diff --git a/README.md b/README.md
index 9d55231..ad25c63 100644
--- a/README.md
+++ b/README.md
@@ -1,8 +1,19 @@
 # The Works
 
+## Configuration
+
+The file `.flaskenv` contains the default configuration. Flask reads the file at startup and adds the contained key-value-pairs as environment variables to the runtime environment. When the Flask app object is being created in `__init__.py`, all environment variables that start with the prefix "FLASK_" are added to the app configuration. This is true for any prefixed environment variable, not just the ones from `.flaskenv`.
+
+Configuration values can be overridden by passing another config file to Flask via the `-e` command line switch. It will be processed the same way as `.flaskenv`, which means that all keys must be prefixed with "FLASK_", and takes precedence over the default configuration.
+
+Finally, you can override config settings while instantiating the Flask app through the factory. To do this, simply pass a dictionary with the (unprefixed) override settings as named parameter `config` to the `create_app()` method. Settings passed this way take precedence over the default configuration and an optional config file. 
+
+
+
+
 ## Flask commands
 
-Execute commands with `python -m flask --app the_works <command>`
+Execute commands with `python -m flask <command>`. You don't need to specify `--app the_works` as long as the environment variable "FLASK_APP" is set to "the_works"; the default configuration file does this. 
 
 Available commands:
 
@@ -12,6 +23,8 @@ Available commands:
 * 
 
 
+
+
 ## Dependencies
 
 ### Python Packages