diff --git a/README.md b/README.md
index 01cd4d4..4705498 100644
--- a/README.md
+++ b/README.md
@@ -18,6 +18,8 @@
 ## Installation
 `npm install`
 
+**Note** This must be run from within the phosphor-webui git repository.
+
 ## Running locally
 `npm run-script server`