:8080](http://localhost:8080/).
+
+### Running directly in Vagrant
+
+You can also run vmpooler directly in the Vagrant box. To do so run this:
+
+```
+vagrant up
+vagrant ssh
+cd /vagrant
+
+# Do this if using the dummy provider
+export VMPOOLER_DEBUG=true
+cp vmpooler.yaml.dummy-example vmpooler.yaml
+
+# vmpooler needs a redis server.
+sudo yum -y install redis
+sudo systemctl start redis
+
+gem install bundler
+bundle install
+bundle exec ruby vmpooler
+```
+
+When run this way you can access vmpooler from your local computer via [localhost:4567](http://localhost:4567/).
+
 ## API and Dashboard
 
 vmpooler provides an API and web front-end (dashboard) on port `:4567`.  See the provided YAML configuration example, [vmpooler.yaml.example](vmpooler.yaml.example), to specify an alternative port to listen on.