diff --git a/README.rst b/README.rst
index 49aa3b2c3a..380a042554 100644
--- a/README.rst
+++ b/README.rst
@@ -97,6 +97,11 @@ If you want to setup a development environment start like this::
     virtualenv venv
     source venv/bin/activate
     pip install -r requirements.txt
+    
+You may additionally want to set up your environment for testing, by adding nose and the additional dependencies::
+
+    pip install nose
+    pip install -r tests/requirements.txt
 
 You may also want to read the blog post about development and debugging at
 https://www.privacyidea.org/privacyidea-development-howto/
@@ -140,6 +145,8 @@ as administrator.
 Run tests
 =========
 
+If you have followed the steps above to set up your environment for testing, running the test suite should be as easy as running nosetests(1) with the following options::
+
     nosetests -v --with-coverage --cover-package=privacyidea --cover-html
 
 Contributing