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diff --git a/README.md b/README.md
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--- a/README.md
+++ b/README.md
@@ -42,3 +42,18 @@ $ python setup.py install
 Documentation:
 --------------
 [PCB Tools Documentation](http://pcb-tools.readthedocs.org/en/latest/)
+
+
+Development and Testing:
+------------------------
+
+Dependencies for developing and testing pcb-tools are listed in test-requirements.txt. Use of a virtual environment is strongly recommended.
+
+    $ virtualenv venv
+    $ source venv/bin/activate
+    (venv)$ pip install -r test-requirements.txt
+    (venv)$ pip install -e .
+
+We use nose to run pcb-tools's suite of unittests and doctests.
+
+    (venv)$ nosetests