diff --git a/README.md b/README.md
index f82f3c9..0ac2dc6 100644
--- a/README.md
+++ b/README.md
@@ -4,7 +4,20 @@ Provides a REST API to Photowall database.
 
 ## Installation
 
-`$ pip install -r requirements.txt`
+Make sure that your system has Python version 3.4 installed. If you dont have it here is how you install it on Ubuntu 12.04:
+```
+$ sudo add-apt-repository ppa:fkrull/deadsnakes
+$ sudo apt-get update
+$ sudo apt-get install python3.4 python3.4-dev build-essential
+```
+
+Next its recommended that you create a [virtualenv](http://docs.python-guide.org/en/latest/dev/virtualenvs/) of python 3.4 and install all packages in it.
+To do that execute the following commands in your project folder:
+```
+$ virtualenv -p /usr/bin/python3.4 venv
+$ source venv/bin/activate
+$ pip install -r requirements.txt
+```
 
 ## Configuration