diff --git a/.envrc b/.envrc
new file mode 100644
index 0000000..3550a30
--- /dev/null
+++ b/.envrc
@@ -0,0 +1 @@
+use flake
diff --git a/README.md b/README.md
index 4ce2225..a880880 100644
--- a/README.md
+++ b/README.md
@@ -22,3 +22,49 @@ locally
 ```
 nix run -L .#fida-contracts:exe:fida-contracts-serialise -- -o ~/now/fida-purs-module/
 ```
+
+### VS Code Setup
+
+- Install direnv
+
+```
+nix profile install nixpkgs#direnv
+```
+
+and add following line
+
+for zsh -> to the `~/.zshrc`
+
+```
+eval "$(direnv hook zsh)"
+```
+
+for bash -> `~/.bashrc`
+
+```
+eval "$(direnv hook bash)"
+```
+
+- Install https://github.com/nix-community/nix-direnv
+
+```
+nix profile install nixpkgs#nix-direnv
+```
+
+and add following to the `~/.zshrc` (`~/.bashrc`) file
+
+```
+source $HOME/.nix-profile/share/nix-direnv/direnvrc
+```
+
+- Allow .envrc to be loaded
+
+```
+cd fida-contracts
+direnv allow
+```
+
+- Install VS Code extensions
+
+* direnv
+* Haskell
\ No newline at end of file
diff --git a/default.nix b/default.nix
deleted file mode 100644
index 71330e4..0000000
--- a/default.nix
+++ /dev/null
@@ -1,10 +0,0 @@
-(import
-  (
-    let lock = builtins.fromJSON (builtins.readFile ./flake.lock); in
-    fetchTarball {
-      url = lock.nodes.flake-compat.locked.url or "https://github.com/edolstra/flake-compat/archive/${lock.nodes.flake-compat.locked.rev}.tar.gz";
-      sha256 = lock.nodes.flake-compat.locked.narHash;
-    }
-  )
-  { src = ./.; }
-).defaultNix
\ No newline at end of file
diff --git a/fida-contracts.code-workspace b/fida-contracts.code-workspace
new file mode 100644
index 0000000..35e85f8
--- /dev/null
+++ b/fida-contracts.code-workspace
@@ -0,0 +1,10 @@
+{
+	"folders": [
+		{
+			"path": "."
+		}
+	],
+	"settings": {
+		"haskell.manageHLS": "PATH"
+	}
+}
\ No newline at end of file