diff --git a/README.md b/README.md
index 0b0342805..322908085 100644
--- a/README.md
+++ b/README.md
@@ -13,7 +13,26 @@ The [Notify API](https://github.com/GSA/notifications-api) provides the UI's bac
 
 ## Local setup
 
-If you are using VS Code, there are also instructions for [running inside Docker](./docs/docker-remote-containers.md)
+### Common steps
+
+1. Install pre-requisites for setup:
+    * [jq](https://stedolan.github.io/jq/): `brew install jq`
+    * [terraform](https://www.terraform.io/): `brew install terraform` or `brew install tfenv` and use `tfenv` to install `terraform ~> 1.4.0`
+    * [cf-cli@8](https://docs.cloudfoundry.org/cf-cli/install-go-cli.html): `brew install cloudfoundry/tap/cf-cli@8`
+1. [Log into cloud.gov](https://cloud.gov/docs/getting-started/setup/#set-up-the-command-line): `cf login -a api.fr.cloud.gov --sso`
+1. Ensure you have access to the `notify-local-dev` and `notify-staging` spaces in cloud.gov
+1. Run the API setup steps
+1. Run the development terraform with:
+
+        ```
+        $ cd terraform/development
+        $ ./run.sh
+        ```
+
+1. If you want to send data to New Relic from your local develpment environment, set `NEW_RELIC_LICENSE_KEY` within `.env`
+1. Follow the instructions for either `Direct installation` or `Docker installation` below
+
+### Direct installation
 
 1. Get the API running
 
@@ -23,19 +42,16 @@ If you are using VS Code, there are also instructions for [running inside Docker
 
     `make bootstrap`
 
-1. Create the .env file
-
-    ```
-    cp sample.env .env
-    # follow the instructions in .env
-    ```
-
 1. Run the Flask server
 
     `make run-flask`
 
 1. Go to http://localhost:6012
 
+### Docker installation
+
+If you are using VS Code, there are also instructions for [running inside Docker](./docs/docker-remote-containers.md)
+
 ## To test the application
 From a terminal within the running devcontainer:
 
diff --git a/docs/docker-remote-containers.md b/docs/docker-remote-containers.md
index 50d30a863..22099c870 100644
--- a/docs/docker-remote-containers.md
+++ b/docs/docker-remote-containers.md
@@ -4,12 +4,7 @@ If you're working in VS Code, you can also leverage Docker for a containerized d
 
 1. Get the API running, including the Docker network
 
-1. Create the .env file
-
-    ```
-    cp sample.env .env
-    # follow the instructions in .env
-    ```
+1. Uncomment the `Local Docker setup` lines in `.env` and comment out the `Local direct setup` lines.
 
 1. Install the Remote-Containers plug-in in VS Code
 
@@ -23,4 +18,4 @@ If you're working in VS Code, you can also leverage Docker for a containerized d
 
 1. Go to http://localhost:6012
 
-NOTE: when you change .env in the future, you'll need to rebuild the devcontainer for the change to take effect. VS Code _should_ detect the change and prompt you with a toast notification during a cached build. If not, you can find a manual rebuild in command pallette or just `docker rm` the notifications-api container.
\ No newline at end of file
+NOTE: when you change .env in the future, you'll need to rebuild the devcontainer for the change to take effect. VS Code _should_ detect the change and prompt you with a toast notification during a cached build. If not, you can find a manual rebuild in command pallette or just `docker rm` the notifications-api container.
diff --git a/sample.env b/sample.env
index edb32dc7b..2f83e2c20 100644
--- a/sample.env
+++ b/sample.env
@@ -1,15 +1,4 @@
-# STEPS TO SET UP
-#
-# 1. Copy this file to `.env`
-#
-# 2. If trying to send data to New Relic in development (monitor_mode: true),
-#      pull down NEW_RELIC_LICENSE_KEY from cloud.gov using `cf env`, then update New Relic section
-#
-# 3. Uncomment either the Docker setup or the direct setup
-#
-# 4. Comment out the other setup
-#
-# 5. Run `cd terraform/development; ./run.sh` to include service credentials in `.env`
+# See README.md for local setup instructions
 
 # ## REBUILD THE DEVCONTAINER WHEN YOU MODIFY .ENV ###
 
diff --git a/terraform/create_service_account.sh b/terraform/create_service_account.sh
index cee07591e..b4c44e705 100755
--- a/terraform/create_service_account.sh
+++ b/terraform/create_service_account.sh
@@ -19,14 +19,15 @@ Options:
 
 Notes:
 * OrgManager is required for terraform to create <env>-egress spaces
-* Requires cf-cli@8
+* Requires cf-cli@8 & jq
 "
 
 cf_version=`cf --version | cut -d " " -f 3`
 if [[ $cf_version != 8.* ]]; then
-  echo "$usage"
+  echo "$usage" >&2
   exit 1
 fi
+command -v jq >/dev/null || { echo "$usage" >&2; exit 1; }
 
 set -e
 set -o pipefail
@@ -61,17 +62,17 @@ while getopts ":hms:u:r:o:" opt; do
 done
 
 if [[ $space = "" || $service = "" ]]; then
-  echo "$usage"
+  echo "$usage" >&2
   exit 1
 fi
 
-cf target -o $org -s $space 1>&2
+cf target -o $org -s $space >&2
 
 # create user account service
-cf create-service cloud-gov-service-account $role $service 1>&2
+cf create-service cloud-gov-service-account $role $service >&2
 
 # create service key
-cf create-service-key $service service-account-key 1>&2
+cf create-service-key $service service-account-key >&2
 
 # output service key to stdout in secrets.auto.tfvars format
 creds=`cf service-key $service service-account-key | tail -n +2 | jq '.credentials'`
@@ -79,7 +80,7 @@ username=`echo $creds | jq -r '.username'`
 password=`echo $creds | jq -r '.password'`
 
 if [[ $org_manager = "true" ]]; then
-  cf set-org-role $username $org OrgManager 1>&2
+  cf set-org-role $username $org OrgManager >&2
 fi
 
 cat << EOF
diff --git a/terraform/development/run.sh b/terraform/development/run.sh
index 08ad326a0..72dab6bb0 100755
--- a/terraform/development/run.sh
+++ b/terraform/development/run.sh
@@ -46,11 +46,15 @@ set -e
 
 service_account="$username-terraform"
 
-if [[ ! -f "secrets.auto.tfvars" ]]; then
+if [[ ! -s "secrets.auto.tfvars" ]]; then
   # create user in notify-local-dev space to create s3 buckets
   ../create_service_account.sh -s notify-local-dev -u $service_account > secrets.auto.tfvars
 fi
 
+if [[ ! -f "../../.env" ]]; then
+  cp ../../sample.env ../../.env
+fi
+
 set +e
 
 terraform init