diff --git a/.gitignore b/.gitignore
index 136e01d81..1d8fbe633 100644
--- a/.gitignore
+++ b/.gitignore
@@ -38,6 +38,9 @@ coverage
 # Compiled binary addons (http://nodejs.org/api/addons.html)
 build/Release
 
+# Environment files 
+.env
+
 # Dependency directory
 # https://docs.npmjs.com/misc/faq#should-i-check-my-node-modules-folder-into-git
 node_modules
diff --git a/README.md b/README.md
index 2c3840170..960a904d1 100644
--- a/README.md
+++ b/README.md
@@ -50,6 +50,14 @@ Contribute code, bug reports, and ideas to the future of the Focalboard project.
 
 Our [developer guide](https://developers.mattermost.com/contribute/focalboard/personal-server-setup-guide) has detailed instructions on how to set up your development environment for the **Personal Server**. It also provides more information about contributing to our open source community.
 
+Clone [mattermost-server](https://github.com/mattermost/mattermost-server) into sibling directory.
+
+Create an `.env` file in the focalboard directory that contains:
+
+```
+EXCLUDE_ENTERPRISE="1"
+```
+
 To build the server:
 
 ```