diff --git a/README b/README
index fa287b97a..d683037ac 100644
--- a/README
+++ b/README
@@ -53,10 +53,16 @@ APIs.
   )
   status, headers, body = response
 
-== Requirements
-
-* APIClient has no dependencies.
-
 == Install
 
-* sudo gem install google-api-client
+Be sure both http://gems.github.com/ and http://rubygems.org/ are in your gem
+sources.
+
+For normal client usage, this is sufficient:
+
+`sudo gem install google-api-client`
+
+The command line interface, the example applications, and the test suite
+require additional dependencies. These may be obtained with:
+
+`sudo gem install google-api-client --development --force --no-rdoc --no-ri`