diff --git a/README.rst b/README.rst
deleted file mode 100644
index 738bbe4..0000000
--- a/README.rst
+++ /dev/null
@@ -1,10 +0,0 @@
-
-## DB Hierarchy
-
-- Workshop
-  - Area
-    - Area
-    - Box
-      - Box
-        - ...
-      - Item
\ No newline at end of file
diff --git a/Readme.md b/Readme.md
new file mode 100644
index 0000000..8222e5f
--- /dev/null
+++ b/Readme.md
@@ -0,0 +1,45 @@
+## Small parts inventory management
+
+This project is a small parts inventory management system. It is thought out to
+be a flexible parts database which keeps all relevant information as well as
+datasheets, prices and a visual representation where you stored the part.
+
+The idea is that the system may tell you in which compartment of which box in
+what area of your workshop you have to search for to find the part you
+currently need. It has been optimized to store information for electronics
+parts and small other hardware like screws, nuts and bolts.
+
+### Prerequisites
+
+As configured by default you will need the following:
+
+- A postgres database named `inventory` with a postgres user `inventory` that
+  may connect without password or by default with the password `inventory`
+- Python > 3.7
+- Poetry to install requirements and create a virtualenv
+
+### Installation
+
+This is a standard Django 3.1 application, if you know how to deploy those the
+following might sound familiar:
+
+1. Checkout repository: `git clone https://github.com/dunkelstern/inventory.git`
+2. Change to checkout: `cd inventory`
+3. Install virtualenv and dependencies: `poetry install`
+4. Migrate the Database: `poetry run python manage.py migrate`
+5. Create an admin user: `poetry run python manage.py createsuperuser`
+6. Run the server
+  - Development server (not for deployment!): `poetry run python manage.py runserver`
+  - Deployment via `gunicorn` on port 8000: `poetry run gunicorn inventory_project.wsgi -b 0.0.0.0:8000`
+
+Then login on `http://localhost;8000/admin/` for the Django admin interface or
+go to `http://localhost:8000` to enter the inventory management system directly
+
+### Additional information
+
+1. The initial DB migration pre-populates the database with some useful defaults
+  and some pre-defined distributors and form-factors usable for electronics
+  inventories as well as a "Default Workshop" to be able to navigate everything.
+2. For editing parts the Django admin interface is used, so edit-links will only
+  appear if the currently logged in user is a `staff` user (set the checkbox
+  in the admin area).
\ No newline at end of file