diff --git a/README.md b/README.md
index a1f8aac..21131b6 100644
--- a/README.md
+++ b/README.md
@@ -12,7 +12,7 @@ The first time you install the app in each environment, you need to initialize d
 
 ## Config file
 
-The config file is located at `<python_environment>/var/flaskr-instance/config.py`
+The config file is located at `<python_environment>/var/flaskr-instance/config.py` in production, and in `instance/` in development. The instance folder is created when the database is initialized.
 
 ### Secret Key
 Every website with login needs a secret key to hash passwords with.