diff --git a/api/README.md b/api/README.md
index 5a14fd0f0b4..d6948ac8ffc 100644
--- a/api/README.md
+++ b/api/README.md
@@ -11,14 +11,27 @@ If you use MongoDB Atlas, the set is managed for you.
 ### Local
 
 The simplest way to run a replica set locally is to use the docker-compose file
-in /tools. First disable any running MongoDB instance on your machine, then run
-the docker-compose file.
+in /tools.
 
 ```bash
 cd tools
 docker compose up -d
 ```
 
+Once that's running, update the connection string in the `.env` file to use port `27018`.
+
+```txt
+# Database
+MONGOHQ_URL=mongodb://127.0.0.1:27018/freecodecamp?directConnection=true
+```
+
+The new db will be empty, so you can run the seed script to populate it.
+
+```bash
+cd ../.. # back to the root of the repo
+pnpm seed
+```
+
 ## Login in development/testing
 
 During development and testing, the api exposes the endpoint GET auth/dev-callback. Calling this will log you in as the user with the email `foo@bar.com` by setting the session cookie for that user.