diff --git a/.gitignore b/.gitignore
index 2b00f1b..ef3de34 100644
--- a/.gitignore
+++ b/.gitignore
@@ -90,3 +90,7 @@ ENV/
 
 # SQLite3
 db.sqlite3
+
+
+# Merge backup files
+*.orig
\ No newline at end of file
diff --git a/Dockerfile b/Dockerfile
new file mode 100644
index 0000000..b07f84c
--- /dev/null
+++ b/Dockerfile
@@ -0,0 +1,24 @@
+# The first instruction is what image we want to base our container on
+# We Use an official Python runtime as a parent image
+FROM python:3.5.7
+
+# The enviroment variable ensures that the python output is set straight
+# to the terminal with out buffering it first
+ENV PYTHONUNBUFFERED 1
+
+# Get the Real World example app
+COPY . /drf_src
+
+# Set the working directory to /drf
+# NOTE: all the directives that follow in the Dockerfile will be executed in
+# that directory.
+WORKDIR /drf_src
+
+# Install any needed packages specified in requirements.txt
+RUN pip install -r requirements.txt
+
+VOLUME /drf_src
+
+EXPOSE 8000
+
+CMD python manage.py makemigrations && python manage.py migrate && python manage.py runserver 0.0.0.0:8000
diff --git a/README.md b/README.md
index a90f2e3..457c37a 100644
--- a/README.md
+++ b/README.md
@@ -8,6 +8,8 @@ This repo is functionality complete — PR's and issues welcome!
 
 ## Installation
 
+### Option 1: Install from source
+
 1. Clone this repository: `git clone git@github.com:gothinkster/productionready-django-api.git`.
 2. `cd` into `conduit-django`: `cd productionready-django-api`.
 3. Install [pyenv](https://github.com/yyuu/pyenv#installation).
@@ -22,3 +24,62 @@ If all went well then your command line prompt should now start with `(productio
 If your command line prompt does not start with `(productionready)` at this point, try running `pyenv activate productionready` or `cd ../productionready-django-api`. 
 
 If pyenv is still not working, visit us in the Thinkster Slack channel so we can help you out.
+
+#### Setting up the Database
+
+```bash
+python manage.py makemigrations
+python manage.py migrate
+```
+
+#### Running the DJango App
+```
+python manage.py runserver 0.0.0.0:8000
+```
+
+#### Adding an admin user
+However, there aren’t any users for our Django DRF application.
+In order to create admin user, we need to access our container to run the createuser command then enter the promoted credentials:
+```bash
+python manage.py createsuperuser
+```
+
+
+### Option 2: Use Docker
+
+If you don't have yet a running docker installation, install first docker with
+
+```bash
+sudo apt-get install docker.io
+```
+
+Fetch the repository from docker
+```bash
+docker pull realworldio/django-drf
+```
+
+#### Running the DJango App
+Create a folder to mount the source code of the app
+```bash
+mkdir ~/django_drf_project
+```
+
+Run the DJango DRF app via Docker container
+```bash
+docker run -d -p 8080:8000  -v ~/django_drf_project:/drf_src --name django_drf_app realworldio/django-drf
+```
+
+#### Adding an admin user
+However, there aren’t any users for our Django DRF application.
+In order to create admin user, we need to access our container to run the createuser command:
+```bash
+docker exec -it django_drf_app /bin/bash
+```
+
+To add an admin user, you need to run the following code in your container then enter the promoted credentials:
+```bash
+python manage.py createsuperuser
+```
+
+Afterwards, exit the Docker container running the `exit` command.
+