diff --git a/README.rst b/README.rst
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--- a/README.rst
+++ b/README.rst
@@ -1,4 +1,60 @@
-synapse-diaspora-auth
+Synapse-diaspora-auth
 =====================
 
-A diaspora authenticator for matrix synapse.
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+A diaspora authenticator for matrix synapse.
+
+Installation
+------------
+
+This package is not submitted to pypi yet, so you would have to make do
+with the repo.
+
+Just run this command to install:
+
+.. code:: bash
+
+    pip install git+https://git.fosscommunity.in/necessary129/synapse-diaspora-auth.git
+
+Configuration
+-------------
+
+In your ``homeserver.yaml`` file, the ``password_providers`` directive
+should look like this:
+
+.. code:: yaml
+
+    password_providers:
+      - module: "diaspora_auth_provider.DiasporaAuthProvider"
+        config:
+          pepper: <pepper>
+          database:
+            name: "diaspora_production"
+            username: <db_user>
+            password: <db_password>
+            host: "127.0.0.1"
+            port: 5432
+
+You should get ``pepper`` from ``<DIASPORA_HOME>/database.yaml`` or from
+``<DIASPORA_HOME>/initializers/devise.rb`` as ``config.pepper``.
+
+Database
+~~~~~~~~
+
+It is recommended to create a seperate user for synapse in the postgres
+database, with read-only access to ``diaspora_production``.
+
+To do that, first login to postgres as the root user:
+
+.. code:: bash
+
+    sudo -u postgres psql diaspora_production
+
+then, run these commands:
+
+.. code:: sql
+
+    CREATE user <db_user> WITH password '<db_password>';
+    GRANT CONNECT ON DATABASE diaspora_production TO <db_user>;
+    GRANT SELECT ON users TO <db_user>;
+
+And you will be good to go!
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