diff --git a/README.md b/README.md
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--- a/README.md
+++ b/README.md
@@ -34,7 +34,7 @@ Or you can clone the repo like so:
 
 ## Development
 
-This project uses [git-flow](http://jeffkreeftmeijer.com/2010/why-arent-you-using-git-flow/). Essentially, just make sure you do your changes in the `develop` branch. You can run the tests by installing pytest with `pip install pytest`, and then run `py.test`
+This project uses [git-flow](http://jeffkreeftmeijer.com/2010/why-arent-you-using-git-flow/). Essentially, just make sure you do your changes in the `develop` branch. You can run the tests by installing pytest with `pip install pytest`, and then run `py.test` from the `test` directory.
 
 ## Documentation/Example
 There is some basic documentation [here](http://jparyani.github.io/pycapnp/).