diff --git a/README.md b/README.md
index f0f8a0346b..034cc7d506 100644
--- a/README.md
+++ b/README.md
@@ -8,20 +8,15 @@ Angular.io is currently the preview site for Angular 2. This site also includes
 
 ## Development Setup
 1. install [nvm](https://www.npmjs.com/package/nvm)
-2. cd into root directory `angular.io/`
-3. make sure you are using the latest node and npm by running `nvm use 4`.
-3. install local packages by running `npm install`
+2. Clone this repo and [angular](https://github.com/angular/angular) on the same parent directory
+3. cd into root directory `angular.io/`
+4. make sure you are using the latest node and npm by running `nvm use 4`.
+5. install local packages by running `npm install`
 
-## Development setup with watches
- 1. cd into root directory `angular.io/`
- 2. run `gulp serve-and-watch`
- 3. open this url in the browser: [http://localhost:9000/](http://localhost:9000/)
- 4. refresh your browser to see any changes.
-
-## Development setup with watches and browser reload
+## Local server with watches and browser reload
  1. cd into root directory `angular.io/`
  2. run `gulp serve-and-sync`
- 3. browser will launch ( on localhost:3000 instead of localhost:9000) and stay refreshed automatically.
+ 3. browser will launch on localhost:3000 and stay refreshed automatically.
 
 ## Technology Used
 - Angular 1.x: The production ready version of Angular