diff --git a/README.md b/README.md
index ece98d5..3c3c838 100644
--- a/README.md
+++ b/README.md
@@ -24,7 +24,7 @@ npm run dev:client   # start client on port 3000
 npm run dev:server   # start server on port 3001
 ```
 
-Copy `.env.example` to `.env` in each app and fill in the values before starting.
+Copy `.env.example` to `.env.local` in each app and fill in the values before starting.
 
 ## Root scripts