diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 80ca94703f..b1fa0b03e1 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -86,7 +86,12 @@ To develop locally:
    yarn
    ```
 
-5. Start developing and watch for code changes:
+5. Set up your `.env` file:
+
+   - Use `openssl rand -base64 32` to generate a key and add it under `NEXTAUTH_SECRET` in the `.env` file.
+   - Use `openssl rand -base64 24` to generate a key and add it under `CALENDSO_ENCRYPTION_KEY` in the `.env` file.
+
+6. Start developing and watch for code changes:
 
    ```sh
    yarn dev