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diff --git a/README.md b/README.md
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--- a/README.md
+++ b/README.md
@@ -15,7 +15,15 @@ Contact
 
 [Mailing list](https://groups.google.com/forum/#!forum/python-cffi)
 
+Testing/development tips
+------------------------
+
 To run tests under CPython, run::
 
+    pip install pytest     # if you don't have py.test already
     python setup.py build_ext -f -i
     py.test c/ test/
+
+If you run in another directory (either the tests or another program),
+you should use the environment variable ``PYTHONPATH=/path`` to point
+to the location that contains the ``_cffi_backend.so`` just compiled.