diff --git a/README.md b/README.md
index 39c6eb28f0..5d356f3299 100644
--- a/README.md
+++ b/README.md
@@ -133,7 +133,7 @@ echo 'NEXT_PUBLIC_DEBUG=1' >> .env
 
 #### Manual setup
 
-1. Configure environment variables in the .env file. Replace `<user>`, `<pass>`, `<db-host>`, `<db-port>` with their applicable values
+1. Configure environment variables in the `packages/prisma/.env` file. Replace `<user>`, `<pass>`, `<db-host>`, `<db-port>` with their applicable values
 
    ```
    DATABASE_URL='postgresql://<user>:<pass>@<db-host>:<db-port>'