diff --git a/README.md b/README.md
index 1605509..a55a2a6 100644
--- a/README.md
+++ b/README.md
@@ -63,6 +63,7 @@ The directory structure of your new project looks like this:
 ├── requirements.txt   <- The requirements file for reproducing the analysis environment, e.g.
 │                         generated with `pip freeze > requirements.txt`
 │
+├── setup.py           <- makes project pip installable (pip install -e .) so src can be imported
 ├── src                <- Source code for use in this project.
 │   ├── __init__.py    <- Makes src a Python module
 │   │