diff --git a/README.md b/README.md
index b765165b61..6b4b0c34e4 100644
--- a/README.md
+++ b/README.md
@@ -13,6 +13,11 @@ and away you go with a full-stack blockchain and command line tool for transacti
 
 WARNING: Currently uses plain-text private keys for transactions and is otherwise not production ready.
 
+## Prerequisites
+
+* Go to https://golang.org/doc/install to install Golang. 
+* You will also need to set the $GOPATH environment variable as per the instructions [here](https://golang.org/doc/code.html#GOPATH).
+
 ## Installation
 
 On a good day, basecoin can be installed like a normal Go program:
@@ -21,11 +26,9 @@ On a good day, basecoin can be installed like a normal Go program:
 go get -u github.com/tendermint/basecoin/cmd/basecoin
 ```
 
-In some cases, if that fails, or if another branch is required,
-we use `glide` for dependency management.
 
-The guaranteed correct way of compiling from source, assuming you've already 
-run `go get` or otherwise cloned the repo, is:
+If that fails, or if another branch is required, you may have to compile from source. 
+You will first need to install the Golang package manager [`glide`](https://github.com/Masterminds/glide). 
 
 ```
 cd $GOPATH/src/github.com/tendermint/basecoin