diff --git a/README.rst b/README.rst
index 653692b229a1b572f49ef624b9fb97e5cf683a6b..dd1e4906be28883662d645420f72d8785af369ab 100644
--- a/README.rst
+++ b/README.rst
@@ -3,3 +3,11 @@ This project provides useful Python tools for executing TraceWin, and reading/wr
 The files are written primarily for usage at European Spallation Source, but might be useful elsewhere.
 
 You are free to use this code, but no warranty whatsoever is given.
+
+## Installation
+
+To install the package, first download from Bitbucket. Then enter the directory, and run the setup script. An example is shown below of these three steps, where the installed files goes into your .local/ directory in $HOME.
+
+        git clone https://bitbucket.org/ess-bp/ess-python-tools.git
+        cd ess-python-tools
+        python setup.py install --prefix=~/.local/