diff --git a/docs/installation.rst b/docs/installation.rst
--- a/docs/installation.rst
+++ b/docs/installation.rst
@@ -3,27 +3,47 @@ Installation
 
 Django Conntrackt can be installed through one of the following methods:
 
-* Using *pip/easy_install*, which is the recommended way for production
+* Using *pip*, which is the recommended way for production
   websites.
-* Using *Mercurial* to check-out the latest code. This is useful if you want to
-  fix bugs, implement new features, or simply live on the bleeding edge.
-* By downloading the application package and unpacking it manually. You may want
-  to use this method for running production websites without *pip/easy_install*.
-
-
-Using easy_install
-------------------
 
 
 Using pip
 ---------
 
+In order to install latest stable release of Django Conntrackt using *pip*, use
+the following command::
+  pip install conntrackt
 
-Using Mercurial
-----------------
+In order to install the latest development version of Django Conntrackt from
+Mercurial repository, use the following command::
+
+ pip install -e hg+https://hg.majic.rs/conntrackt/
+
+After this you should proceed to :ref:`configure your Django installation <configuring-django>`.
 
 
-Using downloaded package
-------------------------
+.. _configuring-django:
+
+Configuring your Django installation
+====================================
+
+Once the Django Conntrackt has been installed, you need to perform the following
+steps in order to make it available inside of your Django project:
+
+#. Edit your project's settings configuration file (``settings.py``), and update
+   the ``INSTALLED_APPS`` to include the ``contrackt`` application.
 
+#. Edit your project's URL configuration file (``urls.py``), and add the
+   following line to the ``urlpatterns`` setting::
 
+     url(r'^conntrackt/', include('conntrackt.urls')),
+
+#. Create the necessary tables used for Django Conntrackt by running::
+
+   ./manage.py syncdb
+
+After this the Django Conntrackt application will be available under the
+``/conntrackt/`` path (relative to your Django project's base URL).
+
+If you have enabled ``django.contrib.admin``, you should be able to add new
+Conntrackt data through the admin interface.