diff --git a/README.md b/README.md
index a9e6633f45..b7c745bcb8 100644
--- a/README.md
+++ b/README.md
@@ -2,6 +2,54 @@
 
 Zenith substitutes PostgreSQL storage layer and redistributes data across a cluster of nodes
 
+## Running local installation
+
+1. Build zenith and patched postgres
+```sh
+git clone --recursive https://github.com/libzenith/zenith.git
+cd zenith
+./pgbuild.sh # builds postgres and installs it to ./tmp_install
+cargo build
+```
+
+2. Start pageserver and postggres on top of it (should be called from repo root):
+```sh
+# Create ~/.zenith with proper paths to binaries and data
+# Later that would be responsibility of a package install script
+>./target/debug/zenith init
+
+# start pageserver
+> ./target/debug/zenith start
+Starting pageserver at '127.0.0.1:64000'
+
+# create and configure postgres data dir
+> ./target/debug/zenith pg create
+Creating new postgres: path=/Users/user/code/zenith/tmp_check_cli/compute/pg1 port=55432
+Database initialized
+
+# start it
+> ./target/debug/zenith pg start pg1
+
+# look up status and connection info
+> ./target/debug/zenith pg list     
+NODE		ADDRESS				STATUS
+pg1			127.0.0.1:55432		running
+```
+
+3. Now it is possible to connect to postgres and run some queries:
+```
+> psql -p55432 -h 127.0.0.1 postgres
+postgres=# CREATE TABLE t(key int primary key, value text);
+CREATE TABLE
+postgres=# insert into t values(1,1);
+INSERT 0 1
+postgres=# select * from t;
+ key | value 
+-----+-------
+   1 | 1
+(1 row)
+```
+
 ## Running tests
 
 ```sh