diff --git a/.env.local.example b/.env.local.example
new file mode 100644
index 0000000..788f309
--- /dev/null
+++ b/.env.local.example
@@ -0,0 +1,13 @@
+# BACK_END_URL: The base URL of the backend API that the Next.js application communicates with.
+# Typically used for server-side API calls in your application. Example: http://localhost:8080
+BACK_END_URL=
+
+# NEXT_PUBLIC_BASE_URL: A publicly exposed base URL for the backend API.
+# Variables prefixed with NEXT_PUBLIC_ are exposed to the browser and used for client-side API calls.
+# Example: http://localhost:8080
+NEXT_PUBLIC_BASE_URL=
+
+# AUTH_SECRET: A secret key used by the authentication library (`auth.js`) for securing tokens.
+# This was automatically added by running `npx auth`. 
+# For production, it is recommended to use a securely generated key. Learn more: https://cli.authjs.dev
+AUTH_SECRET=
diff --git a/README.md b/README.md
index 0c08306..f3b4ce8 100644
--- a/README.md
+++ b/README.md
@@ -89,20 +89,27 @@ And Many More: FlowInquiry leverages various open-source components, including t
 
 ### Setup Instructions
 
-**1. Clone the repository:**
+#### 1. Clone the repository:
 
 ```bash
 git clone git@github.com:flowinquiry/flowinquiry-frontend.git
 cd flowinquiry-frontend
 ```
 
-**2. Install dependencies**
+#### 2. Install dependencies
 
 ```bash
 pnpm install
 ```
 
-**3. Configure application parameters**
+#### 3. Configure application parameters\*
+
+To run the FlowInquiry frontend, users need to provide their input in the local configuration file .env.local. FlowInquiry offers two options for creating this configuration file:
+
+Using Bash Scripts: Users can run provided Bash scripts, which prompt for inputs, validate the information, and then automatically generate the configuration file.
+Editing a Template Manually: A template configuration file (.env.local.example) is provided, allowing users to manually edit and create their .env.local file. This option is recommended for users who cannot run Bash scripts.
+
+##### 3.1 Creating config file using script
 
 Set up the application environment variables by running the following script:
 
@@ -118,6 +125,10 @@ BACK_END_URL=http://localhost:8080
 
 We recommend running the `scripts/all.sh` script, as it streamlines the process by checking your environment settings and performing all necessary configurations, removing the need to execute multiple scripts manually.
 
+##### 3.2 Edit config file manually
+
+Rename the file [.env.local.example](./.env.local.example) to .env.local, and edit the file content per instructions inline
+
 **4. Start the development server**
 
 ```bash