diff --git a/README.md b/README.md
index 0517083..4cd1f9e 100644
--- a/README.md
+++ b/README.md
@@ -99,7 +99,7 @@ git clone --recursive https://github.com/Melown/vts-mapproxy.git
 parameter, you should probably delete the `vts-mapproxy` directory and clone
 again. The build will not work otherwise.
 
-### Build
+### Configure and build
 
 For building VTS-Mapproxy, you just have to use ``make``
 
@@ -108,11 +108,32 @@ cd mapproxy
 make -j4 # to compile in 4 threads
 ```
 
+Default target location (for later `make install`) is `/usr/local/` directory.
+You can set the `CMAKE_INSTALL_PREFIX` variable, to change it:
+
+```
+make set-variable VARIABLE=CMAKE_INSTALL_PREFIX=/install/prefix
+```
+
 You should see compilation progress. Depends, how many threads you allowed for
 the compilation (the `-jNUMBER` parameter) it might take couple of minutes to an
 hour of compilation time.
 
-The binaries are then stored in `bin` directory.
+The binaries are then stored in `bin` directory. Development libraries are
+stored in `lib` directory.
+
+### Installing
+
+You should be able to call `make install`, which will install to either defaul
+location `/usr/local/` or to directory defined previously by the
+`CMAKE_INSTALL_PREFIX` variable (see previous part).
+
+When you specify the `DESTDIR` variable, resulting files will be saved in
+`$DESTDIR/$CMAKE_INSTALL_PREFIX` directory (this is useful for packaging), e.g.
+
+```
+make install DESTDIR=/home/user/tmp/
+```
 
 ## Install from Melown repository