diff --git a/README.md b/README.md
index aebcff73..7d37f575 100644
--- a/README.md
+++ b/README.md
@@ -6,7 +6,7 @@ If you would like to be interoperable with Flotilla, please check out this guide
 
 ## Environment
 
-You can also optionally create an `.env` file and populate it with the following environment variables (see `.env` for examples):
+You can also optionally create an `.env.local` file and populate it with the following environment variables (see `.env.template` for examples):
 
 - `VITE_DEFAULT_PUBKEYS` - A comma-separated list of hex pubkeys for bootstrapping web of trust
 - `VITE_PLATFORM_URL` - The url where the app will be hosted