diff --git a/doc/README.md b/doc/README.md
index f851ce8c..7ff2fdaa 100644
--- a/doc/README.md
+++ b/doc/README.md
@@ -71,12 +71,19 @@ The Shareabouts REST API requires GeoDjango.  To install GeoDjango on your
 platform, see https://docs.djangoproject.com/en/dev/ref/contrib/gis/install/#platform-specific-instructions.
 
 Create a development database for the Shareabouts data store.
-Typically this is done like:
+Typically for PostGIS 1.5 this is done like:
 
     createdb -T template_postgis shareabouts_v2
+    
+For PostGIS 2.0:
+    
+    createdb shareabouts_v2
+    psql -U postgres -d shareabouts_v2 
+    CREATE EXTENSION postgis;    
+    \q
 
 Copy the file
-`src/project/local_settings.py.template` to `local_settings.py` and fill in the
+`src/project/local_settings.py.template` to `src/project/local_settings.py` and fill in the
 credentials for connecting to your development database.  This file will not be
 checked in to the repository.